When a Competitor Undercuts You

By Ann Barr

She made the telephone call, scheduled the appointment and everything seemed to go well. She wrote a thank-you note after the appointment and after that, made a follow-up telephone call to the client. The client wanted a demo. The demo was a success. The client asked for a proposal. Wow. Time to celebrate. But then something unexpected happened. A competitor came in and offered the same product for a lower price. The client bought from the competitor.

What happened? How could this have been prevented?

The Missing Elements 

First: It is critical to start - from the beginning - building trust and value - value, value and more value.  Value is defined as “quality relative to price.” Quality includes all non-price attributes involved - both attributes of the product and associated customer service.

Value is a critical way of differentiating your company from competitors. The challenge is to convince prospects that they will be getting VALUE that is greater than the price they are paying.

One definition of trust: “Firm reliance on the integrity, ability or character of a person or thing.”

Five Ways to Build Trust

   (1.) Create realistic client expectations - Help the client to understand exactly what you will do for him or her. What will create extra charges? How and when will you be billing the client? Living up to the expectations you create helps your clients to take you at your word.

   (2.) Help the client to understand the process - If s/he understands how you and your office works s/he can then know what to expect and when to expect it.

  ( 3.) Explain your plan and strategy - Not only does the client need to understand your office procedure but also what the plan and strategy is for his/her particular case. This will help client to know what to expect and when to expect it. Trust comes when the client feels confident and comfortable with the plan and the strategy.

   (4.) Never over promise - It is tempting to promise whatever the client requests without consulting a schedule or asking if it is doable. Over promising often causes broken agreements and thus broken trust.  Better to under promise and over deliver.

   (5.) Don’t allow interruptions at meetings - If you take interruptions during meetings with clients it makes them feel they are not important to you. (One sales rep who left her cell phone on during a meeting actually answered a call from another client during the meeting. Not a smart thing to do.) Eventually you erode the good will and trust that you had with them.

Why Opportunities Can Be Missed

One reason sales people miss the opportunity to build trust with their clients is: many sales reps feel conflicted about selling.  In some cases, our parents looked down on salespeople, so we feel vaguely guilty when we have to sell.  There is that vision of the used car salesman wearing the purple jacket and the yellow tie with the green shirt and asking:  “What do I have to do to get you into this car?” 

Why Hard Selling Has Gotten Harder

The goal of the sales process is to close deals—isn’t it?  Not if you want to build trust. The focus of trust-based selling isn’t the transaction, but the relationship.

The salesperson looking for that first phone-call sale may be disappointed and/or not successful in the long run. Building a good relationship is critical, if you want to keep the customer. The customer must feel s/he can trust the salesperson and most consumers do not want to buy when high-pressure sales tactics are used.

The truth is that clients want to trust us—to believe that we care about them and their interests. They want to believe we are trustworthy.

How can you PROVE you are trustworthy and provide value?

You can ask for testimonial letters from happy customers, but in order to speed up the process, send a testimonial request letter (or email with permission) and fax-back form. You can download (copy and paste) one free at http://www.telephonesales.com/Testimonials.htm

The principles of building trust start with the knowledge that if we consistently behave with the best interests of the client and the relationship, we will get more than our share of sales because we are fulfilling the highest desire of a client—to find an expert who can be trusted.

If this is not truly your attitude—that you really want to help people with the product or service you provide, be prepared to lose clients to your competitors. u

Ann Barr is a consultant and sales trainer who has written eight books on sales and marketing.  You can sign up for Ann’s free Weekly Sales Tips e-mailed newsletter at her web site www.sellingsupplies.com