The price of your product has been determined by many things including product demand, competition, costs, and potential profits. You did not come to your price lightly. However, there are many people out there who will not see the reasons behind your price, and they will have a price objection that you will need to deal with before you can close the sale. How you handle this objection could make the difference between a sale and a loss.
Do Not Change Your Price
In the face of a price objection, many people will offer a special incentive or a price cut to satisfy the prospect and make the sale. This may get you the sale, but it will also cause the prospect to devalue your product.
When you cut your price or add special bonuses, you are essentially saying, \'You are right, my product is not worth the price I set for it.\' This will only validate their concerns about your product.
Allow the Prospect to Explain Their Reasons for Their Price Objection
Do not get defensive when you hear the objection or you will lose the prospect. Attacking their logic may help you win the argument, but it will never help you make the sale because they will also become defensive and associate those negative feelings towards you and your product.
Instead, allow them to express all of their concerns. By doing this, you are not only allowing them to get all of their objections on the table, but you are also giving yourself some time to develop an appropriate response to their objections.
First, ask them why they feel the price is not appropriate. Their answer will help you gain insight into what you need to say to convince them that the price is appropriate. For instance, if they say that they have seen a similar product cheaper elsewhere, then they are obviously concerned that the other product is just as good as your product, but costs less money. This is your opportunity to explain unique features of your product that makes it stand above other products.
Second, ask them if they have any other concerns about the product. Again, their concerns will give you insight into how you can convince them that your product is worth buying.
Counteract Their Objection
Now is the time to neutralize their objection by answering their concerns. For instance, if they are concerned that the product costs more than similar products, you can take this time to explain detailed features about your product that make it stand out from the crowd.
Do not tell the prospect that they were wrong and then give your explanation. Take full blame for not making yourself clear about the product so that they do not feel attacked or belittled.
Focus on selling the value of the product. When a prospect begins to see the value of the product, price does not play as big of a role. In fact, the more value they see in the product, the more willing they will be to quickly close the sale.
Ask For the Order
Once you have put their price objection to rest, you can ask for the order. By now they will have many reasons that they should buy the product, and the chances are high that they will place the order.
Do not pressure them to make the sale, though. Asking once is good enough. You have to allow them to process all of the information you gave them, and giving them a few moments to truly feel the benefits they will receive from the product will help guide them towards the sale. If you pressure them, then they may start to feel as though they are being \'sold to\' and not gaining something of value, which could cost you the sale.
In the end, you may not always win a price objection. Some people will simply be trying to bargain with you and will not be able to look past the price no matter what value your product holds. However, most people who start out with a price objection are just worried that they are being overcharged or not getting something of value, and your explanation will help ease their mind.
For information on how to create and manage amazing proposals using our cloud-based proposal management software, please call us at 888-972-7375 or click here to email us.