How to Handle Price Objections

by Mark Hunter

Price objections can take you off guard, especially when you thought the sale was closed. Find out the real reason customers sometimes think your prices are too high.

price objections
Image source: BigStockPhoto.com

You've had what you think is a great sales call. You feel you've done everything correct, and you are certain the customer will soon say "yes" to your offer.

Just as quickly as you think the customer will buy, they say something along the lines of, "I like what you're offering, but your price is way too much." Without missing a beat, you begin to shudder at the thought of losing the sale.

Let's look at why your customer doesn't like your price.

It comes down to one reason. The one and only reason your customer doesn't like your price is because they have failed to see enough value in what you are offering to warrant paying the price.

Don't believe for a moment it's because a competitor might be offering a lower price. Certainly don't allow yourself to believe the customer would be better off waiting for a better deal. Finally, don't even entertain the thought that your price might really be too high.

The correct answer is the customer simply has not seen enough value in what you're offering.

The easiest way to correct this problem is to get the customer's input.

Don't wait to do this after they've rejected your offer, but rather do it at the beginning. At the start of the sales call is when the customer's input is the most valuable. The reason I say this is because the first half of the sales call is when the customer is going to be the most forthcoming with information.



It's not unusual during a sales call for the customer to begin sensing the salesperson may try to ask for the order. If the customer begins to believe this and they are the least bit hesitant, they may very well start throwing out false information. The customer may start talking about objections that are really irrelevant to their real need. They will do this purely to disarm the salesperson.

This is the reason why it is so important to engage the customer early in the sales call and to get them to begin sharing with you their wants and needs. The earlier they share with you this type of information, the better job you can do later in the call in following up on this information. You can then drill down deeper to get even more specific information. Your objective is to get the customer to really see that the issues they're facing are significant – and the only solution available is the one you are offering.

Some of you might think this is manipulative selling or arm-twisting, but it's not that at all. If you, the salesperson, are merely asking questions and getting the customer to do the majority of the talking, then how could it be called arm-twisting?

Your objective as the salesperson is to get the customer to share with you at least three reasons they need what you're offering. One of the three should be time sensitive. The customer's time-sensitive need will allow you to close the sale now. It's the other two that will allow the customer to see why they need to buy.

I use three benefits as the minimum, but the more the customer shares with you, the higher the probability you will be able to close the sale. I use the number three because more often than not, if you try to close before the customer has shared three of their wants or needs, you won't be as successful. Of course, this excludes the overwhelming benefit or need they share with you that is so big and time-sensitive that it invites an immediate close.

When the customer shares with you a time-sensitive need, this is a perfect opportunity to first validate the time need. You validate it by asking them a question to get them to share more about why time is an issue. By getting the customer to explain this further, you will discover that the customer usually becomes even more conscientious about why they need to buy from you right now.

When you feel as if a customer doesn't like your price, you simply need to remember they only fail to see the value of what you are offering. As long as you remember it is your job to help them see the value, you will increase your odds of success dramatically. I'm not going to say you'll be 100% successful with this approach, but I know the more you use it, the less often you will hear the "price" excuse when a customer doesn't buy.

Mark Hunter, © 2011

Mark Hunter, 'The Sales Hunter,' helps individuals and companies identify better prospects, close more sales and profitably build more long-term customer relationships. Since 1998, he has consulted nationally and internationally with thousands of salespeople and global companies. You can follow his Sales Motivation Blog at www.TheSalesHunter.com.

 
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