Justifying the price
My passion, outside the world of selling, is scuba diving. I use this example because many are not familiar with technical scuba diving and the comparison to hot tub sales is deliberate.
Try to see the parallels between a novice purchasing dive equipment to a prospect walking into your store to purchase your products. The prospect may be as unfamiliar with hot tubs as a novice with scuba diving equipment.
Imagine walking into a store intent on purchasing diving equipment and seeing the ‘MARCO1606’ dive helmet priced at $6,999. A prospect would probably fall down after seeing the exorbitant price being asked. The reason for the ‘sticker shock’ is two fold.
Firstly, there is no ‘anchor price’ or anything to compare the asking price to and secondly, the prospect doesn’t see the value in spending $6,999 for a dive helmet. As the salesperson begins explaining the features, advantages and benefits of the dive helmet, the prospect will begin to see its value increase and the price justified.
At this point, the seasoned sales professional will have gathered all the information needed and will have moved into their product presentation phase. Their FAB statements, relating to the dive helmet’s features, might go something like this:
- “Mr. Scuba Diver, this is an ‘LPN’ connector unique to our helmets (feature). It provides you with instant two-way communication with the surface (advantage). You will be able to easily talk with your surface crew in real time and get instant feedback (benefit). Constant communication and guidance from the surface crew is important to you, isn’t it (hook)?”
- “All our dive helmets have a double-neck seal (feature), which means the fit between your helmet and dive suit will be exact (advantage). The benefit of our double seal is less cold water will seep in around your neck, keeping you warmer and drier (benefit). Would being warm and dry when you dive be of interest to you (hook)?”
- “We have a ‘B56’ mixing chamber (feature), which will allow you to confidently mix different dive gases (advantage), resulting in an increased bottom time (benefit). Being able to dive for a longer period of time is important to you, isn’t it (hook)?”
- “The ‘X7’ helmet offers a unique bail out system only found on our helmets (feature). It allows you to immediately jettison your gear (advantage) and safely return to the surface in the unlikely event of an ‘out-of-air’ situation (benefit). Is safely returning to the surface something you would be interested in doing (hook)?”
Keep in mind, these FAB statements will have been tailored to each particular prospect and their individual diving needs. Also remember, the more value the salesperson builds into the product, the more justified he/she is in asking $6,999. In addition to justifying the price, he/she substantially increases the prospects’ desire to move forward with the investment.
After reading the FAB statements regarding the ‘MARCO1606’ and understanding all of its features, advantages and most importantly, the benefits, the price of $6,999 will not seem all that outrageous to the prospect as they now understand the value of their investment.
Marco Longley is president of Top 10 Sales and Consulting in Langley, B.C. He is a seasoned hot tub sales professional who has been involved in many aspects of the business—from retail to senior sales management with several major hot tub manufacturers. Longley provides swimming pool and hot tub sales/marketing training seminars and is the author of The Ultimate Hot Tub and Pool $ales Book—a guide on how to increase sales. He can be reached at marco@top10salesandconsulting.com.
