Price objections are the most dreaded hurdle in a prospective sales deal. It appears like a big letdown for the sales representative who feels he was on the verge of closing a sale and the opportunity might just slip out of his hands. However, seasoned sales experts believe that price objections are disguised sales opportunities, and do not imply rejection and refusal to buy. Price objections indicate an inclination to buy the product, but perhaps the price quoted seems unjustified. They can therefore be handled in various ways so as to retain the prospect and close a sale.
Ways to handle price objections
- Convince further- A price objection is an indication that the prospective buyer is not entirely convinced about the product. Therefore, he needs to be convinced more about its qualities, superiority over other similar products, durability, customer service and so on.
- Negotiate and leave price till the end- The battle to be won is negotiating the details of the deal and keeping price undisclosed till the end. This helps since there is no room for price objections, that is, preventing rather than curing.
- Be well informed about competitor prices and products- A commonly used reason for price objections is lower prices of competing products. It is for the salesman to be aware of competing products, their prices, and arguments to prove that he is selling a superior product. He must add the better customer service, warranties, delivery and other services to his product, to make it a more appealing package.
- Prepare a case to justify prices- When price objections are anticipated and dreaded, it is imperative that counter arguments are prepared beforehand. A well articulated argument has a better impact than one presented on the spur of the moment.
- Be convinced as a salesman to convince others- The best arguments can be provided only when the salesman himself is convinced about the price. It is only then that he can provide a convincing argument to counter price objections.
- Focus on value more than price- While countering price objections, the focus has to be on the value and utility of the product to justify the asking price. Another way to establish value is by checking what benefits are sought by the customer and how they these can be converted into value.
- The last resort-switch to another product within the customer’s price expectations- When no other argument works, one option may be to reduce the price. This has its own issues, since it counters all arguments presented before, and dilutes the value and brand image of the product in question. The last resort then, in a desperate bid to sell, is to offer a slightly lower grade product which fits in with the customer’s budget. Chances are, that he will agree to the better product at the old price and forget his price objection.
Price objections are a part and parcel of a sales deal, and it is for the salesman to counter them effectively, while respecting the customer’s viewpoint and amicably closing the sale.