Here’s something you probably know already – price will always be a factor in any sale. And here’s something you may not have known – it is rarely the deciding factor.
In fact, our research suggests that there are only three reasons why a price objection ever comes up. Learn why and you have a better chance to present your more expensive solution.
Even though your solution may be more expensive than your competitor’s, you must still be competitive. What we mean by that is that while most people are prepared to pay more, they’re not prepared to pay a lot more.
Everyone’s price differential threshold will be different. Some people are prepared to pay ten to twenty percent more for an inexpensive item from someone they like, while the price differential is substantially smaller for expensive items (i.e. one to three percent for an automobile). Basically, your price can be higher if you’ve created enough value to the transaction.
To successfully use this technique, you must be prepared with a list of things that the prospect might consider as being equal to or more important than the price. Typical things might be product quality, delivery, installation, after-sale support, replacement costs, ease of use, long-term cost savings, reliability, years of experience, reputation, responsiveness, hassle-free service, warranties, guarantees, replacement or return policies, service or parts availability, toll-free number, industry experience, free services, after-hours support, personal attention, etc.
The strategy is to have the prospect confirm that, while price is important, it’s not the most important consideration in the transaction.