How do you manage the pricing objection in sales?

by Steli Efti

hidden-in-disguise

When someone tells you your product is too expensive, it's not always about the price. A classic sales mantra is that if a prospect tells you your price is too high, you simply haven't communicated enough value. But oftentimes it's about something else altogether—and they simply use pricing as an easy way out.

Here are the 7 most common reasons why prospects say the price is too high

  1. They don't have enough money.
  2. They have the money, but don't want to pay your price. They want to get a discount.
  3. They might not be interested generally, but don't want to say that.
  4. They might not like your product.
  5. They might not like your company.
  6. They might not like you.
  7. They might not be looking to buy a product like yours.
Basically every objection can be hidden behind the price objection. 

It's your responsibility as a salesperson to find out what the real issue is. To solve their problem, you must first know what it is.

How do you do that? You ask questions

  • "Are you trying to get the best possible deal?"
  • "Do you have budget constraints?"
  • "Is this not the right time?"
  • "Are there other reasons, honestly?"

Don't just take their answers for granted—read between the lines. If you have a feeling that they're not forthright and upfront, eventually you have to call them out:

"You know what, I have a feeling there's something else. Is there something deeper than that? Do you really love the product?"

If they insist it's about price, you can ask them:

You: "At which price would you buy?"

Prospect: "$1,500."

You: "If I could offer you this product at $1,500, would we have a deal? Would you buy right away?"

Prospect: "Yes, I'd buy right away." (Now you know it's really price)
OR Prospect: "Well, we'd then look into your safety features ..."

I recommend you read these too:

  1. Sales kung fu: How to "virtually" close every single customer by asking this powerful question!
  2. How to manage any objection successfully!
  3. How to respond to discount inquiries

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