We are all too familiar with this scenario: you’ve been working with a customer for awhile. They’ve been very interested, asking plenty of questions and going into detail about their specific needs. It comes time to submit the retainer or sign the paperwork and the customer stops cold. Why? The price is “just too high.” UGH.
Price objections are all common when you’re dealing with big-ticket purchases. From choosing the perfect home plan to selecting the perfect furniture, customers often fail to realize what the cost is going to be when they actually step up to make their dreams reality. Instead of letting sticker shock chase away your customers, utilize these key tips for working through price objections.
1. Thank them. Start off by thanking the customer for bringing up the objection. (no matter what it is) We can’t address an issue if we don’t know about it. I like to say something like, “Thank you for bringing that up. This is the perfect time to talk through the investment.”
2. Build Value The best way to build value is to clearly establish motivation right up front by asking customers, “What is going to be most important to you?” Once you have this information you can start building value. Discuss the benefits of the home that go far beyond its walls: the neighborhood, the schools, the proximity to important things that the family will want to visit. If you’re remodeling or redesigning a room, discuss the benefits to the family. The more value your customer sees, the more they’ll be willing to spend on it.
This process may begin before you actually speak with a customer. Everything from your to your emails should be focused on increasing the value your customer views in your services and products. When a customer thinks well of you and the work you’ve done in the past, they’ll be more likely to be willing to work past their price objections.
3. Don’t respond immediately. One of the biggest problems with price objections is that salespeople respond to them too fast without the customer having the opportunity to say what they need to say. Instead, take the time to clarify the customer’s objection. All it takes is a simple. “Tell me more about that.” Next step . . . listen closely.
4. Clarify the reason behind the objection. Chances are, you’ve spent plenty of time getting to know this client. You’re invested in the sales process. Now, you want to get to know them a little bit better: deepen your understanding of why they’re objecting to the price. Is the price really outside your customer’s budget, or are they just protesting to see if you’ll come down? Do they understand all the little details? When you understand your client’s unique objection, you’ll be better able to work through it with them.
5. Always equate price to value. The truth is, in most cases you really do get what you pay for. It is the responsibility of the sales person to be able to explain the many benefits of using their product or service as long as the benefits tie directly back to the needs of the customer. A cheaper product can actually end up costing more in the long run. Use third party testimonials to help customers see what a higher quality produce may cost a little bit more, but is a great fit for them in the long run.
Price objections don’t have to mean the end of a sale. In fact, I believe they are truly an indication of buyer interest. By working through them effectively with the customer, you can get to know their needs better and create an exceptional buying experience.