Sales ObjectionsIf you were to ask a group of primary school kids what they should do if they were on fire, I guarantee a high percentage would automatically respond with, Stop, Drop, and Roll. Likewise, if you asked a group of salespeople what to do when a prospect tells them their price is too high; you would hear a similar answer from far too many of them; something like: Stop what they’re doing, Drop their price, and Roll over.

How should you respond when your prospect says, “Your price is too high?” We’ve always been told to focus on value, which is certainly correct. Always remember that if it’s worth it to the homeowner, they’ll pay for it. But when you’re knee cap to knee cap at a kitchen table and are hit with price push-back, it’s hard to think when you’re on the bubble.

Price too high is a very subjective term. Before you jump in the middle of that, thinking you know what they mean by saying it, why not ask a question first; something like this:

“Price too high means different things to different people. What exactly does it mean to you?” Then wait without saying a word until you get a response you can wrap your arms around. My guess is that whatever the prospect responds with equates to them as not perceiving enough value for the money.

Be sure to realize that the prospect isn’t really buying what you’re selling; they are buying an outcome you are offering. So this is where the conversation should go, by making them aware how your company is superior to the competition, and emphasizing the unique features you deliver that will increase their perception of value.During this process don’t forget to point out how you will help them avoid risks, many of which they may not even be aware of.

Remember that the game breaker with prospects is not price, but rather how comfortable they are with you and how well you understand their needs and personal circumstances. Consumers always sort of pre-decide who they really want to buy from, although they listen to multiple spiels. So it’s critical that you don’t give them any reasons to pull for your competition.

To explain what I just said, let’s say you had a serious medical condition and you met with a surgeon who explained the needed procedure, along with his qualifications and background. But what if, as you’re leaving his office to think over what you will do, he says; “Oh, if you decide by tomorrow, I’ll knock off 15%.” That doc just gave you a reason to root against him.

So here are a few suggestions for the times when you hear, your price is too high:

1. Don’t cave: I was hanging out with a few fellow trainers last summer, as one of the guys started telling the rest of us about the services he offers. Although nobody asked, he started talking about his fees, and said; “I charge $1,500 per day plus expenses, but if somebody really wants me, I’ll work for less.” This is what I mean by caving, and he did it before price was ever brought up. Just imagine how wimpy this guy would act if his prospective client pressed him on price?

2. Head butt your competitor’s pricing: Don’t be tempted to roll over when the prospect says, “I can get it from Humberfloob’s at a lower price.” At this point you might feel the need to negotiate price…don’t.

Instead, you might ask why he hasn’t already bought from Mr. H?  Or ask, is he saying that if you can’t match their price then there is no chance of getting their business? Or ask, is price the only consideration?

Sales coaching and consultingAt this point the prospects that are rooting for you will share why they’d prefer to work with you, and this might just provide you some leverage to move away and talk about something other than price.

3. Don’t tell prospects how to build a watch: When somebody asks you what time it is, do you tell them how to build a watch? Of course not, so don’t try to explain all the X’s and O’s of your pricing structure when a prospect asks how you came up with your price. Provide a broad brush explanation and move on before you get nibbled to death by a duck.

4. Don’t be scared to “turn the tables” on your buyer: Don’t cut your price because you’re worried about losing the sale. That is a bad precedent to set especially if you are planning on securing referrals. Instead, calmly ask the prospect which component of the job they don’t want and name a few. “Would you like me to drop off the heat exchanger?” “How about I don’t include the condensing unit?” “What if I eliminate the thermostat?” Odds are, rather quickly they will let you know they want it all, and the price objection will shrink.

5. Build value by emphasizing all four components of the package: Don’t forget that when someone does business with you, they don’t just buy a product or service, they buy your package consisting of the following:

  • The product/service
  • The company
  • You, the salesperson
  • Your terms (financing, warranties, 24/7 service, etc)

The only way you can successfully compare and contrast your package is to know what your competitors’ package looks like. You can accomplish this by mystery shopping your opponent and then compiling a Ben Franklin style comparison chart, exposing the differences between each one.

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