Written by Sean McPheat |
31 March, 2017
One of the biggest objections sales people face that causes most discussion is the issue of price.
The holy grail of salesmanship is how to find the best way to convince their customers to pay the price they want for their services.
Remember, price is always associated with value, so if the price issue is raised often, think about how you are building value initially.
We call this objection ‘price myopia’.
It means the customer is so focused on the price, they can’t see beyond it to what results they will achieve with your services.
Many salespeople revert back to the ‘comparison analysis’, trying to show how they are not as expensive as, say, supplier X or company Y.
This misses the point that the customer is bringing up.
What they really mean is that, in their perception, the value you are offering doesn’t match the value of the money they would have to part with to get it.
One way to probe deeper about the meaning behind the objection is to ask something like ‘Does the cost seem out of proportion to the product’s value to you?’
This will get them to explain the reason why they have brought it up.
You can then follow up with something like ‘If this product performs the way I have indicated, would the value you receive be worth the price?’
That questions gets the customer to focus on what’s most important; getting the cheapest price or receiving the best return on investment.
As an example, a client recently asked me to deliver a keynote speech at a conference he was running.
He asked me to reduce my fee by 50% because another speaker was offering to do a speech at that fee.
I said that he could have one of my videos if he liked and play that to his audience, and I would charge him less than the other speaker would.
He realised that wouldn’t have the same impact, and that if he wanted me to speak live, my fee was my fee.
He agreed that the real thing was much more impactful, and booked me at my original fee.
Always check that the value you are offering to your prospect equates to the results they will get from using it.
If longevity, ease of use, peace of mind or simplicity is important to them, show how your product or service will outperform the competition in the specific way they wish it to work.
That way, you are building up the value to be greater than the price they have to pay.