Being a sales professional, it’s unlikely that you’ve gone through your career having never been told that your price is too high. This and other objectives are often raised by clients as they seek to get the most product for their money. It’s important to learn how to address this objective in a positive manner that builds client trust and demonstrates a willingness to listen and work through their concerns. The first step to overcoming a pricing objection, is to realize that the objection does not mean the client doesn’t want your product or service. Efficiently handling client price objections is an important step in building client relationships.
One helpful tool to overcoming this obstacle is to discuss the price range with the client before sending them a sales proposal. If clients are aware of your price range in advance, they will set better expectations for what they need and how your solution can fit those needs. Clients will also be less likely to simply write off your company as too expensive if you have already opened the door to communication.
It’s important that you are secure in your pricing before you put it in front of the client. Make certain that your pricing is in line with the market and if it is high, be prepared to discuss why your product or service cannot be compared with your competitors based upon its unique qualities. If you are convinced your pricing is appropriate, don’t be afraid to stand your ground. Listen to the clients objection, but have key points in mind for how to speak to the overall value that you bring to them. You may have to be prepared to walk away from a sale if the client has an unrealistic view of what the price should be for the solution they require.
Don’t be afraid to ask your client what too expensive means to them. Ask open ended questions that get your client to think about their needs and what they are willing to spend on a solution. If you have done due dilligence the client will already be aware of everything your product or service can offer. Now is the time to find out if you are looking at a disparity of 5-10% versus 25-40%. How you respond to sales objections based on price may depend on just how large of a disparity there is. Tailor your discussion to the needs of the customer instead of assuming you understand where the client wants the price to be.
Listen to your clients to find out if price is the only consideration for closing the deal. If they raise a sales objection, then they are willing to talk. Use the information your client provides to influence their choice and secure your place as the frontrunner based on how well your product or service fits their needs.
You will never be able to close every sales call you go on, but being able to provide positive solutions to sales objections and participate in an open discussion with your clients will enable you to continually build long-standing, profitable relationships.
Duane Campbell is a Global Accounts Manager for Jaroop, a web application development company that develops business intelligence, social interaction and client services for businesses. Jaroop is also the creator of the cloud based sales proposal application ClientSky, an online platform for professional service firms to generate, send and track sales proposals online. Duane can be reached at 860-357-2060 ext 302 or firstname.lastname@example.org.