How to Make an Offer-1
How to offer a quotation? It’s very important for salespersons, because product/service and price have the biggest effect on most clients’ decision of purchasing. If the price we offer is reasonable and competitive, which is desirable to the client, the opportunity of making an order is much bigger; vice versa. Therefore, quotation is critical for selling.
How to make a good quotation thus resulting in successful order? The following is some tips I want to share with you.
1. Introduce your product’s/service’s advantage before offering price.
The merits of this are obviously. At first, the clients can have a better knowledge of our products. Secondly, it builds the base for the quotation; when the clients know more about our products, the price will seem more reasonable and acceptable. Thirdly, it will lead the clients talk more about their needs so that we can make a more pointed quotation.
2. How to offer a price when the clients ask directly without letting you introduce your products or service first.
Sometimes we might meet the clients who have no patience to listen to our instruction for the products or service; what they only want to know is the price. In that case, I would like to give some tips. You can give the clients two sets of quotation. One is a very low price compared with the normal price in the market. It’s a special price since the product is on sale in order to enlarge its market share. The product is not customized but its general usages will meet most of the needs. The other price is a normal one. It’s a little lower than other products in the market but it is higher than your company’s lowest quotation as requested. This is your main product with excellent quality and will meet all needs of the clients.
After getting the two price offer, the client will know that you have products with both competitively low price and reasonably high price, which will give them a deep impression and lay the foundation for further cooperation. In fact, this method of quotation is very tricky and will avoid missing lots of potential clients in many circumstances. For example, if you only offer a very low price, the clients will think you don’t have high-ends products; vice versa. The two sets of price will enlarge your business scope and bring you more opportunity.
3. Before you make an offer, know about your clients as much as possible.
If possible, we should try our best to know more about the client and find out their psychological prices so as to increase the success rate. For example, some large companies are not so sensitive to the price while the SME is the opposite. For those small and middle-sized companies, we mustn’t offer a too high price which may “frighten” the potential clients.
4. When making an offer for the first time, you should not only pay important attention to it, but also be very cautious.
The clients seldom give us a second chance for another quotation especially when the price you offered is much higher than expected. They will think the quotation is our lowest price or is similar to our lowest price and has no big difference. In that case, they have no willing to continue the enquiry.
Sometimes you might get the chance to make a second offer; this time your quotation is very low and within their psychological price. Unfortunately, they will tend to consider that the quotation system or price list in your company is confusing and in a bad order. If the two quotations differ a lot, they will think your profit is very big and you are not very trustful. Once they have such feeling, they will bargain more and the chance of a happy and successful cooperation is very small.
Therefore, be careful when you make an offer for the first time.