You are too Expensive!

In many countries, it is “fair game” to hit you with a price objection right at the beginning of a B2B sales visit. On the other hand, most sales training programs assume and teach that price objections usually occur after a discussion of needs and resulting features and benefits. So how do you handle an early, in your face price objection?

Let’s look at some of the reasons customers ask for your best price and object when you start a sales call.

3 Reasons for Price Objection

Firstly, from the customer’s viewpoint, it is OK to employ this tactic as you are just “a salesperson.”

Secondly, in many countries, the idea of price first rises out of a culture of the barter economy. In the market, one first asks, “What’s your best price?” followed by “You are too expensive!” Bartering then takes place. This ‘barter tactic’ allows the smart customer to set price with the less experienced sales rep, who for the remainder of the sales visit, will be squeezed for as many benefits as possible by the price set early in the call.

The third reason is a price objection can be a cover for indifference. It may be seen as impolite in some cultures to be blatantly indifferent and a quicker, more expedient way is to shoo the sales person out the door with a price drawback stating “you are way to expensive, sorry!” This early price drawback tactic also positions the customer as a “critical parent” in the sales discussion and sales person as his/her poor “child.” The customer tries to dominate and control the little child (sales person) and price objection is the easiest way to force the child (salesperson) to give in.

With no benefits to outweigh an early price objection, what then is a sales person to do? Act like a rebellious child and fight back with a blast of features and benefits? This rarely works. The parent – customer will quickly punish the child by showing the naughty sales person the door! There is a better way. Let’s review the skill steps on how we turn this in your face price objection into a positive sales situation.

Turn Price Objection into Positive Sales Situation

1. Acknowledge the Customer’s Focus on Value When the customer hits you with a price objection at the beginning of the sales visit, the first skill step is to Acknowledge the Customer’s Focus on Value in a positive but neutral way. You might say, “ I can see you are a person who is focused on ROI”“It is important to make sure one gets a fair price”“Getting value for your investment/money is wise decision.” These acknowledgements signal a professional I’m OK - You are OK and clearly shows the customer you are poised.
2. Ask to Put Price Ask Questions The second skill step is to Ask to Put Price Aside with a helpful analogy. You may say, “Mr. Customer, price is important. Have you ever bought a home? It is no use talking about price if you and your family do not like the neighborhood, layout or facilities. Let’s put price (ROI or investment) aside and I will come back to it at the end of the discussion, ok? Here, you, the child is gaining permission from the parent. Don’t parents enjoy when children ask permission?
3. Gain Agreement to Probe This is the key that unlocks the door. Here you, the child, asks permission to ask a few questions that might provide value to the customer – parent. An example: “I would like to ask you a few questions about your current situation (or your past success) so that I may offer some help or insight to you now or in the future, OK?” I have found 99% of the time, customers give you permission to continue asking questions. Again you are an obedient polite child to the parent customer.
4. Use Probing Strategies that Lead to Exclusive Benefits The sales person’s ability to ask questions positions the customer’s relationship from “Parent – Child” to that of “Professional to Professional.” You now ask relevant questions using Probing Strategies that are built on your pre call homework, market and industry knowledge, and your product or service solution knowledge. These probing strategies are productive because they navigate the customer to Explore Customer Circumstances, and lead to possible discussion of Opportunities (based on your market and industry homework) your organization’s features and benefits may solve.When you uncover an opportunity, continue to discuss and probe to determine if this is a Problem for the customer. When customers desire to solve the problem, we have uncovered a Customer Need. The discussion skills to make this transformation from a problem to a need, are using the Effect Probe and to Confirm the Need.
5. Employ Effect Probes to Heighten Impact Effect Probes heightens the customer awareness of the impact of not addressing the problem on his/her organizational performance, image, or financial issues. Some simple examples of effect probes can be: “What would be the effect on sales (or service) if this problem is not solved?”“What effect would it have on finance (or image) if this issue was solved?” Effects can be negative or positive.
6. Confirm the Problem to a Need and Introduce Your Exclusive Features and Benefits Confirming questions are asked to truly confirm that the customer has a desire to solve or improve on the need being discussed. Simply, “So would you like to solve the problem of.........? When the customers confirms, align with the customer and introduce your relevant features and benefits.
7. Repeat this Probing Strategy Process 2 more times Our research indicates the average customer must accept three of your product or service benefits /advantages before you are able to close. This is certainly the minimum for a difficult customer. So here is advanced tip for overcoming early price objections. After getting agreement to ask questions, ask questions based on probing strategies to lead the customer to confirm problems that your exclusive features and benefits can satisfy. This probing process will have to be repeated most likely at least three times.

You can see the mastery of effective probing strategies is the most effective way to crack the difficult price sensitive customer. As Jeffrey Gitomer says, “Questions unlock sales.” So let’s recap the skills steps:

1. Do you Pre Call Homework
2. Acknowledge the Customer
3. Put Price Aside
4. Gain Agreement to Ask Questions
5. Use Probing Strategies that Lead to Exclusive Benefits
6. Employ Effect Probes to Heighten Impact
7. Confirm the Problem to a Need
8. Introduce Your Exclusive Features and Benefits
9. Repeat this Probing Strategy Process 2 more times
10. Close the Sale!

I have a download for you that outlines the skill of Addressing Price Drawbacks at the Beginning of a Sales Call for your practice and use.

Study the skill, Practice the skill, and get your probing strategies ready and close more difficult customers!