5 Ways to Crush Price Objections
1: Don’t waste time on people who aren’t ready to buy
Are you in front of a prospect or just a suspect? Never assume that just because you have someone in front of you that they are ready to buy or that they will ever be ready to buy. This is even more important when selling high price products / services where you have naturally fewer people interested in what you have to offer.
However, whether selling a low or high price product / service think about who your ideal customer is before attempting to make a sale. Burrow through the suspects to identify the prospects. This will keep you focused on who you should be having conversations with and make the best use of your time. Creating buyer personas (semi-fictional representations of your ideal customers based on market research) can help you do this.
2: Create value
Your goal as a salesperson is to always bring the customer back on track to focusing on their wants and needs – as well as demonstrating value. You can achieve this through effective questioning.
Use open-ended questions to get the conversation flowing. If the customer can respond with a “yes” or “no,” then you need to rephrase your question. If you get stuck try just asking, “Why?”. As the customer responds to your open-ended questions, probe further by asking more questions about what they’ve just said. If at any time you don’t understand something, ask them to clarify.
The more confidently you can ask questions and get your customer to talk, the more likely it is they will see value in what you offer. The goal is to offer value that is commensurate with the price. So, before you become an authority on value, take a pen and paper and answer these questions: Why do your best customers buy from you? What is special about you, your company, your product / service? How do you help your customers?
3: Focus on the loss not the gain
Break the price down and show your customer how much more it costs them when they don’t use your product / service. You are far more likely to get a reaction from people when they feel something is being taken away from them or that they are losing out.
For example, imagine you are selling a labour saving device e.g. the latest powerful hoover. If your customer tells you your price is out of their budget, simply ask them how much time it takes for them to hoover their house currently. Take the figure, project it over a year and compare it with the time it would take if they used your hoover. Present your customer with the figures and explain how much more leisure time they would have if they bought your hoover. Who would argue with having more free time?
If you plan ahead you can have some handy price calculations to hand that will provide the proof (rather than just belief) that your product / service is, indeed, of value to your customer.
4: Avoid negativity
Don’t get into offensive or attacking mode if a customer doesn’t like your price. Invite them to consider your product / service, plus the value it delivers, alongside those of your rivals. Be comfortable entering into a discussion with your customer about all available options but don’t make a decision for them – leave that to your customer.
5: Use testimonials
Testimonials are very powerful. Sharing stories of existing customers who have benefited from your product / service is much more compelling than any benefit you can bring to the table. People love listening to what others customers think of you so be sure to share testimonials wherever possible. When your product / service is shown in the real world it brings it to life and helps demonstrate its value.