What are the chances you can win a B2B sales deal that’s priced higher than your competitors? As challenging as it may be, winning a competitive bid is not impossible.
How often do B2B buyers select the more expensive offering? In Primary Intelligence’s newest industry report, How to Win at a Higher Price, we examined nearly 900 B2B purchase decisions and competitive evaluations.
Our study discovered that 25% of wins sell at a higher price but selling at a higher price does pose a risk. Almost 50% of lost sales are priced higher than the competition.
That said, our research revealed that buyers will take into consideration the vendor’s product performance, company stability, customer support, and understanding of business needs and weigh the risk versus the value. If their evaluation shows high confidence in those areas, the higher priced vendor will win, but disadvantages in just one area may result in a lost sale. When vendors’ products show distinct similarities, buyers compare costs and frequently select the lower priced vendor.
Nonetheless, all is not lost. B2B sellers with the higher priced solution do close sales deals.
So how did a quarter of those wins in our study sell at a higher price?
How to Win at a Higher Price B2B Industry Report
Our study uncovered the barriers to winning at a higher price and how the seller can overcome these barriers.
For instance, B2B buyers are more focused on the solution and its sure-fire results to fill a business need when they select the higher priced vendor. They are more concerned with performance than price. The value they’ll receive from the solution exceeds the product’s price. In fact, understanding buyer needs is a turning point for buyers when they make their decision. A poor understanding of buyer needs causes 1 in 10 higher priced losses but facilitates 1 in 5 higher priced wins.
Another interesting finding: Buyers consider excellent customer support an important criterion in their evaluation. Poor customer support, whether through the buyer’s experience or hearsay, can diminish a higher priced vendor’s chances of winning. All things considered, poor customer support is one of the most common reasons higher priced vendors lose. In almost 40% of higher priced B2B sales wins, the sellers have impeccable references, solid reputations, and strong relationships.
B2B buyers are looking first and foremost for the best solution that will meet their organization’s business needs. Your goal is to gain your buyers’ confidence. Once you have their confidence, you will win sales, keep your pricing, and stay ahead of the competition.
Download How to Win at a Higher Price Report
Your chances of losing a sales deal are greater when you have the higher priced offering. But that isn’t always the case. Our research uncovered that in 25% of sales wins, buyers choose the more expensive solution. Why? Buyers say these higher priced winners provide the best value with minimum risk. Get the report to learn how you can win the sale without changing your price.