Some people say that a salesperson’s job really starts after a prospect says “no.” What they mean is that (almost) anyone can make a call and go through a sales presentation, but the complexity and challenge of the job increases significantly when it comes time to influence and overcome objections.
Objections can vary, and span the gamut from timing to need and even to trust. Some objections can be overcome, if you really understand the objection and provide a convincing counter argument.
One of the more common objections is about price. Every salesperson has heard “It’s too expensive,” before, and many don’t know how to respond. To help you avoid getting caught flat-footed, we’ve put together some effective responses to the price objection. Here they are:
1. Ask for context
In a vacuum, an objection to price can mean anything. Ask the prospect what they’re comparing it to. This will open up a conversation about your competitors, the product’s value, or the prospect’s budget.
2. Reiterate value
People need to believe what they’re buying is worth the price. Use the price objection as an opportunity to go over what the prospect is getting for their money, paying special attention what they told you is most important to them.
3. Tell a story
The price objection offers a great opportunity to tell a story. “One of our favorite customers, Mrs. Johnson, also had concerns about the price, but after she decided to move forward, she was incredibly pleased with her decision, because, etc.” Humanize the decision, and the prospect will respond accordingly.
4. Find out why the prospect thinks it’s too expensive
If you ask the prospect how they reached their conclusion, you’ll get a chance to hear their reasoning. At a minimum, this will give you an opportunity to tailor a response to their “true” objection, rather than haggle over the price.
5. Ask what it would cost the prospect to do nothing
Opportunity cost is real, and it doesn’t hurt to remind the prospect of what they could be missing if they don’t move forward. This, of course, will vary by product and circumstance, but no matter what you sell, there’s usually an opportunity to paint a picture of the alternative.
6. Temporarily set the price aside
When a prospect voices concern about the price, ask them to temporarily set it aside so that you can discuss other aspects of the deal. This will allow you to reiterate your value proposition, give them a chance to state what they like and don’t like, and create opportunity to reframe the conversation with better information.
7. Ask what a fair price would be
While asking a prospect to name what they believe to be a fair price might put them on the defensive, it can also create an opportunity to explore their thinking. Not only that, but it’s a fairly bold statement that will show that you’re not only interested in what they have to say, but that you’re comfortable having the discussion, which is always a plus.
8. Compare price to ROI
Ideally, your product solves a problem and saves money over the long run. In a perfect world, you have the data to back up those assertions, and the price objection is the perfect time to present those data. Counter what the prospect is afraid of losing with what they’ll be gaining.
9. Find out if price is the only concern
While the price objection might be the first one you hear, it’s important to dig deeper and ask questions to find out if there are any others. Sometimes, the price isn’t the real concern, and the true objection might be one that you can address. But this only happens if you ask the right questions and don’t let the price objection stop you in your tracks.
10. Break the price down
Presenting the price as a lump sum might not always be the most effective way to go. Even the most price-conscious among us can nod our heads when somebody takes a big figure and breaks it down over months, weeks, or even days. Don’t be afraid to put higher numbers in context. It may seem futile, but you never know what somebody will respond to.