What do you do when your customer complains about price, saying it’s too expensive, or it’s out of my budget?
So your prospect gives you a price objection
Whatever you do, do not start haggling like you’re in Dubai’s Karama Souk. And don’t start dropping your pants (sales talk for reducing your price), as this completely devalues your product or service.
Here’s the problem: if they complain about the price, they don’t get the value. A sale is a mutual exchange; your customers don’t buy a widget or a service, your customers pay for value, a desired outcome. Price objections typically happens when a seller hasn’t sufficiently probed and explored a prospect’s needs, which is essentially what pain do they want to avoid, and what pleasure are they aiming for.
How to handle price objections in 3-steps
1. Anything else
First you want to explore if there are any concerns besides price. You can do this by saying, “I can see why price is important to you. Let’s put price aside for a second. Is there anything else of concern to you?” Asking question uncovers any other underlying objections which you can then address.
2. Go back to their objectives, their goals
As mentioned earlier, people buy a product or service to achieve a desired outcome. At this stage ask questions to get your prospective client talking about their goals. Instead of you telling them what to do – which is a huge no no, because people don’t like being told what to do – get them talking about their goals and motivations for acting.
You could ask, “earlier you mentioned wanting to achieve XXXX, is that right? [ wait for a response ] Why is that important to you?” [After their response, ask why one more time]
3. Go back to value
After hearing their goals and why it’s important, next you want them thinking about what life would be like using your widget or service. Instead of pounding over their head why you’re the best thing since sliced bread, you get them talking about it. For example:
“How do you think our widget can help you achieve [insert their desired outcome]?”
[Pause to let them talk]
Why is that important to you?”
“When you achieve your objectives, what will this allow you to do?”
[Pause, let them talk]
“So achieving [insert desired outcome] is worth the $[insert your fee] investment?”
[Pause, let them answer]
“So how would you like to move forward?[Pause, let them answer]”
Be detached from the outcome
If you’re trying to close the sale, you will come across a little aggressive, just like those pushy retail shop sales people who ask “can I help you?”. They’re asking a question but you can feel their underlying intention to get their commission.
When you come from a place of presence and detachment they will know that you’re just there to help them. They will either tell you honestly what’s up – which means you can do something real about it, or they will buy from you. Either way, you’re strengthening your connection with that prospect who will either become a client and/or refer clients to you.
How to handle price objections mindfully
This 3-step process begins by uncovering further objections if they have any, remind them of their goals, and then get them talking about the value of your product themselves – rather than ramming it down their throat yourself. Remember to be detached from any outcome to avoid coming across desperate or pushy.
By letting it go, it all gets done. The world is won by those who let it go – Lao Tzu
Anis Qizilbash, London-based founder of Mindful Sales Training, author of: Grow Your Sales, Do What You Love: mindful selling for entrepreneurs and freelancers. Sign-up for her free 10-day mindful sales e-course.