You sit down with your customer to see what they think of your proposal. You’re proposing golf shirts for the company with their logo placed on the sleeve. The customer lets you know that your price is too high.
In fact, she says, “It’s not even close.”
She then lets you know that if you can’t match your competitor’s price she has no choice but to go with them. Your competitor claims to have the exact same fabric and style at a considerably lower cost.
What do you do?
Most sales people freeze at this point because the objection makes sense. Wouldn’t you buy a similar product at the lower price? Sure you would, and that’s why you falter when the customer makes their claim of a better deal from someone else.
But it’s never just about price. Think about how many times you bought a “great deal” only to realize that the product didn’t live up to your expectations. Ever heard of buyer’s remorse?
I have bought golf shirts for $70 and for $19. They both look great, until I washed them. The cheaper one shrank, faded and the material would pull and run. Remember the old saying- “you get what you pay for.” It’s true, but we keep going after the better deal hoping that finally, it meets the same standards of the more expensive product. It hardly ever does.
Here are three approaches to overcoming the price objection.
First, to tell a story. They say that facts tell, but stories sell. Stories help customers relate to their situation and to you. We place ourselves into the story as it unfolds. When we tell stories about delighted customers, it gives you credibility. It helps them see a tangible result of what they can experience.
And stories have a physiological benefit – they release the chemicals cortisol and oxytocin in our brain. Cortisol gives you focus and attention and oxytocin gives you empathy and emotions. Selling and buying are emotional. If I was to ask you where you were on September 11, you would immediately envision exactly where you were and what you were doing. Because stories are stored in long term memory, they are never forgotten.
Second, share how your product or service is different than the competition. What value can you convey that justifies your price. Is it quality, delivery, support? What do you provide that others might not?
The Apple Sports Watch 2 costs much more than a Fitbit. Having both, I can easily explain why the Apple watch is well worth the extra cost. It comes down to quality – great software and functionality. No other brand offers this level of excellence.
Third, when your customer objects to price, stand firm and calm and agree with them. Say, “Yes, our price is more and many of our customers gladly pay the premium because of the overall value and benefits we provide.
To understand your unique selling proposition don’t forget to consider the back-end value you provide.
- Is your company focused on massive customer satisfaction?
- What if one of your products has a problem, how fast will it get repaired or replaced?
- Can your customers get someone on the phone 24 hours a day, 7 days a week?
- What is the return policy?
- Is your organization known for its’ community involvement and support?
Think about ALL of the value and distinction you provide when justifying your price.
Sometimes it’s the intangibles that makes a substantial difference, so don’t forget to share them proudly. Tell a story your customer can relate to, show the uniqueness of your product or service, convey value and then stand firm, agreeing that your price is higher and for well-justified reasons.