I had barely turned the lights on and sat down the other day when my phone rang. It was Ray. Ray had been in my mentoring program for about thirty days and was facing a perplexing problem.
He said, “I made three sales calls yesterday but didn’t make a single sale. This is starting to look like a trend.” I asked him what was the reason his prospects gave him for not purchasing. He said, “They all say my price is too high. Do you think if I lower my price that I would sell more?”
I can’t begin to tell you how many times I’ve heard that comment. “Your price is too high” is the most common sales objection used. To build your business you must be able to master the skills necessary to overcome price objections. Here are three techniques that will allow you to not only deal with price objections, but they will enable you to use your client’s price objection to help you close the sale.
1. Amortize the Price
“It cost too much.” Yes, we have all heard this statement by a prospect. Sometimes they say it because it is like salmon swimming upstream. The phrase just comes out like it’s instinct. Other times prospects say it because we didn’t build enough value in the product. Other times we haven’t illustrated enough need or shown that our solution was clearly the best way to satisfy that need.
When a prospect tells you it costs too much try asking them the following question: “About how much to much do you feel it is?” After asking this question sit quietly and wait for their response. Once they give you a number you have something to deal with.
You can deal with the amount they give you in several ways. One way is to reduce the amount by amortizing it out over the life of the investment. Let’s say you are selling a piece of equipment and they say it costs $600.00 too much. You could say, “Based on this piece of equipment serving your needs for at least three years that would be $200.00 per year, and then that of course would be the same as $4.00 per week. So, are you willing to give up the extended warranty, higher production rates, compact design, etc. (and here you list all of the features and benefits that you know the prospects like and need) over 80 cents a day?” When they say, “no” they just bought. Start writing.
2. What Exactly Do You Like
Here you respond to the comment that the price is too high by reviewing all of the features and benefits of your offering. Remember, you client doesn’t really care about the features. It is the benefit that they will receive from your products and services that these features deliver that they really care about.
List all of the benefits one-by-one. Confirm their importance. Then, politely ask your prospect if there are any benefits they would like removed. They should respond with a “no.” Then you will need a closing statement. I like the following: “It seems like we both agree that this product really fits your needs and that all of the benefits I’ve covered are important to you. It looks like this decision really makes sense doesn’t it?” You must pause here and not say a word! This is a closing question. If you talk you will lose the sale.
3. “Me” Close
This technique is only for professionals. Do not attempt this unless:
You dress and look like an expert.
You have sent thank you notes on every possible occasion (thank you for meeting, thank you for talking on the phone, thank you for reviewing my proposal, etc)
You have presented the product in a manner that is considered superior to others in the industry.
In other words, you must look and act like a supreme professional. Your service and attention to detail must be second to none. You must treat each prospect and client like they are your only ones.
If all of this is in place then, and only then, may you attempt the following:
“Bill, we have reviewed all of the features and benefits of our product, (list them again here). You’ve stated that you like the resources and financial stability of my company. Here’s the bottom line. When you invest in our product not only do you get a product that will satisfy all of your needs and give you a great return on investment over time, and not only are you dealing with a company that will be there if you ever need them, but you are getting me. My customers know what a difference I can make for them in saving time, money, and aggravation. (Here you could add a story, if you have one, about a time you bought a car or some other product and how the person you dealt with took care of you, loaned you a demo, always made sure your service was expedited, and how doing business with that sales professional made your life so much better.) Quite frankly, and I don’t want to sound braggadocios, but when you invest in this product you are also getting me as part of the transaction. Now, you can’t take me home with you but I will always be available to share new technology and ideas with you, run interference with the service department for you, and look out for your best interest. Now that makes sense doesn’t it?”
Again, this is where you shut up and wait for them to reply. If they say “yes” that means start writing. Don’t ask them if they want to buy!
These techniques work by themselves or together. Great sales professionals have enthusiasm and persistence. It is the buyer’s job to buy. They should try to get the best possible price. It is your job to sell. If you explain the value that the prospect will be receiving they will be able to justify the price and you will get the sale. Now you’re on the road to Building a Better Biz!