- Why and How to Overcome Price Objections
- “We Don’t Have the Budget.”
- “We Can Get That Cheaper Elsewhere.”
- Ask the Right Questions About Price Objections
As salespeople, we’re familiar with a wide range of sales objections. It’s generally understood that not every prospect will be ready to buy right away, or even be interested in the particular solution on offer. While one sales objection may halt the sales process altogether, another may simply slow the journey toward closing a deal. Sales objection handling is both an art and a science.
Of all the sales objections offered, price is the most common. Whether it’s because the customer doesn’t have the budget or the product is simply too expensive, complaining about the price of products and services is common. Interestingly, it doesn’t always mean a prospect has no intention of buying. Sometimes, objecting to price is an invitation to discuss the cost structure or the value that comes with a product or service.
Everyone wants to get the best possible deal, even with B2B sales where the customer isn’t usually spending their own money on your product or service. While budget complaints and price objections may be valid, they can also disguise other reasons why a deal can’t be closed. One of the biggest sales mistakes is failing to recognize that. In learning how to handle price objections we can also get better at exposing those reasons in ways that build trust, rapport and add value to the offer.
Why and How to Overcome Price Objections
Sales are largely about building relationships with prospects. In doing so, we come to understand a prospect’s pain points and how our product or service might solve them. When objections about price (or any other aspect of an offering) are made, successful salespeople respond with questions and focus on value. Value always trumps cost.
A collaborative approach builds trust and sales success. This means really listening to people, responding to their objections and using words like “we” “us” and “our” to build a sense of allegiance long before a sale is made. Asking questions about your buyer’s goals and any doubts they might have about your solution – including cost – leads to better sales success and helps to overcome price objections.
“We Don’t Have the Budget.”
There are several ways to respond to price objections. Usually, by the time concerns over price are raised, we know how to handle the objection. Each customer is different and should be treated as such. However, there are several tactics that can be used and adapted to overcoming price objections.
Acknowledge the Price Objection
Recognize and validate the prospect’s objection. This can be done with a statement that validates their concerns while subtly comparing the price of the offering with the cost of living with their problem.
- “I understand your concern, our [solution] means you’ll never need to worry about [pain point] again.”
- “A few of my other customers are also having budget issues. Our [solution] will save you from needing to [pain point] and generates [value] so you’ll see a solid return on your investment.”
Beat Them to the Punch
If you suspect price may be an issue for your prospect, it can sometimes help to raise the issue early on in a call. As pricing is the most common objection, there is value in addressing it early on in discussions and turning the conversation around from price to value. Always return to the benefits your offering delivers.
- “Our [solution] ensures [problem] is solved right the first time, every time.”
- “Think about the effort that goes into [pain point]. With [solution] you’ll save time and free your team to focus on more important duties.”
“We Can Get That Cheaper Elsewhere.”
When products are priced comparably to competitors, or below, having an analysis of each option to hand can help. Always paraphrase the customer’s assertion in summary and circle back to the value you provide. If you are genuinely at the higher end of the pricing scale for your market, you’ll need to point out the benefits that come with your solution that competitors don’t deliver on.
- “I hear what you are saying and we’ve even had other clients share similar thoughts. However, what we’ve found is that when compared to other options our [solution] delivers [additional benefits] that save our customers time and money in the long term.
- “Although we are a little more expensive than other options, our [solution] comes with a lot more [benefit] and ongoing support. Our pricing has you covered for [benefit 1], [benefit 2] and even [benefit 3].”
Ask the Right Questions About Price
When a prospect objects to pricing, you should be finding out what exactly about the price is causing problems. Asking questions about their objection validates their concerns and provides you with opportunities to solve the issue, either by breaking the price into smaller billing options, adjusting the offer to suit their needs better, or helping them to build a case to get additional funding for your product or service.
- “I have other clients in a similar position with their budgets too. How do you raise funding for other pressing issues that need a resolution?”
- “I understand your position, our cost structure can be spread over a longer period to make payment easier.”
- “I hear what you are saying, what parts of your [pain point] need to be addressed right away and what could possibly be put on hold for a short while?”
All of these responses to pricing objections help to refine your offering further to suit the prospect’s needs.
How To Overcome Sales Objections
The best way to overcome price objections is by emphasizing the value of your offering with every interaction you have with prospects. This is done by listening to the prospect’s needs and matching those needs and pain points to the solution you have available. This should be done early on, and in a collaborative way that shows a real understanding of the problem and a genuine willingness to help others with their issue.
Great salespeople build trust and rapport with every sales call throughout their relationship with prospects. Each sales interaction is an opportunity to deliver value, learn more about the prospect and show them how your product will answer their needs. Overcoming price objections may be the most commonly offered objection, but for successful salespeople who believe in their product, they are also one of the easiest to overcome.
