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Business Development Rants and Resources

Handling the Price Objection

Saying the price is too high, or we cant afford, it is the easiest way to get rid of a novice sales person. If there is value in your product or service, it is priced to reflect the value, and the sales person knows how to communicate the value, theres no reason you have to drop your price – ever.

I bought an email marketing list a year ago. I wanted the list and the price was right. I was just really busy at the time and didn’t have time to make the purchase. A week went by since I received the quote. The salesperson called and dropped the price by 40%. 40%!! I was willing to pay the first price, I thought it was fair. When the price is discounted that much it feels to the consumer like there was a lot of fluff in the pricing and that theyre getting ripped off. Not good for building trust and customer retention.

I recently tried to contact that list company to buy another list. The company is gone. Perhaps they sold services at below cost. This is never a good idea no matter what marketing gurus or analysts will tell you. If you use your common sense, its clear. Never sell at below cost, ever.The salesperson has to understand the value before they can sell it. Do they understand the competitors? Do they understand their strengths and weaknesses? Don’t kid yourself, your competitors have weaknesses. Do they understand your own company’s strengths and weaknesses? A key point – do they really –LISTEN– to the prospect?

If my list salesperson listened to me he wouldve presented ways to make the sale easier for me, managing my time constraints. Instead, as so many sales people do, he gave the product away.I love to help organizations teach their people how to overcome the Price Ojbection. If you listen to the prospect, its the easiest one to overcome.

May 6, 2012 - Posted by | Business Building | ,

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