Struggle with price objections? I have written several articles about price objections and how, in fact, most price objections are not really about price but more about conveying value to the prospect. Whether the price objection is about price or not – it still needs to be addressed.
Let’s assume the preliminary steps have been taken care of professionally.
Prospecting: You have done the research and asked the correct questions to determine that the prospect can benefit from your offer and that they have the resources to purchase if they choose to do so. In other words, they are qualified prospects.
Engagement: You have established some level of rapport with the prospect and have asked intelligent questions and listened carefully so that you understand the prospect’s situation and needs.
Pitch: You have presented your offer and phrased your pitch based on the highest value proposition [from the client’s point of view] and the values raised by your prospect during your engagement process.
If you have done the above then you have taken a professional approach to close the sale. If at this point your prospect questions your price then you have mostly likely missed presenting your value clearly enough during the pitch because where the value is clear the decision is easy. Future pitches should be refined to deal with raised objections in advance.
Dealing with the price objection:
Very few buyers choose the lowest price option, however, we all want the best value possible.
Feel, Felt, Found!
These three words combined with intelligent questions and active listening can get you past the price objection.
‘I understand how you feel, some of our best customers felt the same way when we first spoke to them, however, after working with us they have found our pricing fair and have continued to work with us. In some cases becoming our best clients.’
This is a very important step because it acknowledges the objection lets the customer know that others have felt the same – more validation. You might be able to directly refute the price objection but this can often alienate the prospect. You don’t want to be right but lose the sale – better to acknowledge the concern and, temporarily, support the buyer’s point of view.
Now, you need to determine exactly where you have failed to demonstrate value.
‘Why, specifically do you feel that our price is too high? If your real concern is money, that’s exactly why I suggest you take another look at our solution.’
Ask a few more questions to determine the real issue and then restate your value proposition in terms that fully address the issue and then use a trial close to determine if the prospect is ready to buy.
‘Would you like to move forward?’
If there is still some hesitation then at this point it can be a good idea to offer some additional value so that the prospect feels good about giving up the price objection and about moving forward. You could lower the price, slightly by repackaging the service in some way or perhaps by adding something extra. This should not be something that substantially changes the offer but that gives the prospect a feeling of gaining extra value. When buying a car the dealer might include luxury floor mats at no extra charge, some companies might include some supplies or extra warranty. It is always a good idea to have something extra in your back pocket to sweeten the deal and remove any remaining negativity on the part of the prospect.
This something extra should always be conditional on agreeing to the purchase.
‘I trust I have demonstrated the value in our pricing. If we can move forward I could include [the something extra]. Would that be acceptable?’
This process can continue until you have agreement, however, be very sensitive to when you need to back away and come back another day.
Don’t burn a good prospect!
This process will work and the more time you invest in understanding the value of your offer and in preparing for presentations that fully demonstrate the value of your offer the more success you will have. Remember that ‘the customer writes the pitch’ and every objection and every failed sale should give you more information about the value your prospects are looking for – in time your pitch will be unstoppable!
Selling is not a natural skill it is a learned skill and energy put into developing your skills will, over time, necessarily improve your results. I have developed several self-study programs for salespeople that wish to improve and I also deliver live sales training course in London, throughout the UK and across Europe.