How to Handle The Price Objection

Objection: "Your price is too high."

Three steps to take.

First: Use a CUSHION statement, like "I see," or "I understand." This lets the prospect know you are not going to disagree.

Second: FIND OUT what they are paying now, in what quantity they buy, who they are buying from and how often they buy, so you will know what they are comparing your price to. When you learn what they are paying now, you will know if you can match the price or provide an "extra" to make up for the difference. How do you find out? ASK!

Examples:

Repeat the objection: "Too high?"

Then, wait for your prospect to explain to tell you what he/she is comparing your product to to tell you what price a competitor is selling the same product for.

Or -

Simply ask: "How are you purchasing this product now?"

(This is an open-ended question, which should give you more information than a closed-ended question like: "What are you paying now for this product?")

Third: ISOLATE the objection by asking questions and you will find out if there is another issue that is important to the prospect. If there IS something else that matters, like product knowledge, good service, quality products or fast delivery, you can focus on these benefits and price may become less important.

Results of a survey by Consumer Reports Magazine:

73% of consumers buy for reasons OTHER than price!

ISOLATE THE PRICE OBJECTION

RESPONSE: "If it weren’t for that, you would go ahead and order from us?" or

"Is that the main thing holding you back right now?" or

"Assuming we agreed on price, what else is important to you?"

I M P O R T A N T

DON’T SPEAK until AFTER the prospect answers your question. Even if the silence feels uncomfortable. You NEED to know the answer to your question!

ATTACH VALUE TO WHAT YOU ARE SELLING
Re-State Benefits

It may be that the price objection is an expression of concern or a request for more information.

It could be that the prospect is not aware of the value attached to what you are trying to sell. In other words, is she/he getting ONLY the product? Or are they also getting the benefit of your experience in the industry, your product knowledge, your good customer service, fast delivery and other valuable benefits?

The prospect may not realize what buying from your company actually means what else is included along with the product.

After responding to the objection, re-state the key benefits you offer!

About the Author

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