Anyone who’s worked in sales knows that price objections are common. Just when you finally sell your prospect on a particular product or service, he or she hears the price and balks. Sound familiar?
Consider this: How you respond to these price objections can make or break your business sales. Make the wrong choice, and you may destroy your margins or lower the value of your product in the mind of your customer. Respond appropriately, and you diffuse the concern and encourage the sale.
What makes the difference? To help answer this question and better empower you on sales calls, here’s a look at five ways not to respond
- Don’t get argumentative. If your first reaction to a customer’s pricing complaint is to argue, hang on a minute. Pointing out how the prospect is wrong might win the battle, but you’ll lose the war. Remember that you’re in this battle to win a customer, not an argument. Listen to the prospect’s concern(s), consider them and respond with a follow-up question. Repeat their concern(s), asking for clarity if you’re missing something. Once your prospect is confident that you understand the issue, try to address the concern. This makes it possible for your message to be heard, too.
- Don’t immediately cave and lower your price. From a sales standpoint, it’s always tempting to give the customer what he or she wants, even if that means lowering your sales margins to make a deal. Before you acquiesce to a prospect’s pricing complaint, consider the message you would be sending. When you immediately drop the price, you lose credibility. You communicate that your product was, indeed, priced too high. Worse, you may encourage the prospect to demand an even lower price.
- Don’t ignore the price objection. Ignoring your prospect’s pricing concern invalidates his or her perspective. This will frustrate the prospect and create a new obstacle to making a deal — now you are considered evasive and untrustworthy. Instead, always make your prospect feel heard. Acknowledge the pricing concern. Show genuine interest in the issue, build trust and find a way to overcome the objection to make the sale.
- Don’t blame it on company policy or make your boss the bad guy. It’s never a good idea to pit yourself against your company. This usually causes the prospect to doubt anything and everything you say. Rather than making your boss or company policy the enemy, communicate that your company is on the customer’s side, too. Talk through the reasons for your pricing and the value that’s being offered.
- Don’t walk away. Just because a prospect has a problem with your pricing doesn’t mean you’ve lost the chance at a sale. In reality, a price objection can be a good thing. It means the prospect is interested IF the price is right. When a prospect raises a pricing concern, focus on addressing it, find a solution and convince the customer to work with you.
In the world of sales, every challenge is an opportunity, including pricing objections. When you face concerns about your company’s rates, keep your cool and work with your prospect. By avoiding bad responses to pricing objections, you may be able to turn a potentially tumultuous situation into another closed deal.
Author bio: Shanna Mallon is a contributing writer for Straight North, one of Chicago’s top Internet marketing agencies. Shanna has been writing professionally online since 2007.