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Grab The Price Objection Opportunity
by Dave Donelson
“It’s too expensive.”
Ever heard that one? If you haven’t, you’ve never made a sales presentation. I’ve heard
it on every sales call I’ve ever made—and I love it! Why? Because when the prospect starts talking about my price, it means she wants to buy my product. Why else would she want to talk about the price?
There are only two questions the prospect needs to answer to buy a gift basket or
anything else: “What’s it going to do for me?” and “How much does it cost?” And the prospect only needs to ask the second question—about the price—if he likes the
answer to the first one. This is as true of the corporate buyer as it is of the retail customer. If he or she doesn’t like the product, then the price doesn’t matter. Would you
buy a locomotive just because it was cheap? Of course not. So when the prospect says your price is too high, welcome the objection with open arms—it means you’ve almost made the sale.
Step One
So how do you manage a price objection? The first step is to assume the buyer doesn’t really mean it. Most prospects offer a price
objection automatically before they agree to buy. That’s because it gets them a lower price a great deal of the time! And since they don’t lose anything by asking—they’d
be foolish not to. So always assume that the buyer is just objecting to the price because to do so is in their job description.
Your job, on the other hand, is to ignore it.
That’s right, just skip right by it. Acknowledge the statement the prospect made and get on with your pitch. You might try a reply like this: “I can see how you might
feel that way, Ms. Decisionmaker. Now, the major benefits of our proposal are…” and go right back into your presentation. You have plenty of time to answer the price objection later—but you’ll only have to answer it if the prospect brings it up again.
If you hear the price objection again, though, you can figure the prospect is serious
about it and has some reservations about the value received in return for the price paid. But don’t start talking yet—listen instead. It’s imperative that you know what type of price
objection you’re dealing with before you answer.
There are several different kinds of price objections, each requiring a slightly different
strategy. Is the total amount beyond the prospect’s means? Are the unit prices too high compared to the competition’s? Or to the customer’s last order with your company?
Does the price outweigh the value of the basket in the prospect’s mind? Know which one you’re dealing with before you answer. And the only way to know is to listen.
Objection or Negotiation?
If the prospect says she can’t afford the basket you’re selling, offer to take something
out of it so that she can. Most of the time, of course, the prospect will say, “I want the whole thing, just at a lower price.” If they do, it means you’ve just discovered that this
wasn’t a price objection, it was the beginning of the negotiations. So start by further building the perceived value of your basket. Remember, there are two factors in the
purchase decision, the price and the value, and the relationship between the two leads the prospect to buy.
If this approach doesn’t get anywhere, it means you’re dealing with a real haggler, so
you just have to play the game. If you can, go back and forth making offers and counter-offers until you reach a price acceptable to both of you. If you can’t lower your
price, just say so and give the prospect two choices: either buy this basket at this price, or consider a completely different one. You’re being honest and positive at the same time.
If there’s one thought to keep in mind, it’s to never tell the prospect “no” without giving
him an alternative at the same time. “No, I can’t lower my price, but I can make the cost smaller by subtracting some value.” “No, I can’t cut my price, but I can give you a
different, less expensive basket.” This helps you conduct the price discussion in a positive tone. And this attitude will help you turn the price objection into an opportunity to
close the sale and deepen your relationship with your customer.
Empty Wallet Syndrome
There’s yet another variation. That’s when the prospect agrees with your value
argument, but can’t buy because he or she really just doesn’t have the money. Then it’s time to go into the items in the basket to see which ones you can remove to lower the
total price. Work with the prospect as you do this—the process is a perfect closing opportunity.
But watch out! Don’t ask the prospect what he can afford as you do this, because most
prospects will give you a low-ball budget. Instead, review each item and get the prospect to rate them in order of importance. Then, if you can, remove the least
important ones—and their cost—until you’ve reached a total the prospect can live with. You’ll generally end up with a larger order than if you let the prospect set the limits in advance.
Of course, sometimes you just can’t take out some value along with some of the dollars.
If that’s the case, you need to take your current proposal off the table and see if you can come up with another less expensive one in its place. If you’re way off base and you
can’t come up with a cheaper idea on the spot, retreat and start over. Get as much information as you can about what the prospect can afford, which were the strongest
features in this proposal, and set an appointment to present Plan B.
The last type of price objection deals with unit prices. This can take several forms, such
as comparing your prices to your competitors’ or matching the prices you’re proposing to those the customer has paid in the past. The great thing about selling a creative
product like gift baskets is that yours are unique, so these kinds of comparisons can’t be fairly made. How can you compare the price of a painting by Rembrandt to one by
Warhol? So eliminate a price comparison by stressing the artistry in your product.
There’s no reason to fear a price objection. Instead, welcome it! It means the buyer wants to place an order.
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