Have worked with a number of detail business owners who operate in highly competitive markets. It's not uncommon for these detail businesses to have upwards of over 50 direct competitors in the same town or metro area.

A subject that comes up all the times is: "what to do when the competition keeps dropping their prices."

In reply I point that if you and your competitors sell the exact same service this can be an extremely difficult situation. Regardless of how many times you remind the customer of the adage, "you get what you pay for," they tend to put the pressure on when they think they can get the same service for less with someone else.

To counter this objection you must first believe that you are providing more value for your customers, or providing a better service than the price-dropping competitors. If you aren't truly convinced that what you have to offer is better - in other words, if you can't justify a higher price to yourself - then you'll never be able to justify it to your customers

Good News / Bad News
If you sense the customer is price shopping and you know your competitors always lower prices, the best thing you can do is bring this up early in the buying cycle with your customers.

Yes, I'm suggesting you tell your customers that they can find what you're selling cheaper somewhere else. The key is in what you say, and how you say it.

For example, you can say something like: "Ms. X, I want you to know right up front that you will be able to find a detail service for less that what we charge. While we are always competitive, we are not always the lowest price, but we are also not the most expensive. Knowing that we are not always the cheapest, does it make sense for us to move forward?" The answer you get will confirm whether the customer is looking for value or just looking for the lowest price.

The Choice is Yours
Other than Wal-Mart, no business wants to look cheap. As a result, the vast majority of customers will tell you that they're not interested in the cheapest detail service, that they want quality at a reasonable price.

In this case, your response should be: "Thanks for letting me know that. So, then how will you be making your decision?" This gets you past the price discussion, and onto a discussion of their real requirements.

This approach is also highly effective even for those few people who will look you in the eye and say that if you aren't the cheapest, they don't want to do business with you.

Why is That?
Because you are in control. When someone tells you they only want to deal with you if you're the cheapest option, it gives you a choice. You can play the discount game if there is a good reason to do so, or you can refuse the business, and let your competitors be the one to lose money serving this customer.

You make the choice.
This approach doesn't work 100% of the time. Nothing ever does. Some customers will tell you they don't want the lowest price, only to insist on a big discount when you state your price for the detail service.

If you find yourself in a price competition and you choose to negotiate, always ask for something in return for your price break. For example, ask the customer: "Mr. X, I'm not sure I can handle that large a discount. How about I include an: (engine clean or fabric protectant or a paint sealant, etc.), are you ready to make an appointment?"

This will help balance the relationship and let you both walk away a winner. It will also help ensure that your customers won't assume they'll automatically get a price break the next time they come in.

Some Additional Help
If all else fails, here are four tips for dealing with price shoppers all true examples taken from my own experience or that of my customers:

1. If you know a competitive detailer drops their prices and your customer is shopping around, ask them to come back to you if they get a better price. Don't promise to match or better it - just ask them to give you a head up. That way, you'll know what's going on in the market, and you'll also get a second chance.
2. If the customer tells you they can get your detail service for 50% less from the shop around the corner, be brave, and respond with: "Wow, that's a great deal that I don't think I can match. What's stopped you from buying it already?" The answer you get may just uncover that one last thing you need to close the sale.
3. When faced with the cry of "I can get it cheaper somewhere else," one customer of ours simply states: "I appreciate you telling me that Mr. Customer. Life has taught me that there are three variables to consider when buying detailing: service, quality and price. Experience has taught me that you only get two out of three. Which two are you most interested in?"
4. Finally, a detailer I know has a very simple response whenever someone tells them their service is too expensive. He looks at them and says: "That's exactly why you need me!" Then, calmly and confidently waits for the customer to say something next. Gutsy? Yes. He also closes 90% of the customers he gets to this point in the conversation.

In short, there are many ways to deal with a competitive situation in the marketplace.

You must passionately believe in your service, your company and how you can improve the client's vehicle. Without this passion, all the technique in the world won't help you close the sale.

It's your belief in the value of your detail service above all else that compels the customer to act in your favor.