For salespeople, it’s a neverending complaint.
“Your price is too high.”
Even if there’s not an ounce of truth to the prospect’s price objections.
But those objections can be overcome, even when your price really is the highest in the marketplace.
Take price objections head on
Here are seven strategies used by top salespeople to lessen the influence of price on a customer’s buying decision:
- Answer “What’s in it for me?” The prospect is always asking this question. The answer to it is not features, but rather benefits. Rarely is any one feature worth the price, but it’s possible that one benefit is worth the price.
- Explain the cost-benefit ratio. The prospect’s buying decision will be based on perceived value in relation to price. Values or benefits are not in the product but in the prospect’s mind. The salesperson has little control over price, but has control over presenting the prospect with enough reasons to buy.
- Acknowledge that buying is an emotional process. The emotional involvements in the buying process run the gamut from prospects wanting an item so badly they will do almost anything to get it, to analytical buyers wanting recognition for low-cost, high-quality purchases. The strongest emotions often are based on past negative experiences involving service or quality. Ask questions to find out your prospects’ past dissatisfaction with service or quality, and show how you will do better.
- Justify your price. The price can be higher than the competition as long as the prospect feels it’s justified in terms of the values and benefits offered. The best way to justify the price is with more benefits. Rarely is price the dominant factor.
- Preempt price. If your price seems high, you can soften its effect by preempting it. You bring up the subject as a benefit and justify it before the prospect complains about price. In that way, you minimize potential objections.
- Keep your composure. Because price isn’t the most important factor in selecting a product, you shouldn’t lose composure when the prospect starts complaining about the price. It may be a defense mechanism.
- Know that price-selling alone makes you vulnerable. Understand that salespeople who sell based on price alone are vulnerable to losing the account if someone comes along with a lower price.