"Your Price is Too High" - Handling Price Objection

"Your Price is Too High" - Handling Price Objection

Due
to the lightening fast growth of companies selling products on Internet
websites, discount warehouses, catalogs, and new competitors - offering
low-prices to your prospects and customers, this objection is being heard more
often.

USE
THE CIA TO HANDLE A PRICE OBJECTION

No,
not the Central Intelligence Agency, but Cushion, Isolate, Ask.

1.Before you say anything else, use a Cushion
statement.

Comments such as “I see,” or “I understand,” let the prospect know you
are not going to argue. Follow up immediately with #2.

2.
Isolate the objection by asking questions.

A) Find out if there are other concerns.

B) Focus on qualities, which are important to the customer: good service,
product knowledge,
quality products or fast delivery; you can concentrate on these benefits, rather
than price.

You can say: “If it weren’t for that, you would go ahead and order from
us?” or “Assuming we agreed on
price, what else is important to you?”

Important: After you ask an isolation question, don’t speak until after the
prospect answers you;
even if the silence feels uncomfortable. You need to know the answer to your question.

3.
Ask about their purchasing habits.

By
asking about the customer’s habits, you will learn about their purchasing
motivations. Such as, what they are comparing your price to, what they buy,
how
often, whom they buy from, the quantity, and what they pay. When you learn what
they are paying now, you will know if you can match the price or provide
something extra to make up for the difference.

QUESTIONS
TO ASK AND WAYS TO ANSWER BACK

Example:

“How are you purchasing this product now?”

(This
is an open-ended question, which should give you more information than a
closed-ended question).

Or
you can use one of the following:

“Unfortunately,
our price on that product is not competitive, but we have an excellent price on
the [insert a competitively priced popular product]. We have those in stock and
I can ship it out to you this afternoon. Do you need one of those today?

You
can repeat the objection: “Too expensive?”

Don’t
say a word until the prospect speaks; wait for them to explain – to tell you
what they are comparing your product to and what price a competitor is selling
the product for.

ATTACH
VALUE

It
may be that the price objection is an expression of concern or a request for
more information.

It
could be that the prospect is not aware of the value attached to what you are
selling. In other words, is he/she getting only the product from you? Or
are they getting the benefit of buying from a stable and reliable company, with
experience in the industry, product knowledge, good customer service,
convenience, fast delivery, and other valuable benefits?

The
prospect may not realize what buying from your company actually means – what
else is included along with the product. Tell prospects about all the
benefits they get when they buy from your company. Add credibility to your
company by offering to fax testimonials from happy customers.

After
responding to the objection, re-state the key benefits you offer and ask for the
order. Think about this:  Results of a survey by Consumer Reports Magazine found that
73% of consumers buy for reasons other than price.

Writer’s
Disclaimer

This
article was submitted by, Ann Barr. Ann Barr is president of SellingSupplies.com.
You can contact Ann by emailing annbarr@sellingsupplies.com.