The Price Objection

Sales Solutions 877-862-8631. info@sales-solutions.biz. www.sales-solutions.biz
"We're not the Lowest Price! Now What?"
Overcoming the Price Objection
Craig James
Sales Solutions
September 18th, 2007

Agenda
How to use this medium
Introductions
Content
Closing Q&A

“Your Price Is Too High!”
BYE,BYE,
BYE,BYE,
SALE!!!SALE!!!

Cutting Price - Plusses and Minuses
+ Eliminates this objection
+ Gets us something
+ Shortens the sales cycle a bit
- Giving money up cuts margin
- Admitting customer is right - your
product’s not worth what you claim it is
- Folding so easily sets a bad
precedent

Can a Higher Price Be
Better?
Conveys superior value
Opportunity to prove your value,
earn bigger commission on sale

Other Buying Considerations
Total Cost of Ownership (TCO)
The bundle of benefits you offer
your product or service
your company
you
Avoidance of "psychic" costs
less worry
lower risk
less work

Is it Really All About Price?
Few prospects have as a goal to
buy the “cheapest”
Most understand “you get what you
pay for”

What is “Value?”
A fair return for something (money)
exchanged
The monetary worth of something
Relative worth, utility, or
importance

What is “Price?”
The amount of money given or set
as consideration for the sale
of a specified thing

What is the “thing” you
are selling?
Your product or service
Your company
You
Look familiar?

Why is your price “Too High?”
Compared to What?
Competition?
What someone else paid?
Are we talking apples to apples or
apples to oranges?
No reason?
Just wants a “better deal”

What is your prospect thinking?
“Are you worth more?”
If so, why?
“Maybe there’s something of value
missing from the other proposals”
“With which vendor will I be getting
the best deal?”

Value Exceeds Price
Price Value
If we cut our price, the customer gets
more value than he
paid for

Price Exceeds Perceived Value
Price Value
If we haven’t conveyed sufficient value, the
customer will (justifiably) ask us to cut the price

Reasons for asking for lower price
I don’t see the extra value for your
higher price
I have a limited budget
This is what I think the number
should be - period!
You’re a vendor – I need to extract
my pound of flesh!

Customer Doesn’t See Value
It’s our job to justify our higher price
BUT HOW?

With Questions!

What kind of questions?
Those that get at magnifying and
quantify his problem
What’s wrong?
What if you don’t fix it?
Impact (financial, otherwise)
What else might happen?
Impact (financial, otherwise)

Then hit ‘em with
Benefits!
Faster...
Better...
More durable...
.......................................... and

Your Unique Selling Proposition
What do we offer/do that they can’t
get from anywhere else?
(high value capability/benefit)

Three more ways to overcome
the price objection
Add benefits to your offering
Subtract costs from your offering
Suggest additional risks of doing
business with your competitor

Mission Accomplished
Price = Perceived Value

What if They Still Won’t Budge?

Trade
“If I could....would you...”

Tight Budget
“Help me find a way to pay”

Stuck on a Number
“Refocus me on a concern bigger than
money”

Ego
“Let me think I beat you!”

Ever OK to Walk Away?

Summary
Requests for price cuts => need for
more benefits to justify premium
Most know cheap doesn’t equal best,
want good value, need to be convnced
they’re getting it
Price is rarely the most important
criterion (long forgotten after quality)
Drawbacks of unconditionally cutting
price generally outweigh benefits
Be prepared to walk away

Closing Q & A

Sales Solutions
Service Offerings
1/2-day and full-day
Skill Enhancement/Sales Process
Improvement
One-on-One Sales Coaching
Customized Sales Consulting

"We're not the Lowest Price! Now What?"
Craig James
Sales Solutions
877-862-8631
info@sales-solutions.biz
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The Price Objection

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