You gotta love that price objection,
It’s the key to success for a Start Up.
Start feeling good when a prospective customer tells you, ‘the price is too high’. Dealing with a customer’s objection to price is one of the most challenging aspects of a salesperson’s job. However, it’s also one of the most common. Convincing buyers to part with their money is no easy task. The solution is to overcoming the prospective customer’s price objections to help the prospect see the value of your product, at your price point. Relax, pause and drop the price issue temporarily. Focus on what the prospect did not say. What the prospect didn’t say was ‘I don’t need it’, ‘I don’t like it’ or ‘I don’t want to do business with you’. Your prospect is waiting for you to create the opportunity to buy. Whether you are in a startup or in an operating business, use these three techniques and you’re only a few steps away from closing the sale.
1) Ask the question, ‘Why is the price too high?’.
2) Work to see the issues from the Prospect’s perspective.
3) Restate the benefits to exceed the Prospect’s expectation for value.
The first step is to have the prospect explain why the price is too high. Move to deflate the emotional content in the moment. Pause, relax, smile and then ask the Prospect, ‘Why is the price too high?’ The Prospect’s answer to this question will tell how and when the customer will buy. Asking questions lets your Prospects know they are important to you. People like the people who make them feel important. People buy from people they like. Your job is now to get the prospect comfortable enough to explain why the price is too high. The prospect may tell you a competitor’s price is lower and that is why your prospect believes your price is “too high”. It might be “too high” to fit into the prospect’s budget. Perhaps it’s “too high” relative to the prospect’s perception of the benefit the product will deliver.
If given the chance, most prospects will explain why your price doesn’t work for them. Listen for how the prospect is judging your price. Regardless of the answer, more often than not, the prospect will have one major reason to object to your price. Your prospect doesn’t like your price because they don’t see enough value in your product at your price point. You can almost always count on it NOT being because:
You are with your prospect to sell and just not educate. The prospect is there to do business and not just visit. From your opening remark to your final closing statement your attitude should convey ‘I am here to sell’. This doesn’t mean applying undo pressure or hard-selling. It means you are serious about helping the prospect solve their problems or take advantage of opportunities the prospect doesn’t see. By acknowledging the prospect’s concern over price, you create a sincere invitation to build a solution that benefits everyone. This way, you have a better chance of finding out the difference between your price and the price the prospect has in mind. This is your opening to show the prospect the added opportunities and benefits your product will deliver. Once the prospect sees the added value, your price will be right. Getting the prospect to talk about what they want will help you understand how to deliver enough value to the prospect and close the sale.
Every product or service has features. They are the characteristics, things or components included in your product. For example, some of the features for an automobile include: Seats, automatic high beams, forward-collision warning (FCW), spare tire, keyless entry, automatic braking system (ABS), windows, doors, truck and engine
When you are passionate about what you are selling you are going to love the features. Some folks actually dream about their product’s features. They love the features for what the features are and do. Keyless entries are great because you won’t ever scratch your door trying to get your key into the hole, keeping your car looking great longer and saving you money on repairs. Automatic brake system will stop your car before it collides with another car, helping you keeping you safe by avoiding accidents.
If you were a Cadillac salesperson, you might love the braking system. On the other hand, your Prospects are more interested in what the features will do for them. GM used Kate Walsh to describe the benefits of purchasing a Cadillac in an ad which dramatically increased car sales. While she mentions the features, she tells the audience “When you turn your car on, does it return the favor?”
Plan to turn objections into opportunities.
Donald Bittar is an author, CFO, educator and entrepreneur. Donald’s e-Books are published exclusively by Trunity publishing. His full featured, interactive, digital business books have been read by thousands of students and business people.
Another eBook by Donald Bittar
Video Credits: https://www.youtube.com/watch?v=jkEw1rsBUak