Nothing sucks the air out of a sales conversation quite like a price objection. When it comes time to talk about price, the situation suddenly gets real for both the buyer and seller because everything is on the line including value, expectations, commitment and certainly emotions. Handling price objections is a critical skill because price is the one objection that can stop the sales process faster than a cheetah chasing a chimpanzee. And no wonder; it is a common sales tactic used by customers to attack your profit. It gives control to the customer and puts you in defense mode while destroying your confidence. Worst of all, a price objection in the sales process is one that most sales people will commonly fail until they learn to handle it properly.
Here’s the truth about price objections: purchasing decisions are almost never about price alone. In fact, people will shop your products and service on price when they perceive no other value. At Scorecard Sales, we teach that immediate price reductions are an admission of guilt. What you need is the Price Pushback Process—a core part of our integrative sales improvement process. Now I’m not saying that price isn’t important, but it is the oldest trick in the book that customers will use to keep you in line. However, you already did your best to give a fair price and you can’t just give in. What you need is the Price Pushback Process. This is the best way to get the conversation away from price and back to value so the sale can get back on track.
- Acknowledge: “I understand that you are concerned about the price”
- Empathize: “I don’t blame you. When I am a customer I always want to make sure I am getting the best possible price.”
- Affirm: “That’s why I always make sure to quote the fairest price possible the first time.”
- Challenge: “Do you mind sharing with me what your price expectations are based on?”
- Ask Again: “Based on everything we talked about, I still believe this is a fair price. Is this price a deal breaker?”
Always ask twice for your price, but you’re not done yet. The customer still won’t back down from the price conversation and you feel like you’re backed into a corner. But there’s a way out. These are the same techniques we refine during professional sales coaching:
- “Is price the only thing that matters to you in this decision?” *hint, the answer is ‘no’.
- “Other than price, what are your three most important decision criteria?”
- “If I compromised those critical issues to lower the price, would that be okay?”
- “If I cannot meet your price expectations, will that be a deal breaker?”
To learn more about us and our philosophy on value-based selling, visit our main page. We also offer detailed insights on our blogs regarding negotiation. Mastering these responses is a key focus of our B2B sales training.
By using sales performance software (our web tools), you can track how often these objections occur and refine your approach. If your team struggles with these conversations, our sales methodology training or broader sales consulting services can provide the confidence needed to hold your price. Ready to protect your margins? Request a quote for a customized training program today.
