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26 PalletCentral • July-August2020 palletcentral.com Cutting cost is different than cutting price. Cost includes everything the buyer sacrifices, including labor costs, logistical costs, time savings, energy savings, engineering costs, etc. By reducing total cost, you're adding value. Identify ways to help the customer reduce their overall cost. INTRODUCE A BENIGN SENSE OF FEAR. In tough times, customers receive multiple quotes from cheaper suppliers that promise excellent service at lower prices. Since your customers are looking to save money, these cheaper alternatives look attractive. Customers might even threaten to switch providers if you don't match the competition. Just because the customer asks for a discount, doesn't mean you should give them one. There is a better option. Everyone hates something more than spending money. Everyone fears something more than paying a higher price. Introducing a benign sense of fear will take the focus off price. For example: "Mr. Customer I understand that this cheaper price looks attractive, but does it really make sense to introduce that element of risk? During these uncertain times, you can rely on us. You know what to expect. The only unknown here is if this new, cheap supplier will be able to take care of you when you need it." SELL AGAINST WEAKER COMPETITORS. Although this strategy makes sense in good times, it's especially relevant in tough times. Tough times will expose weaknesses. Some companies acknowledge this weakness and seek ways to improve. However, weaker competitors ignore their shortcomings. This creates an opportunity. In tough times, you work harder, face more rejection, and sell less. As one salesperson put it, "I'm working twice as hard to get half as much."

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