Five Hidden Secrets behind the Price Objection
By Mike Brooks, https://mrinsidesales.com/
Learn the top secrets of closing the sale with proven training, techniques, rebuttals, responses and tips of effectively handling and overcoming the most common price objections.
Of all the objections sales reps get, the price objection is still number one on the list. And it makes sense, doesn’t it? I mean think about your own buying decisions – whether you’re in the market for a new car, a new house, or even a dinner out with the family – what’s the one common component of your own decisions? Budget and price, right?
So, it makes sense that all of your prospects have a price consideration as well. But be careful because the price objection doesn’t always mean that your prospect can’t afford it. In fact, the price objection is often the biggest smokescreen objection of all—meaning that prospects throw it out to hide what the real objection is. And the reason they use it is because it works: again, everyone understands budget concerns because we all have them…
Top producers know how to go beyond this smokescreen objection and uncover what the real objection is. And once you understand what the price objection really means, you will gain a unique insight into how to deal with and overcome it. Here are five ‘hidden meanings’ your prospect doesn’t want to reveal when they tell you that your price is too high—and what you should do about them:
1) They think they can get it cheaper somewhere else. With the Internet making your solution available to nearly anyone—or a solution your prospect thinks is the same—it’s difficult to compete on price only…
Solution: The solution here is uncovering that your prospect has another option in mind and then doing the straight forward comparison of “services for services.” This used to be called an “apples to apples” close and it’s still highly effective—if it’s presented correctly. The key, however, is to be able to determine whether that is the real issue and then use a properly worded script do the comparison.
2) They actually can get it cheaper somewhere else. This can seem difficult at first to handle, because after all if they can get it cheaper somewhere else, why wouldn’t they do it?
Solution: To answer this question, just ask yourself what motivates you to pay a premium for a product or service you know you could get less expensively elsewhere. Reasons can include:
a. Getting it from a more well-known source often means that handling any problems, questions or returns is easier. (It’s why I still take my car to the dealership…)
b. Buying something from a person or company you respect or like is often another reason to go with a higher priced item.
c. Convenience: Sometimes it’s easier or less time consuming to buy a product or service from a source you know and trust—even if you have to pay a bit more.
d. Quality of product. Often times a knock off or generic product is available, but those sometimes don’t come with all the support, instructions, warranty, etc., that you can get by paying a bit more from the manufacturer.
e. You. The only place your customer can get you—your knowledge, your customer support, your belief and your desire to stand behind your product and make any problems right—is by buying it from your company and doing business with you. This is a powerful buying reason and one sales reps routinely underestimate.
3) Price is just a smokescreen hiding other objections. Often times prospects are not ready or willing to move forward with a purchase for a host of different reasons. If they are a business, then initiatives can change, or personnel changes, timing, scheduling, etc., also affect purchases. Or, for both individuals and companies, there can be multiple decision makers with different objectives, or prospects decide to keep looking or delay or postpone the decision for many other reasons as well.
When prospects don’t want to reveal what is really stopping them from making a buying decision, they will often just throw out the price objection because it works. Revealing anything else would require an explanation, but saying it costs to much, or that they simply can’t afford it, usually gets sales people off their back.
Solution: The key here is to find a way to get your prospects to reveal what is really behind their decision not to buy and then effectively deal with that.
4) They actually can’t afford it. Sometimes the price objection is just as it sounds: your prospect can’t afford—or chooses not to afford—your product or service. If this turns out to be the case, then it’s something you should have addressed during qualifying.
Solution: Top producers always qualify for budget, among five other things, and they know in advance if a prospect can afford their solution. If you have qualified correctly in the beginning, and you still get the price objection, then you can be sure it’s a smokescreen hiding items one through three above.
5) They don’t see the value in what you are selling. Often when a prospect tells you that the price is too high, what they’re really saying is that based on what you’re telling them they’re getting, they don’t feel the “spend” is justified. This often means that you either:
a. Didn’t completely understand their buying motives and so didn’t show how your solution addresses them, or:
b. You didn’t build enough value in the results they are going to get as a result of making the purchase.
Solution: After you’ve clarified that this indeed the case, then it is up to you to go back and build that value by pitching specific points and tying them down after each one to make sure your prospect sees and buys into the value.
As you can see, the price objection isn’t always about the price, but rather, it often means something else. Your job as a closer is to be prepared with a scripted approach to find out exactly what the real reason is, and so position yourself to overcome it.