How many times have you heard, “Your price is too high?” If you’re like me, too many. When the prospect questions your value their only response is, “It’s not worth it”. They may even say, “If you can lower your price, maybe I’ll buy”.
But what’s really going on when they protest your pricing?
You have yet to create enough value. Let’s explore that.
If you’ve been doing work for a client for a while, and they’re happy with you, the only foot in the door your competition has is a lower price. But can they match your value?
Hopefully the answer is no.
Take for example one of the newest low-cost entry into the airlines business – Spirit Airlines. If you’ve flown on Spirit to get that great fare of $199 from Dallas to New York City, you now realize that all you get is the flight itself. No free Cokes, pretzels, etc. All you get is a seat from point A to point B. Basically, it’s a cattle car with your knees resting on your throat. And, if you forget to log in and check your bags online, you pay $100 at check in. To get that low price, you have to do all the work.
Doesn’t that sound like the old adage, “You get what you pay for”?
With most sales negotiations, the client or prospect will use a variety of tactics, but most will still lead back to their desire for a lower price. You still haven’t made a compelling case for the value they’ll get from doing business with you.
When they say, “Your price is too high”, most salespeople freeze.
Because it’s hard to argue with logic and price is tangible and logical.
The key is to shift the discussion back to the value you provide. That’s what they want and respect. But to know what they value and the way to avoid hearing, “Your price is too high”, you’ll need to consider their Personality Style. Each of the styles view value and the related price differently.
- The Blue personality expects great service and quality. If you don’t establish your ability to provide both, they’re unlikely to tell you your price is too high, they’ll just disappear and shop elsewhere. Since Blues are relationship driven and avoid conflict, they will just walk away from you.
- The Gold personality being very direct and confident likes to haggle for the best price. They will compare you to the competition. They love to use the consumer reports to price shop and compare value. Golds also focus on quality and price. Lead with your value of total cost of ownership which includes your cost, capability, service and quality. All four components will differentiate you from the competition.
- Greens are the problem solvers. They will try to prove to you why your price is too high. They are patient and have no sense of urgency. Greens expect great quality and the best capabilities of your offering. Be prepared with a detailed explanation why your solution offers great value to them.
- Oranges are the game player. They love a good deal and will look for an opportunity to get a deal. Oranges like Golds like to focus on the price. The difference is Oranges have a need for great service which includes convenience and one-stop shopping. Part of their value proposition is ease – how can you provide great value that is also easy?
When you understand the personality style of your prospect, you can adjust your approach to prevent the response of “your price is too high.” Ask yourself, what personality am I selling to and that will give you a roadmap to success.