Nothing sends a salesperson into a tailspin quite the way a price objection does. It is difficult to watch how salespeople respond to this objection in the same way that it would be painful to watch a friend get punched in the gut. And those gut punches just keep on coming until you are on your knees both in pain and out of breath. That is what it feels like when you give up any of your profits in a price discussion. Occasionally you try to shield your belly by defending your price, but the customer just keeps punching away until you drop your guard and you are back on your knees giving up the profits. You’ve sharpened your pencil adjusting the price so many times that it is barely a nub. You’re more of a re-estimator than a salesperson at this point.
Defending your price has never been, and never will be, an effective selling strategy. The main reason for this is because you give control over to the customer every time.,, Customers continue to do this because they know they can get away with it and you have been letting them do that for years. It’s time to start playing offense instead of defense with these 5 helpful tips.
- Acknowledge – You can’t just blow off a price objection as being unimportant. The customer brought it up for a reason. Maybe they don’t have the budget for it or maybe they are trying to beat you down on price. Either way, let them know it is normal to consider the price. “Mr. Customer, I don’t blame you for questioning the price. I do the same thing when I consider making a purchase.”
- Challenge – All sales objections are based on at least one assumption from the customer. In this case, it is that they can get a cheaper price from you or someone else. That may or may not be true, but you do not have to, and should not, accept the assumption as truth. Instead of defending your price, challenge their assumption. “Mr. Customer, what are you basing your price concern on? Are you considering apples to apple options from a competitor?”
- Structure – Price is not the only criterion for any purchase. There are issues of quality, performance, convenience, etc. to be considered. You must challenge the customer as to what is most important to get them back on track. “Mr. Customer, is the price the only aspect you are considering in this purchase? If we satisfy everything else you wanted, wouldn’t you expect to pay more?
- Redirect – It’s time for you to get the sales back on track so you can close the deal. You must challenge their purchasing strategy so that you can help them get past their assumptions about what a fair price is. “Mr. Customer, have you ever went with the cheapest price before and regretted the purchase later?”
- Ask Again – Conviction goes a long way in sales. When you decrease your price, your customers take it as your admission that you were being greedy. Although you have to be flexible in sales, you must also know when to stand your ground. When you ask for the same price twice, it reinforces to your customers that you were being fair the first time and that you don’t play greedy games with them. “Mr. Customer, our policy is to always give our best price the first time. If I have satisfied all of your other concerns, I recommend that we move forward with the proposal as is. You will find that you will be very happy with the purchase and the value is reflected in the price.”
Now that you have these 5 tips to stop defending your price – practice them and put them to work for you. For more on role-playing, read about ,,“Going to the Sales Gym – Stretching” or contact me at ,,[email protected] to get started with sales training and sales coaching. We’re committed to creating great salespeople through training, technology, and coaching.