What does it mean when your “Future Customer” OBJECTS? (Part 4)
In the previous 3 articles on handling objections, we have explored a few different techniques to support you to gain a clear understanding around what the actual objection is. We also examined how to guide your prospect to use powerful engaging questions to mitigate or eliminate the objection in their own mind.
In this article, we will explore a third technique, which is really effective for mitigating, managing or eliminating the most common objection of all, namely “PRICE”.
First Prize – Avoid a price Objection altogether
Before we kick off with an explanation around how this technique works, it is crucial that you understand that when your customer Objects about price, you have committed one of the following fundamental errors:
- Error no 1: You may not have invested sufficient time to properly qualify your prospect. Are you in front of the perfect future customer, who needs exactly what you have to sell?
- Error no 2: You may not have asked sufficient discovery questions. When you have not asked sufficient open ended or open-up questions, your future customers, has not had the opportunity to explain their needs properly and as such you have not completely understood how to connect your value proposition with their real needs values and expectations.
- Error no 3: You may not have understood how to communicate your value to your future customer in terms that they understand. The reason for this may either be that you do not completely understand your own value proposition or you have not listened to your customer explain their real needs and expectations.
First prize will always be to avoid encountering a price objection altogether, by ensuring that you do not make any of the errors above. For a complete understanding around how to avoid a price objection in the first place, please read the article I wrote called “Is Lowering your Price the Way to Win Business”.
If you do follow all the steps recommended in the above article and you still encounter a “Price Objection”, you can utilize any of the previous techniques I have explored in the previous 3 articles or you can try the one I will explain below:
Contextualize the Objection – Reframe it
When exploring a price objection, it is critical that you try to understand why your future customer feels that the price you are asking is higher than the “VALUE” they believe that they will receive.
Using this Re-framing technique come with a warning!!!!!!!!
When you use the re-framing technique to handle, mitigate or manage a price objection, put yourself in your future customers shoes and never create a “Me vs. You” scenario. Use the re-framing technique to put the objection into context and allow yourself to view it through a new lens. One where you try to understand why your future customer feels the price is in excess of the value they will receive. Keep your questions focused, to ensure that you can uncover your future customers perspective.
Handling a Price Objection
It will be impossible to convince anyone that the price you are charging is fair, until you are completely convinced of the fact yourself. If you believe that the price you are expecting your customers to pay is too high, you MUST:
- Find ways to add meaningful value to your product or service, until the commensurate value, is equivalent to the price you want your future customer to pay.
- You must lower your price.
If you are ever going to be equipped to handle a Price Objection, you must completely see that the “Value” your product or service offers, is way higher than the price you expect your future customer to pay.
- You need to hold onto this belief with complete conviction, with absolute confidence and congruency.
- You must hold onto the fact that you, your product and service offer such significant value that your conviction eases any uncertainty your future customer may have about the price.
I don’t think I can make this any clearer, you can never hope to convince your future customers that the price you are asking is fair, unless you completely believe it yourself. Be careful not to accept your future customers concern around “PRICE”, is an opportunity to differentiate your product.
Unless you sell a commodity or you want to commoditize your own product or service, always defend the price you are asking. “PRICE” is a really easy way to differentiate your product or service, but it is also a very easy way to devalue them in the mind of your future customer. It is more challenging to sell on “VALUE”, but in the long run sales professionals, who charge a fair price commensurate with the “VALUE” they offer, will be equipped to not only close single transaction, but they will rather form long term mutually beneficial partnerships with their future customers.
Ask yourself these questions, when your future customer Objects to Price:
- If price is really a valid objection, what else has to be true?
- Is the price I am asking my customer to pay “REALLY” too high?
- What is the reason your future customer feels the price is too high?
- What is your future customer using as a comparison to your product and or service?
Prospect: I feel that the price is too high.
Reframe the objection
Sales Professional: What are you using as a comparison to make you believe that my price is too high?
Prospect: I have a budget that I am trying to match and based on the quotes, which I have received from other suppliers, I believe that your asking price is too high.
Sales Professional: Do all the other potential suppliers offer the same benefits our product offers? Are we comparing apples with apples here?
Prospect: No as you stated previously, you offer a blended training approach, which ensures complete trainee engagement and as a result you are so confident that your sales training will improve the performance and results of our sales team, that offer a 100 % money back guarantee.
Sales Professional: I understand that you have a budget to stick to and that price is a very important part of your decision-making process. Is it not however more important to ensure that you actually get real value from your training spend, than it is to buy training that may not deliver the same results?
Prospect: Yes of course we want to get value for our training spend, but we only have X available to spend at this point. We really want to engage your sales training services, but we do not have the budget required.
At this point you can see that the actual objection is not price at all. It is actually a limited budget. In my experience, when you encounter a price objection and you are convinced that the value you offer is indeed greater than the price you are asking, the reason for the price objection has nothing to do with price. There is another underlying reason for the price objection.
At this point, there are a few options open to the sales professional.
- Show them that the value is worth the additional spend
- Offer a reduced offering that will match their budget
- Show your future customer that Cost = Return. When you are willing to pay more, you will most certainly get way more value in the long run. There is often more budget available, if you can show a real ROI.
- Match their price expectations, but get commensurate value from them in the form of three referrals, testimonials etc.
- Objections are merely questions
- Objections are merely your future customer saying I don’t yet see how your value will match my needs
- Objections are merely a form of uncertainty, fear or ignorance.
- Objections are your future customers way of stating that they don’t understand something
- Don’t seek to crush objections, ask questions, gain understanding and provide insights
- Clarify how your value will serve your future customers
- Share information and offer a different perspective
- Handle all objections from a win-win perspective
- Learn to dance with all objections, they show that your future customer is still interested.