One of the most common objections that salespeople receive is, “The price is too high.” This leads many to add a note about price or price competition to the sales presentation to anticipate the objection and ‘diffuse’ it from the beginning. After all, if you’re the least expensive option on the market, there shouldn’t be an objection here, — right? Wrong.
The truth is that even if they can afford your product, if they don’t want it because you adhered to the traditional model of selling and pushed them through the entire presentation, they will use an objection regarding money and price even if that’s not a legitimate reason that they’re not buying. It’s easier for a prospect to say “it’s priced too high” or “it’s too expensive right now” rather than, “This isn’t for me.” Of course, many prospects don’t have a problem saying they aren’t interested. But, some feel that they have to give a reason that feels ‘absolute’ — and an objection based on price does feel absolute.
Why You Should Avoid Competing on Price
Price competition is one facet of the old model of selling, which no longer works in today’s “Post Trust Era.” Today is defined by a customer's unwillingness to sit through sales presentations and deal with pushy salespeople over the phone. They’ve dealt with enough of them to despise the experience. And, it feels scammy to them with terms like, “At our all time low price!” or “Only $999!” It’s not necessarily that customers want something cheaper. It’s that they don’t see the value of what you are offering in the first place. It doesn’t matter if you’re the cheapest or most expensive on the market: if they don’t feel an emotional need for your product, they’re not going to budge.
So let’s pretend you’re meeting with a prospect and almost at the beginning they start with an objection and ask you “Why should we go with you?” or “Why should we go with your company?” … meaning, they are waiting for you to give them your sales pitch so they can pick you apart, throw out objections and get rid of you. Anticipation of these questions is one of the reasons why salespeople make sure to compete on price — they want to be able to rely on that ‘feature’ when the prospect has an objection.
What is the typical response to this objection? What would you say?
Most salespeople usually respond with something like this (we’ll use the example of selling used cars.)
Prospect: Why should we go with you?
Average Salesperson: Well, why WOULDN’T you go with us? I mean, we have been rated the number 1 dealer, we have the best price on this car, we have the best customer service, we have the best finance rates in town, and we always outsell all other competitors here in town every year, we have the best this, the best that … and on and on …
The Salesperson keeps listing the benefits and features of their solution, hoping and praying that something he says will stick. The problem with this approach of telling and trying to persuade your potential customer to go with you is that it’s focused on you and your agenda of making the sale. No — just because you can compete on price does not mean you’re focused on the customer! Because, price might not at all be what they care about.
You must instead ask: What is your customer most interested in? This answer will be different for every question, which is why it’s so important to learn the new model of selling, which is oriented in helping the customer guide themselves to purchase. If you sell through the process of Neuro-Emotional Persuasion Questioning and guide the prospect to convince themselves to buy, they can mentally and emotionally approve of the price, too – because they clearly and emotionally feel their current problem and how your product or service will solve it. Otherwise, the objection on money is usually oriented in their desire to just get off the phone with you! They want to say “no” and rely on financial problems
If the Customer Really Can’t Afford It
Of course, even in the new model of selling, there will be customers who are interested in your product but truly can’t afford it. This is especially true if you’re selling a high ticket item or you sell to startups and new business owners who typically have a lower budget. However, if you have guided them through the NEPQ’s and they are thoroughly and emotionally convinced of the problem they have and how your product can solve it, the conversation can go a bit like this:
Prospect: “We like your product, but at this time we just can't afford it.”
New Model Salesperson: “Tell me if you did have the money, would this be something that would work for you?”
Prospect: “Yeah for sure.”
New Model Salesperson: “Why do you feel it would though?”
Prospect: “Well we like … but we just don’t have the money for it.”
New Model Salesperson: “I can appreciate that money might be an issue for you. How do you think you can resolve that where you can find the money so that you can …”
Here you just plug in what they said they wanted. You are tying in them getting the funding/money with having what they said they wanted. If they don’t get the funding/money then they can’t have what they said they want.
Many times when you ask them this question, they have trust in you because of the conversation and the NEPQ’s. They feel that you are really there to help them. So, they will be the ones to come up with ways on how they can get the funds together – because they see how your solution can help them and why they need it.. When you do this correctly, they’ll think about using a credit card, getting a loan, refinancing their house, borrowing from their 401k, investments, or getting their boss to take money from a different department to invest in your solution.
Now, if they cannot come up with ways on how they can get the money, you can ask them this question: “What other avenues do you have to find the funding so that you can …?” Fill in that blank what they said they wanted regarding your product. This one again reiterates their need and desire to purchase, which inspires them to think deeper about what they need to do to find the funding and afford it.
In summary, competing on price keeps the emphasis on the features of your product and the presentation rather than focusing on what the customer most cares about, and what problem in their current situation you can solve. Stay away from the assumption that they care most about a low price.