5 Ways to Overcome a Pricing Objection
Of all the objections salespeople come across, the price objection is the most likely to stop them dead in their tracks. Most of us are uncomfortable talking about money, and when we’re asking people to part with theirs, it can feel like there’s an added layer of discomfort.
But the price objection shouldn’t be scary or uncomfortable. In fact, you should train yourself to get comfortable discussing price and digging into this particular objection. Once the fear of talking about price has been eliminated, you’ll be able to confidently overcome the objection and win more deals.
So how does one overcome this common and seemingly daunting objection?
Here are five tips that might help:
1. Don’t respond right away
If the prospect objects to the price, don’t respond right away. Take a few moments to digest and reflect before answering. This will allow the prospect to expound on their concerns, potentially giving you more information, and will have the added benefit of giving you a chance to think before speaking. If you respond right away, your first instinct might be to get defensive or even combative, which won’t help your case, so take a step back and don’t rush to come up with a response.
2. Ask for clarification
When a prospect objects to the price, ask them to clarify why they think the price is too high. Is it because a competitor is offering a better deal? Is it because it’s out of their budget? Or do they just “feel” like the price is too high based on their own expectations? Each of these answers will likely take you down a different path, so make sure you’re not afraid to ask. You might be surprised at how open most people are willing to be.
3. Emphasize the ROI
If a prospect objects to the price, then they don’t believe your product has enough value. This is why it’s critical to explain the ROI, or the business benefits of your product. Of course, even after you do this, the prospect might feel like there’s not enough value, but if they’ve objected to the price, it’s critical to reiterate everything you’re offering, and how that offer will benefit them, otherwise, you’re just focusing on what it’s going to cost.
4. Ask whether there are any other concerns
After you’ve received a pricing objection, you should always ask whether there are any additional concerns (objections). Oftentimes, a pricing objection is raised to hide a different, and sometimes more serious objection, so it’s critical to identify that objection before you can move forward. Similarly, if there are other objections that you might be able to overcome, the prospect might change their mind about the price, especially if they misunderstood or weren’t aware of certain aspects of your offering.
5. Work toward a yes
Once you’ve paused, asked for clarity, emphasized the ROI, and asked if there are any other concerns, your job is to move the conversation toward a “yes.” This can take many forms, whether it’s simply a reiteration of the entire offering followed by an ask, a negotiation with a discounted price, an offer to deliver the product at a lower price but with less features, or an alternative payment structure that is more feasible for the buyer. No matter where the conversation goes, your goal is to get the prospect to a place where they are comfortable saying yes. If you’re able to do this effectively, then the pricing objection will just be a single hiccup on the road to a closed deal.
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