The Price Objection Distinguish between price and cost. Price is the amount stated on the price tag. Cost is price minus savings over the lifespan of the product. The price of a college education may be over $100,000, but because of the higher income college graduates can expect to earn, it costs next to nothing.
Avoid giving a price until you are absolutely sure that customers understand all the benefits they are getting. Even then, summarize your proposal before giving the price.
Refer to the price in a positive light, i.e. “an investment”
Probe the price objection; “Too high compared to what, Mr. Customer?”
“Does that mean that I have failed to demonstrate the value of my proposal or is it that you do not have the budget?”
"Do you have a target price in mind - a cost per user, or a fixed price, a licensing agreement?"
"Are you comparing our CD/training program/whatever to another program you have purchased?" "......to another, competing proposal?" If "yes" then ask them to lay it out on the table, to see if it is “apples to apples.”
Sometimes price is a smokescreen for some other issue.
"Before we talk more about price, are there any other concerns you have about our proposal?"
"If I could show you how easy it is to cost-justify our program, would you go ahead today?"
"Besides price, is there anything else standing in the way of us doing business?"
At other times the price objection is not an objection at all, but a buying signal. They have made up their mind to buy, and now want to negotiate. In that case, close the sale; "Are you ready to move on now and talk money? OK. But first, let me make sure that I have accurately noted your order.........Fine....Yes, the price is firm. Now, is there a purchase order number I should put on the invoice?
If your customer continues to object to the price, you might want to go back a step or two in the sales process. Go back to qualifying. Do the people you are talking to have the money, authority and desire? If they have the money, and if they are authorized to spend it, sell them on your solution to their pain. If they haven't felt the pain, they don't need the solution. If these steps are solid, advancing to the close is a natural next step.
To learn more about this author, visit John Brennan's Website.
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John Brennan
(Visit John's Website)
John Brennan Ed.D.
Dr. Brennan is President of Interpersonal
Development, LLC, a training and
development firm. Interpersonal
Development has provided sales training
and coaching to more than 3,000 sales reps
from over 100 companies.
A native of Australia, Dr. Brennan
received his doctorate from the University
of Rochester. His dissertation researched
the effectiveness of Behavioral Modeling
Technology in training people in
interpersonal skills. While he has spent
most of his career designing or delivering
training, he was also a Vice-President of
Sales of a training and development
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Dr. Brennan has designed and delivered
sales training in North America, Asia,
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When Microsoft wanted Best Practices
articles on sales for their web site, they
called Dr. Brennan. The results are at office.microsoft.com/e
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His firm’s clients have included Volvo,
The Prudential, Merrill Lynch, Eastman
Kodak, Gannett, Equifax Europe, the
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