Article Library — Selected Feature Stories

© 2002 Door & Access Systems
Publish Date: Winter 2002
Author: Bob Reed
Page 36

Your Price is Too High

by Bob Reed

When attendees at our sales training courses build a list of most frequently heard objections, price is often mentioned first.

Unfortunately, salespeople frequently respond to price objections in unproductive ways. They often become flustered, upset, and argumentative. They blame their own company for being out of touch with reality, or they bad-mouth the competition. These responses only expose a salesperson's weakness to a buyer.

You don't have to walk away or give the business away. You can make the sale at your price.

Objections are a Good Thing

When customers object, it means they are interested and need to buy or want to buy. Customers has every right to question or object, and they should expect price objections to be addressed in a straight-forward manner.

A price objection could be the real objection or a smoke screen. Either way, it is an opportunity for additional interaction.

It could be a tactic to frustrate you. Or it could be a test to make sure you offered your lowest price.

The customer may honestly feel the price is too high. Perhaps, quotes received from the competition are much less. Maybe you have not demonstrated the additional value in your product. Shame on you, not the customer.

Price is Only One Factor

If price were the customer's only consideration, salespeople would not be needed.

Yet, most buying decisions are not made on the basis of price alone. Surveys of customers consistently indicate that price is not at the top of their list. Company credentials, product quality, design, service, support, and delivery are sometimes more important than price.

Sell Value

Lower maintenance. Better appearance. 24-hour service. Better warranty. Longer life. All these criteria have value for the customer. Rather than debate price, talk about what these 'value-adds' would cost if purchased separately. What if these extra values were absent?

Value is in the customer's eyes, not yours. Focus on the customer's agenda and what he or she perceives as valuable. Once determined, your job is to help the customer see the added value in your product.

With IBM Corporation in sales and marketing for many years, Bob Reed (breed@salesconcepts.com) was also co-founder and president of an international consulting firm. He now works with Sales Concepts in sales and training delivery.