"Your price is too high." 3 Ways Salespeople Can Handle This Common Objection
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- Опубликовано: 25 апр 2017
- Be sure to register for my free training on, "The 5-Step Formula to Closing More Deals without the Price Pushback, 'Think-It-Overs' or Ghosting": salesinsightslab.com/training/
1. Understand why the prospect says it in the first place.
Prospects say “your price is too high” when they aren’t seeing enough value. Your prospects are constantly doing the calculus in their head. If the value they think you bring to the table exceeds what they're paying you, then the price seems fair. But if not, then they're going to push back on price. That means if they think what you're asking for exceeds what they think you're providing, then the price is going to seem too high. This means that you have to be crystal clear on what your value is-not to yourself, but to your prospects.
2. Avoid this objection in the first place by creating massive value.
Creating massive value doesn't mean presenting the dollar values of your offering. No. That's an old-school approach. Instead, what I challenge you to do is to ask really good questions that help your prospects understand the cost of their challenges, and thus the value of solving those challenges. By the way, the value that you help them calculate should exceed 10 times your price. If it does, then you're in a really good sweet spot.
Let me give you an example. Imagine you’re selling commercial air conditioning units. You'd might say there's not that much obvious dollar value there-but just think about it. What are some of the common challenges that would bring a prospect to need a commercial air conditioning unit? There are a couple of obvious challenges, like inefficiency of the old units, so that's an obvious cost. Number two would be lost productivity of the employees. Number three, building off that, would be the downtime of the workforce because the air conditioning wasn't working. Now, when you really factor in costs like that, this challenge costs millions of dollars, thus justifying an obviously more expensive and higher quality air conditioning unit. Does that make sense?
3. Dig into exactly why the prospect aired this objection.
If, after all we've just talked about, your prospect still says that your price is too high, it's time to dig in. Rather than pushing back and getting into an arm-wrestling match with your prospect, ask, “Why do you feel that way?” Remember, you never want to be arguing with your prospect. Instead, think of yourself as a jiu-jitsu master, taking that energy and sending it back to them. Let them explain their thinking. Really dig into it. Understand their thought process. Then loop back to the cost of their challenges and ask them if, based on what they're looking to accomplish, this price seems reasonable. Be sure to hang in there. The key here is that you don't ever want to just get thrown off by this objection. You're not going to win all of them, but as a result of these strategies, you're going to win a lot more.
Be sure to register for my free training on, "The Formula to Closing More Deals without Price Pushback, 'Think-It-Overs' or Ghosting" salesinsightslab.com/training/
Good response is: "That's interesting-can you tell me why you feel/think the price is too high?". If the person has spoken to someone else with similar product/service, you can now compare what your product/service offers that will benefit them. If they haven't spoken with anyone else, still use the opportunity to explain the benefit(s) of your quality product/service. Also, find out what they "thought" the price might be and break the difference down into it's smallest parts.
Mark Wayshak is a visionary. His concise description of the sales interaction is invaluable. I feel like I just spent a semester in Business School (MBA) from just listening to Mark. Price to High; not a problem, its all about solving prospects challenges.
I don't understand why he is not at Stanford Graduate Business program as a professor?!
Because a stamford professor is a 9-5
Great job. You are so sincere and knowledgeable. Thanks
Very nice video quick and to the point on building value.
Hey Marc, great content! Just wanted to check if you have any podcasts out there as I can’t seem to be able to find you on Spotify
Love ur videos. . As a new sales rep for Ford I find ur tips very useful 👏👍
Very valuable and informative video
This guy is brilliant. Really helped me. Great advice.
he's the best !
Nice content. It’s not quite what I would do but thanks for sharing.
Thank you!
Appreciate the video. Though provoking!
Many times a prospect will tell you an Isuzu is cheaper than a Mercedes... Always loved that one where they think all products are pretty much the same.
I didn't know Brendan Schuab was so serious about being a salesperson
Hello Mark,
Big fan of your work.
I run a small scale B2B company where we manufacture production industry machinery.
Majorly all clients are concerned about technical details and price.
how do you think I can create/emphasis on (what) values here.
Big thanks for all your videos, really helping me improve.
Dinesh Baldha know absolutely everything about your product, more info
This guy is goooooddď!!
As a Karate Expert, Rent! Is too damn high.
why do u think the price is high?
I love the this video, but it finished very soon 😊
I have a situation would love to have your opinion.
Sometimes clients get the value they are looking for, but they just want to squeeze on the cost as much as possible even it spoils the end product. in such a case you try to educate the client that this decision would impact the brand image at a great extent... but still the client is persistent, how would you tackle this situation and how would you keep yourself motivated throughout the whole process?
Why spend time talking about it? You either can sell it for the price or not.
I don't bother talking long. I offer a price that I think it is worth. They take it or leave it. I don't dicker long before I continue to the next one of a million dealerships in ten blocks.
See! If the costumer is still persistence with the high price tag, you can then alter your words with some attractive payment plans. Like 30 days, 60 days or 90 days etc.
perfect
how do you create value when it comes to selling advertising?
herbankidd this is a good question, I'm following it.
are you talking about digital, conventional or electronic advertising?
print
In my opinion Value in advertising is the revenue which your client will gain by purchasing Print ADs from You......
Adv. Mandaar this is true... but I can't guarantee it will directly convert sales...
Reaching an audience you would not be able to reach without advertising. This leads to brand awareness, this leads to increase in revenue. This leads to better performance, better performance means the business is growing and that ultimately means that everyone makes more money. The increasing revenue can also lead increasing budget in some cases.
How can I increase value of paint products
I can see Benjamin Moore paint on a wall at a glance. I assume that if you spent money on the paint that all of the building products used were higher quality. It makes over all value seem higher. You should show examples of your paint products on a surface so that the buyer can see the improvement in the surface that they make. Then point out that the object painted appears to be worth more because of the improvement in the surface. How much a chair or a house iis worth s very effected by the quality of the paint on them. Make the paint buyer see the difference.
How long it lasts, how good the color stays, your cost versus your competitors,
Ur assuming ur the only one who makes air conditioners tho, u gotta justify y urs is worth more money than an incredibly similar air conditioner!
He in short did, a demand for a efficient unit, a lot of times in business it’s a timing advantage, did you offer a cold beverage to man/woman who really needs a hot coffee, did you offer cheap gas to a man/woman who just converted to green energy.
I have clients buying at that price...
stuff is good but volume/voice is very slow in all of your videos as compared to other channels
hardly audible
So basically they know its a shit product i mean? 😂
super