How to Handle the Price Objection

How to Handle the Price Objection

I am a firm believer that “Price is only an issue in the absence of value.”

Never drop you price! Anyone who will leave their current supplier for a better price will also leave you for a better price. Create loyalty through value.

If you feel that your prices are too high because you have bought into ‘The sky is falling” mentality of our current economy, then lower your prices across the board but stick to that price once you have presented it to the client.

By dropping your price is says to the client:

• You don’t believe in your product
• You don’t see the value that you are bringing
• You are desperate for a sale
• The client knows more than you do about your competitors
• You are overpriced if you can drop your price and still make money
• You don’t have control of the situation.

On the other hand, if you offer a fair price to begin with and stick to that price it says to the client:

• You believe in the product
• You see the value that you are bringing
• You want the sale but don’t need it
• You know what your competitors are charging
• Your price is competitive to begin with
• You have control on the situation

Which selling environment are you creating for yourself? Remember, people don’t want to be sold but they do want to buy. You need to create an atmosphere that allows your prospect to buy and you can only do this by having control of the conversation.

What most people look for is value. Value does not necessarily mean the lowest price. If it was, everyone would drive a KIA. You need to find ways to show your value.

Quality Service and Price

The three things that you need to look for when shopping for anything are quality, service and price. Rarely do you ever get all three at the same time. Think about anything that you have shopped for in the last few months. Did you receive the very best in quality, service and price? I’m guessing not. Sell to your prospects like you would like to be sold to.

Quality can be measured in several ways. It can be in your product or it can be the value of the guarantees you offer. Everyone has different ideas of quality. Find out their buying motivators to determine what they are to the client (see my article on The Five Buying Motivators).

Service is where you come in. It is the after sale service that determines where you rank here. If you sell your service or product and just take the money and run, you probably won’t get high marks for service. Find out how important the service aspect is to your client and deliver.

Price is only an issue in the absence of value which again, it is value that people are looking for. People will pay more for quality and service if you can show them that you are better than your competitors. If you don’t believe me go down to your local BMW dealership and talk to the Sales Manager or stop by the local Lexus dealer for the “Lexus Experience.”

In summary, drop your price and you drop your value proposition. Value what you are promoting. Believe in yourself and your company and you will get the results that you are looking for.

I had a sales rep in Alberta who was having a challenge getting over our rates. We were charging market related fees but she thought that we were too expensive. She always wanted to give deals, huge discounts of up to 50%.

One day I said to her, “You don’t believe in your company and the service you provide.”  Right away she became defensive and argued. After a little back and forth she finally admitted,” I guess you’re right, I don’t believe in what we are doing here.” From there we went back to the basics talking about what we do and why we do it and she soon regained her belief in the value that she was bringing to clients. From her belief and some hard work, she became the top rep in the company and won several awards (along with some big comish).

Following is a script that may help you when you get hit with the price objection:

“Mr. Prospect, when you’re shopping for anything weather it’s a product, service, new pair of shoes... there are three things that you need to look for: quality, service and price. Would you agree? It has been my experience that rarely do you get all three at the same time. Now looking back at anything that you have shopped for in the past few months, were you able to get the very best quality, service and price at the same time? (Nine times out of ten they will say no). So if you had to give up one of those three things, quality, service or price, which one would you give up? (Again usually at this point they will say that they will give up price). Great. What I will do then is put some numbers together to present to you next week. I will show you how are superior in quality and service are going to make your life easier and I will do my very best to get you the best price possible. Fair enough?”

Try this script out and let me know how it goes.

If you are open to a new way of making money online, feel free to check out my site. You can harness the power of the internet and make money while you sleep through our automated home business system. We will teach you everything that you need to know about how to make money online. You just need to bring the desire to achieve.

Talk to you soon.

Kiven Wenman