You Can't Compete on Price Alone
by Dera DeRoche-Jolet

The fastest gunfighters of the old West knew that inevitably someone with a quicker draw would ride into town. The winner would have to defend his reputation against any newcomers. It was a viscious circle that would never end. That's what price wars are like. Eventually you must ask yourself, "How low can I go?"

Instead, ask yourself, "Is this the best way for my business to compete in today's competitive residential security marketplace?" If you are competing solely on price, you will lose. Someone will eventually ride into town with a lower price. Why not change the way the game is played? Compete on your terms by offering and selling to the prospect what he is really looking for and you will out draw your competition. You can compete and win.

A price objection is the quickest way for a prospect to get rid of a salesperson. Yet, top sales professionals in almost every industry are seldom the ones with the lowest price. Often, price is more of a problem in the sales person's mind than the prospects. Top sales professionals have learned that most customers start out price-conscious, but end up value-conscious. Value is the combination of price, quality and service.

When dealing with price objections, remember:

* Price is seldom the only deciding factor.
* A price objection can obscure the real reasons your prospect is hesitating.
* Every price is too high until your prospect sees the benefits.
* Price becomes less important when the product or service is complex or
personalized.
* When your price is higher, you must provide extra value.
* Prospects often will test you to make sure they are getting the best deal.
* People usually buy from people they like, despite the price tag.

Show your prospect why he is better off with your company's benefits and values. If your customer service is noteworthy, your quality of work outstanding and your price fair and honest, then your value should be greater than the competition if they can only offer a lower price.

Project the right image and people will want to buy from you. Tell the right people about all the benefits when dealing with your company and you won't have to compete on price alone. Reassure your prospects and they will become your customers. Offer them exactly what they need or want.

Security customers want peace of mind. If you are just selling them on price, everybody loses. Prospects buy from companies because they offer more benefits than price alone. Here's what prospects look for and at in a company when making a purchasing decision:

* The benefits of your products and services, not the features.
* The promises you make. So be careful what you promise.
* Solutions to their problems.
* You, your employees and your service department. Your company is part of the package.
* Your believability. If they don't believe you, they won't buy from you.
* Other people's opinions of your business.
* Neatness. Just like in school, neatness counts. A neat image projects a positive message.
* Their expectations based on your sales and marketing to be met.
* Dependability. Your customers should know what to expect from your company.
* Convenience. The easier for a prospect to do business with your company, the faster he will become a customer.
* Simplicity. If they don't understand, they won't buy.
* Honesty.
* Value. All of the above.

Now, consider the kind of prospect you want to attract. Is it the subscriber who is motivated largely if not wholly by the price tag? Isn't this the sort of customer who will switch services for a lower monthly rate or even for a free -month of monitoring?

Step back for a minute and examine what you personally look for when making a purchase. Your prospects want the same things. People do need and want security. Your sales and marketing efforts will show them that security is available, affordable and desirable. Most people who are about to make a purchase honestly appreciate being steered in the right direction. Steer your business and marketing toward providing information and benefits and you won't have to worry about price or a shootout at the O.K. Corral.