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"Your Price is Too High!" How Does Your Sales Team Respond...?

Business owners - how do your sales people react to the objection, "Your Price is Too High?" Are they amateurs or professionals and can find out what is really holding back the customer? Welcome to "Conversations every business owner has with their sales team." And today's topic covers how your sales team reacts or responds when they receive the price objection. "Your price is too high!" Now, you may be getting somewhere with your customer. They're acknowledging the need for a solution, so follow up with further questions. Here are 7 of 21 responses that will increase the probability engaging the customer and learning what's keeping them back from purchasing. Instead of reacting agasped and surprised as an amature, practice responding as a professional and ask with confidence... Which means? Compared to what? What was your expectation? If our competitor is much less, what does that tell you? You can always find a cheaper solution but you won't find both the quality and value. Isn't that what interests you? I am glad you mentioned price. Is it the amount or the terms? It is high compared to what some companies charge. What does the fact that we have over 500 customers buying from us imply? You really feel that our price is too high? Could you explain that for me? It costs only about 15¢ per hour of operation. What kind of peace of mind does that buy? If it wasn't the price is there anything else that is getting in the way making a decision to purchase? Our price is high, compared to what some others companies in the field in charge. But I believe it's not high enough for what it does. As a matter of fact, as the economy improves we're expecting a price increase any day. Why not buy now and get our high quality at today's price? Have you ever figured the price of not having a high quality? The price of breakdown, the cost of wasted time, the extra phone calls, the headaches, the repairs bills...you see, high quality actually saves you money in the long run. Let's compare when we add these cost? Don't deceived by today's prices. You actually pay less because we are giving you more service, more quality, more expertise, and more security. Isn't that what you really interested in? The sweetness of low price is quickly forgotten when you have to deal day after day with the bitterness of low quality. We can lower the price right now, but you need to make a decision on what options to cut from our proposal. Okay? I might get in trouble for saying this, but I know a way to save you a few bucks. What if I cut my commission on this transaction to lower the price? Yes, we are not the cheapest in our field; however, we do over $8 Million a year at the same price. We cannot do that if our customers weren't convinced that this is the best buy. Wouldn't you agree? Does your company pay you only to buy the cheapest products? Are they really interested in getting the best value for the dollar? Shall we talk about value? Our price is too high? We very rarely hear that, what do you mean? How much too high is it? Do you realize that if you keep and use your products for 5 years, and most people do, the price difference is only 12¢ a day? Isn't it worth 12¢ a day to have the very best? If it were cheaper, would you want it? Good! Then what you are telling me is that you're interested. Let's look at some ways you can afford it! So there you have it, 7 of 21 ways to respond and most are questions that get the customer to share what's holding them back from a purchase. Some of these responses may not be suitable for your situation but use this as a brainstorm with your sales team to come up with the right ones for them. And then practicing these responses so they ask the follow-up questions confidently to engage the customer vs being argumentative or defensive with the customer. Obviously, the best sales engagements address price long before it comes up from the customer. How to avoid the price objection is the subject of another blog. If your sales team is facing objections like price that's consistently hindering sales, let's have a discussion on improving their effectiveness. Call me at ph: 972 709 6776 or em: [email protected] Let's get started...improving your sales team's effectiveness to give you back control of your business, so you can earn more and work less... Hi Stephen Marino, with ActionCOACH - World's #1 Business Coaching firm, successfully coaching thousands of business owners globally over the past 20 years through the numerous boom/bust economic cycles to overcome the time, team, money and systems obstacles that get in the way of predictable increasing profits and productivity.