How to handle the price objection
Price objections are the most frequent of all objections. If you’re in sales, you’ve probably heard a few like these. “You are too expensive,” “We don’t have the budget,” “We can’t afford it”, “Your competitor is much cheaper.” If you fail to handle the money issue correctly, you lose.
This may come as a surprise, but when a customer objects to price, it's almost never about the money. It’s actually a glaring symptom of a much bigger issue in your sales process.
How many times have you believed your customers' money excuse? Customers whip out the money objection because they don't know what else to say. It's the most convenient way to get you to back off. The money objection creates a protective barrier around the customer so they can hide from making a decision or from telling you the truth.
When you start buying into a customer's money story, they have effectively sold you. They sold you on why they cannot buy what you’re selling. Avoid getting caught up in their money banter, because it's a black hole, costing you precious time, money and energy.
Instead, realize there is something below the surface of their objection, and it’s your job find out what that is. Your job is to educate them to help them remove this barrier. It’s what I call, the "truth behind the excuse.”
What’s below the surface could be that they don't believe you or don't believe you or your product or service can help them. Maybe they had a prior bad sales experience, or they are afraid to tell you that they’re not the decision maker.
It’s your job to decode and translate when someone says, "I cannot afford it." It can mean, "I don't really want to change so that is my excuse for ending this conversation." Or it can mean "I know there is a problem but the investment is outside my comfort zone.” Or it can mean “I can’t see the value in your offering.”
This is where it gets a bit complex, and you’ll have to play the game of truth or excuse. You’ll have to determine if they're objecting because your offer is really outside of their comfort zone or if they're reluctant because it would require them to change.
Potential customers are afraid to part with their money. Money equals security, and it doesn't matter whether you're asking them to part with $19.95 or $1,995 for your product. People are happy to spend their money when they see there's more value in having your product than in keeping their money.
Many salespeople are taught when they hear an objection to immediately launch into “overcome the objection mode” with a quick well-rehearsed one-liner. This only causes unnecessary pressure and forces your prospects to continue to hide behind the truth. I encourage you to resist the urge to jump in and answer right away. Take your time and let your prospect elaborate more about it so you can get to the truth of the objection.
Newsflash: your prospects are tired of being on the receiving end of salespeople trying to overcome the thoughts, reasons, concerns and doubts they have about their money. Handle their money objection, and they will feel comfortable and confident saying yes to you.