THREE APPROACHES TO HANDLING PRICE OBJECTIONS
I think every sales person will agree when I say that price objections are like speeding tickets…it’s difficult to talk your way out of them and disappointing to part with the money they cost you.
Very few have mastered the art of overcoming a price objection without compromising profits. Unfortunately many sales professionals instinctually respond to the dreaded phrase, “your price is too high,” by immediately doing whatever they can to reduce the price of their product or service in an attempt to avoid losing the sale. In some instances, price reduction may be necessary, but it’s not always the right solution. Below are 3 approaches to handling price objections:
1. Take the time to fully understand the intricate details of the customer’s needs and explain how the product/service can best fulfill this void.- This may require some “outside of the box” thinking. Can your product or service be adjusted or altered to better and/or more specifically fulfill their needs? The competition may offer a lower price, but did they offer a customized product/service with benefits and features that the customer truly needs?...OR, did the competition just cut rates on a very general offer that minimally fulfills their needs but also includes a lot of “extras” the customer paid for but does not need, nor will they use? Be straightforward when you explain to the customer why your product/service is the best and don’t be hesitant to point out how/why a cheaper product may not be the best option.
- There are certain questions that a sales person can use to discover points of interest that may minimize the customer’s objection to price. For example, “Outside of price, what are two or three factors that are included in your decision making process?” Use this information to focus the discussion on how your product/service meets or exceeds expectations on the factors they have listed. Doing so will shift the influence of one factor to many. It will be harder for the customer to object your product/service based on just one factor (price) when it satisfies so many of the other factors they have deemed worthy of being included in their consideration.
- When it becomes apparent that you will not be able to overcome the customer’s objection to high price but you still feel as though the sale could be mutually beneficial, move forward by offering to meet their request of a price reduction IF they agree to set you up with contacts and/or referrals who would also be in need of your product or service. This way you will have the opportunity to make up the loss incurred from the price reduction.
Also, check out our free whitepaper about handling price objections:
