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Overcoming Sales Objections – The Price Objection of “It’s too expensive”
©2007 David A. Peterson
The pricing objection is probably one of my favorites. The reason why it I like it so much is it is one of the only objections that may be true. Your prospect may actually not have the money. I doubt it – but it is possible.
The reason why I doubt that the prospect does not have the money is that this objection is really a value play. Above average sales representatives realize that at the end-of-the-day if they can get a prospect to focus on the price of the product then their must be some reason why they are interested in that product.
The trick to the pricing objection is really creating more value for your product then the product actually costs. You would do this value building while you are in the pitching stage of the sales cycle.
The pricing objection can be broken down into several different categories. Two of these categories are:
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It’s too expensive.
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We don’t have the money right now.
The above two categories are completely different.
Let’s take a look at the “It’s too expensive” pricing objection.
Most sales representative get choked up on this objection. They start believing that their product is too expensive. Take it from the sales reps point of view if you were to hear “your product is too expensive” 100 times a day you would start to believe it too.
Some sales representatives actually start agreeing with their customer on the price of the product. They will make feeble attempts to prove that their particular product is better than the competitions because of this or that feature. In the end they will come to their sales manager and complain that they can’t sell this product due to the price. I have heard this same speech from my sales representatives a 1,000 times before.
Above average sales representatives take a different approach to this objection. They understand that in reality those exact three little words, “it’s too expensive,” are a buying signal. It’s too expensive to the above average sales representative really means:
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You are too expensive as compared to your competitors.
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We like your product but we can’t afford it.
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We have thought about your product for awhile but just can’t bring ourselves to pull the trigger.
If you can get the customer into a conversation about price then their must be some interest. Notice that all three of the real meanings are strong buying signals. None of them are a “no.” They might not be able to buy the product right now but you still have the prospect engaged into the sales process.
Only #1 above needs for you to take a step back and re-pitch the prospect on the values they will get from the benefits your product provides. Number #2 and #3 are really just buying signals for the next pricing objection you will face. That objection is the “We don’t have the money right now” pricing objection.
We don’t have the money right now.
This objection may actually be true. The prospect may be broke, in bankruptcy, and going under all at the same time. Again – I doubt they can’t afford it. As an example the Airline Industry in the last few years has been grappling with bankruptcy. All, and I mean ALL of these bankrupt airlines EACH spent millions of dollars while in bankruptcy.
So the next time you hear “We don’t have the money right now” you need to solve for that problem. The prospect just told you that if there wasn’t a monetary issue then they would become a customer.
If you don’t believe me just ask your next prospect that presents this pricing objection to you. Try to work this objection killer into your conversation.
Prospect: “I’m sorry David we just don’t have the money to purchase this product right now.”
Sales Rep: “Well the good news to me Jim is that it sounds like you are interested in our product; is that safe to say?”
Prospect: “Yes that is correct, we are not so excited that we have to get this today but I guess eventually we will need to make this purchase from someone.”
Sales Rep: “We both agree that the benefits this product offers will be a real money saver. If I can offer you those benefits and solve the monetary issue would that bring you closer to a decision?”
Prospect: “Let me hear your solution.”
Where the average sales representative goes wrong with this particular pricing objection is that they believe the prospect really doesn’t have the money right now. How can the prospect not have the money, he went out the dinner last night, he is driving a new pickup truck, and his office is freshly painted?
The average sales representative allows the prospect to sell them on this objection. Here is how the reverse sale happens.
Prospect: “I’m sorry David we just don’t have the money to purchase this product right now.”
Sales Rep: “Jim I completely understand, when do you think your business will have the opportunity to pick up this product?”
Prospect: “We will definitely do it next quarter.”
Sorry average sales representative – you just go sold!
Worst than that since you already teed up this order some other above average sales representative is going to run across this prospect and close them in about 5 minutes.
If you are one of those above average sales representatives you know what I mean. Every once in a while you will run into a prospect that just buys the product in about 5 minutes. Why – because some average sales person got themselves sold on the “We don’t have the money right now” pricing objection.
Most objections are hard and they come out in the probing section of the sales cycle. The pricing objection typically comes out during the close. The average sales rep will bite on this and take the objection at face value. In other words – they will believe that now is not the time to purchase this product due to a monetary issue. The above average rep will solve for the monetary issue and continue with the closing.
Treat pricing objections as buying signals. There are very few other objections that give off this strong of a signal. If you can get the prospect to talk about price then you have a solid lead. At the very least if you can’t solve for this pricing objection at this moment at least ask the prospect:
Sales Rep: “Jim, I know now is not the time but please give me an opportunity to be the last bid on this project.”
That is a weak close but it may save you when the above average sales representative gets the prospect past the pricing objection. Maybe, just maybe the prospect will give you a call and find out if you can beat the price – oh yea that’s the same price he couldn’t afford yesterday. Who’s selling who?
Sincerely,
David
A. Peterson
Author
of:
Been There - Done That
David
Peterson's Search Engine Optimization Guide
Please
send all correspondence to: questions@usreference.com
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