Sooner or later, when any of us wants to buy something, we want to know the price. Then, in our heads we go through an internal process of evaluating whether it’s worth it. If we decide that it is, we make our purchase.
Very often what is perceived as a price objection is actually a request for more information; without knowing the price, we are unable to decide. If people made purchases based on price alone, 93 percent of organizations would be out of business. Price objections can be dealt with much more effectively by incorporating the following suggestions within your sales approach.
Leave price talk for later. My advice is always to postpone talking about prices until after you have demonstrated the value of your product or service. If people are informed of the price too early, they’ll make an instant judgment that can close their mind toward what you are telling them.
For example, if you were told that a grubby old stone cost $10,000, you’d be very closed about what the seller was going to say next. Alternatively, if you were shown an uncut, 30-carat diamond with a photograph of how it would look cut, its value would be perceived as dramatically higher, meaning that when the seller told you the price, you’d have already appreciated its value.
If a prospect asks the price too early in the sales process, its good practice to say something like this: “Before we can discuss prices, we both need to be absolutely sure that we are the right fit for you. So, if it’s OK, let’s come back and discuss the price in detail when we both know what you need.”
What’s behind a price objection? As with any sales stumbling block, it’s important to understand the root of a price objection. For example, if a prospect says, “It’s too expensive,” an experienced salesperson will drill down to find out why the prospect is making this statement. Precision questions, such as “How do you know?” “Compared to what?” and “Compared with whom?” can achieve this.
When prospects perceive that the value of a proposition outweighs the risks, then generally speaking they will go ahead and make the purchase. And prospects will often pay more for added value, which is usually related to one of the “Three Rs”: reputation, reliability, relationship. Good salespeople are able to paint a graphic picture of what is at stake, quantify the value and help prospects understand how a product or service will make them feel.
Live your message. It’s important that you really believe in the value of what you are offering, so that you’re better equipped to convince your prospects of it. If you are unsure about the value your product or service can provide, you will project this unconsciously to your prospects. But if you are completely convinced that your product or service offers superb value for the money, then your entire communication, from your voice tone, your eye contact and your gestures will convey value.
Every sales professional encounters price objections at some point. Be prepared for them and believe in your message, and price will cease to be a factor.
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Jonathan Farrington is a globally recognized business coach, mentor, author, consultant and chairman of The JF Corporation and CEO of Top Sales Associates. For more information and tips from Jonathan, visit http://www.topsalesworld.com/, or go to his blog at http://www.thejfblogit.co.uk/.