NOW LIVE - Episode 032: How to Grow & Cultivate a Business That You Love with Amber Housley | Planning for Profit Podcast

How to Deal With Price Objections

Uncategorized Oct 23, 2018

We all know that dreaded feeling. You get to the end of the sales meeting or sales call, you’re totally jiving with the potential client, you know they are loving everything you’re telling them, and then you get to the part where you have to talk price so you tell them what your offer costs and….crickets. And then they say something along the lines of “that sounds great! We’ll have to think about it and we’ll get back to you.” And so the meeting ends. And you either never hear from them again OR you get an email several days later saying something along the lines of “I loved meeting you BUT you’re just not in my budget right now or I just can’t afford it right now.”

Bummer right? But it actually doesn't have to be.

Before we get into the price objections and the actual steps for refuting them, I want to first address the idea of smokescreens. Often times the objection that you are given ISN'T ACTUALLY THE REAL OBJECTION. Many people say one thing because they don’t want to admit the real objection and what’s really going on in their head. Often smokescreens are really vague and they also often include some aspect of trying to buy more time to make the decision. For example, “I need more time to think about it” or “I have to discuss this with my significant other”. These are almost never the actual objections. If someone gives you a smokescreen objection, they are avoiding giving you an actual answer or an actual true objection. And often if you let these potential clients or prospects go, you’ll never hear from them again. Because it’s too uncomfortable for them to make an actual choice in front of you, meaning turn you down, or they don’t want to admit the real objection so they say something that gets them off the hook and then they ghost you. So if you DO think you are getting a smokescreen, you need to clarify the objection by saying something like “I’m not sure I understand?” or “Can you explain that further for me?”. Typically when pressed further, potential clients will start to open up and disclose the REAL objection so that you actually have something you can work with. Ok so let’s get into price objections. So what does it really mean when someone says that they can’t afford you or your offer? Well news flash, it’s most likely untrue. Now there are rare instances when someone might literally have zero dollars in their bank account but that is usually not the case. If you have prepped a potential client or customer properly during your sales process, more than likely they have an idea of what price to expect, or at least an idea of what your offer might cost. So if they turn around and say “actually this is too expensive”, really what that means is that you still haven’t sold them on the VALUE yet. If what you offer is so amazing, and they truly believe that you and only you are the person or business they want to work, price shouldn’t be an objection. You still haven’t convinced them that your offer or your service is more of a priority than the other things that they spend money on. Whether something is “expensive” or not, is completely subjective.

I’ve heard both my friend Valerie Gernhauser of Sapphire Events who teaches on pricing strategy as well as Sean Low from The Business of Being Creative say this and I love it:

“I’m not expensive I just cost a lot.”

It’s a neat play on Big Pun’s lyric, I’m not a player I just crush a lot. But how true is that?! Whether your service is “expensive” or not is completely up to your client or customer. 

It's ON YOU to communicate the value of what you are offering so that people don’t use price as an objection. So the first step in dealing with price objections is to avoid the objection in the first place! Show them the value! Now there are some other ways that we can handle objections.

First, amplify the value with case studies or testimonials. Often when someone has an objection to purchasing from you, they just don’t quite trust you yet or believe that your offer will help them. So why not use examples of how you have helped and served other people? If someone is still on the fence or telling you they don’t think they can justify the cost of your service or product, tell them “you know that’s what Alex thought too but once we started working together I helped her to put a strategy in place that saved her 10 hours per week, she got focused on the revenue generating activities in her business and then doubled her revenue in the next quarter. When you show people that the transformation that they want IS possible and that you’ve helped others transform, that will help build that value and that trust to overcome the objection. In addition to using case studies and testimonials to amplify your value, they also serve as a great way to reverse the objection, basically showing them someone that their objection isn’t valid. When you show how you have helped and transformed others and gotten results for others, you show that their objection is false. What you offer isn’t expensive, it gets results, it’s worth it, it’s valuable.

Next, show someone what could happen if they DON’T take action and hire you. Often when potential clients or customers start to get blinded by price and cost, they aren’t looking at the big picture. They aren’t focusing on the result they wanted in the first place. So when you can remind them “hey this is what you told me you were struggling with, or this is the solution you told me you needed”, you don’t want to stay where you are do you? Show them where might your potential client be in a month, 6 months, 5 years if they DON’T work with you or buy your product. What happens then? If you can remind them of what that looks like, you can reiterate why your service or product is exactly what they need.

To recap:

 

  1. Uncover the REAL objection. Are they saying something that is a smokescreen for something else entirely? Why are they truly struggling to say yes?
  2. SHOW your value! If price is the primary objection, it’s usually not because they can’t afford you, it’s because you haven’t successfully communicated the value.
  3. Use case studies and testimonials to amplify the value. Help increase their trust in you by showing the results you’ve gotten others. Or even the results you’ve had yourself. You might be your own best testimonial.
  4. And finally, reiterate what happens if they DON’T take action. Confirm that you are the solution to their problem and that staying stuck and without a solution could in fact be more costly.
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