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Overcoming Price Objections
by Tim Breithaupt

 


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A "Secret" note for Business Owners and Sales Managers

Overcoming Price Objections

by Tim Breithaupt

One of the most common, yet feared objections during a sales call is price. The very mention of it seems to paralyze any rational thinking by the sales representative. Desperate to overcome their fear of rejection, they struggle to justify their price to the customer. Hence, in their quest to preserve any shred of success and salvage the sale, they succumb to the demands for a lower price. There is a better way!

More often than not the price objection is a conditioned response rather than a legitimate concern. The customer may simply be price resisting and not price objecting. There is a big difference. Price objecting is a clear case of opposition; the inability to pay because the price exceeds the limits of their budget or the customer has no budget. Price resistance suggests the capacity to withstand or tolerate the price but further convincing (bridging) is required.

So next time you are confronted with a price objection, take a deep breath of confidence and simply isolate your customer’s concern. Put your customer’s mind at ease by offering an appropriate response. To accomplish this you may need to do one of the following: a) reinforce your value proposition by highlighting the accepted benefits b) continue to build value by asking conversational probes to identify possible features to bridge as benefits.

These two strategies will build the value your price represents and “the bag of money” will feel confident about switching to your solution.

Remember, your pricing says a lot about you and your passion and belief in what you represent. Don’t compromise either by allowing the customer to sell you on a lower price. Every time they succeed, you’re the one who has just been sold! What’s wrong with this picture?

Point to Ponder:

"We are generally the better persuaded by the reasons we discover ourselves than by those given to us by others."
Blaise Pascal

Hence, in the event of legitimate price resistance and to help reinforce confidence in your price, I offer you 22 proven responses. Become familiar with the ones you feel will work for you and your clientele.

“YOUR PRICE IS TOO HIGH”

1) Compared to what?

2) What was your expectation?

3) Yes, on the surface it may appear higher. However, given our superior quality and value, it means you actually pay much less over the life of the product.

4) The small difference in price represents our “quality insurance premium”. It is your insurance against poor performance and poor representation on my part.

5) I’m glad you mentioned price. That is actually the best part about my proposal. Our price makes a statement about our value and the quality associated with your purchase. Imagine your response if we were the lowest…

6) You really feel that it is too high? Can you share with me your rational…

7) We can be the lowest if that is your main buying criteria, but you need to make a decision on what options or benefits to cut from our proposal so that I can reduce your price.

8) If I honestly felt that low price was your principal buying criteria, I would have gracefully declined making this presentation and suggested other vendors for you to consider…

9) We are not the cheapest in our field, nor is that our objective. We have a 25% market share, we sell 1000 units a month and we continue to grow every year. We do that by delivering the best value, not the best price.

10) If you were to go skydiving, would you try to get a 20% discount? What would you be prepared to give up?! My point is that we will not compromise our quality and safety by accepting discounted prices. Our relationship depends on meeting and exceeding your expectations…

11) As a consumer, when was the last time you made a purchase based on price only? I suggest that you haven’t… let’s review the benefits associated with this purchase.

12) I can appreciate that price is one of the many considerations, however, my research tells me that company X charges $100 and company Y charges $110… that makes our price very competitive. What does your research reveal?

13) Yes, price is important and that is why we need to look at this as an investment instead of a cost. Your R.O.I. on this purchase is very attractive and these are the reason why…

14) I understand how you feel. Other customers have felt the same way, but after their purchase this is what they found… You are certainly welcome to chat with any of our satisfied clients…

15) Is the price too high in comparison to your budget or compared to other competitive quotes?

16) Our company has found that it is much easier to explain a competitive price once than explain poor quality and service several times…

17) We both appreciate that you “get what you pay for”. What is it that you would like to get?

18) I am sensitive to your budget and, given that, I can speak to management about terms or even issuing smaller invoices to offset the impact on your budget. What terms would work for you?

19) Yes, the price may seem high initially, but let’s look at it on a monthly or quarterly basis (break it down into smaller units to offset sticker shock).

20) I can understand your budget concerns, but our company prides itself on the total value that we deliver. Unfortunately, we do not offer an “ a la carte” menu.

21) Price is only a monetary number based on an of exchange fairness. Where is it in our proposal that you don’t get a sense of fairness?

22) Once you have completed your market research, I ask that you give me the opportunity to respond to any competitive quotes that you receive. Although I offer a fair and competitive price, I cannot predict what my competition will do. Hence, I want to keep the door ajar to respond to any unforeseen market conditions. Will you call me?

PRICE FACTS:

1) Price is the most convenient objection a prospect can use to thwart your sales effort.

2) 70% of the time it is salespeople who mention price first.

3) Never be the one who brings up price. Unless the customer mentions it, consider your price competitive.

4) Price is usually 5th or 6th on their list of buying criteria. Nothing is ever purchased based on price alone.

5) Price should be evaluated only after all the apples to apples comparisons are complete.

© 2007 Tim Breithaupt www.spectrain.com Used with permission.

Tim Breithaupt's competitive edge is his innate ability to connect with his audiences. His delivery style is referred to as entertrainment - a lively blend of logic, simplicity and humour.

As a leading expert in the area of business development, Tim has been published in local, national and international publications.As founder and president of his own business training company, Tim has worked with numerous companies sharing his unique formula of success with thousands of professionals.

With a Commerce Degree from the University of Toronto coupled with twenty seven years experience in the business community, Tim Breithaupt delivers real-world wisdom to foster a level of confidence that will boost results to exciting new levels.

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2/12/08


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