How to Overcome Price Objections
Every sales person has heard objections about price. This is part of the negotiation process as buyers try to cut the best deal that they can. But what happens when this is a real objection? What do you do if your customer really says no because of the price? Overcoming price objections is a key skill that every sales person should have. Here are some ways you can do to Overcome price objections :
Start off by believing in your product and brand. This starts before you go anywhere near the sales call. It is not enough to know the price of your product or service – you also have to believe that you are charging a fair price for it. You do believe, don’t you…?
Anticipate and move first
If you know your customer is likely to object on price you should put in place a plan to deal with it. Before you go into your pitch prepare three prices in your head – a low price, a middle price and a high price. The low price should be the minimum price that you want for the deal. Then in your pitch (before your customer has had a chance to mention price) ask them what bracket their budget fits into. You might not get an answer, but that is okay as it will get your customer thinking about a price range that is higher than what you are going to quote.
This won’t work in every sales meeting though, so let’s get on to overcoming the objections.
Get the order right
Your customer might want to start talking about prices early in the conversation. You should avoid this in favor of laying out the benefits of your product or service first. This is how you can demonstrate value rather than price.
Break it down
When it comes to the point of discussing price, try to break the cost down into smaller chunks, if possible. For example, instead of giving the annual cost, describe the price as a weekly cost.
Focus on the difference
Your customer might tell you they can get your product or service elsewhere for cheaper. When this happens focus on the difference in price, rather than the overall price. You can then explain to the customer the extra benefits that they are getting for the additional money. When you focus on the value that you offer, price becomes secondary.
This approach takes confidence so make sure you know your product, your prices, your customer, your industry and your competitor well before using this technique.
Firstly you can compare your prices to your customer’s prices. Find out if they are they the cheapest in the market, or do they offer their customers a better product or service for a higher cost.
You can also compare your prices to your rivals with the confidence that yours is a better offering. You should say that you know the value of your product and service, just like your competitor knows the value of theirs. And you know yours is worth the price tag.
If none of this works you will have to change tactics. This means changing the offering, or walking away from the sale. Here are some ideas that you can implement to change the offering, without reducing the price:
- Alter the deal – reduce what the customer is getting so that you can lower your price.
- Give payment terms – your customer might genuinely not have the money to pay the price you are asking for, even if they like the product. So give them payment options that make this easier.
- Reduce the risk – give the customer a money back guarantee.
- Negotiate – negotiate the price down in return for something that you value. This could be a larger order, a longer-term deal, or upfront payment.
Finally, be prepared to walk away from the deal. You can’t win every customer. If the person is still objecting because of price (despite going through the techniques in this article), accept that this is one sale that you won’t get. But you’ll get the next one.Tags: One Day Sales Seminar, Overcome Price Objections, Sales Training