Dealing with price has a very high chance of coming up in your sales conversations. Recent studies show that as high as 95% of today’s buyers will object to price in some way due to a variety of reasons. Few of these reasons include the wealth of product information online which modern buyers have access to. Not to mention the fact that there are many companies competing in the market to sell the same kind of product. Hence, the modern-day buyers become far more savvy when it comes to purchasing.
If price has a very high chance of coming up, you should be prepared for it. When prospects objects to your price, most of the time it is because (1) they feel that the value of the product or service is less than the amount of money you are asking, or (2) your asking price is more expensive than their budget. So how do you overcome these price objections?
Though most salespeople still find it challenging to deal with price objections, there are techniques that you can use to overcome them.
The first one is to justify the price of your product or service. If your prospect thinks your asking price is more than the actual cost of your product or service, then you must stack value to your product all throughout the sales conversation.
Let’s take sales training businesses as an example. When my prospects say that my services are expensive, I firstly justify the numbers by explaining the increase in revenue they will obtain. Then I back it up with data from a similar client I had worked with, and the results they got. Then I like to mention that I charge a very low rate compared to the results that I get. At this point I remind them, that they are not investing on sales training; instead, they are investing in a result.
Here are two quick reminders on building more value.
Now, when a prospect says that your price is more than their intended budget, you can do the same approach, but perhaps consider removing some things from your offer ---- if it is possible for you. You can start your discussion by explaining how your asking price is configured, for example: volume, timing of the payment, length of commitment, and the timing of the deal. Then adjust these factors for a discount or a lower price to be possible.
Offering several options with different price points and varying service or product inclusions can also result to a win-win situation for both you and your customer, and it helps you overcome price objections.
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