According to the media, price may be an issue.
Follow the news on TV, Radio, Press or Internet and you will find that the economy is a problem. According to all media, unemployment rates are high and budgets are tight. This can make you believe you need to lower your price to make a sale.
Major store advertising handles price as an issue.
Everywhere you look, department stores, grocery stores and most all major advertising is attempting to handle price as the issue prior to and in order to get you in the store. Even local stores are distributing coupons and advertising discounts, all in an effort to handle price. This too can make you believe you need to lower your price to make a sale.
Should you follow the trend to sell based on price?
You can definitely come up with incentive programs that give discounts and make your products or services more competitive in the market. That said, you must still keep in mind that your products and services are valuable. The main focus should still be on the features and benefits of your products and services. Price is always secondary to features and benefits.
Salespeople focused on price, forget to use sales technology.
If you or your sales team start to sell based on price as a main focus, you are on a path to lose sales. Incorrectly the focus becomes fixated on convincing the prospective client to buy based on price alone and as a result skips key steps in the sales process. Then, when the prospective client starts to object or resist, the only handling is the fact that “they are getting a good deal.” In most cases this sale will fall apart as there is no foundation to support the sale.
How much does it cost to produce your product or service?
It is a major mistake to give discounts or incentives without KNOWING what your production costs are. You or your company executives must work out the costs and ensure the sale will be profitable. If the salesperson is predisposed to thinking their discounts or incentives may cause the company to lose money, this alone will kill the sale.
Eight vital tips to use when your prospective client brings up price as an objection:
- Follow your sales process: By following your sales process step by step, you will be able to maintain a foundation that will hold up when your client brings up price.
- Ask the following question: Have you ever made a purchase and paid a little less for it knowing it was not 100% quality, then after bringing it home you found it was not quite what you expected? Most everyone has done this including your prospective clients (Experience has taught us no-one has ever said no to this!).
- Most people will agree that they are willing to pay more for a product or service that gives them exactly what they wanted the first time without having to return it, fix it or redo it. Get them to agree with this and have the prospective client tell you about a time this happened to them.
- Focus on the quality of your product or service: Do you believe that what you are selling has tremendous value? Great, then make sure that your focus is on quality and value first. You are selling the value your product or service brings to your customer, not the discount.
- Work out the reasons why the client should buy your product or service before you present the price. In this way, when you get an objection, there is a foundation of features and benefits the client wants, which will support moving forward with the sale without having to lower the price.
- Ensure you have a current competitive or comparative analysis: Many times your competition may advertise discounts or incentives that look attractive but are not an “apples to apples” comparison based on the differences in quality or services your company includes. If you and your sales team always have a current comparative analysis, you will be able to handle any objections regarding price in relation to your competition.
- Use referrals to validate your quality of delivery. Every client agrees that poor quality costs more in the long run. Prospective clients are willing to pay a little more if they know they will get better results. Your referrals are vital to validate your quality. It is always better when the person who gave you the referral also provides you with a testimonial that validates the quality, integrity and value of your products and services.
- Use 3rd party endorsements. This can be friends, colleagues, vendors or anyone who is an opinion leader in your industry. Today, video is the best way to do this so that people can see the endorsement both in writing and in an on-line video.
Bonus tip #9:
9. Capture case studies which show the client’s situation before they bought your product and the results after they used your product or service. Incorporate these case studies early in the sales process to validate the value you bring and handle any objections. This is also best done in video format.
In summary, the “price objection” is easily handled if you continually do your homework and are prepared in advance.
Practice and drill this issue regularly; not only will your confidence level (and that of your sales team) rise dramatically but the issue of price as a “stop” to profits and success will eventually become a non-issue.
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