32 thoughts on “I Really Hate This Approach!”

1. This to me shows that the person is NOT a salesperson, but merely an order taker. And yes, I would seriously think that they were initially trying to screw me over, big time!  I don’t do business with people or businesses like that.

   1. Well said Francey and let’s all put on the “No Order Taker” sign We’re better than that!

      Thanks Francey!

2. Paul:

   This is certainly not an approach that I would consider.  It does send the wrong message to the customer that “I was really soaking you on the first price”  but more importantly it does a couple of other things;  It cheapens your product and makes it a commodity rather than something that is value added and worthy of the original price and it also erodes any future pricing integrity you might have with that customer or anyone which that  customer may come in contact with in the future.  If this is the M.O. for this customer he is better left to deal with the competition.

   1. So true Bill and once we stoop to this level, we’ve basically told ourselves that its OK to sink to this level . . . and it really isn’t.

      Thanks for sharing your thoughts!

3. This is the Race to the Bottom I refuse to participate in. It commoditizes your service or product and demonstrates that you did not respect your customer/prospect enough to put your best foot forward from the beginning. I can’t imagine doing business with a vendor who used this approach.

   1. ”
      This is the Race to the Bottom I refuse to participate in. It commoditizes your service or product and demonstrates that you did not respect your customer/prospect enough to put your best foot forward from the beginning.” Everything about what you’ve just written rocks Jeanine . . . Thank you!

4. As the old story goes, we’ve already established what this company is and are now negotiating price.

   1. Very true Marc . . . Thanks!

5. When someone asks for my “best price” that tells me that they are price shoppers.  My experience is that my “best” price is almost always too high. Why? because I value relationships and loyalty and prefer to work with people that allow me to make a living.  bidding for someones business where they take the lowest price does not bode well for “Real” Salespeople. 

6. Paul, I agree with the other commentors.  A willingness to deeply discount your services or products instantly places you in the category of a “commodity”. As Jeanine said, this puts you in the race to the bottom. Your client loses respect for you and you resent them because you know that you are working at less than fair value. Certainly not a win-win situation.

   Chris Ryan
   Fusion Marketing Partners

7. It shows a complete lack of integrity and professionalism 

8. This is what “vendors” do. This is not what professional salespeople do if they want to be viewed as “trusted advisor”. 

   As already noted, this approach sabotages the relationship from the beginning. If this company becomes a customer, they will always expect that whatever the initial pricing quoted to them is lie. They will always push for a better deal. The business starts off as unprofitable right from the beginning and only gets worse.

9. If you have lost the deal then accept it and move on – that doesn’t mean you can’t qualify what a ‘special seasonal’ discount would do to keep the opportunity alive but all you’ve likely done is lowered your competition’s deal size and that’s simply not why I do this for a career. We play to win but I completely agree this is a move of desperation and experienced buyers (and even some novices) see this a mile away and know how to leverage it for the prospect’s own good, not the vendor.

10. Words of wisdom here! Our customers are not the ones who shop price – they shop value. If someone is only shopping price, then they will get what they pay for – usually less value for the money.

11. All good salespeople are trained to justify their price with their value. All good Purchasing guys are trained to get a better price.  If you’re selling a commodity, it IS a race to the bottom. Best price for same product wins every time. (all things being equal – delivery, service, support etc). If you’re being outbid and you are offering a product that has value, then sell the value. If the customer doesn’t perceive that value, which might just be the viability of your company vs the price dropper, then you didn’t do your job.

12. They were out of the running early because they must not have passed some kind of sniff test–which was confirmed by the fire sale. Just a guess! 

13. I could call this competitor and tell him to go on like this and that I’ll let know to “sorted” prospects what level of price he can do. And whish him to  sell as much as possible at this price…. 😉

14. If the competition makes the offer and the client accepts the deal, they deserve each other!  I do not want to be a part of it. 

15. We can reduce our rates by 50% too.  Which 2 1/2 days of the working week would you like us to blackout?

16. Very good point, Paul.

    Though, I must admit without trying to gouge the customer, I have been guilty of this (certainly not by 50% though!).
    Depending on the flexibility of the service you provide, there can be flexibility in your price, and in a competitive market, sometimes you just don’t know what price will get the deal.

17. Paul since you mention project I assume this is not a commodity situation. In this case dropping price would diminish the value in a lot of people’s minds. Even in a commodity situation if you can drop prices 50% without altering the offer that’s a red flag to me, especially if I was a buyer. Basically you are saying you are willing to take unfair advantage of the client until you get caught or someone is watching. 

    I have a recent situation I would love some feedback on: I promote both unique products and some commodity items. I had a new DM in one of my accounts who knows very little about the industry and he shops prices for everything. I have educated him on the value of our unique offerings and he seems to understand the value he is getting. However, competitors have come in on commodity items and dropped their drawers to get their foot in the door. I would love to hear feedback on whether or not you would price match if you knew this meant stopping your competitor from getting in the door, or would you sacrifice the commodity business to maintain margins and focus on the core products of the business?

    Note: the commodity item is not a high priority item, more of a necessity for our customers and offered as a convenience for our customers so they can have a one-stop shop for their required goods.

    My feeling was even if we matched price and the competition dropped prices further they would get the business. For this reason I have decided not to get into this “price war” situation, as it is not a core business for us.

18. I agree with you Paul. This is a desperate act if you slash your rates that much. I try to “toe the line” meaning no slashing of rates as much as possible. If a client is buying on price alone, chances are they are not going to be much of a client, always asking for the next discount.

19. Listening to all of you has made me feel better because I am one of those people that puts my best foot forward from the beginning.  I am in an insanely competitive sales industry where is it usually a “race to the bottom” which I totally despise because it goes against everything I stand for.  I was starting to wonder if I was doing it wrong.  I know alot of us out there are doing it right but what I want to know is why a buyer always gravitates to the lower price (besides the obvious) and doesn’t do his/her homework to ensure they are truly getting the best value???  Why are they so easily swayed by the price cutters who will give up their first born just to make a sale??
     

20. I agree with these posts and do not want to sell on price, but where do you find these clients that aren’t so price conscious? If 8 different print companies in the same area provide the same or very similar services, how do you truly create differentiation of value in order to get your fair price? I hear everyone saying don’t sell on price, but HOW are you actually doing it?

    1. These are people we have built trusting relationships with. It doesn’t happen overnight, but once it does, they come to value what you suggest, what you show them, what you teach them, and what you feel is best for helping their business succeed. It is trust! definitelyed

       1. As much as I believed this for years, I just recently experienced this with many of my clients who I thought trusted me as an advisor and have long relationships with. I have dealt with some of these folks for more than 6 years, some even longer. I changed jobs and all of a sudden the loyalty was gone. Or they cannot use me because the company isn’t WMBE…very discouraging! 

21. I wouldn’t touch with a ten foot pole. Good post Paul!

    Thanks,
    Pete

22. Living this right now – in real time- gave my best price plus all the other things they were not getting and should be – but the current provider lowered the price — do not want to be in that game but “baby needs new shoes” — where do we draw the line -that is the big question.

23. I am reminded of a story- Many years ago, two rail companies were competing against each other for the transport of cattle. As the price competition became hot, the one president from company A thought, “I will drop my price to 10 cents a head and then they will drop theirs to 5 cents a head and I will drive them out of business. They can’t afford to transport them at that price!!!

    As expected, the other company B dropped their price to 5 cents a head and as time went on, the first president, Company A, realized they were going broke! Somehow, the other company was making money or breaking even at the 5 cents a head. Finally, unable to keep it up, the president from Company A called the president from Company B and plainly asked how this was possible. The answer from Company B, “I’m shipping them on your rail line!” The president from company B made company A incur all the expense of the shipping, company B just became the broker.

    The moral? Sometimes your competition will drop their price to make you drop yours, to make winning of the sale painful. If the customer does go with the lower price? Encourage this behavior some more and soon you will not have a competitor. Price wars are part of the game. What’s your strategy to come out ahead?  Sometimes loosing the sale is the best option!

    1. Exactly. This game is played in many reverse auctions. We’ve seen a few companies belly up due to this practice in my area.

24. what is WMBE??

    1. Women Minority Business Enterprise

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