Price Objection Protection

by Tom Reilly     ©Copyright 2000

 

Always be prepared for price objections. When you anticipate them, you maintain a more positive attitude because you’re not thrown off guard—you know and accept that they will happen.

Here’s what you can do to prepare yourself for the inevitable:

When faced with a price objection, ask either an open-ended question about the objection or restate it in your own words making the objection a question. For example: (Open question) “When you say we’re higher, could you be more specific?” or (Restate) “Is it a question of our being justified in charging more than the competition?”

When clarifying a price objection, probe a little deeper to discover the motivation behind the objection. Here’s how:

•  First, ensure that the buyer is making an apples-to-apples comparison. Is the product she compares to yours exactly the same as yours?

• Second, determine if the buyer is concerned with the total (long-term) cost of owning your product or just the acquisition cost.

• Third, determine if the price is the buyer’s only consideration in purchasing your product.

• Fourth, check the buyer’s expectations.

• Fifth, determine the availability of funds. Your price may not be too high for the value you deliver. It’s just too high for the budget this person has (or says she has) available.

When dealing with customer objections—preparation, persistence, and pragmatism pays. When you’re prepared, you feel more confident being persistent. And you come across as more professional and convincing. But be realistic. You’ll lose some business because of price. And there is some business you want to lose because of price.

There are shoppers out there whose only priority is getting a better price. Avoid succumbing to the pressures. You want every opportunity—not every order.

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Tom Reilly is president of Tom Reilly Training, a St. Louis based firm specializing in training salespeople and sales managers. He is the author of twelve books including Crush Price Objections.(636) 537-3360 or visit our website www.TomReillyTraining.com