It’s Not the Price
Prospects might tell you it’s the price and you might think that’s the reason someone isn’t buying but it is rarely the reason. When people have a price objection there is something else behind it. It has more to do with perceived value than price and perceived value changes based on the situation.
People pay for perceived value, prestige, unusual circumstance & exceptional quality or service. Click to tweet
When prospects tell you the price is too high or you believe the sale has stalled because of price, consider these things.
- Does the customer have the cash flow to pay for your product or service? In other words, the price is not too high, the customer just can’t afford it. Maybe they will be able to afford it in the future or you can show them how the purchase will impact their bottom line and increase cash flow. Then they might consider financing it or reorganizing their budget, if possible. If they can’t afford it, they can’t afford it. Move on to the next prospect. You can always come back in a few months and see if their situation has changed.
- Is there someone else making the decision, that you haven’t met, who doesn’t understand the value, and told your contact to go back and negotiate the price? Don’t rely on your prospect to sell your solution to the decision-maker. You are the best person to do that. If you suspect that there is someone else involved in the decision-making process, ask. Good questions help uncover the reasons for objections. On average 5.4 people now have to formally sign off on each B2B purchase. You can ask, “Who else besides yourself will be making the decision for this purchase?” or “Can you walk me through your decision making process?” Once you find out you can take appropriate actions to move the sale forward. Read more on selling to multiple decision makers.
- Does the prospect understand the value they are receiving for the price? Maybe they need more education on how your solution is a fit for their need. You can ask, “What other solutions are you considering and how are they priced comparatively?”
- Is your prospect differentiating you from your competition? Maybe they are comparing you to a competitor who has a lower price and you haven’t differentiated yourself from that competitor in their mind. You can ask, “What other solutions are you considering and how are they priced comparatively?” Then be sure you have matched your solution to their needs to show how your solution is the best fit.
Before you start negotiating your price, be sure you really have to. If you have a fair price for what you offer, why would you lower it? If the customer isn’t happy with the price you offer, they probably won’t be happy at the discounted price either and you won’t be happy when you have to provide the same product and service for that lowered price to an unhappy customer.
Learn how to conquer sales objections by reading the blog post below:
Conquer Common Sales Objections in 6 Easy Steps or call me at 775-852-5020 so I can help you put a plan in place to handle objections and stop lowering your price.