• Alec Drake

Manage Perceptions, Not Price

We lean on what we think are facts to build our case for the price and to support value.

Image by Sofie Zbořilová from Pixabay

Sales and pricing systems in radio have evolved far beyond the early days of manager guesstimates or detailed spreadsheet formulas. Today in larger markets or major companies there are internal proprietary tools or outside vendors pricing inventory for managers. In smaller markets with independent owners, the prices still originate from the sales manager. No matter where the price comes from, as sellers, we must manage price acceptance.


How do we frame the price discussion in a fragmented media world? What role does value play when price perception is emotionally driven or when the price is servant to a metric we do not control?


Law #4 – Price and Perception

In the renowned book The 22 Immutable Laws of Marketing, Al Ries and Jack Trout list #4 as, The Law of Perception, stating, "Marketing is not a battle of products, it's a battle of perceptions." The chapter promotes, "The best product does not always win. It's an illusion. There is no objective reality. There are no facts. All truth is relative. Relative to your mind or the mind of another human being."

Gerd Altmann-Pixalbay

Price is a marketing element with a message and can fall prey to perceptual roadblocks. The quality of your brand is connected to price. We have all heard "you get what you pay for," although it seems like customers today dismiss the phrase. Your job in sales is to manage perceptions, not price, and the better you develop this skill set, the more you will sell.


Generally speaking, the prospect or client will find the funds to get what they want if the perceived value aligns with the product. In sales, we must raise the perceived value to match the price perception. Managing perception is a 360-degree effort that begins upon initial contact.


First impressions, communication style, and points of differentiation are important. The process also involves defining the quality of the product, matching needs to solutions, the image made by you as the salesperson, and your company's reputation in the marketplace.


Prospect Engagement to Manage Perceptions

We should follow a sequence of mutual learning that informs both the prospect and us along the way; if you listen carefully, the discovery call details will guide you toward the solution. We should keep prospects engaged and learning by getting "mini buy-ins" and building your closing stack before any presentation.


These prospect engagements include discussing the creative campaign and activating elements for promotions planned to support the advertising or digital strategies. Create a list of all the options for your own "mini buy-ins" and have markers in your communication pipeline to activate.


Gerd Altmann2-Pixalbay

What Can We Negotiate?

If pricing is out of your hands locally or you hit a wall of pricing objections, there is a strategy for negotiation if we consider terms and conditions. These conditions of sale can work as a lifeboat to avoid unnecessary discount pressures. You can find more on using Terms and Conditions from my previous article here.



Summary

In closing, changing the mind and perceptions of customers or prospects is difficult. We lean on what we think are facts to build our case for the price and to support value. Remember, those are your facts, and unless the prospect takes ownership, you will not close the sale.


People do not like to be wrong, so move to their perception side and find out what they think, how they feel, and what motivates them to spend time with you. Learning more about human behavior and being less concerned about price will take your sales to new levels of success.

Loyd Ford and Alec Drake are excited to announce our next quarterly sales event, "Show Me The Money," 7pm EST on July 7th


Join us with two tremendous leaders as our guests, Becky Domyan, SVP/ Market Manager at Audacy in St. Louis, and Donna Baker, Regional V.P. for Cumulus in Kansas City. Hear how they successfully drive vibrant media organizations to peak performance in highly competitive environments. Mark your calendar and head to Clubhouse, The Encouragers group with your Smartphone for valuable sales strategies.



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About Alec Drake:

As President of Drake Media Group, a content creation and sales consulting company, Alec is on a mission to share his unique perspective on best practices to enhance sales performance and drive revenue. The company offers a range of consulting expertise, including sales operations, team and individual coaching, yield and revenue management strategies, event sponsorship formats, and sales marketing.

Drake Media Group, LLC retains exclusive rights to the original content in all articles written by Alec Drake, contained in any podcast appearances, or articles published on third-party platforms.

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