No matter how good your product or service, or how well-trained and effective your sales people, at some point in the sales cycle the customer is going to raise a price objection.
And how you deal with that objection will determine whether or not you close the sale.
The reality is that every business faces cash flow hurdles as it scales from one operating level to the next.
Whilst this is true for most products and services, it is particularly true for high-value B2B sales - where a price negotiation is a standard part of the sales process.
Before, exploring a new and more effective way to deal with this negotiation, it is important to recognise that your customers who raise a price objection are motivated by a variety of reasons, including:
- They do not see enough value in the product or service you are offering (keep working)
- The need to drive a hard bargain
- Fear of missing out… if you don’t ask, you don’t get
- Genuine affordability / cash flow concerns
Whilst some businesses adopt a non-negotiable pricing policy, the majority will empower their sales people with some level of discretion to close the sale.
Of course, as most sales people look for the path of least resistance, this often means that - if you offer (up to) 10% discount on large sales, over time all sales will trend towards this less 10% price.
Now there’s a better way.
With BizPay you can protect your list price and make your product or service more affordable for even the most cash flow challenged prospect.
Using the increasingly popular “buy now, pay later” mechanism, BizPay enables you to:
- Provide your customers with the option of paying any invoice ($2,000 - $200,000) in 4 easy monthly instalments
- At no cost to them (interest free)
Best of all, with BizPay
- The online application process for your customers is quick and simple (no detailed financials required)
- Whilst you get paid in full (less our 4% fee) in 24 hours
So, relax! Next time one of your customers brings up a pricing issue just say. I’m sorry, I have already given you the best price I can. What I can do in addition is allow you to pay the invoice over 4 equal monthly instalments at no additional cost to you!
Just ask yourself, for a 4% fee you get
- Paid in 24 hours
- Eliminate all credit control and collection costs
- Pass full liability for the debt to BizPay
- A ready made answer to your next pricing negotiation that meets your customer needs and protects your brand credibility
To get started, sign up here!
Written by BizPay
BizPay is a seamless technology platform that solves cash flow challenges associated with paying business invoices. The company was founded to help businesses grow better by enabling them to use top suppliers and professional service providers. Frictionless, transparent and affordable, innovative payment products allow businesses: to split bills into 4 easy instalments and/or receive full invoice payment in 24 hours to grow their businesses without being constrained by cash flow.