Your solution was exactly what the prospect was looking for … actually, more than what he expected. There was only one roadblock – the price was greater than he anticipated. If you would be willing to cut your price, he would give you the “thumbs up” then and there. Otherwise, he would have to think about it.
Situations like that are all too common. While you may not be able to eliminate all price objections – there are some prospects for whom any price is too much – you can eliminate most of them.
Let’s examine six situations that precipitate price objections and the actions you can take to avoid them.
- The “price tag” of your solution is out of line with your prospect’s investment expectations or budget limitations. In this situation, price isn’t the problem; you are! You didn’t uncover the relevant issues surrounding the investment for your product or service – available budget, funding, previous investments and any current limitations – prior to beginning work on proposals or presentations. Get all the investment issues on the table before you begin crafting solutions or developing presentations.
- The perceived value of your offer is inconsistent with the investment. If prospects view you as “just another vendor” for the category of products or services you sell, price will be the only differentiating factor between you and your competitors. And, there will always be someone cheaper. In those situations, price is not the problem. The problem is lack of differentiation: your inability to develop relationships where prospects recognize the value you “bring to the table” – value that they would lose by dealing with your competitors. Find out what prospects value – what would cause them to choose one supplier over another – and make that the central core of your presentations. When you provide prospects with something on which to focus other than price – some aspect of your product or service, your company or your personal attention – price objections tend to disappear.
- You are trying to do business in the wrong market. The marketplace is ever changing. Various market segments that once encompassed desirable prospects may not present the same opportunity today. In that case, your problem is not price – any price is too high to someone who doesn’t truly need your product or service. The problem is tunnel vision (or perhaps lack of flexibility or creativity). Take off the blinders. Broaden your horizons. Test the waters with new markets. Call on markets you previously avoided. For every prospect who wouldn’t buy your product at any price, there is one who will – if you look hard enough.
- You are attempting to sell what you want to sell or what you think prospects need, not what prospects want to buy. People buy what they want, not necessarily what they need or what you believe they need. If you enter selling situations with preconceived notions about what you are going to sell, you will miss the opportunity to sell what prospects are ready to buy. Price may be the objection voiced by prospects, but the real obstacle may well be your own rigidity. When you make sales calls, leave your preconceptions in the car.
- The prospect perceives that you are only trying to “make a sale.” You must have a genuine, sincere concern for your prospects – and it must show. If you act and sound like the stereotypical salesperson who is a bit too eager and enthusiastic and appears to be out to make a sale at any cost, your prospects will feel like the proverbial lamb being led to the slaughter. In those situations, any price will be too high!
- You don’t focus on the big picture. If your prospects view your product or service as a temporary or quick fix, and not an integral part of a long-term solution, the perceived value of the return on their investments will be far less than what they are really worth … and less than the amount you’re asking. If your strategy is to “get your foot in the door” with an initial sale with the hope of securing future business, then make sure the initial sale is specifically tied to a predefined future relationship. Not only will prospects be more willing to pay your price; they won’t be looking for another supplier while you’re providing the temporary fix.
Don’t blame prospects for “price” objections. Instead, examine your attitudes, actions and strategies and make sure you’re not creating your own “price” roadblocks. I95