Never Lower Your Price Until You Ask Twice
When I ask salespeople what their most common and least favorite sales objection is, more often than not it has something to do with a price objection. That makes sense because this is usually the moment of truth for any deal. Does the price meet the budget and expectation of the buyer based on the value and outcome they desire? But price, albeit important, is very shallow in the buying process for anyone. Buyers put it high on their list of importance and may even lock in on a number, but is this really what it all comes down to in our sale? Maybe yes, but likely not. However, that is how both the buyer and seller treat this common sales objection.
Price is merely the symptom of the value in an exchange. We all have an idea of what something is worth and what we are able or willing to pay, but price is really just a barrier between everyone getting what they want. This is important to remember in sales because we focus more on what someone will spend instead of what they will get. This means that you have to requote, discount or devalue the sale in order to close the deal because we believe the customer is more concerned about what the price tag is than the value. This is a deceptive illusion. Understanding that there is a limit to what can be spent, we have all been willing to pay more if it meant getting something that we wanted that we felt was valuable. Let’s talk about how we can start to get past the price conversation to close more deals.
Empathize - Before you get defensive at a price objection, take a moment to connect with the customer. It’s not uncommon for someone to question the price and let them know that it is okay to do so and you, in fact, are also price sensitive. “Mr Customer, I don’t blame you for bringing up the price. In fact, I do the exact same thing and I expected us to have this conversation.”
Challenge - Everyone has their own reason for being concerned about the price, but assumptions are not always based on reality. Before you validate their assumption that they should have a better price, be sure to understand their position. Many times you will find that you are uncovering a bluff. “Mr Customer, help me understand why you believe the price should be lower. Have you shopped and found the exact same thing for a lower price?”
Position the value - Shift the buyer’s focus back on to the value that you presented. It’s the reason why he wanted to talk to you in the first place because his other options did not completely satisfy his needs. Otherwise, why would he still be talking to you? You still have something he wants so you still have influence over his decision. ‘Mr Customer, can we agree that, besides the price, what I am offering you is the best option you have?”
Is it really about price? - When a buyer gets hung up on the price, be sure to ask, Mr Customer, is price really the only or most important criteria for you to make this decision? I don’t know about you, but the last time I went with a lower price I found myself being unhappy with my purchase. Did you ever go for a lower price and regret it later?
Ask again - Never lower your price until you ask twice. You have to be confident in your value and pricing models because if you back down right away, you signal to the buyer that you knew you were going to overcharge them. It’s up to you to decide what you are willing to do to make the sale, but hold firm to your price and buyers will respect you. You’ll be surprised how often that respect will lead to the sale at the price you offered.