How can I handle price-obsessed prospects?

As transportation and freight forwarding companies, you know that pricing is one factor determining whether a prospect will become a client or not. The amount to be paid is the first thing the client will look at when receiving a quote. While it is true that keeping prices low and competitive can help you win more deals, it is also true that some clients pay much more attention to the price than others. It is interesting to know how to handle these price-sensitive customers and when it is time to withdraw.

Don’t fall into the “expensive” category

If some of your services are more expensive than the competition, it is advised to not enter the competition for the customer, and instead to put your efforts elsewhere, to other areas or services for which you offer competitive prices. That way you avoid falling into the category of “expensive”, which could potentially damage your image in the long run. Indeed, it can be hard to change the perception of a new contact or potential client of your brand once they see you in a certain way.

Add value to your quoting proposals

However, it is more likely that your competition offers similar prices for the same service, or even lower prices. If you know that your customer will exclusively look at the cost to decide which company to go for, then you should focus on the added value of your offer. Give the customers more compelling reasons to choose you, even at a higher cost. But how?

First, you must be fast and efficient in your quoting process. Sometimes receiving a quote before another tilts the balance. Also, offer a professional approach and solution tailored to your customer needs to justify the high price. One way could be to show a transparent and modern quotation system, so that your client knows where he is spending money and how he is benefitting.  Finally, it is very important to maintain communication with the customer and be accessible at all times, which is a key point to anticipate the competition and also to offer a professional and efficient image of our company.

Sometimes a lower price opens the door to a long-lasting relationship

However, you could also consider lowering the prices of some of your services. It may seem counterproductive at first, but despite the decrease of your profit margin with such projects, it can open the possibility of contacting new clients. As soon as you offer your service to these customers, they will be satisfied and convinced of your value and professionalism, and thus more likely to re-use your company, without worrying about a strict price. They will come to you for your good work, pleasant treatment and unbeatable service.