Latest / Closing Sales in Nigeria - Sales For The Nigerian Business Person: The Sales and Marketing Blueprint / Pricing Psychology: Nurturing Relationships and Avoiding Price Shoppers

Transcript

Pricing Psychology: Nurturing Relationships and Avoiding Price Shoppers · Closing Sales in Nigeria - Sales For The Nigerian Business Person: The Sales and Marketing Blueprint

• 0:01
  Hello and welcome to the show. Today's question for the day is
• 0:05
  what strategies can one use to handle price objections?
• 0:12
  OK, well I've already done a tonne about how to handle price
• 0:17
  objections. So today I'm going to try and
• 0:18
  refocus the question and try and see how we can prevent price
• 0:22
  objections from coming up in the 1st place or how we can chase
• 0:26
  price shoppers away. So that's going to be my focus.
• 0:30
  I'm not going to be telling you how to handle price objections
• 0:32
  because I've done that loads of times in the past.
• 0:35
  So when you're done listening to this episode, scroll back a bit
• 0:38
  or maybe check YouTube. Hit type in my name into the
• 0:42
  search bar and then hit type in price and then send or type in
• 0:48
  objections, Tavishima objections, Tavishima price,
• 0:51
  then send. And then any of the former
• 0:54
  episodes that I've done where I tried to explore perspectives on
• 0:58
  how to handle price objections, you know that will come up.
• 1:01
  So OK, so before we begin, I have to define what an objection
• 1:07
  is in the 1st place for those people who may be discovering
• 1:10
  the show for the very first time.
• 1:12
  Now an objection is just any reason that a stakeholder, a
• 1:16
  potential customer, a partner, a whoever gives for not wanting to
• 1:20
  go ahead with the agenda, with the conversation, with the
• 1:25
  relationship, with the whatever it is that you have on the
• 1:27
  ground. So if you are trying to sell
• 1:32
  wedding planning services and someone says you're too
• 1:34
  expensive, that is a price objection.
• 1:38
  Let's see what else. Or if you're trying to sell
• 1:42
  cars, Toyota cars, and someone says OK, this Toyota 2024 model,
• 1:49
  I can get it cheaper if I go to Chukudi instead, that is a price
• 1:52
  objection. So reasons around money that
• 1:57
  people give for not wanting to go ahead.
• 2:00
  So in the latter example, I don't want to buy your Toyota
• 2:03
  because if I call up Chukudi, I can get it AT2M less.
• 2:08
  And same thing with the wedding planner, like, OK, if I go
• 2:12
  someplace else, I should be able to get it at the cheaper amount
• 2:15
  per plate. So I'm not wedding planner
• 2:17
  Katra, I should be able to get it cheaper at, you know, per
• 2:21
  plate. So why should I go ahead with
• 2:23
  you? So like I said, there are
• 2:25
  different ways of handling the price objections.
• 2:28
  So check for my episodes and you get caught up to speed about how
• 2:33
  to do that. So today we're going to refocus
• 2:35
  the conversation how we can either prevent all these money
• 2:39
  things from coming up in the first place or how we can get
• 2:43
  all these money people to leave us alone and to go someplace
• 2:46
  else. So the first thing that I
• 2:49
  recommend and I tell the people time and time again is let's
• 2:52
  bring up all these money and budget conversations early in
• 2:57
  the process when we're doing qualification.
• 3:00
  Now, I remember that there are two kinds of conversations we
• 3:02
  should be having, discovery conversations and qualification.
• 3:06
  Discovery. I'm sorry, qualification,
• 3:08
  discovery conversations. Now, the difference between
• 3:12
  qualification and discovery is this.
• 3:14
  When you're in the qualification stage, you're just trying to
• 3:18
  figure out, am I talking to the right person?
• 3:20
  What do I know about this person?
• 3:22
  Then when you're at the discovery stage, you're trying
• 3:24
  to figure out what problem does this person have and can my
• 3:27
  product or service solve these problems?
• 3:29
  So a less fancier way of saying it is when we're having
• 3:33
  conversations with potential clients, we should always be
• 3:35
  having conversations around the person.
• 3:37
  Who is this person? What do they want?
• 3:39
  Where are they coming from? What's their background?
• 3:42
  And then conversations around the problem, how bad is this
• 3:45
  problem? When did it start?
• 3:47
  Can my product or my service solve it?
• 3:51
  You know, all those sorts of things.
• 3:53
  So when we're having at the State Room, we're having these
• 3:56
  conversations, we should be bringing up the money thing
• 3:59
  early. So back to the wedding Catra
• 4:01
  example or the wedding planner example.
• 4:04
  You know, at that stage where you're saying, oh,
• 4:06
  congratulations, when's your wedding?
• 4:08
  How did you guys meet, blah, blah, blah.
• 4:10
  What is it that you have planned?
• 4:12
  Eventually you have to cut straight to the chase and have
• 4:14
  the money and the budget conversation.
• 4:17
  Or else you can spend a lot of time building relationships with
• 4:21
  this person. You know, getting to know them,
• 4:24
  getting to know their background, getting to know the
• 4:26
  taste, getting to get a sense of the aesthetics, the kind of
• 4:30
  wedding that they're trying to plan and blah, blah, blah,
• 4:32
  things like that. You can waste a long time doing
• 4:35
  that, 3 or 4 weeks only to discover that they never could
• 4:38
  have afforded you in the 1st place.
• 4:40
  So that is why I recommend bringing up the money and budget
• 4:43
  conversations early. And believe me, it applies to
• 4:46
  everybody, not just people in the wedding and the event space.
• 4:48
  It's the same thing for those of you who are fashion designers.
• 4:51
  You can tell later, Oh yes, I do peplum, no problem.
• 4:54
  You draw up a sketch. OK, you send me an Instagram
• 4:57
  handle. Let me see what kind of design
• 4:59
  you're looking for. Or is it the kind that Rihanna
• 5:01
  wore last year, two seasons ago, blah, blah, blah.
• 5:04
  You know, you get involved in all those things.
• 5:05
  You send WhatsApp messages back and forth and Pinterest images
• 5:08
  and then you give them your bill that to show peplum is 80,000
• 5:13
  naira 80,000 there without the fabric.
• 5:17
  If you supply the fabric, it's going to be 150 K.
• 5:19
  And then the person, now you know, that's when you guys start
• 5:22
  quarrelling and you know, the person insults you and cuts the
• 5:24
  phone. So let's have these
• 5:26
  conversations early so that for people who think this budget is
• 5:32
  unrealistic, they'll leave you alone.
• 5:34
  Now, one way that I've been recommending over and over
• 5:37
  again, not just on the podcast but during my training sessions,
• 5:40
  is where you give a range. So you say something like, oh,
• 5:43
  from what we've discussed so far, options AB and C are going
• 5:48
  to work, but either of these options can cost anything
• 5:51
  between 123 and 456. These options that you're
• 5:55
  willing to explore and then you keep quiet.
• 5:57
  So for the peplum thing, the person sends you a bunch of
• 6:00
  stuff. Person sends you a picture of
• 6:02
  Rihanna wearing peplum, Person sends you a picture of Beyoncé
• 6:05
  wearing peplum. And then the person also sends a
• 6:07
  picture of let's see, who can I think of in the Nigerian space,
• 6:16
  OK, I don't know any Nigerian celebrities, OK, talking back,
• 6:19
  wearing peplum. And then you look at them, that
• 6:21
  is when you have this conversation.
• 6:23
  So you say, OK Madam, sure, no problem, we can do this peplum.
• 6:26
  So from what we've seen here, options 1-2 and three, either of
• 6:31
  these options can cost anything between 80K and 150K, depending
• 6:36
  on whether I'm supplying the fabric or not.
• 6:38
  Is this an option that you're willing to explore?
• 6:40
  And then you keep quiet and hear what it is that they have to say
• 6:43
  rather than you when they send options 1-2 and three, trying to
• 6:47
  ask more creative questions, trying to narrow down.
• 6:49
  And then you figure out that they like the Beyoncé option and
• 6:53
  they now start trying to give a quote on that Beyoncé peplum.
• 6:56
  And then quarrel now arises. So, yeah.
• 7:03
  So that's it. So you give a range early on in
• 7:04
  the conversation before you narrow it down to a specific
• 7:07
  proposal. And then that is a good way of
• 7:10
  getting people off your hair if they do not think that the price
• 7:15
  options that we're talking about are realistic or not.
• 7:19
  So you give a range of options. So it's the same thing with the
• 7:23
  wedding planner or the wedding caterer.
• 7:25
  So you say, oh mommy, daddy, thank you very much, nice to
• 7:29
  meet you people, congratulations, the wedding
• 7:31
  will go well, blah, blah, blah, or that small talk and then
• 7:34
  eventually get down to business. So from what we have discussed
• 7:36
  so far, whether the option, the menu is going to be a bare bones
• 7:42
  menu or fried rice and Jalof rice or that will do an all out
• 7:45
  African menu where we can put Ogiriano back just like mommy
• 7:48
  said, or we can explore a three course continental menu for this
• 7:52
  wedding. So either of these options,
• 7:55
  anything here could cost between 2500 naira per plate and 7500
• 8:01
  naira per plate, depending on what we're going with.
• 8:04
  Which of these options would you like to explore?
• 8:06
  And then you keep quiet and then you hear what they have to say.
• 8:09
  And if the Mumsy shouts and she said, yeah, 2500 naira per plate
• 8:14
  for Josh Ogry and Uber and this and this and that and that, you
• 8:19
  know, we now know that there is a mismatch.
• 8:21
  It's possible that your prices are reasonable and they are
• 8:24
  fair. But maybe because of how things
• 8:29
  have turned out with the Nigerian economy and
• 8:30
  hyperinflation, it's possible that the last time Mumsy and
• 8:33
  Popsy planned a wedding was five years ago for their younger
• 8:36
  daughter, or rather for their older daughter.
• 8:38
  So now it's the younger one's turn to get married.
• 8:40
  And so they don't have a realistic expectation of what
• 8:44
  prices are currently. This is how you get them off the
• 8:46
  table and this is how you get them off the table early so that
• 8:49
  there is no quarrel and you now know that this is not the kind
• 8:52
  of person that you have to be following up with or chasing up
• 8:58
  in perpetuity. Then another way of doing this,
• 9:02
  it's not something I talk about a lot, but actually doing one of
• 9:05
  my training sessions is something that one of the
• 9:07
  attendees discovered, which is the reason why I say you should
• 9:10
  not limit yourself when it comes to personal development and
• 9:14
  professional development. They shouldn't just limit
• 9:17
  yourself to material that you come across on my channel.
• 9:21
  That's for those of you who are fans of the stuff that I see.
• 9:23
  Pay attention to other sources because other perspectives help.
• 9:27
  And in fact, if you come across other perspectives, I can use my
• 9:31
  expertise to show you how they apply to your own situation and
• 9:34
  how you can apply it the best. So I can't remember what
• 9:39
  strategy the lady called it. Did you say bulletproofing or
• 9:44
  something? I can't remember what it was
• 9:46
  anyway, but you just stay straight up from the beginning
• 9:50
  of the conversation. You want to let them know that
• 9:52
  you are not cheap. So that is the idea behind the
• 9:55
  whole thing, that you start off the conversation letting this
• 9:58
  person know that you're not cheap, so that if they're
• 10:02
  looking for the cheapest, they can start putting the car in
• 10:04
  reverse right now so that both of you don't deceive yourselves.
• 10:08
  And the different ways, the different options that we came
• 10:11
  up for handling that. But there was one person in the
• 10:15
  training session who was not comfortable with the approach
• 10:18
  because the person didn't want to sound.
• 10:20
  He didn't want to sound as if we we're starting off this
• 10:23
  conversation feeling proud and we're chasing people away.
• 10:26
  So I said, yeah, sure, no problem.
• 10:28
  That is a genuine concern. It's a legitimate concern.
• 10:31
  So you can downplay that by first of all, being polite and
• 10:36
  you don't have to come out and say we're the most expensive in
• 10:38
  the market. You can say something like,
• 10:41
  well, not the cheapest in the market because we offer medium
• 10:44
  and premium brands in the range of XYZ and ABC.
• 10:47
  They typically cost anything between here and here.
• 10:50
  Which of these options would you like to explore?
• 10:52
  And then you keep quiet so you achieve the same thing without
• 10:55
  sounding as if you're a Jackass and you're trying to chase
• 10:57
  people away like, oh, I'm high and mighty, I'm expensive, I
• 11:00
  only deal with the wealthy. You don't have money.
• 11:03
  Get out of my sight, you see? So this is a polite way of doing
• 11:06
  it. So, oh, thank you very much,
• 11:08
  Sir. Thank you very much, Mommy,
• 11:09
  Daddy, blah, blah, blah. It's been nice.
• 11:11
  The wedding will go well. This, this, this, not that,
• 11:14
  that. But before we get down to
• 11:17
  business, I just want to let you know, Mommy, we are not the
• 11:20
  cheapest in the market. There are other wedding
• 11:22
  planners, the other caterers that are cheaper than me because
• 11:25
  what we do is we offer medium and premium blah, blah, blah in
• 11:29
  the range of something, something, something.
• 11:31
  So typically what our clients are spending for these kind of
• 11:35
  options cost anything between 123 and four, 5-6.
• 11:39
  Is this something you're willing to invest in and then you keep
• 11:41
  quiet and hear what it is that they have to say.
• 11:44
  So these are very direct approaches that we can bring up
• 11:47
  early so that if we are not in line when it comes to money
• 11:51
  expectations, we can dissolve this relationship here.
• 11:54
  We can get divorced here rather than both of us trying to make
• 11:59
  something work that was never going to work in the 1st place.
• 12:02
  Because, and this is something I heard in my wedding photography
• 12:05
  days, if you're a wedding photographer and your package is
• 12:09
  500 K, there's nothing you can do.
• 12:13
  There's no magic you can do to take a 150K customer up into 500
• 12:18
  K. It is not going to happen if the
• 12:20
  person only has 150K or the person is convinced that 150 K
• 12:24
  is a realistic amount to spend. There is no magic.
• 12:28
  There's no talk track. Now we get a 150K person to pay
• 12:31
  500K. If you're talking to somebody
• 12:33
  who is a 450K person, there's hope.
• 12:36
  You can talk them up into 475 or you might, you might be able to
• 12:41
  come down from 500 to maybe 463 or something.
• 12:45
  You catch my drift? We just want to make sure that
• 12:47
  we have realistic money expectations to begin with.
• 12:52
  So back to the car. OK, Let me just leave it like
• 12:57
  that since I've already done enough examples, but you get the
• 12:59
  idea. And remember that spiritually,
• 13:02
  what we're trying to do here now is we're trying to either
• 13:04
  prevent the price objections. We're trying to stop people from
• 13:07
  saying you're too expensive, or we're trying to get them to show
• 13:09
  their hand that they think our prices are too expensive so that
• 13:12
  they'll go away. The whole point of them going
• 13:15
  away, it's not so that we feel good, the whole point of them
• 13:18
  going away so that we now have time to spend chasing other
• 13:21
  people. Because always you have people,
• 13:24
  you know, your WhatsApp messages, your phone book,
• 13:27
  Instagram DMS, you know, people you're supposed to have gotten
• 13:29
  back to yesterday, you didn't get back to them.
• 13:31
  You know, all those sorts of things.
• 13:32
  The more time you spend with these people thinking there
• 13:35
  might be a deal, meanwhile there was never going to be a deal
• 13:38
  once you X them off, like, OK, their price expectations are
• 13:41
  unrealistic. Now you have time to go back
• 13:43
  into your Instagram DMS, your WhatsApp messages and everything
• 13:47
  and start hunting down people that could have been much more
• 13:49
  promising prospects. So that's the whole point.
• 13:51
  That's what it is that we're trying to do.
• 13:53
  Now another way of trying to prevent price objections or
• 13:56
  getting price shoppers away is when we pre qualify people in
• 14:01
  with our advertising messaging, our marketing messaging and
• 14:03
  things like that by just simply putting the price there by
• 14:06
  putting the expectation upfront. So if OK, since I didn't say
• 14:11
  anything about selling cars, let me use that now.
• 14:13
  So let's say you're a car salesperson and you have Toyota
• 14:17
  2024 models in your car park your your car lot and they look
• 14:22
  really nice as incorrect. You have them in different
• 14:24
  colours, red 1 is there, silver is there, black is there,
• 14:28
  everyone is there, but you only have 2024 models.
• 14:31
  You're tired of selling the cheaper models, you're tired of
• 14:35
  selling, you know, maybe like 2017 models and things like
• 14:39
  that. Only want people to have money
• 14:40
  to come your way. So you put it there in your
• 14:43
  Instagram messages, in your Facebook advertise
• 14:46
  advertisements or Google advertisements or whatever.
• 14:48
  You put it there. Toyota 2024 models available
• 14:53
  from 10 million and upwards. The whole point of putting that
• 14:58
  kind of thing in your marketing messages and your advertising is
• 15:01
  so that people who only have 7 M will not call you.
• 15:05
  People who only have 5 M will not call you because you have
• 15:08
  already put in the messaging that 2024 models are available
• 15:13
  from 10 M and upwards. Of course, there might be
• 15:18
  somebody who saw the advert and who only has nine M who will
• 15:21
  call you to try his luck. That one is normal.
• 15:24
  But The thing is, by putting that 10 M there in your
• 15:29
  advertising, in your marketing messaging, on your pamphlets, on
• 15:33
  your whatever, you cut down on the number of people who only
• 15:36
  have three M who will come to you and then start shouting like
• 15:41
  10 M for common Toyota. You know, you get rid of all
• 15:44
  those people and all those frustrating conversations.
• 15:48
  And remember what I said, If truly, truly, those are your
• 15:53
  cheapest offerings, 10 M, and the person who is coming to you
• 15:56
  thinks that three M is a realistic price.
• 16:00
  There's no amount of talk that you would do or magic or jazz
• 16:04
  now get a three M person to pay 10 M So that's the whole point.
• 16:11
  Well, that's the yeah. So that's the all I put it, and
• 16:16
  you get what it is that I'm trying to say.
• 16:17
  So handling price objections, that is one way to go about it.
• 16:21
  Trying to prevent the objections is another way.
• 16:24
  And trying to get people who have unrealistic expectations to
• 16:27
  leave you alone is also another way.
• 16:29
  So which one is best? I don't know my opinion, you
• 16:32
  should be doing a combination. So when that you're listening to
• 16:35
  podcasts like mine, do so with a pen and a paper so you can write
• 16:38
  down the best way to handle the money objection.
• 16:40
  Also be writing down strategies for using your advertising, your
• 16:45
  marketing messaging to be qualified people so that people
• 16:48
  who don't have the kind of money you're looking for when approach
• 16:51
  you in the 1st place. And then also come up with
• 16:54
  strategies so that when you're having conversations with
• 16:56
  people, you also bring up, excuse me, you also bring up the
• 17:01
  money and budget expectations early so that you only invest
• 17:07
  time in building relationships with people who could end up
• 17:11
  becoming potential customers for the product or the service that
• 17:13
  you offer. So connect with me on WhatsApp
• 17:18
  for questions, tips and insights.
• 17:19
  The phone number is 08064662140. The country code is +234.
• 17:26
  Also, you can connect with me on LinkedIn.
• 17:29
  It's the premier social network for business, business
• 17:32
  development, personal development, career development,
• 17:34
  all that jazz. So really you should be there.
• 17:37
  But like I say, it's contextual because I've noticed that people
• 17:40
  who sell scrap metal spend a lot of time on Facebook.
• 17:43
  You have lots of Facebook communities around selling scrap
• 17:47
  metal, recycling plastics. OK real estate communities.
• 17:52
  You have plenty of real estate communities on Facebook.
• 17:55
  So if your business is one of those things, then yes, you
• 17:57
  should be on Facebook. But I think everybody else you
• 17:59
  guys should be on LinkedIn. So connect with me there.
• 18:02
  The name is Tavishima Ayede. I'm the host of the show.
• 18:05
  You can confirm the spelling from the name.
• 18:08
  Sorry from the link. We're currently listening to
• 18:09
  this episode. So if you're listening to this
• 18:11
  on YouTube, just look bottom left above the title of the this
• 18:16
  particular episode you're listening to.
• 18:18
  You see my name there. So just highlight copy paste it
• 18:20
  in LinkedIn. My hands on face pops up and
• 18:23
  then connect with me. You'll you'll be connected to
• 18:26
  the right person one then sorry about the interruption earlier.
• 18:30
  That was just my son poking his head in to see if I was done.
• 18:34
  So let me go and see what it is that they require of me this
• 18:37
  time. 1 then happy public holidays for those of you who
• 18:40
  are Nigerian. That's why the kids are home
• 18:42
  because of the public holidays. So nobody's working and the kids
• 18:46
  are at home. So everybody enjoy the public
• 18:48
  holiday. And my prayer for Nigeria is
• 18:50
  that we make lots of progress financially and we have peace in
• 18:55
  the land so that we can conduct our businesses, raise our
• 18:59
  families and continue living the best life that we want.
• 19:03
  So enjoy the rest of your day and I will catch you guys at the
• 19:06
  next episode.