Sales pros are no strangers to objections, especially price-related objections. If you often hear, “This is too expensive,” you’re certainly not alone. The key is to know how to address this objection. You shouldn’t get defensive or immediately cave and offer a lower price. Instead, approach the objection as an opportunity. Acknowledge the prospect’s concerns and build rapport.
Sales expert and best-selling author Marc Wayshak recommends having a game plan on how you’ll respond the next time you hear, “This isn’t in my budget.” We share his tips in this issue of PromoPro Daily.
- Consider how you arrived here. Examine your initial interactions. Wayshak recommends looking at your entire sales process if you regularly face objections on price. He says when prospects label something as “too expensive,” it’s usually a mask for their lack of interest or failure to perceive the value.
- Stay true to your pricing. Wayshak advises against positioning yourself as the bargain option in the promo industry. Don’t try to compete on price and don’t engage in price negotiations. Instead, he suggests embracing the fact that you offer premium pricing.
- Categorize your prospects. Group them into three segments: those willing to pay for value (top tier), those who require persuasion to see the value (good prospects) and those only focused on price (bottom 20%). Wayshak suggests focusing your efforts on those genuinely interested in the value you offer.
- Slow down. You may want to immediately explain why you charge what you do, but resist that urge, Wayshak says. Give yourself time to gather your thoughts. This shows your attentiveness, he says, and prevents reactionary responses that may alienate the prospect.
- Ask why the prospect believes it’s too expensive. This is a good way to redirect the sales conversation back to the prospect. Ask for clarification on their price-based objection. This gives you insight into their concerns and allows you to maintain control of the dialogue, Wayshak says.
- Dig, dig, dig. Anytime you face a price-related objection, try to get to the bottom of the true concern. You may discover insights that mitigate the prospect’s initial objections.
- Offer to propose some other solutions. Simply ask, “Can I share some ideas with you?” Approach the conversation with a collaborative mindset. Wayshak says this approach fosters engagement and facilitates problem-solving.
When they’re looking for promo, buyers want to be sure they’re getting the right products and the best value. If they’re concerned about price, try some of the responses above to prove not only value but also flexibility and trustworthiness.
Compiled by Audrey Sellers
Source: Marc Wayshak is a sales strategist, best-selling author and sought-after keynote speaker. He’s the founder of Sales Insights Lab.