7 Tips to Prevent Pricing Objections
Any conversation about price is delicate. LSPs must maintain decent margins despite the constant pressure from buyers to lower their rates. On the other hand, buyers receive bids from different LSPs that supposedly offer comparable results but come at different price points, further reinforcing cost as a significant component during vendor selection.
Yet, all too often, LSPs’ salespeople don’t know how to counter the “you’re too expensive” argument, viewing it as the end of the road. But it doesn’t have to be.
When faced with the thorny price issue, salespeople, account managers, and project managers all need to learn good comebacks to keep the conversation going. Watch a replay of our webinar, “The Thorny Price Objection,” which is full of ideas on how to respond. With some practice, you will be prepared to rebound graciously and close the deal.
But when it comes down to being told that you’re out of a buyer’s price range, it’s a bit late to try to overcome the objection. Ideally, you prevent it from going that far. How do you do that? Assuming your rates are within normal ranges and truly not too expensive, here are seven ways to reduce the odds of constantly having to justify your prices.
- Hyper-specialize. Focus on a vertical, service, or content type where you have demonstrable expertise and offer a specialized – and therefore unique – offering. Be known for your thought leadership in that area. This focus is attractive to buyers who do not believe that generalists can handle their content.
- Project a “glossy” image. A dated website, inactive social media pages, and typos in emails don’t prepare prospects to think you are worth more. Invest in a contemporary website with a strong differentiation. Build landing pages dedicated to the problems you solve with free downloads such as guides and e-books. Convey a professional image in communications from everyone in your organization.
- Offer something not easily comparable to competitors. Fit-for-purpose quality enables you to turn the dial up or down on rates. Some extras also warrant a premium, such as technology-based solutions with reporting capabilities, a language lead who works closely with in-country reviewers, or a solution architect in charge of complex deployments. Finally, add pre- and post-translation offerings that broaden the continuum of needs you address, such as data and content services.
- Bring up pricing before prospects do. In early conversations, ask about their budget, past rates for similar services, and preferred pricing models. Call prospects right before delivering your quote to run the cost and your timeline by them. This gives you a chance to make last-minute adjustments or talk about options to lower their cost.
- Influence the buyer’s evaluation criteria. Ask questions that will make prospects change or add some factors, emphasizing the ones that make you more competitive. For example, present the requirement for a specific technology solution as a prerequisite for the client to meet their needs consistently. Doing so will likely remove some other LSPs from the running.
- Expand the discussion beyond the project. Don’t fall into the trap of only discussing the number of languages, turnaround times, and production processes. Open up the conversation to capture broader requirements, from content creation all the way to publishing and client service. Understand how prospects establish value and measure efficiency. This will enable you to discuss their workflows instead of yours and how to integrate with their systems.
- Demonstrate the ROI. It’s easier for a client to obtain a budget for an investment rather than for an expense. Emphasize the opportunity cost of not taking action and show anticipated long-term savings or increased revenue potential.
Help Prospects Make a Business Case
This is just a sample of the approaches you can take – there are several more covered in our webinar. Keep in mind that the competition isn’t necessarily cheaper because they’re not as good. We consistently observe LSPs that significantly cut their internal and supply chain costs and still deliver quality results.
In the end, it’s all about enabling buyers to find the money by helping them build their business case or to see the big picture of how they can contribute to corporate goals and initiatives.
About the Author