In any market, there can be only one “cheapest” option. If you are trying to close a prospect in a competitive situation, this means that winning or losing is going to come down to dollars alone. This is a difficult situation that can lead to annoyance and irritation if it continues to happen over time. Success by your competition could be attributed to nothing more than luck. They were able to secure a supplier’s price before you could secure that same supplier. Or maybe they were willing to cut their margin to a point that you deemed economically disastrous. In most cases, racing to the bottom doesn’t end well for you or your competitors. The good news is that many people don’t want to buy the cheapest option – whether they are aware of this or not. When you are purchasing a new pair of pants, cellphone, car, or even a tube of toothpaste, do you only buy the cheapest product? Of course not. You select the option that you feel has the best value. So how does this work with energy?

As we discuss in other posts – Reduce Energy Costs Through Energy Efficiency With These 3 Steps and This Advice From Jeff Bezos Will Make You A Better Energy Consultant – instead of tormenting yourself over every 1/10 of a cent your quote is higher than you’d like, think about what you can offer in addition to your energy rates to justify your prices no matter what they are. Developing a message that shows your prospects what they will get in addition to competitive energy rates will increase the overall value of your offering. Your price might still be the lowest in a competitive situation, but if it isn’t, your message should convince them that you are offering the most value. 

You can learn how to apply this method to your sales by reading our post on Value-Added Selling: How To Transform Your Sales Process To Achieve Greater Success.

Need some more ideas? If you haven’t done so yet, it’s now time to read some of our other posts – these again Reduce Energy Costs Through Energy Efficiency With These 3 Steps and This Advice From Jeff Bezos Will Make You A Better Energy Consultant. You should also consider developing a message that can convince a prospect that there are two parts to the energy equation: how much energy they use and at what price they are paying for that energy. To fully execute an energy cost reduction plan, yes, a low energy price is beneficial to their company’s bottom line, but you can also offer services that will help them reduce the amount of energy they consume. In cases where you are offering a slightly higher rate for the energy they consume, your ability to help them use less energy will ultimately lead to a larger decrease in dollars spent on energy than a competitor’s offer of only reducing the rate.

Apply this practice to your messaging, branding and strategy and you’ll find that competing on best value will be much easier than competing on lowest price. As Mike Templeman said “Don’t get into a pricing war with your competitors.  Instead, offer something better than them.”

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