Too Much Money!

You thought the sales call was going well – after all, a discussion is developing about the cost. But, then the prospect tells you that your solution is just too much money!

STOP!  Think, where am I in the process and what have I not done?

Assumption

You have done your pre-call preparation. You have qualified this person as a prospect, not a suspect. You have worked to establish rapport, gained the prospect’s attention and developed the opportunity for you to ask questions for the purpose of problem recognition.

You made your presentation focusing on benefits, value delivered, and metaphors to create word pictures that increase understanding.

As the conversation continues, you have clearly demonstrated that you have clear insight into the current situation, the points of pain, the attributes of an ideal solution and the drivers of buying behavior within the prospect’s organization.  Then, as you move to yet another trial close, the customer states this price objection.

Response

“Oh, why is that?” or “What do you base that on?” you ask and then listen.

If you are told that a similar solution is available from a competitor for far less, you must retrace some steps to establish the value you deliver. Probe first. Understand if this is a “real” comment. Is the competitor really delivering the value and is the nature of that value the same as yours. What about total cost of ownership (TCO) and what role does that play in the comment about cost?

Another option may be to ask:  “What, in my presentation, drove you to believe/think/feel/know [that verb is important! Reflect back to the prospect the communication style he chooses to use] that our solution costs too much?”

You want to discover what you have not communicated well – NOT what s/he did not hear. You take the burden of responsibility.

Reasonable people understand switching costs and other drivers of buying behavior that will affect TCO and if that is the nature of the objection, you probably have a buyer to whom you do not need to sell – your role is now that of a negotiator – working on a mutual commitment to a win/win solution.

Your strategy in a price objection is to justify the higher price. Price is never the only reason for objecting. If it were, you could just send a catalogue out with prices and that ends it. You play an important role in the conversation that will lead to understand what the prospect values and how well you can deliver that value. Your strategies could include:

  • Break the price down and spread it over the period of the life of the product (could include a discussion of initial and ultimate costs)
  • If you have a unique differential advantage, build the justification around the value this uniqueness delivers
  • Compare and contrast strategy with competitive offerings and the value differential you deliver
  • If the objection came early in your presentation, postpone it until you have time to establish value.

Remember, if the prospect thinks your price is too high, you have not laid a solid foundation of benefit and value.

Of course, this is just an overview of handling objections. Need more help? Click here and let’s discuss how we go about establishing a working relationship.

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