One of the most-asked questions during my training sessions is how to overcome price objections. Though that’s a very open-ended question, there is an answer to it—one that most salespeople can learn and apply. The key is to use this formula consistently and naturally (don’t sound canned).
First, you must determine if it is truly an objection or just a smoke screen. Buyers, for the most part, believe it is their duty to complain about the price of whatever they’re buying. Otherwise, they feel taken advantage of.
Just as you practice your presentation, they are skilled at telling you “it’s too much.” So, you must determine if it is legitimate. You’ll find that most of the time, it’s not. Granted, there may be some issues but price real reason the prospect is not buying.
Simply ask, “Is price (or payment or whatever), the only thing keeping us from doing business together today?” If the answer is yes, then you must work with your buyer to find a way to make it affordable. Notice I didn’t say, “cut the price”. That’s the LAST thing you should do.
Perhaps they are looking at a home, or model or set up that is out of their range and a lower tier would be a better fit. Everyone tends to have a champagne taste and a beer budget. It’s not a deal killer if you don’t let it be.
The main objective for you is to get past the first mention of price as quickly as possible. Move on and keep selling the benefits and explaining features.
In the event that the buyer brings up price again, use what my friend Scott uses when he trains for one of the nation’s largest automotive sales training organizations. If the prospect has mentioned price a second time during the closing process, you should respond with this (use it almost verbatim—but, again sound natural): “Is that a complaint or an objection? Because if it’s just a complaint, I understand! I complain about every one of my bills every month.”
Now keep moving toward the sale. Many times the buyer will acknowledge that yes, it is simply a complaint. Let’s face it we ALL want to pay less! Has anyone EVER said, “It’s not enough?”
If you still have an objection to the price, you should once again isolate it (“Is that the only reason keeping us from doing business together?”) and reaffirm that the prospect is sold on your product or service. If so, then and only then can you honestly “overcome a price objection”.
Here’s a strategy that I LOVE! Ask the prospect what they’d like for you to do about the price. Believe it or not, but many times what they ask for is LESS than what you would have offered in the first place.
The bottom line is this: many price objections are simply not objections at all. In some cases they are cover for the real objection. In those cases where it is the “only reason” keeping you and the prospect from doing business together, then work with them to find a way to either work it into their budget or find a replacement that is affordable.