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When Clients Find Somebody Cheaper

It is absolutely true that beer cans could be made out of steel. At the time of writing, a kilogram of steel costs $0,7. A kilogram of steel is $2,36, more than 3x more. Why is aluminum the industry standard?

If looked at like it’s a math problem, it seems like aluminum is obviously the wrong answer, unless we are missing something. Well, we are. Although they are both metals, and both have a price per ton so they seem easy to compare, these materials are quite different.

Aluminum is much lighter than steel for the same strength, meaning you have to use a lot less of it per can, which means cheaper production and transport. It’s also simpler to shape, more resistant to corrosion, and easier to recycle._

Simply put, if you are not familiar with the technical context, the direct comparison of their prices tells so little that it actually misleads the buyer._

People ask me how to respond when clients say “I found somebody cheaper”.

1) Talk about differences they may not know – convenience, risk, alternative ways in which they could be sorry for making the wrong choice
2) If they find these differences meaningful, help them reach a better decision
3) If they don’t, let them go

When you deal with pressure, remember that pricing fit is never just about the math. It’s about providing enough context to uncover the actual market fit between what you offer and what they want.

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