Some People Will Always Buy on Price

Price

RCS Influencer Brian Pratt says it’s important to weed out the price-driven consumers and focus on those who are driven by value.

I have learned over the years that there are different types of buying personalities. One of these buying styles is the price-driven consumer. Some people will always go with the lowest price. Identifying these types of buyers with specific questions can help your company decide if you want to invest in the time to offer a bid.

I have found that most people make their choice on reputation, services offered, expertise, and knowledge on products and rapport they have with each other. As long you are in the ball park with respects to pricing they will normally see value in your services. I would recommend lifting up services that differentiate your company from the competition.

Some key elements when trying to identify potential customers, differentiating your company, and determining if your company would be a good match are:

  • If you sell on price only you will lose on price only. I would suggest looking for ways to differentiate your company with the competition. (references and testimonials from previous customers, work comp experience MOD, limits of insurance (amount of protection you are offering a potential customer), affiliations (NRCA and/or local/state roofing associations).
  • Identify services that differentiate your company and see if these are important to the prospective customer. You may feel your service/products are important but the consumer may not feel the same way. Ask open ended questions to gauge prospective buyers’ level of interest.
  • Pre-qualify the consumer; identify what type of buying style the consumer has and deliver a solution that best suits that buying style.
  • Most consumers look at multiple bids and most do not choose the lowest. I would suggest weeding out the price-driven consumers and focus on value oriented consumers.

Brian Pratt is a regional manager for Roofing Risk Advisors, a Division of Furman Insurance. See his full bio here.

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