Your Price is Too High!

“Your price is too high!” your customer tells you.  Ever hear that?  Or if you’re a sales manager, have you ever had one of your salespeople tell you he can’t sell the product/service at this price?  Sales trainers deal with this one all the time, but it’s a pretty easy objection and we’ll talk about it now, as promised.

Let’s start by considering that pricing is never isolated from value.  For example, is $100 too high a price?  Well, it depends.  Yes for a Bic lighter, no for a Rolex watch.  So we know that people automatically associate the price against what they feel they’re getting for it.

If you’re selling a product that has a fixed, non-negotiable price, such as an iPhone, you have no choice except to address the value side of the relationship since you cannot adjust the price.

Now let’s go back to our model from the last post.  When you hear the price objection, you are going to make a statement of empathy or understanding, probe to get your customer to talk, confirm again that you understand the problem, and then address it.  Let’s take these steps in order and come up with some sample dialog.

After “I think your price is too high,” a reasonable response might be:  “I completely understand.  No one wants to pay more for something than they feel it is worth.”  And now you ask the customer to talk more about it.  You might ask any of these questions, “What were your expectations?  What price do you consider to be fair?  What other products and pricing might you be comparing this to?” and give the customer time and freedom to talk it out.  During this time, say nothing, but ask any questions you need to get more information and keep the customer talking.

Now confirm to the customer that you understand his feelings on the subject:   “So it sounds to me that you have compared our offering with similar offerings from competitors…” or, “Sounds like you have come to a few conclusions about how the product should be priced…”

So the customer is nodding his head and waiting for your price adjustment, and here is where you address not the PRICE, but the VALUE:

“You know, whenever a customer tells me that my price is too high, I worry that I haven’t done a good enough job communicating the value you get for that price, so let me help you there if I can.”  And now you restate the earlier benefits, provide additional benefits, or offer competitive comparisons where your product delivers more value than the one the customer was considering.  But you do NOT discuss or offer a change in the price!

When you finish, ask the customer, “Was that a helpful explanation?” or “Did that help you to see the full value you will receive with our product?” and take it from there. You may have to let the customer speak some more, probe some more and offer more benefits.  You may not win every sale this way, but it’s better than saying, “Well, maybe I can knock something off the price,” which will drive your manager crazy and keep you from meeting your targets.

In my next post I’ll give you a great tip for dealing with objections, what you should do before you say anything at all.

Can you guess what it is?  Remember, think like your customer!

Advertisements

About Gregory LaMothe
I teach people how to sell things. I own the company ActionSystems. Visit my website at www.actionsystemstraining.com.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: