Price is always a “component” of every deal you are involved with.
Let us ask you: Have you ever sold something when you were the “Higher Price?” How about the opposite: have you ever “lost” a deal when you were the “Low price?” Hmmm. Interesting! Why?
Let’s start with the basics: WHY do people buy on price?
- They don’t understand your value
- They don’t benefit (personally) from your value
- They see no difference between offers (they see everything as a commodity—same)
- They don’t need what you have but would like it if they can get it “cheap.”
Sales “Concerns, Considerations, and Insights” about PRICE
As a salesperson, you will quickly UNDERMIND your value…when you QUICKLY shift to price; or get “trapped” by initially sharing price.
There are even more concerns regarding “price” with most salespeople nationally:
- 40%-do not determine-the prospects spend until they propose!
- 86% BELIEVE what the prospect tells them (even if bluffing–or the decision is not BASED on PRICE!)
- 52% become EMOTIONAL when they hear that the “Price is High.”
- 47% believe if they hold price…prospect won’t like them anymore!
Facts about “price”
- They cannot “object” to price until you make an offer.
- Most salespeople make offers too soon.
- Most people sell in a way that drives them to price.
- Setting up the sales process and controlling the call to find out what is more important than price is the strategy we must consider.
Sales Skill Needed: Our ability to sell “consultatively” (active listening, “being in the moment,” asking good and many questions; getting the prospect to “define” their terms and what they mean, will dramatically help us in dealing with and neutralizing price issues.)
Here are some ideas for you on how to address price “early on.”
USING PRICE “REFRAMES” …
- Besides price what else is important to you?
- If everyone was about the same price, how would you make your decision?
- If there was a product that could reduce your costs but had a higher price, would you ever consider it?
- What’s more important, the price you pay or the total cost of owner ship?
- Would you like to know why other people are willing to pay us a little more?
- When you look at price do you also consider quality, delivery, service?
Pricing—Issues & How to handle the “Too Expensive Objection”
“It is Too expensive”
1. As compared to…?
2. How do you mean?
3. In relation to…?
4. Tell me why do you say that?
“I have had a better offer”
1. Tell me about it.
2. How do you feel about that offer?
3. What exactly have you been offered?
4. What is included in that offer?
5. What product(s) is that?
6. Out of interest, why didn’t you accept that offer?
7. What concerns you about that offer?
8. Given that you know we can’t get down to that price, what are you looking for in terms of quality, service, and reliability?
9. If we were both about the same price what would be the advantage to you in going with us.
10. You know that Quality is remembered long after price has been forgotten. And quality and reliability are going to be vital in this selection. Why don’t you take it?
FINAL THOUGHTS:
We often create our own price objections. We get “nervous” and maybe start to “think ahead” and “hope” we can avoid this…rather than discuss this and have a discussion!
They cannot object to price until you make an offer. Most salespeople make offers to soon. This puts you on “defense” automatically. You now have no leverage, no room for discussion, and NOW you’re left with: Justifying your price.
Setting up the sales and controlling the call to find out what is more important than price is the strategy we must consider & utilize. Inherent in this is understanding “How” to determine your Differentiated Value, and ask questions to ultimately “Sell Value NOT just Price.”
