Effective Ways to Handle Price Objection in Sales
What are sales objections?
Sales objections are barriers that are placed by customers when making a deal. They are counter-arguments that customers use to protest against certain price. Companies must be prepared for these situations. By knowing the most frequent objections, therefore will know how to act accordingly and persuade the customer to make the purchase in a way that is beneficial for both parties.
- Wait a few seconds in silence. Customers often justify their objection to the value of the product/service without the seller even having to question it.
- Ask questions offering a compliment first. Example:” Good question.”, “Good point, I had never thought about it well.”, “Thanks for the correction.”
- Customers often use certain motivations to get in the way or to try to get the seller to its lower price easily. Don’t give in too quickly and hold on if you know the value of that product or service and if you think it’s worth it. However, it is always necessary to listen to the customer and show that their opinion matters. Because it matters. After that, you can find the best alternative payment for the client and for yourself.
- It is very important to ask the right questions to get around the objection and respond in the most appropriate way as possible.
Below is a list of some examples of objections and possible ways to handle them.
Scenario 1- “The price is quite high!”
Possible responses to this objection:
- “Have you found a cheaper product?”
- “How much were you thinking of paying for this product?”
- “Is this price your only consideration?”
- “How much would you think it fair to pay for it?”
- “But do you know the reason why the value is high?” (List the features that make this product or service worth this price.)
You can also present certain approach or discount, the possibility of paying in installments and other types of flexibility so that you can guarantee the purchase. Your company should have a pattern and know if it is advantageous to carry out certain discounts or not. Of course, many customers will try to get you to lower the price even if they think it’s fair. They will just be trying to take advantage. But here it will be up to you to decide whether to keep the price if you believe its fair for your company or to go to lower the price a little to get the sale with that customer. Sometimes, helping client to visualize long-term and how they can make most of the product will convince them, and inform it’s a worthy purchase for a life-time.
Scenario 2- “I would like you to give me a discount.”
Possible responses to this objection:
- “Do you think you would need a discount on this product? In regards to financial circumstances.” – inform them that you understand.
- “What would be the fair value for you?”
Your company already has a well-defined plan. You will not be giving discounts to all customers just to make sales. Surely the seller knows the prices charged, the quality of what he sells and how far he can go.
Present the features of the product and the advantages of purchasing it.
Scenario 3- “I don’t have all that money.”
This scenario is possibly the most complicated to get around. The person may not be able to actually pay that amount at the moment. However, there may be two possible answers.
- “I understand. But if it weren’t for that issue, don’t you think this purchase would be beneficial for you/your company?”
- “I understand. However, we hope to see you again soon so that we can do business.”
- “I understand if you do not wish to have this service, but remember you will have the problem dragged for a period of time.”
No Pain, No Sales.
We will have to use out intellectual communication sense to know that the customer may not be able to pay this amount, but it is good to say that we would really like to have done business, because it may happen that the customer is able to take out a loan or receive some investment that make can close a sale with you. If your company has financing or payment plans in installments, you can provide this solution to the customer so that he/she can pay on a monthly basis.
Scenario 4 – “I need some time to think it through.”
This is a fairly common scenario in any sales attempt. Usually when a customer says this it means they are not quite sure about the product or service. It is often a way to “escape” and leave your company without making the purchase. Possible responses to this objection:
- “Do you have any questions about the product? We are here to help you.”
- “I understand perfectly, but if you want, we can talk more about the product/service now and consider your final thoughts at home.”
- “We recently had a customer who was very satisfied with this product. The benefits are (…)”
Scenario 5- “I saw it at XXX company and the price was lower.”
This may just be a customer trick and not be true at all. If you know it’s a false statement, show the person real evidence and data and tell them it’s not true. All of this said in an empathic and cordial manner, while maintaining his attitude of a salesman who knows the values practiced in the market. If, on the other hand, it is true that there are competing companies practicing lower values, your company should already know that. A market study should always be carried out to assess the values practiced by competitors. However, there is always a good answer to this situation. Focus your answer on the quality and experience of your company. Show that there are benefits to shopping with you. Do not speak ill of competing companies, but show the value of your brand and what the justification for the product is a little more expensive than the competitor. Explain to them that they are paying you for a value of service and solving their problems in the most effective way as possible.
A good salesperson will know how to get around every price objection and deal with customers in the best way. Objections in sales are “the dish of the day” and it is up to the company to know what is best for its business. Good salespeople will always have good answers and will be able to make good sales.
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