Lowest Price Guarantee (2024)

FAQs

How do you respond when someone asks for the lowest price? ›

Enlighten the customers on the value they'll get

Before providing the price, make sure you're transparent on what the customers are getting in exchange for their money. In short, provide the value before providing the price. Don't go straight to discount if they ask. Instead, trade on value not price.

As indicated by our example, a low price guarantee (henceforth LPG) may be defined as a policy where a seller posts an offer price and guarantees to match or beat any lower price found in the market.

Rather than giving a price, sellers say something like, “There are many options, and I need to understand your needs before I can give you an accurate quote.” Fourth, you could offer a range based on average deal size or high and low price points. This response is meant to help the prospect without overpricing them.

“Hey [Prospect's name], Thanks for your interest in our product. We understand you want a discount on your order, and we deeply value your business. Unfortunately, we can't offer a discount at this time.

Explain your value, happy days. If you're in a position where you're offering a unique and premier service, be willing to walk away. Otherwise have more of a conversation with a client up front, have a stronger relationship and say look what's important to you here, is it the cheapest price?

A minimum price contract is a forward contract that guarantees the seller a minimum price at delivery. This type of arrangement is used with commodities to protect producers from price fluctuations in the market. Minimum price contracts are common in agricultural sales, for example, the sale of grain.

What is a price drop guarantee? ›

Expedia describes Price Drop Protection as an optional add-on offered on select flights that automatically refunds the difference if the price of your flight drops on Expedia.

A low pricing strategy enables you to set low prices for your products to attract more customers and increase sales. You can compare the past data with current data for better demand forecasting.

You could say, “This is the best price we can do for the scope of services we're offering. Now if you want less scope, we could certainly reduce the price. If you want to add scope, we could reduce the price as well to the extent that it afforded us an additional economy of scale.

Trust me, there's no need to make this a big production. Keep it simple and positive. Just say something along the lines of, “I'm so sorry to miss out on the fun, but X isn't in my budget right now.