Price objection handling strategies

Price objection handling strategies
Strategy How to use it
By Carleadbest

Postpone

Postpone talking about prices until after you have demonstrated the value.
“Before we can discuss prices we both need to be absolutely sure that we are
right for you. So, if it’s all right with you, we’ll come back and discuss the
price in detail when we both know what you need.”

Make the value

obvious

Paint a graphic picture of what is at stake, quantify the value, and help them
to understand how it will make them feel.

Break into chunks Break down the price into small chunks, such as cost per use or per week.

“And you can enjoy all those benefits for just RM 2.75 a week”

Compare to them Compare your prices to theirs.

“Tell me, are you always the cheapest supplier in your market? Well, neither
are we. Like you, we charge a fair price for great products and services. And
that’s why I’m so excited about working with you. But if all you want is the
cheapest widget on the market, I can introduce you to several cheap firms
from whom you'll get exactly what you pay for.”

Compare to rivals If they tell you that Fred down the road is cheaper, say something like:

“I am sure Fred knows what his widgets are worth. Just as we know what
ours are worth. And that’s why ours aren’t the cheapest on the market.”

Give them a choice

“Most customers looking for this level of service are prepared to invest(RM middle). A fortunate few can invest between (RM high) and (RM very high).
And then there are some on a budget who can’t go above about (RM low).
May I ask which of those three categories you fit into most comfortably?”

Start by mentioning a (RM middle) price that is about 20% above the (RM low)
price you would be happy to receive. Then quote a (RM high) to (RM very high)
range that is about 50% to 100% above your (RM low) price. Then tell them the
(RM low) price – which you secretly know is actually the price you need. This
taps into the subconscious belief that Expensive = Good, and that Cheap =
Bad. And, as a result, many customers will accept one of the other two
(higher) prices.

Focus on the difference

Focus on the difference between what they say they are willing to pay, and
what you are asking.

“You’ll get all the extra benefits you were getting so excited about a minute
ago for just RM4.99 a week more than you’re paying at the moment. That’s a
big return on a very small investment, isn’t it?”


Change the package

Strip out some elements of the package to bring the cost within their budget.
Easy to pay Remove the “we haven’t got the money” objection by arranging
finance or accepting credit cards

Reverse the risk Reduce the customer’s risk – perhaps with a money back guarantee

Trade Trade something valuable for a price cut eg prompt payment, larger order,
long term commitment, special deals on their products, sales leads and
referrals etc. Ask us for a script showing exactly how to do this (AR13)

Walk away If all else fails, be prepared to walk away – or perhaps introduce them to a lower cost supplier who will pay you a commission for the sales lead