Written by Sean McPheat |
In a recent post, “4 Powerful Reasons To Walk Away From The Price ONLY Prospect,” I detailed how and why you need to walk away from that POP (Price Only Prospect). That is the prospect who cares nothing about service, value, or even reputation and is only concerned with, “How much?”
Even if you give away your shirt to close such prospects, usually they turn out to be nightmare clients, constantly demanding more for less and ready to dump you for a lower price at moment’s notice.
Recently, a few readers have asked if it is possible to close that POP, and then, in time, turn the customer into a profitable and loyal account. So, here is my take on trying to turn a lump of goal into a diamond.
Turning the Frog into a Prince
While it may be possible to turn the POP around into a customer that is able to see value in things other than the price, I don’t believe it will ever be worth the time and risk to try.
POPs do often change into value driven prospects. However, it is usually the result of an extremely negative situation. Something happens that hurts the prospect and becomes the motivating factor for change.
As an example, the POP haggles until he gets the rock bottom price for a particular product, passing up the higher priced models. Then, the lower priced brand proves to end up costing the POP far more money than the cost of the higher value products. In short, the POP eventually experiences the age-old adage that you get what you pay for. However, the motivating factor for change is usually something bad.
Added Value Increases the Problem
Second, you may be thinking that if you close that POP and then begin to demonstrate the true value to him or her, then it would open their eyes. Actually, it is the reverse.
The POP dragged you down to the lowest possible price. You caved in, took the bait and closed the sale. You now deliver service and value that is far above what the prospect paid for. Your hope is the prospect will realise that product was indeed worth a lot more. Therefore, the next time you make an offer, the prospect will understand that your pricing is fair.
That sounds good. But it does not work.
This prospect will instead think, “Wow, I got a great deal…I wonder how much lower I could have gotten the price?” I bargained for the lowest price and it paid off…I got a great deal…I’ll do even better this time!”
By you adding more value to the low price, the POPs understanding and appreciation will actually diminish, not grow.
Stand firm. Stand for value and you cannot loose.
(Image by Nick J Webb)
Originally published: 28 March, 2012