Do you feel under pressure to drop your price when you face an ‘objection’ over how much you charge? Have you ever discounted your service or product in order to successfully close a sales opportunity?
Personally, I don’t like discounting as a response to a price objection. I feel it immediately devalues your brand, your product, your service and your entire business. However, I do understand that it’s necessary at times to have a special offer, or even negotiate on price, but I hope that you negotiate on terms at the same time. Or, perhaps your tactic is to inflate the price to begin with, so that you can negotiate down to the price your deserve. I hope these tactics aren’t used every time you face a price objection though. If they are, you may need to reconsider your pricing structure, or maybe your target audience.
TIP: Don’t present your prices too early in the sales meeting. This gives you time to demonstrate the true value of your product or service.
Here are seven thoughts of how I believe you can approach the right sales opportunities with a considered approach, so that the common objection around price doesn’t arise as often.
1. Approach your ideal customer
If you work with and approach your ideal client – the ones that are the best fit for your solution, they’re less likely to be price sensitive or price driven.
2. Ask powerful questions
Use your questioning to discover what’s important to the buyer, not to you. (Examples of questioning techniques were given in the last article, ‘How to make the most of your sales opportunities’). Making the sales meeting about them defines the value from the customer’s viewpoint, and not your own.
Your questions can be formed through feedback you’ve received from perhaps your other customers or from other sales discussions that have developed your value proposition, if you’re honest with yourself about how you’ve performed in your previous sales discussions.
3. Remove or reduce the risk to the buyer
For example, can you offer a guarantee, or trial period to the buyer thereby removing the risk and making the buyers decision easier.
4. Do you have real clarity around your proposition and how it fits in the market space?
Being able to clearly define your proposition allows you to speak with confidence. As an example, this is the power of having a niche market – you know that market very well and you’ll know that your solution fits. You’ll also know your value to the people within that market space and be able to convey that value with confidence.
5. Demonstrate your market knowledge every time you go into a sales opportunity
Position your business to your prospect with relevance so by putting yourself in the shoes of your prospect you can use strong relevant benefit statements, not just features. This highlights your solution to their pain and their problem.
6. Know the likely objections you’re going to face beyond price
My sixth thought is that there’s usually only a handful of objections. Being able to predict them means you can instantly reply to any other objection and isolate the question of price. This in my opinion then creates a greater balance of value away from just the cost.
I would recommend that you rehearse your responses to all the common objections you’re likely to face so you can instantly respond with credible confidence.
7. Know that people are going to try and get the best price they can
My final thought to consider is that some sales prospects will try and negotiate and drive down your price no matter how to try to overcome their objection. So, have a reason why you have to hold a price rather than being in a position to offer a discount. Why? Because I believe that if you have this reason it creates empathy with your buyer, and they appreciate that that is the price. Therefore, they will consider that price against all the other value you’ve demonstrated.
And remember, it’s OK to walk away. If you value your product or service and have priced it fairly and competitively, whilst considering your audience, then don’t let it be devalued. Someone who chooses on price is likely to move on price and is therefore not your ideal customer. So as always I hope my thoughts have been useful for you and provided some confidence for your next sales prospect meeting. If you’d like to explore more, please visit my knowledge base or feel free to book some mentoring time for us to have a call.