In our Persuasive Sales course, we spend a fair amount of time evaluating and discussing the objections attendees hear from their customers. Time and again, two objections are first and foremost on their minds. One is how to handle price objections. The other we will save for our next message. So, how do you handle price objections? Here is a list of six methods you can use to deal with them.
1. Ask about it.
This is the best way to deal with any objection. The customer claims your price is too high… as compared to what? Is this a reference to a competitor’s quote or a number they have come up with in their heads? Have market conditions changed? When is the last time they inquired about the price of what you sell? Questions about why they think the price is too high may uncover misconceptions customers may have about what you are providing. Don’t be so smart. Ask questions to clarify your customers’ unique view of their business and your solution.
2. Compare apples to apples.
Make sure the customer is comparing your solution to similarly configured options. At least make sure they understand and appreciate the difference in quality or value. Comparing a Chevy to a Lamborghini is hardly fair for either company or the customer.
3. Focus on the difference.
Speaking of differences, that is exactly where you should focus. If your price is 8% higher, you only have to justify the 8%, not the entire price.
4. Challenge the prospect.
Do this in the form of a question. “You want both feature A and feature B for this low price?” Then get quiet and listen. This tactic may not be for the faint of heart; it works well in the right situation. A less threatening way to do this is to ask, “Which would you buy if the prices were the same?” You have more selling to do if the customer says “Theirs”. Ask why. Listen for the true objection. If the customer says “Yours” then ask why. Before long they will be selling your product to themselves. All you will have to do is say “Right! That’s why ours cost more.”
5. Compare results, not the price.
Focus on the results gained from the added value. Compare the difference in price to the added return on investment or improved cash flow. This can make a price difference seem insignificant.
6. Make it smaller.
Break it down over the usable life of the product or service. For just $7.38 per day, you have ours versus theirs. For this to work, customers have to associate greater value with your solution. It’s your job to make sure they do.
This list is by no means exhaustive. There are hundreds of ways to handle price objections. Remember – just because the customer thinks your price is too high is no reason to quit.
Do you have a favorite not mentioned here? Please add your comment below.
|Unless this is your first day selling, you have probably heard most of the objections. Get prepared. Think about them before your call. Come up with solutions that are in your customer’s best interest and yours. Spend time thinking about solutions when you are not under the gun. Get creative. Ask management for help if necessary. Talk to other sales people.|
|2.||Listen patiently for the true objection.|
|Try to discover what the real objection is. Sometimes customers don’t particularly know how to articulate their objection. Slow down and ask about it.|
|3.||Restate the objection as a question to confirm understanding.|
|Avoid using the same questioning technique every time a customer objects. This becomes annoying and manipulative. However, you must verify that you fully understand the objection. Many veteran sales people fall into this trap and assume they have heard everything. Test your assumptions. Don’t get blindsided later.|
|4.||Show empathy and understanding.|
|We are not saying you have to agree with your customers. We are saying that you have to demonstrate you understand their point of view. This is how you build trust and credibility. To persuade customers or prospects, you must have their trust.|
|5.||Ask questions about the objection to uncover the real issues and causes.|
|Once you have established you have their trust, ask questions about what is causing the objection. Ask and be quiet. Let the customer do the talking. Your job is to listen and learn.|
|6.||Convert the objection to your advantage based on what the customer is really saying.|
|Now is when you have the opportunity to brain storm with the customer. This is a good place to ask what-if type questions and offer alternatives. This should be a two-way street where both you and your customer search for compromise.|
|7.||Close. Confirm customer is convinced.|
|You do know how to do this; don’t you? If not, we can help.|
Next time will discuss ways to handle one of the most common objections customers seem to have.
“Your price is too high!”