On this Q&A episode: "What's the best response to "It's too expensive'?" I often struggle with price objections when the customer says, "My price is too high." Is there a best response to this objection? What do you recommend?
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*** Enhanced Video Script ***
“The price is too high” is a very common objection. In fact, there are various forms of that price objection including:
- Competition: your price is higher than your competitors.
- Value: the price that you're asking exceeds the value the customer expects to receive.
- False objection: your customer never intended to buy from you, and it's a convenient way to end the sales of conversation.
- Different solution: they already had a competitor in mind based on their prior experience they were going to go with.
But what it comes down to on your side is qualification. Is there a need or problem you could help solve where the value to the client exceeds your price?
As a starting point, you need to make sure that a client is open to hearing about your products or solutions. Unfortunately, sales reps often force themselves on customers as opposed to creating interest. Trying to sell to a disinterested customer is almost always ineffective, and it's going to end in a price objection.
As a sales professional, it's your job to create the interest. To do this, you should make sure to plan for the sales call and conduct account analysis. Who is the customer? What businesses are they in? What's the industry? What's the competitive landscape? What are some of the recent trends?
You also want to understand the nature of the person you're meeting with. What's their role? What are their responsibilities? What are their interests? Most importantly, what are their priorities? That allows you to develop a call objective.
The call objective is key. What is it you hope to accomplish when you meet with the customer? Based on that, you want to create a call opener to build rapport with the customer. Explain the reason you're there, and wait for their response. When the customer sees that you’re prepared and have a clear objective, they're more likely to engage with you in a conversation.
It may also help you reset your plan if they have a different objective in mind or determine that there isn't such a good fit. It’s much better to do that early in the sales process before you spend a lot of time.
Assuming there is a true interest, you then need to help the customer focus on their needs. Focus on their needs, not your products. This is best done by asking good questions and listening.
Consider the following sequence for your questions:
- What’s their current situation?
- What are the potential problems, difficulties, or priorities that they're looking into?
- What happens if they don't address these issues?
- What would an ideal solution look like?
- What’s the benefit associated with solving the problem?
But you also must remember to keep the questioning conversational. Customers don't want to be interrogated, and you want to make sure that it’s a sales conversation. Along the way, you're asking some clarifying questions. You're spending your time listening to understand your customer's needs.
Once you've identified a need or problem, it’s your responsibility to help them envision how your solution meets their needs. In other words, how can you best align your solution with the business need to create the most value? Think about the nature of the price objection, and what you can do early in the sales process to qualify the opportunity. At least, you need to determine that there is a legitimate interest in your offering and whether it can address their needs.
Assuming the opportunity is qualified, focus on selling the value that you can create as opposed to the price you can offer.
About Norman Behar