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?