One of the most asked questions of me (or probably any other person that has ever trained salespeople) is, “What’s the best way to overcome price objections?”
Well, there are a couple of answers here. First, there is no “best” way—there are several very good closes and questions you can ask to help you move the sale along. But, more importantly the only reason to ever have a price objection is because you haven’t built the value of your product or service and the benefits it provides to an amount equal to or greater than the dollars you are asking for it.
WOW. Really? Yes, read that again: The only reason to ever have a price objection is because you haven’t built the value of your product or service and the benefits it provides to an amount equal to or greater than the dollars you are asking for it.
Everyone has seen the example of a scale. When the value of your product or service outweighs the dollars it costs the sale will be made. And instead of taking things off one side of the scale (cutting the price) you should be adding things to tip the scale in the other direction (building value).
Therefore, the BEST way to overcome price objections is to not have them in the first place. (I know, I know—easier said than done!)
So, let me share with you five closes I really like and have learned over the years that can help tip the scale when the buyer is sold on your product or service and it’s time for the negotiating to stop and the paperwork to start.
Reduce To The Ridiculous
There are many variations of this popular and very effective close, but generally you want to show the prospect the smallest number you can possibly get to. Let’s assume you are selling an item and you are off by $500 (or $5,000—the close works the same). Take that $500 and break it down over the life of the product like this:
“John, you’re going to be enjoying this new (boat, car, suit or whatever) for a long time. But, let’s just say you use it for just 2 years! If we take that $500 and break it down (actually write this math down—it is important the prospect see the numbers) over that time, we have—let’s see $250 a year divided by 365 days—you’re looking at 68 CENTS A DAY! (write the 68 cents BIG). Now, personally I think you’re going to have it a lot longer than two years, but even at that, let’s don’t let 68 cents keep you from enjoying this new boat!”
NOTE: Notice at the end, I intentionally said “let’s don’t” because he and I are on the same team. We both want him to have this boat. Also notice I didn’t phrase it in the form of a question. My voice inflection is assuming there is no way on earth anyone would let 68 cents keep them from owning a beautiful, new boat (or whatever the item). Break out the calculator and do the math—let them see the numbers!
Use this one. You’ll like it!
Is That A Complaint or An Objection?
I’ve mentioned this one before. My friend Scott trains automobile salespeople and I learned it from him. I don’t know this, but I would suspect that 99.9% of car buyers always say, “that’s too much!”—it’s almost like a programmed response. Scott teaches his people to immediately respond with, “Is that a complaint or an objection? Because if it’s a complaint, I understand. I complain about every one of my bills every month! Then just keep moving toward the sale.
NOTE: I absolutely love this. Scott tells me that more times than not, the prospect will literally say, “Ah heck, I’m just complaining!”
Testimonials are very powerful—if you use them. If you keep them stuffed in a drawer they may improve your mood by reading them every now and then, but they could do so much more!
“Mary, I understand we’re a few dollars apart. But, let me show you what some of my past clients and customers have said about my product, my company and me. These are all things you should consider when making a purchase like this. After all, price isn’t everything.”
NOTE: Again, I didn’t phrase the last sentence in the form of a question and my voice inflection is such that I downplay the difference in price. Afterward, just keep moving toward the sale.
I’m Free Close
I talked here about what your competitors can’t duplicate and this is your chance to use it in a close.
“Mr. and Mrs. Stevens, I know you like the television. You’ve told me it fits in perfectly with your décor and the size is just right for the space in your living room. There may very well be someone willing to sell the same model online for a few dollars less, but guess what? I’m FREE! That’s right, you get me, too. And, I’m going to be here to stand behind the product and make sure it’s delivered and installed properly and that you’re happy with it for many, many years. I think that more than outweighs any price difference—not to mention I’m a lot better looking than that little shopping cart icon on the computer!”
NOTE: This is great when selling against the internet. First, I reaffirmed all the reasons they WANT the product and then again downplayed the price difference and infused a bit of humor at the end. I can’t stress enough how important voice inflection is—I am assuming they are buying. I’m going to be shocked if they don’t feel I’m worth the difference.
Apologize Once Close
This one is one that should be in everyone’s arsenal. I first heard it from the legendary Zig Ziglar many, many years ago.
“Mr. Prospect, I would rather apologize for the price today than for the lack of quality and your unhappiness forever. Now, let’s not let a few dollars keep us from doing business together.”
Simple? Yes. Effective? VERY!
There you go. There are five GREAT closes to use when dealing with price objections. Remember, price only matters if the prospect is sold on your product. Write these down. Study them. Make them natural and part of what you do. They should roll off your tongue as easily as your name and address.
Once you get to that point, you will start winning a lot of these sales!
Mercedes Benz Close
“Jane, I know you like the leather sofa and chair. And, I’ll be the first to admit that it’s not cheap—quality never is. Can you find a cheaper alternative? Absolutely. But, let me ask you, what kind of car do you drive? (Whatever answer she gives follow with). Were there cheaper cars available when you bought that? But, you wouldn’t have been happy with them and I don’t think you’ll be happy with anything but the best here, either. After all, you can buy a Mercedes Benz or you can buy the cheapest used car on the lot. This is the Mercedes Benz of leather furniture and I think we both know you deserve the best.”
NOTE: Voice inflection emphasizes CHEAP here. Also, you can use Cadillac, Lexus or whatever luxury automobile you want. I always use Mercedes Benz just out of habit UNLESS the prospect has mentioned they won’t buy foreign made products. Then I’d use Cadillac. Just something to be aware of.