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All Price Objections Are Not Created Equal by Tom Reilly, author Crush Price Objections (Motivation Press) Price objections fit nicely into five categories: price, cost, value, games and process. Each require a different response strategy. Price objections are short-term objections, as the buyer may not have the budget or money to afford your alternative. This includes sticker shock, expectations of a lower price, and buyers that just don’t want to pay what you are charging. Their attitude does not make your price too high. Cost objections are long-term objections because the root cause of the objection may be a broader cost-cutting effort by the buyer and his company. Your price is part of an austerity program or efficiency initiative. Value objections refer to the buyer who does not see the equity between your price and your package or the difference between you and the competition. Games are the gambits, ploys, and maneuvers buyers use to drive prices down. These include knee-jerk reactions to any price. Their attitude is that there is always a lower price if they hang in there long enough. Salespeople that choose to play the game reinforce this behavior and the cycle continues. Process objections include company policies or procedural guidelines that mandate competitive bids. In most cases, the buyer must follow the prescribed buying process which may include national contracts or formal bids. There is no one way to respond to all price objections. If you took my advice in the last Sales Bytes article, you know that the first step in dealing with price objections is to clarify what the buyer is really saying. Then, you can choose your response strategy. |
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