Have you ever had a prospect utter these terrifying words to you?
Your price is too high…
These are some of the worst words a salesperson can hear, right? Well, not necessarily.
In fact it can actually be an opportunity if you handle it properly.
But what are you supposed to do when a prospect utters this phrase? And, more importantly, how do you avoid it from ever coming out of the prospects mouth in the first place?
It might be easier than you think.
In this video I’m going to show you 3 ways a salesperson can handle the common objection, “your price is too high.” Check it out.
1. Understand why the prospect says it in the first place.
Prospects say “your price is too high” when they aren’t seeing enough value. Your prospects are constantly doing the calculus in their head. If the value they think you bring to the table exceeds what they’re paying you, then the price seems fair. But if not, then they’re going to push back on price. That means if they think what you’re asking for exceeds what they think you’re providing, then the price is going to seem too high. This means that you have to be crystal clear on what your value is—not to yourself, but to your prospects.
2. Avoid this objection in the first place by creating massive value.
Creating massive value doesn’t mean presenting the dollar values of your offering. No. That’s an old-school approach. Instead, what I challenge you to do is to ask really good questions that help your prospects understand the cost of their challenges, and thus the value of solving those challenges. By the way, the value that you help them calculate should exceed 10 times your price. If it does, then you’re in a really good sweet spot.
Let me give you an example. Imagine you’re selling commercial air conditioning units. You’d might say there’s not that much obvious dollar value there—but just think about it. What are some of the common challenges that would bring a prospect to need a commercial air conditioning unit? There are a couple of obvious challenges, like inefficiency of the old units, so that’s an obvious cost.
Number two would be lost productivity of the employees. Number three, building off that, would be the downtime of the workforce because the air conditioning wasn’t working. Now, when you really factor in costs like that, this challenge costs millions of dollars, thus justifying an obviously more expensive and higher quality air conditioning unit. Does that make sense?
3. Dig into exactly why the prospect aired this objection.
If, after all we’ve just talked about, your prospect still says that your price is too high, it’s time to dig in. Rather than pushing back and getting into an arm-wrestling match with your prospect, ask, “Why do you feel that way?” Remember, you never want to be arguing with your prospect. Instead, think of yourself as a jiu-jitsu master, taking that energy and sending it back to them. Let them explain their thinking. Really dig into it. Understand their thought process. Then loop back to the cost of their challenges and ask them if, based on what they’re looking to accomplish, this price seems reasonable. Be sure to hang in there. The key here is that you don’t ever want to just get thrown off by this objection. You’re not going to win all of them, but as a result of these strategies, you’re going to win a lot more.
So there you have it. Now you know 3 ways a salesperson can handle the common objection, “your price is too high.” I want to hear from you. How have you dealt with this objection in the past? Be sure to share below in the comments section and join the conversation.
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About the Author Marc Wayshak
Marc is is the best-selling author of three books on sales and leadership, including the highly acclaimed titles Game Plan Selling, The High-Velocity Sales Organization and his forthcoming book, Sales Conversations, Mastered.
Marc is a contributor to Inc, HubSpot, Fast Company, Entrepreneur Magazine, and Huffington Post Business. He also hosts a popular YouTube channel on sales strategy with over 103,000 subscribers.
Marc helps thousands of people his data-driven, science-based approach to selling that utilizes all the best tools available to sales organizations today.