Close a Large Transaction with Small Numbers

Have you ever wondered why car dealers talk about low monthly payments?  Or why mobile phone companies talk about flat monthly charges?  It’s because they want you thinking in terms of the smallest dollar figure associated with the overall relationship while ignoring the lifetime cost of the product or service.  This is a very important psychological game and it works well regardless of what you are selling.

Phone companies and car dealers are not alone in this thinking.  Just look around at how things are priced based on their lowest dollar unit:

• Data - by the kilobyte/gigabyte
• Consulting fees - by the hour
• Software - by the “seat”
• Real estate - by the square foot
• Professional search – 1% per thousand of the candidate’s starting salary

The list could go on and on.

When you are working on a large deal it is exciting to think about the revenue impact on the organization – and on your bank account!  But it is important that you communicate to the customer in terms of the smallest dollar size that makes sense.  Let’s consider the car example again.  A monthly payment of $199 for a new car sounds great – thousands of people sign up for this deal on a regular basis.  It’s only after the buyer becomes emotionally committed to the transaction that they see the magnitude of their decision in the finance documents.  There, in black and white, it is plain for them to see that they are paying many thousands of dollars in interest, ultimately committing to far more than the car is worth in today’s value.  But they can afford the monthly payment and so move forward with the transaction.  Besides, they have convinced themselves that they are getting a really good deal.  After all, it’s only costing them $199 per month.

Blog continued below
_________________________________________________________________________________

Here’s an example of how and email from my book worked yet again.  I was conducting a pipeline call with a rep.  He was frustrated that a prospect had gone dark.  After a few great meetings his contact was not returning calls or emails.  I suggested that the rep send an “Are You?” email right then, during our call.  He did and guess what happened?  The prospect emailed him back while we were still on the phone.  This, after weeks of ignoring repeated calls and emails.  That’s why I wrote the book.  The emails work – all the time!  If you have prospects that have “gone dark” – and who hasn’t – the book is for you.  There is also an email for following up on leads, and another for planning killer sales calls.  What are you waiting for?  Those deals won’t wake up on their own!

The book, Click “Send” and Sell!  Three Unconventional Emails with Extraordinary Sales Success  is available at just about every electronic outlet, including Amazon, Barnes and Noble, Sony, and Kobo. It’s also available for your iPad at the iTunes store.

No eReader? No problem! Click HERE to download and print the book in any format you want.

_________________________________________________________________________________

Leverage that same process with your prospects.  Always provide the per-(fill in the blank here) transaction price.  And, don’t ever present the full cost of the transaction describing the large dollar volume commitment.  Let them figure that out later.  Get them excited about the low transaction price and the subsequent emotional commitment to purchase from you.  They are smart enough to figure out the math at another time.  Don’t do that for them.  You are much more likely to win a deal by quoting a $.60 per transaction price than you are by telling them that the total cost for the first year is $325,000.  See the difference?

But don’t take my word for it.  Turn on the radio or TV and listen to the ads.  It won’t take long for you to recognize the efficacy of this kind of pricing strategy.