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Columns

Leadership Selling: The Law of Contrast

By BNP Media Staff
September 1, 2009
When you are struggling to sell your higher end products, introduce less expensive options. You will be surprised to discover that your clients still purchase the more expensive goods. The response results from a psychological phenomenon called the Law of Contrast. When two options are presented side-by-side, the law of contrast reveals that people will choose the preferred option even at a higher price.



When you are struggling to sell your higher end products, introduce less expensive options. You will be surprised to discover that your clients still purchase the more expensive goods. The response results from a psychological phenomenon called the Law of Contrast. When two options are presented side-by-side, the law of contrast reveals that people will choose the preferred option even at a higher price.

Kevin, a client of mine, became frustrated when his high-end products were being underbid by competitors that presented inferior products. If he had reduced his price to match the price of inferior products, the effect would have been disastrous to the bottom line. He considered the addition of a lower end product line, but was reluctant to bastardize his company’s high margin product line and potentially jeopardize the relationship with a valued supplier-partner.

My recommendation was to introduce the lower end products as a means to sell more of his high-end product line and increase his credibility. The implementation of a traditional “good, better, best” product alignment made sense for his company and does for yours as well. Too many salespeople push a single product during the sales process instead of offering the client options. Rather than try to direct a reluctant client to an uncomfortable decision, you should provide all the options your client needs to make a comfortable decision.

As a roofing contractor, you have credibility based on your expertise of the industry. Thus you can tell your clients the pros and cons of various product choices and they will rely on your advice. If you quote only one product, you are a professional “bidder.” But when you offer alternatives, you establish a role as the credible broker who takes time to research the market for your clients.

You can establish a role as credible advisor to your clients with three simple tactics that follow a “best, better and good” format.

1. Lead with your best. Nobody wants to buy an inferior product. Thus you should always lead with the option that provides the most value. This is the product the end user wants and the product upon which your clients build their reputations. If it fits into the budget, a consumer will want the best they can get. If your client is a business entity, the best products will help sell their homes and remodeling projects.

2. Introduce your alternative options proactively. Don’t wait for the client to kick back on the price and then reactively work up numbers on an alternative product. The result is a psychological letdown that can be avoided. If your clients can’t afford the top-of-the-line goods, then you will lose the sale. They will continue shopping to find a fit for their limited budget. Proactively present a fallback option for your client in the event your client cannot budget for the best product you offer.

3. Believe in every product you sell. The key to your success with a best, better and good sales program is the belief in every product you sell. If you become emotionally attached to the qualities of your best products and feel your secondary lines are inferior choices, this emotion will resonate with your clients. The reality is that some people must buy the product that offers the most quality possible within the confines of budget constraints.

When it comes to pricing challengers, the law of contrast is one of many tactics I teach at my webinar on price objections. “Brokering” is a credible practice for times of economic challenge as well as abundance. You may not sell your top-tier products every time, but you will at least hold your margins and keep your clients satisfied. Moreover, the law of contrast has a potent psychological effect that directs people to choose the best option in spite of potential costs. Thus your clients will buy the more expensive product and your profits will improve.

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