Copyright: Engage Selling
Managing consulting professional, Colleen Francis, gives her expertise on how to overcome price objections.
Ottawa-based Francis, who describes price as being “the single most common objection encountered by sales people in every industry, city or sector” gives the following 5 tips on how to handle price objections “from both new and established clients”:
1. Talk it over first
Colleen advises discussing the price “before sending the client anything in writing” as talking about what you think the price may be “before sending a formal proposal can significantly reduce the chances that a price objection will arise.”
If the client objects while you are discussing the matter, you then have the opportunity to deal with the issue face-to-face rather than potentially losing the client when you email them the price at a later date.
2. Be 100% committed
Sales professionals should be entirely committed to the fairness of their price, for Francis says that if “you don’t think your prices are fair value” your clients certainly won’t. To ensure you are entirely confident, Francis advises finding out beforehand what your competitors’ prices are, and also bearing in mind when a client makes an objection that this doesn’t necessarily mean the client will refuse to purchase your product or service.
3. Don’t assume anything
Francis says that “When most sales people are told that their price is too high, they make an immediate assumption” about what that means, but Francis describes “too high” as being “a very subjective comment” and suggests that before you make any response you “take a deep breath, relax, and don’t say anything for a good three seconds”, which should prompt the client to elaborate.
4. Find out what “too high” really means
Francis advises acknowledging the objection of your client and “showing the customer that you appreciate them sharing it with you” as this “reassures them that you’re both on the same side.” Francis says that “the very best salespeople look their clients square in the eye” and acknowledge the validity of their objection. This turns “a potentially costly confrontation” into “a sincere invitation to work together towards a solution”. By taking this approach, in Francis’ experience, “you stand a better chance of finding out exactly what the difference is between the price you quoted and the figure the client has in mind.”
5. Listen, respond – and if need be, move on!
Francis’ final type, once the client has explained their objection, is to ask questions to find out “whether they are making their decision based solely on price, or whether any other factors will influence their choice.”
If there is another factor you can then move the conversation on to that subject but Francis warns that “we have to be prepared to walk away from business where the client isn’t willing to pay what the marketplace has determined is a fair price” and says “You can’t and won’t sell to everyone” so it is best if you “have a healthy pipeline of other prospects to sell to.”