Know the Various Reasons for Price Objections
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When you get price objections, consider these suggestions. Clarify what the prospect means when she says your price is too high.
For instance, she may mean that she can't afford the price, although the product is worth what you're asking. The strategy here would be to focus on payment options, rather than the price. Or, try creative financing. Or even switch to a more affordable product, if it's available.
The prospect may be trying to tell you that her current understanding of the product's features and benefits isn't worth what you're asking. Here, the strategy may be to review special features and upgrades that make the product worth the price. Make sure that you check the benefits by asking for feedback, but also make sure you're building the value of the product to offset the price that you're asking for it.
When a prospect says a price is too high, she may mean that from her point of view, the product doesn't offer as much as somebody else's product. Here the strategy may be to make sure your comparative factors being used by the prospect are of equal weight -- in other words, make sure she's comparing apples with apples. Focus on important uniqueness and advantages yourproduct or service offers, as opposed to the competition.
When the prospect says your price is too much, she may mean that she feels her money would be better spent on something else, rather than your product. Or she may be trying to tell you that the product is a good value, but not to her. The strategy here is to create new selection criteria and come up with a new option other than the one you're offering.
When dealing with a price objection, it's very important to differentiate between price and total cost. Price is what you initially pay -- it's a one-time charge. Total cost is what you pay over the term of ownership, including recurring expenses. Ask the prospect for help in solving the problem, for example saying, "I sense that you have a concern about money. In an ideal world, how could we structure the financial package to best meet your needs?"
© 2007 Tony Alessandra
DMH-001-010220
For instance, she may mean that she can't afford the price, although the product is worth what you're asking. The strategy here would be to focus on payment options, rather than the price. Or, try creative financing. Or even switch to a more affordable product, if it's available.
The prospect may be trying to tell you that her current understanding of the product's features and benefits isn't worth what you're asking. Here, the strategy may be to review special features and upgrades that make the product worth the price. Make sure that you check the benefits by asking for feedback, but also make sure you're building the value of the product to offset the price that you're asking for it.
When a prospect says a price is too high, she may mean that from her point of view, the product doesn't offer as much as somebody else's product. Here the strategy may be to make sure your comparative factors being used by the prospect are of equal weight -- in other words, make sure she's comparing apples with apples. Focus on important uniqueness and advantages yourproduct or service offers, as opposed to the competition.
When the prospect says your price is too much, she may mean that she feels her money would be better spent on something else, rather than your product. Or she may be trying to tell you that the product is a good value, but not to her. The strategy here is to create new selection criteria and come up with a new option other than the one you're offering.
When dealing with a price objection, it's very important to differentiate between price and total cost. Price is what you initially pay -- it's a one-time charge. Total cost is what you pay over the term of ownership, including recurring expenses. Ask the prospect for help in solving the problem, for example saying, "I sense that you have a concern about money. In an ideal world, how could we structure the financial package to best meet your needs?"
© 2007 Tony Alessandra
DMH-001-010220
Visit Dr. Tony Alessandra's Website: http://www.alessandra.com
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