Overcoming the Price Objection

Does this scenario sound familiar to you?  You speak with a potential client.  You do a great job interviewing them and evaluating their needs, now it’s time to close.  So, you go ahead and ask for the sale and they say that it is just not in their budget.  There are several ways to overcome this objection.  Let’s get straight to it!

Properly qualify your prospect.

This objection, more than any other, is a symptom of a rushed call. Many reps will try to throw something against the wall  and see it if sticks.  I’m not saying that throwing a number out there to entice a lead that is quickly slipping away is a bad idea.  But, if you find yourself in this situation to often, you’ll want to evaluate how much time you are spending on the qualification part of the phone call.

Always be asking yourself if it’s really price that they have an issue with, or if you’ve failed to make them see the value.  Just because someone is telling you that it costs to much does not really mean that it does.  It may very well mean that they don’t see the value in what you have pitched them.  It can also be a stall or smokescreen as well.  It’s an effective one because they aren’t saying no.  They are basically telling you that their hands are tied.

This is why it is so important to do good fact finding.  When most people buy something they are expecting a return on their investment.  Sometimes that return is financially quantifiable, and sometimes it is in utility or happiness.  We are going to concentrate on getting return on investment.  It’s vital for you to understand exactly what your customers bottom line return is on what you are selling.

Here’s and example of a good ROI.  Lets pretend that we are selling advertising to a roofer.

 

Salesman: My parents had a roof put on a couple of months ago.  It ran them about five thousand dollars.  Does that sound right?


Customer:  Well, we average around seven thousand from most residential jobs.  They got a heck of a deal.

 

Now did we just come right out and ask him exactly how much money he makes on a job?  Absolutely not.  We gave an example.  Why?  Because people naturally feel a tendency to correct you when you are wrong.  Instead of thinking about what an invasive question this is, they will more often than not give you the correct number.

Of course, not everyone will be so forthcoming.  In these instances I’ll try to be blunt with them and say that I’m just trying to get a better understanding of their business in order to provide them with the best possible quote.  At this it is more important that you try and get the number anyway.  A more blunt approach will often work.  Just ask them.

Salesman: My parents had a roof put on a couple of months ago.  It ran them about five thousand dollars.  Does that sound right?


Customer:  I see what you are trying to do.  I'm not giving you that.

Salesman:  I understand and appreciate where you are coming from, but in order to make sure that this is a good fit for you I need to understand your business.  What is your average job worth to you?

 

Now, when you go to close this customer you can give them the proper return on investment.  It now makes it easy to overcome this objection.  You’ll now be able to tell them that what you are offering them will bring them 9 customers a month, and at $7000 a pop they are looking to make $63000 a month.  The only investment they need to make is a $600 a month for this.

 

Sometimes it is the price.

Sometimes the price really can be an issue, but most of the time it is a value issue.  You must provide the feeling that they are receiving a great deal of value for the money.  You must thoroughly qualify your prospect and make sure that you are not ignoring any obvious signs that they aren’t going to buy.

If you do catch them saying something earlier in the call about not having money anyway and you’ve come this far than you’ve taught yourself an important lesson on how to not waste your time.  And as you get better and better, you’ll only get more upset when you miss out on time on the phone

The takeaway.

Make sure that you are getting a good ROI and doing top notch fact finding. This will ensure that you can use your customers own words to overcome the price objection.

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