Overcoming Price Objections: Three Rules You Need to Follow
- Jitender Lakhani (JL)
- September 20, 2021
- Category: Uncategorized
How do you deal with price objections? It’s unusual that a salesperson isn’t asked about the pricing. One of the most challenging things salespeople face on a daily basis is price complaints. A savvy buyer would inquire about pricing on principle, even if they are aware that the first offer is not genuine.
However, this does not rule out the possibility of a purchase. It also doesn’t imply that they won’t buy at the initial price offered. Depending on how you respond to the price objection, you’ll be able to decide how often you can maintain value, pricing, and high conversion rates to close.
Price objections will inevitably arise over the course of your sales process. When it comes to purchasing the equipment they need for their own business, consumers have grown considerably more experienced and aware in recent years. This is especially true in the B2B market, where the number of complaints is likely to be extremely large.
“I’m intrigued, but the price is a little too high,” is one of the most typical answers you’ll get from a customer. What type of discount do you have available?”
It might be simple for sales reps to cave in and reply with a decent discount in order to close the transaction. However, in some cases, this is not the best course of action. In truth, it’s a weak response. After all, if your product/service offers genuine value, even if they have to pay full price, the prospect will profit.
There’s nothing wrong with occasionally offering discounts or even negotiating a price, but giving away too much can reduce your earnings. Instead, you should re-emphasize the time, money, and energy that your customer will save by working with you.
Let’s go over some key ways to overcome price objections!
- Great sellers go into a meeting with multiple next-steps; this allows them to proactively respond if a plan does not unfold as planned.” – Tibor Shanto
1. Emphasize the relevance of the price:
When discussing your product, the focus should be on the return on investment rather than the price. Although there may be occasions when the prospect does not understand the whole worth, you must explain it to them.
Always keep in mind that your product is only as valuable as the consumer thinks it is. To overcome pricing objections, you must demonstrate the value the buyer will receive from utilizing your product/service.
To persuade a potential customer to buy your services/products at the listed price, you must translate the values such that the return on investment exceeds the cost. It should also be noted that the information the prospect may learn does not necessarily equate to financial benefit. They could also benefit from saving time, making their employees’ work easier, and so on.
If your product or service costs approximately $100, you must be able to demonstrate how not spending that $100 would cost you significantly more in the long run because of what your prospect may lose.
You must demonstrate to your customers how their use of your product or service affects their key business KPIs. You must also demonstrate how and to what extent it affects their most important values.
2. Prioritize long-term value:
You must grasp what your prospective consumer is searching for when they ask for a price adjustment. Consider the following questions to help you overcome pricing objections:
Do they have a budget that they require you to stay under?
Are they completing checklists for their boss?
Is your product or service already sold to them, but they want to feel like they won the negotiation?
Keep in mind that the price is the only thing on their minds right now. This cost will be shown in their budget sheet almost immediately. The value you provide to them will take much longer to manifest and determine whether or not a product is required.
When such a dilemma arises, return to your prospect time and again and demonstrate your product’s success. Remind the prospect that you will help them achieve their goal. Then figure out what’s motivating the request. After you’ve accomplished that, you may return your attention to the long-term value.
3. Be ready to tackle previous discounts:
Most potential consumers will look into whether you’ve previously issued discounts to other customers, or if you’ve offered end-of-period discounts, or even whether you’ve had sales. Customers will use your prior discounted deals against you because they’re aware that you have some pricing wiggle room.
Being well-prepared will go a long way toward overcoming pricing objections.
If your company has exhibited similar tendencies in the past, you must be prepared to defend your stance and risk losing the transaction, or you must match the prior pricing you gave.
Regardless of how dissatisfied you become or how you try to explain prior reduced prices, a customer’s desire to acquire your product/service at the lowest feasible price is not completely irrational.
Moreover, prospects are adamant and clever when it comes to deadlines, such as end-of-year special offers. Even if you are utterly convinced that you are unable to provide the same pricing they demand two weeks into the new year, the prospect will feel disrespected, and likely will choose to go somewhere else rather than feel unheard, and underappreciated.
Price objections of this kind are solved by asking questions and getting to know your potential customer.
Conclusion
Whether you’re selling B2B or B2C, you should expect consumers to have some price awareness they’ve acquired ahead of interacting with a sales representative. Your best chance is to prepare for price objections by coming up with ideas that establish the worth of your product rather than focusing on the price itself.
Ultimately, you should devise a strategy for dealing with price objections. Attempt to divert the focus away from the actual expense and onto the intangible advantages of your product/service. It will be easier for you to overcome pricing complaints if you do this.