Download - The Price Objection
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
"We're not the Lowest Price! Now What?"
Overcoming the Price Objection
Craig James
Sales Solutions
September 18th, 2007
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Agenda
How to use this medium Introductions Content Closing Q&A
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
“Your Price Is Too High!”
BYE, BYE,
BYE,BYE,
SALE!!!SALE!!!
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Cutting Price - Plusses and Minuses
+ Eliminates this objection + Gets us something + Shortens the sales cycle a bit - Giving money up cuts margin - Admitting customer is right - your
product’s not worth what you claim it is - Folding so easily sets a bad
precedent
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Can a Higher Price Be Better?
Conveys superior value Opportunity to prove your value,
earn bigger commission on sale
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Other Buying Considerations
Total Cost of Ownership (TCO) The bundle of benefits you offer
your product or service your company you
Avoidance of "psychic" costs less worry lower risk less work
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Is it Really All About Price?
Few prospects have as a goal to buy the “cheapest”
Most understand “you get what you pay for”
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
What is “Value?”
A fair return for something (money) exchanged
The monetary worth of something Relative worth, utility, or
importance
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
What is “Price?”
The amount of money given or set
as consideration for the sale
of a specified thing
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
What is the “thing” you are selling? Your product or service Your company You
Look familiar?
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Why is your price “Too High?”
Compared to What? Competition? What someone else paid?
Are we talking apples to apples or apples to oranges?
No reason? Just wants a “better deal”
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
What is your prospect thinking?
“Are you worth more?” If so, why?
“Maybe there’s something of value missing from the other proposals”
“With which vendor will I be getting the best deal?”
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Value Exceeds Price
Price Value
If we cut our price, the customer gets more value than he paid for
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Price Exceeds Perceived Value
Price Value
If we haven’t conveyed sufficient value, the customer will (justifiably) ask us to cut the price
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Reasons for asking for lower price
I don’t see the extra value for your higher price
I have a limited budget This is what I think the number
should be - period! You’re a vendor – I need to extract
my pound of flesh!
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Customer Doesn’t See Value
It’s our job to justify our higher price
BUT HOW?
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
What kind of questions?
Those that get at magnifying and quantify his problem What’s wrong? What if you don’t fix it?
Impact (financial, otherwise) What else might happen?
Impact (financial, otherwise)
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Then hit ‘em with Benefits! Faster... Better... More durable...
.......................................... and
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Your Unique Selling Proposition
What do we offer/do that they can’t get from anywhere else?
(high value capability/benefit)
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Three more ways to overcome the price objection
Add benefits to your offering Subtract costs from your offering Suggest additional risks of doing
business with your competitor
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Mission Accomplished
Price = Perceived Value
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
What if They Still Won’t Budge?
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Trade
“If I could....would you...”
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Tight Budget
“Help me find a way to pay”
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Stuck on a Number
“Refocus me on a concern bigger than money”
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Ego
“Let me think I beat you!”
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Summary
Requests for price cuts => need for more benefits to justify premium
Most know cheap doesn’t equal best, want good value, need to be convnced they’re getting it
Price is rarely the most important criterion (long forgotten after quality)
Drawbacks of unconditionally cutting price generally outweigh benefits
Be prepared to walk away
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
Sales Solutions
Service Offerings 1/2-day and full-day
Skill Enhancement/Sales Process Improvement
One-on-One Sales Coaching
Customized Sales Consulting
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Sales Solutions 877-862-8631. [email protected]. www.sales-solutions.biz
"We're not the Lowest Price! Now What?"
Craig James
Sales Solutions
877-862-8631
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