Your Price is NOT Too High
Problem: Paul, an experienced salesperson, was convinced that his company’s products were overpriced. More and more he kept hearing price objections when he delivered his proposals. By his estimate at least two-thirds of his prospects complained about his prices. With this overwhelming evidence, he began to start discounting in order to close deals. Although he started closing more business, his commissions weren’t up significantly and his manager was becoming upset by the profitability of his accounts. He seemed to be in a devastating downward spiral. Seeking advice, most of his business associates told him to sell harder, be more convincing, and show the prospects why his products outflanked the competition. In other words, go back to the basics. You know, features and benefits. But, that didn’t work either.
Diagnosis: The basics were flawed. Worse than that, they weren’t even valid any longer. For years we’ve been taught to tell our story by presenting our features, advantages, and benefits. We’ve been taught to overcome price objections by selling value. Seemingly every sales training program out there feels there must be chapter after chapter on selling features and benefits and overcoming objections. The real reason Paul, and others, get price objections is that they continue to “pitch” their features too early (great quality, personal service, competitive prices, experienced technicians, satisfied customers, etc.). They sound like every other vendor they compete with, so the prospect perceives all vendors to be similar. Price becomes the focus and they become a commodity.
Prescription: As they say in New York City, “Fuhget aboudit!” If you catch yourself “selling” your company early in the sales process, you’re undoubtedly trying to convince your prospect that you’re a qualified vendor. Then they’re qualifying you! Forget about that. It’s your job to qualify them. Get good at discovering their pain, ask insightful questions that get them to look at their issues from perhaps a different perspective. That’s how you bring value and when you start to do that you’ll find the price objections will disappear.
