Selling has its own set of challenges and getting objections from your prospect rates right up there at the top. One particular and all too frequent objection you may here is the one about pricing. Weíve all heard it, ďIím afraid your price is a little high (or out of our range or not within our budget or some other show stopping statement).Ē Keep in mind that people donít buy Price, they buy Value, even though they wonít always admit it. This objection means that they donít fully appreciate the ďValueĒ of what you are selling. However, if this objection keeps coming up in your discussions, then itís a good indication that they are interested. So donít view this as a negative objection since it could simply be a buying sign. Unfortunately, many sales people start to discount their product in order to overcome this objection, which is the wrong way to go. The way to handle this objection is to present the value of your offering so they can fully appreciate what their investment will be for that value.
Letís look at an example of how this could work. Letís say that your prospect says, ď$50,000 is a lot of money!Ē You can respond with something like, ďI can appreciate that. Yes, it is a lot of money, but not nearly as much as youíd lose with a system that canít help you sell your product because it doesnít do the job or is always in for repair.Ē
First, I made sure that I showed I had empathy for the client by saying that I can appreciate his opinion and that I agree it is a lot of money. Letís face reality; it IS a lot of money. So donít deny the obvious. Then I explained what the value is by saying that without this investment, they will continue to lose money by having a product that wonít handle their job or will not withstand their usage and will always be in for repair. I chose these particular ďpainĒ points because I learned that these were important to the prospect when I was in the qualification phase where I asked questions and listened to his answers.
Notice also that I did not say that my competitorís products cannot handle his job or that they are of inferior quality and will always be in for repair. Never knock your competitors. Instead, I planted the seeds that will make him know that my product can handle his workload and is reliable, which should make him wonder if my competitors can make the same claims.
Letís now move on to selling value, since I made the point earlier about not discounting. Letís say that you are selling a product for $5,000. And your competitorís product costs the same amount. Also, letís say that your product and company offers 5 key benefits, called A, B, C, D and E. But your competitorís offering only offers benefits A, B and D. Obviously, you offer more value than your competitor. This is why it is so important to do research about your competitors so you know how you beat them and where you offer more value than them. The value you offer could be product features, or something your company offers like Sunday delivery, or even your own personal service such as follow-through and account management. Whatever it is, make sure you know your competitorís offerings and what unique offerings you have that they donít.
In this example you want to make sure that you highlight, to your prospect, the fact that you offer benefits C and E, which no one else does, all for the same ďInvestmentĒ. By knowing your competitors and selling more value than what they have to offer, you will increase your success in handling objections and closing more sales. Wouldnít this be a better value proposition to say to your prospect, ďMr. X, for the same investment of $5,000. youíll get all 5 benefits, which is two more than anyone else is offering.Ē
Letís take this same situation and change the customerís requirements. Say you are still offering your product with 5 benefits, A thru E, for $5,000. And your competitor is still offering their 3 benefits for $5,000. However, your prospect is objecting to the price because their budget is only $3,500. Telling them you offer 2 more benefits than your competitor for $5,000 isnít going to help because they canít afford your added value anyway.
One option is for you to drop your price by discounting to $3,500. But thatís not a wise move. Instead, using your value proposition, you take away value instead of discounting. Tell your prospect that you can eliminate a few benefits; letís say C and E, since those are benefits your competitors do not offer. As a result, your prospectís investment will now be $3,500. for which they will receive benefits A, B and D. What you did is made them pay for value instead of discounting. The lower the value, the lower the price. And the lower the price, the lower the value. Now you are selling the exact same benefits as your competitor but for $1,500 less. And you never discounted.
Get in the habit of selling value and you will find that your discounting days are over. By selling value, you ensure the customer gets what he needs and that you donít lose money Ė a perfect win-win scenario.
Good luck and good selling!