Your Price Is

Too High!
How To Overcome
The Most Frustrating Sales Objection
‘Your Price Is Too High!’ How To Overcome The Most Frustrating Sales Objection

A price objection is the quickest way for a prospect

to get rid of a salesperson.
But a price objection shouldn’t mark the end of a discussion.

Instead, salespeople need to acknowledge price objections for what they really are
– bargaining tools used by prospects.

Top sales professionals in every industry are seldom

Why They Buy:
Price ranked No. 8
A survey by Alpha Marketing
identified the leading
reasons why customers buy:
the ones with the lowest price. They know that selling
is not about getting the lowest price – it’s about
offering and properly communicating the best value.
Value is the emotional combination of price, quality
and service.

1. Credibility What a price objection really means

2. Quality When salespeople proactively sell value, they can more
easily avoid price objections. Customers are far happier
3. Company reputation
when they’re comparing products/services based on
4. Level of service & value than when they buy on price alone.
support
When customers seem overly concerned with price,
5. Reliability of they’re often telling salespeople they’ve failed to
salesperson differentiate the product/service from those of their
competitors.
6. Responsiveness to
complaints If a product/service doesn’t stand out from the
competition, price becomes the determining factor in the
7. Ability to meet
buying decision.
deadlines

8. Price

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‘Your Price Is Too High!’ How To Overcome The Most Frustrating Sales Objection

What can go wrong

Some salespeople use price as an excuse for a poor selling job. Price objections may raise
a red flag indicating something else is wrong.
Here are some questions to ask yourself to analyze price objections:

• Is price more of a problem for the salesperson than the customer?

Top salespeople know that selling is about offering the best value, not the lowest
price. They uncover the prospect’s needs, analyze the costs associated with those
needs and translate features of the product/service into customer benefits.

• Is there insufficient differentiation?

The “we can get it cheaper elsewhere” comment usually indicates the salesperson has
failed to separate him/herself from the competition in ways that grab the prospect’s
attention. If salespeople selling the same products or services are all viewed alike,
then price is the only factor separating one from the other. Unless a product/service is
clearly differentiated from its competitors, the price issue will be a constant problem.
Prospects are willing to buy products/services based on value – not price.

• Are salespeople out of step with prospects?

What salespeople want to sell isn’t as important as what prospects want to buy.
Price objections occur when the product/service doesn’t meet prospects’ needs.

• Did the salesperson anticipate the prospect’s arguments about price?

Some prospects open with unreasonable demands just to see how a salesperson
will respond. Successful salespeople view pricing as a problem-solving process,
exchanging ideas and information, and generating creative trade-offs and
alternatives to reach a win-win conclusion.

• Did the salesperson discover the leverage points?

Salespeople have more leverage than they think. Customers usually won’t tell them
about scheduling problems or quality issues with completive products. It’s up to the
salesperson to determine why the prospect is (or at least should be) interested in
their product/service.

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Malvern, PA 19355 © 2018 ResourcefulSelling
800-220-5000 All rights reserved.
‘Your Price Is Too High!’ How To Overcome The Most Frustrating Sales Objection

7 strategies to overcome price objections

Here are seven strategies used by top salespeople to lessen the influence of price on a
buying decision:

1. What’s in it for me?

The prospect is always asking this question. The answer is to offer benefits, not
features, as the reason to buy. Rarely is any one feature worth the price, but it’s
possible that one benefit justifies the buying decision.

2. Cost-benefit ratio.
The prospect’s buying decision will be based on perceived value in relation to price.
Value or benefits are not in the product but in the prospect’s mind. The salesperson
has little control over price, but has control over presenting the prospect with
enough reason (i.e., value) to buy.

3. Buying is an emotional process.

The strongest emotions often are based on past negative experiences involving
service or quality. Ask questions to find out the prospect’s past dissatisfaction with
service or quality and show how you’ll do better.

4. Justify your price.

The price can be higher than the competition if the prospect feels it’s justified in
terms of the value and benefits offered. The best way to justify the price is with
more benefits. Rarely will price be the dominant factor.

5. Preempt price.
If, to a prospect, your price may seem high at first, you can soften its effect by
preempting it. One way to do this is to bring up the subject as a benefit and justify
it before the prospect complains about price. In this way, you minimize potential
objections.

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800-220-5000 All rights reserved.
‘Your Price Is Too High!’ How To Overcome The Most Frustrating Sales Objection

6. Keep your composure.

Because price is the eighth most important factor in selecting a product/service, you
shouldn’t lose composure when the prospect starts pressuring. The prospect may
just need help in justifying a higher-priced purchase to their managers.

7. Add value to every presentation.

Every time you are in front of a prospect, it’s an opportunity to add value and push
price to the background. To do that:

• Understand how the value of the product/service links to the prospect’s

business. The ability to determine which benefits will help a prospect
the most and translating them in a way the prospect can appreciate will
overcome price objections.

• Calculate the impact the absence of your product/service will have on a

prospect’s business. How much more money will a prospect spend by not
using your product/service?

• What is the impact of your solution compared to a price-cutter? Competitive

pricing is only a click away these days. Pinpoint the value you offer that
price-cutters can’t.

By the editorial staff of ResourcefulSelling and The Selling Advantage.

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Malvern, PA 19355 © 2018 ResourcefulSelling
800-220-5000 All rights reserved.
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