When you prospect says, "your price is too high", I'm hoping your immediate reaction isn't to start rebating! The 'Your price is Too High ' Course is the 2nd training course that Buying Agents and Buyers take when they are learning the best way to do their job. Truly! Buyers use this one regularly because they're rewarded on how much money they can save.
The new sales person will generally get drawn into pricing talks early in the sales call. And if you're not prepared to handle the objection, then you're right away put on the defensive. Regularly the next thing that happens is you drop your price, you may get the sale, but the Buyer wins. While pricing if regularly a key part of any negotiation, they key methodology is by using discounting to your benefit and only when required.
It is important for you to realize this objection is a really 'standard one'. You should not be confounded when you get it. Notice, I said, 'when ', not 'if'. Hence be prepared. There are several techniques you can employ. For this article we're going to focus upon one of the more handy selling tips called 'relative to what '
The 'relative to what ' method.
This is the best strategy to effect and is excellent for the more recent sales person as they are developing their talents.
Before your meeting with your prospect, the first step is to completely understand the various rivals you've got. Then, narrow that list down to the ones you probably will encounter when you make your sales call. Be certain to have a good knowledge of their pricing relative to yours for an analogous product (or service).
Now, when your Buyer says, "your price is too high". Your reply is to kindly ask, "can you let me know about your current supplier?" Or "What other vendors (suppliers, services) have you had a meeting with or are considering?" This isn't the typical reply that a buyer would expect. Rather than being defensive and immediately dropping your price, you are engaging in a way more significant discussion with your Purchaser.
Now you know your competition, and you know their pricing relative to yours (remember that research you did earlier?) you can easily discuss the features of your product vs. the competition. Be sure to discuss your product's advantages for your Buyer's company. Stay away from debating pricing. If you do a good job here, your Customer might notice that your product is superior and your pricing is justified!
The new sales person will generally get drawn into pricing talks early in the sales call. And if you're not prepared to handle the objection, then you're right away put on the defensive. Regularly the next thing that happens is you drop your price, you may get the sale, but the Buyer wins. While pricing if regularly a key part of any negotiation, they key methodology is by using discounting to your benefit and only when required.
It is important for you to realize this objection is a really 'standard one'. You should not be confounded when you get it. Notice, I said, 'when ', not 'if'. Hence be prepared. There are several techniques you can employ. For this article we're going to focus upon one of the more handy selling tips called 'relative to what '
The 'relative to what ' method.
This is the best strategy to effect and is excellent for the more recent sales person as they are developing their talents.
Before your meeting with your prospect, the first step is to completely understand the various rivals you've got. Then, narrow that list down to the ones you probably will encounter when you make your sales call. Be certain to have a good knowledge of their pricing relative to yours for an analogous product (or service).
Now, when your Buyer says, "your price is too high". Your reply is to kindly ask, "can you let me know about your current supplier?" Or "What other vendors (suppliers, services) have you had a meeting with or are considering?" This isn't the typical reply that a buyer would expect. Rather than being defensive and immediately dropping your price, you are engaging in a way more significant discussion with your Purchaser.
Now you know your competition, and you know their pricing relative to yours (remember that research you did earlier?) you can easily discuss the features of your product vs. the competition. Be sure to discuss your product's advantages for your Buyer's company. Stay away from debating pricing. If you do a good job here, your Customer might notice that your product is superior and your pricing is justified!
About the Author:
Joe Mangano founded PinnacleSelling.com, a website for motivating, educating & enabling sales people,business owners & entrepreneurs to improve their business & sales results. It provides selling tips, sales information, motivation and personal development. He has been Sales Exec at HP and was recognised as one the top 100 leaders world wide. He has trained 100s of sales reps, developed HP's first web-based sales training with over 20,000 yearly completions and managed groups that delivered over $1B USD annually. Click for effective selling tips .
