It is not a secret that most consumers always complain that your price “is too high”. Unfortunately, it is usually just a tip of the iceberg. Ask the right questions and you’ll get the right answer.
Ask yourself this question: “Do your consumers see the value in what you are selling?” It’s up to you to dig deeper and uncover the real objection and find a solution to their concerns.
Of all the objections sales representatives get, the “price is too high” is still number one on the list. Imagine this: if you are going to buy a new car, a new house, or even a dinner out with the family, what’s the one common component of your own buying decisions? It’s your budget, isn’t it?
So it’s obvious that all of your prospects have a budget consideration as well. However, you need to be careful since the price objection doesn’t always mean that your prospect can’t afford it. In fact, the price objection is often the trickiest objection of all, which prospects often throw out to hide the real objection. The reason they use it is because it works. Again, everyone understands budget concerns because we all have them.
Expert PRs know how to go beyond this vague objection and reveal what the real objection is. Once you understand what the price objection really means, you will gain a unique insight into how to deal with and overcome it. In today’s post, you will learn five ‘hidden meanings’ your prospect want to cover when they tell you that your price is too high.
Let’s start our interpretation with:
1. They don’t see the value in what you are selling. Often when a prospect tells you that the price is too high, what they’re really saying is that based on what you’re telling them they’re getting, they don’t feel the spend is justified. This often means that you either:
- Didn’t completely understand their buying motives and so didn’t show how your solution addresses them.
- Didn’t build enough value in the results they are going to get as a result of making the purchase.
Solution: After you’ve clarified that this indeed the case, then it is up to you to go back and build that value by pitching specific points and tying them down to make sure your prospect sees and buys into the value.
2. They believe they can get it cheaper somewhere else. With the Internet making your solution available to nearly anyone – or, a solution your prospect thinks is the same – it’s difficult to compete on price.
Solution: The solution here is in first discovering that your prospect has another option in mind and then doing the straight forward comparison of “services for services.” This used to be called an “apples to apples” close and it’s still highly effective – if it’s presented correctly. The key, however, is to be able to determine whether that’s the issue and then use a properly worded script do the comparison.
3. They actually can get it cheaper somewhere else. This can seem difficult to at first handle, because after all if they can get it cheaper somewhere else, why wouldn’t they do it?
Solution: To answer this question, just ask yourself what motivates you to pay a premium for a product or service you know you could get less expensively elsewhere. Reasons can include:
- Getting it from a more well-known source often means that handling any problems, questions or returns is easier.
- Buying something from a person or company you respect or like is often another reason to go with a higher priced item.
- Convenience: Sometimes it’s easier or less time consuming to buy a product or service from a source you know and trust – even if you have to pay a bit more.
- Quality of product. Often times a knock off or generic product is available, but those sometimes don’t come with all the support, instructions, warranty, etc., that you can get buy paying a bit more from the manufacturer.
- The only place your customer can get you – your knowledge, your customer support, your belief and your desire to stand behind your product and make any problems right – is by buying it from your company and doing business with you. This is a powerful buying reason and one sales reps routinely underestimate…
4. Most of times, prospects are not ready or willing to move forward with a purchase for a host of different reasons: If they are a business, then initiatives can change, or personnel changes, timing, scheduling, etc., also affect purchases. Or, for both individuals and companies, there can be multiple decision makers with different objectives, or prospects decide to keep looking or delay or postpone the decision for many other reasons as well. When prospects don’t want to reveal what is really stopping them from making a decision, they will often just throw out the price objection because it works. Revealing anything else would require an explanation, but saying it costs to much, or that they simply can’t afford it, usually gets sales people off their back.
Solution: The key here is to find a way to get your prospects to reveal what is really behind their decision not to buy and then effectively deal with that.
5. They actually can’t afford it. Sometimes the price objection is just as it sounds: your prospect can’t afford – or chooses not to afford – your product or service. If this turns out to be the case, then it’s something you should have addressed during qualifying.
Solution: Top producers always qualify for budget – among five other things – and they know in advance if a prospect can afford their solution. If you have qualified correctly in the beginning, and you still get the price objection, then you can be sure it’s a smokescreen hiding items one through four above.
As you can see, the price objection isn’t always about the price, but rather, it often means something else. Your job as a closer is to be prepared with a scripted approach to find out exactly what the real reason is, and so position yourself to overcome it.