I recently sat down with two different companies and “pitched” the same product.
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One company was a national brand while the other was a local brand.
When we got to the subject of cost (90% of all objections) the decision maker at the national brand asked me why my solution was so cheap, while the decision maker at the local company asked me why it was so expensive.
Because I’m a professional sales person I was prepared for both.
When asked why the solution was so inexpensive compared to recent quotes they had received for a similar product, I simply explained that this was cutting edge technology which was an absolute game-changer in this particular market.
I then quickly moved into the features/benefits discussion to show that the product’s functionality was every bit as every bit as good as the expensive solutions. The client was smiling at the end of the meeting.
When asked by the local client why the product was so expensive, I politely informed him that equivalent products in the market sold for 10 or even 20 times the cost of this product, and quickly moved into the features/benefits discussion to show the value of the product.
In both instances, I did not stutter, recoil or otherwise display any lack of confidence. I stood my price and let the product’s features and benefits do the talking for me.
Turn the Objection Around
Another way to get around an objection based on price is simply to turn the question around. If the prospect says “that is too expensive for us” then you reply with “how much ‘too expensive’ is it?”
Find out what they believe the value of the product or service should be as a negotiation point. Once you know what they think the price should be, you have two options:
- If you can move on price then your goal is to get the “best” price possible, so maybe you can discuss payment plans or some other way to get the best price which fits into the expectation of the prospect.
- If you are in a situation where you cannot negotiate on price, then you either have to educate the prospect as to the commercial value of your solution in the real world, or simply move onto the next prospect.
No sales person closes 100% of prospects.
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