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The Price Objection


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The Price Objection

  1. 1. Sales Solutions 877-862-8631."Were not the Lowest Price! Now What?"Overcoming the Price ObjectionCraig JamesSales SolutionsSeptember 18th, 2007
  2. 2. Sales Solutions 877-862-8631. www.sales-solutions.bizAgendaHow to use this mediumIntroductionsContentClosing Q&A
  3. 3. Sales Solutions 877-862-8631.“Your Price Is Too High!”BYE,BYE,BYE,BYE,SALE!!!SALE!!!
  4. 4. Sales Solutions 877-862-8631. www.sales-solutions.bizCutting Price - Plusses and Minuses+ Eliminates this objection+ Gets us something+ Shortens the sales cycle a bit- Giving money up cuts margin- Admitting customer is right - yourproduct’s not worth what you claim it is- Folding so easily sets a badprecedent
  5. 5. Sales Solutions 877-862-8631. www.sales-solutions.bizCan a Higher Price BeBetter?Conveys superior valueOpportunity to prove your value,earn bigger commission on sale
  6. 6. Sales Solutions 877-862-8631. www.sales-solutions.bizOther Buying ConsiderationsTotal Cost of Ownership (TCO)The bundle of benefits you offeryour product or serviceyour companyyouAvoidance of "psychic" costsless worrylower riskless work
  7. 7. Sales Solutions 877-862-8631. www.sales-solutions.bizIs it Really All About Price?Few prospects have as a goal tobuy the “cheapest”Most understand “you get what youpay for”
  8. 8. Sales Solutions 877-862-8631. www.sales-solutions.bizWhat is “Value?”A fair return for something (money)exchangedThe monetary worth of somethingRelative worth, utility, orimportance
  9. 9. Sales Solutions 877-862-8631. www.sales-solutions.bizWhat is “Price?”The amount of money given or setas consideration for the saleof a specified thing
  10. 10. Sales Solutions 877-862-8631. www.sales-solutions.bizWhat is the “thing” youare selling?Your product or serviceYour companyYouLook familiar?
  11. 11. Sales Solutions 877-862-8631. www.sales-solutions.bizWhy is your price “Too High?”Compared to What?Competition?What someone else paid?Are we talking apples to apples orapples to oranges?No reason?Just wants a “better deal”
  12. 12. Sales Solutions 877-862-8631. www.sales-solutions.bizWhat is your prospect thinking?“Are you worth more?”If so, why?“Maybe there’s something of valuemissing from the other proposals”“With which vendor will I be gettingthe best deal?”
  13. 13. Sales Solutions 877-862-8631. www.sales-solutions.bizValue Exceeds PricePrice ValueIf we cut our price, the customer getsmore value than hepaid for
  14. 14. Sales Solutions 877-862-8631. www.sales-solutions.bizPrice Exceeds Perceived ValuePrice ValueIf we haven’t conveyed sufficient value, thecustomer will (justifiably) ask us to cut the price
  15. 15. Sales Solutions 877-862-8631. www.sales-solutions.bizReasons for asking for lower priceI don’t see the extra value for yourhigher priceI have a limited budgetThis is what I think the numbershould be - period!You’re a vendor – I need to extractmy pound of flesh!
  16. 16. Sales Solutions 877-862-8631. www.sales-solutions.bizCustomer Doesn’t See ValueIt’s our job to justify our higher priceBUT HOW?
  17. 17. With Questions!Sales Solutions 877-862-8631.
  18. 18. Sales Solutions 877-862-8631. www.sales-solutions.bizWhat kind of questions?Those that get at magnifying andquantify his problemWhat’s wrong?What if you don’t fix it?Impact (financial, otherwise)What else might happen?Impact (financial, otherwise)
  19. 19. Sales Solutions 877-862-8631. www.sales-solutions.bizThen hit ‘em withBenefits!Faster...Better...More durable............................................. and
  20. 20. Sales Solutions 877-862-8631. www.sales-solutions.bizYour Unique Selling PropositionWhat do we offer/do that they can’tget from anywhere else?(high value capability/benefit)
  21. 21. Sales Solutions 877-862-8631. www.sales-solutions.bizThree more ways to overcomethe price objectionAdd benefits to your offeringSubtract costs from your offeringSuggest additional risks of doingbusiness with your competitor
  22. 22. Sales Solutions 877-862-8631. www.sales-solutions.bizMission AccomplishedPrice = Perceived Value
  23. 23. Sales Solutions 877-862-8631. www.sales-solutions.bizWhat if They Still Won’t Budge?
  24. 24. Sales Solutions 877-862-8631. www.sales-solutions.bizTrade“If I could....would you...”
  25. 25. Sales Solutions 877-862-8631. www.sales-solutions.bizTight Budget“Help me find a way to pay”
  26. 26. Sales Solutions 877-862-8631. www.sales-solutions.bizStuck on a Number“Refocus me on a concern bigger thanmoney”
  27. 27. Sales Solutions 877-862-8631. www.sales-solutions.bizEgo“Let me think I beat you!”
  28. 28. Sales Solutions 877-862-8631. www.sales-solutions.bizEver OK to Walk Away?
  29. 29. Sales Solutions 877-862-8631. www.sales-solutions.bizSummaryRequests for price cuts => need formore benefits to justify premiumMost know cheap doesn’t equal best,want good value, need to be convncedthey’re getting itPrice is rarely the most importantcriterion (long forgotten after quality)Drawbacks of unconditionally cuttingprice generally outweigh benefitsBe prepared to walk away
  30. 30. Sales Solutions 877-862-8631. www.sales-solutions.bizClosing Q & A
  31. 31. Sales Solutions 877-862-8631. www.sales-solutions.bizSales SolutionsService Offerings1/2-day and full-daySkill Enhancement/Sales ProcessImprovementOne-on-One Sales CoachingCustomized Sales Consulting
  32. 32. Sales Solutions 877-862-8631."Were not the Lowest Price! Now What?"Craig JamesSales Solutions877-862-8631info@sales-solutions.bizSign up to receive our Free monthly e-newsletter,The Sales Solution, at