Introduction
Yes, it's that old chestnut again - price. Everything was going so well in the negotiations and then the issue of price came between you! It's the one objection that can paralyse the sales process. You want this sale badly so you do what comes naturally - you offer a discount on the price. Think again my friend!
Naturally your prospect wants the product at the least price but is he/she just price resisting as opposed to price objecting? The latter is clear opposition - maybe the price exceeds the limits of their budget, or simply there is no budget! Price resistance on the other hand suggests that you'll have to do some more convincing but he's not completely negative about the price. You'll need to reinforce your value by highlighting the benefits and improved outcomes.
Some good advice would be don't respond right away. Instead, get the prospect to talk more about their objection. Ask, "And what else is of concern?" This allows you to get all the objections out at once. By doing this you get a more complete picture of what's really going on and can respond accordingly. It also gives you some time to think about how you want to respond.
SOME PRICING FACTS TO DIGEST:
- Price is the most convenient objection a prospect can use to throw a spanner in the works of your sale.
- Unbelievably, 70% of the time it is salespeople who mention price first. Bad move! Never be the first one who brings up price.
- Price is usually 5th or 6th on the list of buying criteria. Nothing is ever purchased based on price alone.
Responses for handling the objections
If your prospect is saying "the price is too high", try one or more of these responses, relevant to the situation:
You can say:
1) "Please can you share what our price is being compared to?"
2) "What was your expectation?"
3) [If it will save them money in the long run] "Yes, on the surface it may appear higher. However, given our superior quality and value, it means you actually pay much less over the life of the product/service."
4) "I’m glad you mentioned price. Our price makes a statement about our value and the quality associated with our product."
5) "If price is your main buying criteria then we can cut some of the options from the proposal. Which options are the most important to you?"
6) "Is price your principal buying criteria?"
7) "It is not our objective to be the cheapest. We are growing every year and we are successful because we deliver best value, not the best price."
8) "We cannot compromise our quality and safety by offering discounted prices. Our relationships depend on meeting and exceeding expectations."
9) "Let's review the benefits here".
10) "I do appreciate price is one of many considerations. However, I know that our price is very competitive."
11) "Yes, price is important and that is why we need to look at this as an investment instead of a cost. Your R.O.I. on this purchase is very attractive and these are the reasons why..."
12) "I do understand your point of view. However, we've found that other customers are witnessing increased value with our offering. We can provide further testimonials, or would you like to speak with some of our satisfied customers?"
13) "Is the price too high in comparison to your budget or compared to other competitive quotes?"
14) "I've listened to your concerns and will speak to management about easier terms. What terms would work for you?"
15) "Yes, the price may seem high initially, but let’s look at it on a monthly or quarterly basis."
16) "I know you will be seeking other quotes. We offer a fair and competitive price. Can I ask that you will give me the opportunity to respond to any competitive quotes you receive?"
Conclusion
Remember, your pricing says a lot about you and your passion and belief in what you are selling. Don’t compromise and never haggle. The difference between negotiating and haggling is simple. Negotiating is when you are making adjustments in terms, conditions and scope of work between two parties. Haggling is when you are asked to do the work in the proposal but for less money. Keep up your belief and don't allow the customer to twist your arm to sell at a lower price. If they succeed, you’re the one who has just been sold!
- http://www.secretsellingtips.com/Articles/PriceObject.htm by Tim Breithaupt
- http://www.raintoday.com/library/articles/7-ways-to-deal-with-price-objections/
- http://www.huntbigsales.com/price-is-no-object/
- http://salesactionplan.com/10/negotiating/overcoming-the-four-top-pricing-objections-in-a-complex-sale/