It’s not about the price; it’s all about the value!
Probably the single most common objection a salesperson gets is about the cost of the product or service. You know the routine, it’s the…”Wow, that’s a little outside our budget!” comment. The amateur sales person takes the comment at face value and becomes aggressive in their attempt to justify the price. They do this by making one of two potentially fatal mistakes.
They start to reiterate the standard “selling points” that their sales manager has coached them on. Unfortunately, this method only leads the sales person to start to “verbally vomit” more product/service information than the customer really needs or wants to know. We all know what happens when we verbally vomit on a customer!
They begin dropping the price to get the sale. If the price is quickly reduced, it sends a very clear message that the original price of the product doesn’t indicate the true value of the product or service. In a matter of seconds we have devalued our entire value proposition. This sales mistake has dire consequences by encouraging the prospect to question you on every negotiable point you have. Thus creating a never-ending cycle of objections the client must now embark on to insure he understands the true value proposition you are recommending.
Key Learning Point
Prospects may use the price objection as a tool to truly size up your “HTC” factor: Honesty, Trust and Credibility. How many times when you were the consumer have you said, “That’s out of my price range!” when you know you could afford it? You may have been saying that to size up the sales person’s response.
Did the salesperson have the credibility and conviction that the product/service was indeed the right solution? Was the salesperson honest in understanding your real need? You might have had real interest in the product and service but were not ready to buy because the style, function, model, etc. was not perfectly suited to you. Regardless, the professional salesperson must have a strong foundation in which to probe to determine if the pricing objection is real or made up.
Prior to presenting price, make sure you’ve built a solid foundation that demonstrates honesty, trust and credibility. Make sure that you’ve probed to truly understand the prospects “highest needs.”
Never force the prospect by pressuring them into a sale. Rather ask broad, open-ended questions. Remember to validate what the customer has said, look to enhance honesty, trust and credibility and stay in control of the call by asking a question!
“I can appreciate your concern regarding price and the value of our product; we realize budgets are tight, share with me specifically what you had in mind?”
By asking an open-ended question you are giving the prospect a choice to address the real issue. If it really is price, you can now start to better understand the customer’s highest needs. If it’s an issue other than price, you’ve just earned the opportunity to be responsive and solve a problem or clarify misunderstanding!
For more information call us toll free at 719-285-8761 or send us an e-mail at JGThornton@rulearning.com.
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