Handling objections is part of the sales process. The trick – don’t take it personally. View it as an opportunity to show that your product is the best option.
Every market is intensely competitive and just when you think you are about close a deal, your prospect complains that ‘your price is too high’! The fact is that today’s prospect does research before finalizing any deal. They have already carried out a Google search for the product or service you have to offer, compared prices, and may have discovered a lower priced alternative.
Another reason for a prospect’s objection to your price is that their budget is limited and they do not truly believe that your product warrants the kind of investment your pricing necessitates.
When a prospect objects to your pricing, it does not mean that you have lost the sale. On the contrary, this is an excellent opportunity for you to present all of the features, benefits, and unique aspects of your product.
Here are three ways of handling objections around pricing.
One of the very first things to do to handle the prospect’s objection is to understand exactly why they feel the product is overpriced. If your prospect is comparing your price with your competitors, don’t be concerned.
Backtracking as soon as you hear your prospect’s objection indicates that you did over price your product. Instead, you should list out the ways in which your offering is better by creating value and why the higher price is perfectly justified.
For example, perhaps your product adds more value to the buyer because it is easier to use, it’s more reliable, has more benefits, or comes with better after sales service plan. These are all items you can emphasize in terms of benefits to your prospect – they’ll save time, save money, get more accomplished, have peace-of-mind, etc.
An objection is not a rejection; it is simply a request for more information. – Bo Bennett
Another common mistake made is to start talking about the pricing structure to show the prospect why the price cannot be trimmed. This is a time consuming discussion that could well go into a never ending loop.
Rather than reveal your ‘secrets’ to the prospect, shift the focus away from ‘why is the price high’ to ‘why paying this price is worthwhile’. Compare the cost of not having the product to the price that the prospect will pay for it.
To give a simple example, a salesman marketing a state-of-art car anti-theft alarm can point out the possible loss that could result by not having the prospect’s automobile protected effectively. Again emphasize how your prospect can gain from the benefits of your product.
Another way to emphasize value is by explaining how your products are adjusted to keep up with the market changes like Rose does below.
I find if I share my company values and differentiate ourselves by mentioning our global connection and how regularly we up date our training programmes, customers tend be more prepared to accept our pricing. – Rose N., Co-Director, international talent develop firm
Customize the Offer
If your product is comprised of several components, one good way of handling objections is to ask your prospect if they would like to opt out of a few components in exchange for a lower price.
Of course, you should also outline exactly what the prospect will be missing out on and show why taking the entire package at your price is the best option.
For instance, if you are marketing a vacuum cleaner with several different attachments, you could offer a basic set with limited attachments for a lower price. This provides an introductory alternative to close the sale. Later you could follow up and begin a dialogue with your prospect regarding the benefits of purchasing the additional features.
Tip: Features tell, benefits sell. Paint a picture of what your prospect’s life will be like as you discuss the benefits.
Handling objections, especially those around pricing, will get easier with practice. The goal of your sales presentation is to convince the prospect that your product is worth every penny by focusing on the unique benefits (and the benefits of the benefits).
Encouraging your prospect to express specific concerns and addressing them in a way that shows why your product is the best option is the secret to your success.
Have you successfully handled this sales objection? Why not share your approach? Your can email me or share below in the comments section. Thank you.