#1 most common objection in the universe: PRICE
The price objection transcends industry, class, culture, race and language. No matter what you sell, big or small, cheap or luxury, they all seem to want a discount. Truth be told, American culture has conditioned us to be discount minded even over being value minded. So how do we maintain the ability to sell our product and still maintain a fair margin? After all, you are in sales to make money, right?
It is also important to note; your customer may not mean what they say (if you are married, you already understand this concept very well). When your customer says, “The price is too high,” they do not always necessarily mean what they say. They may actually mean, “I don’t believe the product is worth the money.”
If they don’t believe the product is worth the money, they don’t see or understand the value of your product. They need more information and you need to find a way to be more clear in your communication. Also, I believe many customers use the price objection to test you to see if you really think your product is worth the price. If you discount too quickly, you are actually telling your customer that you agree that the price is too high, thereby, discrediting yourself as a salesperson with integrity.
So how do you find out what they mean?
Asking questions is the best way to qualify, understand or close any customer.
Here are 3 Closes that will turn price objections into closed sales:
1. The defend yourself close: ”Mr. Customer, What is it about my product that makes you feel that it is not worth the price?”
This is a powerful question for many reasons. First of all, it puts you in a position that lets your customer know that you value your product and you believe it is worth the money. Second, the answer the customer gives you will help you determine if price is the real objection. Third, it gives you an opportunity to clarify exactly why your product is priced the way it is.
“If you can’t justify the price, you shouldn’t be selling it.”
2.The Cost close: ”Mr. Customer, Is it price you are worried about or is cost your main concern?”
The difference between price and cost is an extremely important conversation you need to have with every customer. People tend to get caught in what I call “The Price Tunnel”. I am no exception, (Click Here to read my favorite cost vs. price analogy)
PRICE = How much the thing will cost you today.
COST = How much the thing will cost you over time.
3. The your better than that close: ”Are you interested in considering a quality product that will meet your expectations or would you prefer to look at a (product) that will just get you by?”
This question will help keep your customer focused on what is really important, their expectations.
When you stand by your prices you do your customer a favor. I believe people appreciate the things they pay for significantly more when they clearly understand the benefits than when they get a discount and do not understand the benefits.