Do you sell high-ticket products and services? Do you have some potential clients that need your high-ticket items, and don’t realize they need them yet? They have been making do with something much less expensive. How do you handle presenting the price? Are you interested in learning how more about overcoming price objection?
Have you ever requested a price for something, and instead of getting it right away, you have to wait? When you finally receive the quote it is several pages long. There is a letter. You find a nice photo of what you’ve been quoted and lots of bullet points on why you need this special thing. I’ve been selling for 25 years, and I still jump to the last page. I know what is on the last page, the $$ Price! If I am emailed, mailed, or handed a quote, I will always do the same thing.
I forget about all the work that went into that quote. I simply jump to the price. Then I will think it’s too high. Usually, I go back to the front and start to review the letter, the bullet points and the photos. I almost always come to the same conclusion. I usually think, “What in the world costs so much?”
What Causes the Price Objection?
This confusion happens when I am left to be my own sales person of a product I don’t sell. My price is objection is based on the limited knowledge and experience I have. I haven’t studied it. I only understand my situation and maybe the outcome I am looking for. But in the situations that I react badly based on price objection are those I haven’t had the benefit of being sold. I know most people don’t want to be sold. Let me explain what being sold really means in my terms. I believe this one thing is what makes the sales profession the safest bet of professions in the age of AI and all things digital.
Preventing Price Shock for Clients
The answer to prevent me and anyone else from saying no solely based on price objection is to establish value and agreement before introducing price. This means you have to remain in control of how your proposal is both presented and understood.
Example
I’ll give you an example. I always try to give proposals in person. If I can’t be face to face I will schedule a zoom. But in this case I had a tough one on my hands. My husband and I own a local copier dealership. A local business inquired about a copier/printer and asked the price. In this case he had a particular model in mind he had seen in another office. He had no idea how much this particular machine would cost.
I asked a couple of questions and asked if we could meet. He said, “No.” He had a busy position and their printer was down. They didn’t have service contract, and the company they bought it from was an hour away. The charge per hour and mileage to come and do repairs made it too expensive for them to call that vendor. He was only gathering information. His boss would be making the decision, and he just needed a quote.
Make the Best of the Situation
Two things made this situation difficult for me. First, he didn’t want the quote delivered in person, and I was not dealing directly with the decision maker. But I didn’t give up. I said, “Ok I am going to call you when I’ve finished the quote, and if it’s a good time I’ll send the quote over.”
When I had the finished quote and it was put together ready to email. I called him on the phone and explained I had the quote finished. Next I asked if he had time to talk, and he did. I didn’t email the quote until he was on the phone. Once on the call , we went over the quote together. In the beginning I explained how much I appreciated the opportunity (the letter). I went over the important features to his business (the bullet points), and then we got to the price ($).
My question to the client, “What do you think?”
Uncover the Objection
He said, “Thanks, but we are probably going to buy this other model we found online.”
I said, “Ok, I understand. What model are you looking at, and what do you like about that model?”
He said, “It seems to have about the same features and all that we need. But it is also less expensive, and my boss doesn’t want to pay more than he has to.”
I said, “Sure, I understand. Do you know how much savings it offers?”
He said, “I don’t know exactly.”
I said, “Is it less than a $500.00 in savings?”
He said, “Yes, just about that.”
I said, “Ok I understand that money is important; there’s just a couple of things I’d like to point out. You can talk it over with your boss. There isn’t a local provider for service on that brand and model. When you have trouble, and it tears up, you will be in the same position you are in with the model you are currently using. If you chose our machine we will be able to come out and service your machine when you need a service call. Also, my price includes delivery and set up as well and no additional shipping cost.”
The Close
I could tell he was thinking about the things I said. He replied, “I’ll take this to him and tell him what you have pointed out.”
I called him back the next day, and we were able to close the deal. But I wouldn’t have been able to close the deal if I hadn’t called him and reviewed what my price included. I had to get his feedback to make sure I had understood the business’s needs. I was also able to find out what those thoughts were about my quote, and in this case, what his alternatives to my quote had been. If I had emailed the quote and he just saw my price, he would have seen a price of $500 more than he wanted to pay. Instead, I was able to establish $500 worth of value instead of sticker shock.
I help others approach clients leading with value instead of price. If you would like to discuss how I may be able to help you get better at overcoming price objection email me or DM me. We can arrange a discovery call. I help others become both comfortable and successful in sales.
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