Dealing with price objections is a constant challenge for salespeople. It’s part of the territory, and here’s why.
- We, as buyers, seem to be culturally conditioned to ask about price. You will always be tested. It’s part of the game.
- As salespeople, we often send signals that we are willing to negotiate price in order to win the business. This exacerbates the situation.
You may be part of the problem. Salespeople often send the wrong message.
- The price is negotiable – “I want to work with you on this” or “this is just list price.”
- They invite the customer to beat them up – “Tell me where I need to be.”
- They encourage the customer to shop – “Check around. You’ll see that we’re quite competitive.”
- The customer flinches (“Wow, that’s expensive”) and the salesperson caves in – “Let me see what we can do.”
Considering these realities, price often becomes an issue when it should be irrelevant. The price issue will be raised, and you need to know how to deal with it.
- The more pain you find, the less price will be an issue.
- If you have reservations about your prices, you must overcome them.
- Don’t ever be defensive about your price.
- Just say “no,” “no,” and “no” again. The prospect will be more likely to give up if he sees you have conviction about your price. (You might be pleasantly surprised about what happens when you say, “Sorry, but no.”)
- Understand that you’re the only one who can cut your price…your competition can’t.
- Reframe you discussion about price into a discussion of overall value.
- Stop talking about “price” or “cost” and use “investment”
- If you can’t get your price, know that walking away is always an option.
- If you must negotiate your price, get something of equal or greater value in return.
What to say about price: “The real issue is not what it’s going to cost, but what’s the value of it once you buy it and implement it. And if it doesn’t bring more value than what it costs, then you absolutely shouldn’t do it.”
Self-Study Assignment: How do you feel about the pricing of your products & services? Hopefully you feel your prices are entirely justified. If you are having trouble maintaining your target selling price, evaluate the suggestions above to see if they will help.