Beat the Price ObjectionAugust 7th, 2012 by DWM Magazine
I recently realized that, for all my lessons on sales, it seems that the obstacle of the price objection continues to be more concerning to salespeople than prospecting, listening, presentation skills, and the other aspects of the selling process. Here is the problem: The price objection is not the disease; it is the symptom!
Trying to beat the price objection at the moment of a final negotiation is like trying to fit into a smaller size clothing item without dieting for a couple of months. If you want to beat the price objection, here are a few things you should consider.
1. Prospect. Prospect. Prospect. If you can’t walk from a negotiation, you can’t win. The only way you gain the confidence to walk is by equipping yourself with alternatives in the event you lose the sale at hand. Prospecting provides choices and perceptions of abundance that enable you to reject bad offers from combative negotiators.
2. Stop bidding and start proposing. If your price is too high, then your story is too short. Bidding is a voluntary reverse auction virtually guaranteed to lower your profit margins. A proposal includes a detailed description of the client situation, project analysis, product offers, work details, client responsibilities and more. Sweat the details and your clients will pay extra to gain access to your expertise.
When you lower your price, you send bad signals. Clients wonder why you didn’t give them the best price you had up front. They wonder if they are getting your rock bottom price. Remember that the only way your clients will know they are receiving your best price is when you tell them.
3. If you give, then get. If you ultimately feel you must give something back in terms of a price concession to a client, then get something back. Ask for a commitment to future work. Sell an additional product. Condense deliveries. Get something in return for your lowered price.
4. If you feel you must give, try giving something low cost of large economic value to your client. Offer leads; provide a training seminar; Do what you can to give something other than tangible dollars whenever possible.
5. Be prepared! The most amazing thing about the price objection is that it continues to catch salespeople by surprise. Prepare yourself with possible tactics before the heat of battle than you can use during the heat of battle.
6. Be willing to walk. You will never know the satisfaction of getting your asking price until you hold your price. It’s part of learning and a necessary evolution in the process of becoming a Sales Leader.
Some salespeople go through a lifetime never once telling the combative negotiator, “You have my best price. I promise it is a fair price.” It’s a tense moment. You remain calm outside while freaking out inside. But, the wonderful thing that eventually happens is that, sooner or later, one client sticks out his hand and says, “Thanks. That’s what I wanted to hear.”