Sales leaders and managers have heard their reps complain about a slow week, month or quarter because their prospects don’t have any money. Additionally, these same reps keep getting turned down due to their solutions’ price.
This is one of the top objections sales people hear and yes, it is a real objection. But it isn’t the real reason why sales professionals don’t close deals.
Price is simply not the issue, or an issue 99 percent of the time.
It’s just that prospects don’t see the value in a sales personor their product,and how it solves their problem. If the solution really solves the prospect’s problem, they would more than willingly pay for the answer and more importantly, the execution of that answer.
So, when sales reps hear a price objection just know it’s not a problem with the prospects or their budget. It is a problem with you. Prospects are just being courteous by saying they have budget issues to not kill your mojo. If you are lucky, you will have a candid buyer who will tell you that they just don’t see the value in it.
I was on a call with a client recently, and we were discussing this same issue.
They were putting way too much emphasis on the price instead of their solution’s worth. When you quickly drop the price, you are just as quickly telling your buyer, “Yeah, my product or solution isn’t really worth $50,000, it’s really more around $35,000. We were just hoping you would go for the 50 number.”
Dropping price does not raise the value, it decreases value.Note, there is the exception that maybe their problem isn’t expensive enough for them to buy your solution. Find out how costly it is to them not to fix this problem.
Elevate Your Unique Value Proposition
There will always be a competitor down the street that will do it for less, so remember that you will never win the price battle.
What you do control however, is you can always be better and bring value to the buyer than your opposition. You both provide the same service, but you can build better rapport, have a better track record and make the customer feel more comfortable with you.If you do, they will pay the steeper price so they can sleep at night knowing you will protect their investment.
To put a bow on this, when you hear a price objection, don’t focus on the price and the prospect’s budget.
Instead say, “Okay. The value isn’t currently there, let me back up for a second. How can I elevate their opinion of the value of our solution to the challenge they are facing?”