Overcoming the Price Objection

"I just can't afford it". "My budget won't allow for that kind of expenditure". I'm sure these and similar statements rank in the top three objections your potential customer uses to end the sales process. There are those times when it's actually true. In most situations, however, it's conveying something else entirely. Such as, "I don't have enough information yet to make an informed decision." Tell me more".

Too many of the people with whom we deal are paid to get the best deal they can. And that means asking for a better price, even when they know they are getting a great deal. And, human nature being what it is, it's only natural for many people to try to get the best price that they can.

That being said, it is still possible to reduce the number of times we hear it, and, perhaps more importantly, it is possible to reduce the intensity of the comment. In other words, we may still hear it, but many of our customers won't mean it as intensely as they once did.

While we can't control our customers, we can control our behavior. And many times it's our behavior that prompts the customer to ask for a discount. By changing our behavior, we can impact the customer. Here are five specific strategies to help you prevent the price objection, by focusing on our behavior.

1. Look like you are worth more.

Our appearance impacts the customer's subconscious view of our value. If we look like we don't value ourselves, it's natural for the customer to assume the same about our product. 

If you look confident, competent and successful, you send the subtle message to your customer that you, and your offering, is worth a little more. You just look like you are less likely to discount your price in order to get the order. Practically speaking, that means to dress like your customer, only a little better. Project a demeanor of a successful, confident salesperson.

2. Believe in your price/value relationship.

Do you believe that your offer represents a good value to the customer? If you don't, it will be difficult for you to convince the customer of it. You don't have to believe that your product is the best or that your company is the best. You just have to believe that it is a good value, giving the customer his or her money's worth. More people buy Fords than buy BMWs. It's not about being the best; it's about a good value.

This can be difficult if you, in your personal life, are a bargain shopper. If you refuse to pay the asking price for anything and won't buy it if it's not on sale, then you'll have a difficult time convincing your customer to pay the full price for what you are selling. Your core beliefs will influence your behavior, and be communicated to the customer in a number of subtle ways.

To counteract that tendency, carefully examine the offer you are making from the customer's point of view. Do whatever it takes to convince yourself that it is a good value to the customer, worth every penny the customer will pay.

3. Don't inadvertently sow the seeds.

Sometimes we can blindly sow the seeds of discontent with our stated price by our poor choice of language. For example, when we say things like, "This is our retail price," "This is our rack rate," "This is list price," or other such terms, we immediately convey to the customer that there are other, lower prices, available.

We have inadvertently encouraged the customer to ask for a discount. The word "price" doesn't need an adjective to describe it.

4. Don't advertise your willingness to discount.

Sometimes, in our eagerness to make the sale, we advertise our willingness to make price concessions in order to secure the business. We say things like, "We'd be happy to discuss pricing with you." Or, "We may be able to do better." Or, "If you give me the last look, I may be able to sharpen the pencil."

5. Be careful about  discounting but be prepared to do so .

If you discount your prices in response to a customer's request, on even one occasion, you have conveyed to the customer the idea that your quoted price is not your final price. Now, forever in the future, the customer will remember that you can discount when pressed. He will, therefore, press for discounts. If, however, you never discount from your quoted price or you establish a price that is customized for that client, you convey that there is some integrity in your pricing, and that you are quoting him your best price and you're willing to adjust for their particular needs or constraints.

It's OK, on some occasions, to walk away from a piece of business rather than to discount in order to get it. The net impact is that the customer respects your pricing, and is less likely in the future to ask for a discount. Then again, a discount might be the only way to secure a deal. In businesses that are just beginning to establish a price point, experimentation might be necessary to find the optimal range. If you have a vast amount of potential clients out there then promotional pricing should be part of the strategy.

If you get almost every deal, your prices aren't sufficiently high. You need to lose some in order to gain the customer's respect as well as a sense of where the market price is. No matter how you look at a price point, the bottom line is the sale.

I've often thought that the idea of asking for the opportunity for a "last look" – which most salespeople strive for and proudly proclaim as proof of a good business relationship – is merely another way of saying that you'll discount the most. Why would the customer give you a "last look" if he wasn't expecting you to discount some more?

It's so easy to complain about the customer and the constant pressure to reduce our prices. It's the thoughtful salesperson who understands that our own behavior can often be the cause of the price objection. Change your behavior, and you'll improve your results. As you’re looking at yourself, don’t forget to look at who you’re selling to as well. Some businesses are genuinely constrained in the amount they can spend. It is up to you to decide if this is a valid concern.