the price objection

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"We're not the Lowest Price! Now What?"

Overcoming the Price Objection

Craig James

Sales Solutions

September 18th, 2007

Agenda

How to use this medium Introductions Content Closing Q&A

“Your Price Is Too High!”

BYE, BYE,

BYE,BYE,

SALE!!!SALE!!!

Cutting Price - Plusses and Minuses

+ Eliminates this objection + Gets us something + Shortens the sales cycle a bit - Giving money up cuts margin - Admitting customer is right - your

product’s not worth what you claim it is - Folding so easily sets a bad

precedent

Can a Higher Price Be Better?

Conveys superior value Opportunity to prove your value,

earn bigger commission on sale

Other Buying Considerations

Total Cost of Ownership (TCO) The bundle of benefits you offer

your product or service your company you

Avoidance of "psychic" costs less worry lower risk less work

Is it Really All About Price?

Few prospects have as a goal to buy the “cheapest”

Most understand “you get what you pay for”

What is “Value?”

A fair return for something (money) exchanged

The monetary worth of something Relative worth, utility, or

importance

What is “Price?”

The amount of money given or set

as consideration for the sale

of a specified thing

What is the “thing” you are selling? Your product or service Your company You

Look familiar?

Why is your price “Too High?”

Compared to What? Competition? What someone else paid?

Are we talking apples to apples or apples to oranges?

No reason? Just wants a “better deal”

What is your prospect thinking?

“Are you worth more?” If so, why?

“Maybe there’s something of value missing from the other proposals”

“With which vendor will I be getting the best deal?”

Value Exceeds Price

Price Value

If we cut our price, the customer gets more value than he paid for

Price Exceeds Perceived Value

Price Value

If we haven’t conveyed sufficient value, the customer will (justifiably) ask us to cut the price

Reasons for asking for lower price

I don’t see the extra value for your higher price

I have a limited budget This is what I think the number

should be - period! You’re a vendor – I need to extract

my pound of flesh!

Customer Doesn’t See Value

It’s our job to justify our higher price

BUT HOW?

With Questions!

What kind of questions?

Those that get at magnifying and quantify his problem What’s wrong? What if you don’t fix it?

Impact (financial, otherwise) What else might happen?

Impact (financial, otherwise)

Then hit ‘em with Benefits! Faster... Better... More durable...

.......................................... and

Your Unique Selling Proposition

What do we offer/do that they can’t get from anywhere else?

(high value capability/benefit)

Three more ways to overcome the price objection

Add benefits to your offering Subtract costs from your offering Suggest additional risks of doing

business with your competitor

Mission Accomplished

Price = Perceived Value

What if They Still Won’t Budge?

“If I could....would you...”

Tight Budget

“Help me find a way to pay”

Stuck on a Number

“Refocus me on a concern bigger than money”

“Let me think I beat you!”

Ever OK to Walk Away?

Summary

Requests for price cuts => need for more benefits to justify premium

Most know cheap doesn’t equal best, want good value, need to be convnced they’re getting it

Price is rarely the most important criterion (long forgotten after quality)

Drawbacks of unconditionally cutting price generally outweigh benefits

Be prepared to walk away

Closing Q & A

Sales Solutions

Service Offerings 1/2-day and full-day

Skill Enhancement/Sales Process Improvement

One-on-One Sales Coaching

Customized Sales Consulting

"We're not the Lowest Price! Now What?"

Craig James

Sales Solutions

877-862-8631

info@sales-solutions.biz

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