Being successful in sales is all about understanding and influencing how the customer perceives value. They may think the price is too high, but what they're really saying is often, "I don't understand the value."
Your price is too high.
Really? Often this is the prospect’s way of telling you that you haven’t proven the real value of your offer. The price-is-too-high objection might be re-phrased as tell me more. There are times when prospects default to discussing price because they don’t see how your solution solves their critical needs: the business need and the personal need. You have not found the right currency – yet.
Here are three steps to take to move past this all too familiar objection.
1) Start by asking perceptions and needs questions
To get past the price-is-too-high roadblock, it’s important to understand the prospect’s perceptions and needs. Start by asking a few questions.
"Of course price is always important. To make sure I’m proposing the best solution for you, I need to ask a few questions. What are you using instead of the [product/service] I’m proposing?"
In this step you are gathering information and connecting with the prospect. It’s not really about your product or service at this point. It’s all about the customer’s current challenge and needs.
Next, ask a question to identify how important your solution might be to the prospect’s world, "tell me why this [activity/process] is important to you?" The prospect’s response to this question helps you understand what she/he is most focused on.
2) Next, use a clarifying question
Knowing what your prospect perceives as most important helps you frame your clarifying question:
"So it sounds to me as though what’s most important to you is (fill in the blank) saving time."
You now have the prospect talking about what is more important than price. This is the business reason for buying your solution. But don’t stop here. People buy for emotional reasons…they want to satisfy a personal need. It’s important to connect directly with that personal need.
So ask this important next question: "If my [product/service] can help you [use topic identified], what will this mean to you personally?" And now you have the prospect talking about personal motivators for solving their problem.
3) Change your currency
Knowing the prospect’s personal motivator enables you to present your solution in a new way. Highlight how your solution will be good for the business AND good for the prospect.
So when our product saves you 15 minutes per analysis, this will mean you can increase your productivity and not take work home at night?
You have effectively changed the currency of the discussion from price to saving time and improving personal productivity. You’ve satisfied the two critical needs all buyers have and moved the discussion away from price.
It’s all about how the customer perceives value
Changing the discussion to the currency that’s most valuable to your prospect also demonstrates that you are focused on solving their problems. You move from selling on price to selling on value. Price is what buyers pay. Value is what they get.