Let’s face it …we’ve all been there.
We’ve asked the right selling questions, identified the customer need, clarified the product benefits, asked for the order and they say:
“It’s too expensive”
Well….time for a quick reality check…despite what customers say it is actually rarely just about price alone.
Customers rarely just want to buy the cheapest out there. If that was the case Audi, Mercedes and BMW would never ever sell a car!
What customers do want, however, is to get value for money. And why not?….Who wouldn’t want to get value for money?
This doesn’t mean, however, that customers aren’t demanding on price…they still are. After all it’s good sound business practice isn’t it?
When faced with price concerns (and I use the word ‘concerns’ deliberately rather than ‘objections’ since ‘objections’ implies a confrontational situation whereas you and I know that if we are selling persuasively, customers have ‘concerns’ which are often just points of clarification) we can handle them in several different ways:
First of all we need to clarify the exact price difference, so that we know what we’re dealing with:
- Is it £10, £100, £1000 etc?
- Is it a percentage discount?
- Is it a one off price or on going?
- Is it linked to a certain volume?
- Is it linked to payment ‘up front’?After all…..“It’s too expensive” can mean
- Your price is higher than a competitor
- Your price is cheaper than your competitor but the customer doesn’t want you to know that!
- They want to see how you’ll react and it’s really a ‘red herring’ that they always throw in.
- They may not fully understand all the additional benefits they’re getting.Having probed further on the price you could say:“Customer X, we do get beaten on price. What we don’t get beaten on is value for money”Or:“Customer X, you’re spot on… we are more expensive than our competitors and I’ll tell you why”Or:
“Yes you’re right. .it’s not the cheapest around. There are very good reasons for this and I’d like to explain them to you now”
This moves you back into selling the benefits again from a value perspective.
Another highly effective way of managing price concerns is to apply The TRIM which goes like this:
“Okay Customer X, from what you say it looks like I’m going to have to trim the specification to meet your price requirement. What elements of the proposal could you do without?”
In reality, most customers would not want to get an inferior product/service and so by using ‘the trim’ we are putting the onus back on them to accept the correct specification at the price we want.
Another way is simply to be The BROKEN RECORD and repeat over and over again why the price is appropriate:
“The reason it’s this price is because of the specification, which exactly meets your needs”
“In order to give you what you really need, we need to supply the specification that costs this price”
“This price guarantees our ability to give you the specification that’s right for what you need”
Two final thoughts
- If the customer still insists your price is too high you have a judgement to make as to whether you do cut the price or walk away. Only you can make that call in your specific circumstances but remember ….some sales just aren’t worth going below your breakpoint. It is a risky strategy and could compromise future pricing to that customer, after all, if you’ve cut the price once they will think you can cut it again.
- A far better way is to have confidence in yourself, your product or service and the value you offer….and state your price clearly and firmly.
Good luck with handling any price concerns that come your way.
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PS: If I can help your team overcome similar objections/concerns please do get in touch on 01476 516282 or email at firstname.lastname@example.org
PPS: Don’t forget to download your free 19 page report ‘How to stop your team negotiating money away’ by clicking here