The prospect loves the product and is convinced of its advantages. They are excited to work with your team on execution. Everything’s going along just as it should, until … you give them a quote.
“The price is what?!“
Most people in sales agree that overcoming price objections is about conveying value. If a prospect is balking at the cost, it is likely we did not sufficiently sell the advantage of their product or service.
Here are 24 suggestions sourced from top salespeople, along with an explanation of why they work.
How to Respond to the Sales Objection “Price or It’s too Expensive”
1) “Is there something you are comparing it to?”
“Expensive” is a broad term. If you can find out what the client is comparing your product or service to, you can more targeted differentiate your value.
2) “Can you please explain why you think this is so?”
This prompts the prospect to break down their reasoning. When a salesperson have a better understanding of the specific concerns , they are more likely to address them easier.
3) “How much will it cost you if you don’t go ahead?”
Get the client to think about the bigger picture. Show the hidden costs in the status quo.
4) “What did you budget for?”
This question is really whether they are asking for a discount (budget) or payment terms (cash flow). When the salesperson categorises the objection, they can negotiate more effectively.
5) ” If we pretend that money was not an object. Would this product/service help to solve your problem?”
A fast track back to value.
6) “Is price the only thing that is keeping us from moving forward?”
This will allow you to draw out any other objections the salesperson needs to address and well as re-evaluate the client’s understanding of the benefits of your proposition.
7) “Okay. So which part do you want to leave out?”
What you are telling the client is that price is linked to value, obviously. So if a buyer does not want to pay the full price, they will not be able to get the full value of the product. This question might prompt them to reconsider.
8) “Will the price keep you away from getting what you need?”
You are not supposed to call them cheap outright, but you are making them reconsider the question in their minds. And no one likes to be cheap, especially when their business is on the line. Or actually, this will reveal if your product or service is not the ideal solution for their problem.
9) “Setting price aside, do we have the product/service you want to buy?”
If the client respond with a yes, then you can follow up on #8. If they respond with a no, then consider if it will make sense to go back to value or abandon the deal.
10) “What is the ROI (return on investment) you are looking for?”
This steers them away from thinking in terms of “expensive” or “cheap,” and make them think about the long-term value for their business and this product.
11) “So you say that our prices are high in relation to our competitors’?”
So, if our price actually is higher than the competition’s, this question opens the door for the salesperson to differentiate the product by value.
12) Did you have a figure in mind?
This will tell you what their expected spend was; if they have approached a competitor, or if their expectations are real for you to then resell value.
13) “Did you ever purchase a similar product or service before?”
Another possible thing is that the client has an imprecise idea of what this type of product or service actually is worth and costs — maybe because they have never purchased it before. With this question, you can clear up their misconception.
The objection of price can be a buying signal or hides other objections. Use this opportunity to draw out hidden objections; add value to your proposition that is relevant to your prospect; and to trial close.
The most important way of overcoming this objection is to prevent it from occurring throughout your presentation by adding value to you, your business and the product or service in how it is going to benefit your prospect.
If the return on investment (benefits and advantages) is much greater than the initial cost then it is worth paying for!