Customers who only focus on pricing are usually among your worst clients. When you analyze your actual profit after taking into account your support costs, you’ll be shocked! The amount of time you have to spend to service a low ball customer will blow your mind. In reality, a low ball pricing-seeking customer is probably costing you a lot of money, including your opportunity costs to pursue higher profit clients.
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3 Negotiation Phrases for Low Ball Customers
You’ve spent time coming up with pricing for your products and services. Your pricing strategy should ensure that you make money, not lose it. So, let’s face it. If you have a customer who always asks for a lower price, you may find that you have to part ways. At best, you need to show your low balling customer that you are already at your rock bottom pricing.
Here are three negotiation phrases you can use to counter the low-ball price request.
1. Compare Apples to Apples, Not to Oranges
Create an opportunity to show the customer the added benefits of using your product or service compared to your competition. You should point out where the competitor is likely cutting costs to offer a lower price. Maybe you have a better return or exchange policy, or you provide free support for a longer period of time.
Negotiation phrases to use:
- “Could you share with me what you’re comparing our costs to so that I can see if we’re looking at apples-to-apples or apples-to-oranges?”
- “We make the appropriate investments to ensure that we maintain our high quality standards. <Competitor> is telling you they are cheaper. If I were you, I’d look to see where they are cutting corners. Let’s make sure we’re comparing the same thing so you don’t get an unwelcome surprise down the road.”
2. Offer to Take Out Options to Get to a Lower Price
To counter their request for a lower price, offer to cut certain options from your service/product so that they can get to a price that is more comfortable for them. This negotiation phrase uses a give and take approach to negotiating a fair deal for you and your prospect.
Negotiation phrases to use:
- “How about I take out options 4 and 5 so that you get closer to the price you’re looking for?”
- “Our Bronze package has lot of the options that you’re looking for and has a price point closer to your number. Shall I go over the details for this package?”
3. Use Established Brands to Relate Your Pricing
Comparing your product and price to established brands can help your prospect relate to your price points. This negotiation phrase instantly paints a picture for your low ball customer.
Negotiation phrases to use:
- “I wish I could give you a Mercedes at a Toyota price, but we both know that if it costs us more to service your account than we make, then it’s bad for both of us.”
- “Yeti coolers cost more than a standard cooler for a reason. We’re a lot like that.”
Getting to Yes
A classic negotiation phrases book entitled Getting to Yes can help you navigate the nuances of negotiations in your business. We highly recommend reading this to help polish your negotiating skills:
Know Your Negotiation Limits
If they won’t budge, don’t keep giving in. Know your negotiation limits.
See Phrases to Part Ways With Customers for gentle ways to tell a customer that they should look somewhere else.
Customers that only focus on price are the worst kind of customers to have. They don’t value what you provide. They are looking at your product or service as a commodity.
