Customers always ask for a better price. In fact, every seller might have dealt with the pricing objection. Price is a deal-breaker or maker in your buyer journey. Sometimes a good prospect may leave the dialogue due to pricing objections. This is a major problem since it impacts business in the long run. A customer majorly can have reservations about –
- The value of the product
- The relevance
- Purchasing ability
Handling objections will be challenging for any seller. This can be handled successfully with resolve. You need to be able to solve these concerns and objections peacefully.
What is a sales objection?
Sales objections are any concerns that prospects could raise in the process of buying. It arises from the lack of the buyer’s capacity to purchase. An objection is when a buyer or prospect raises concerns about the price or value aspect of the product or service. Objection handling means alleviating customer concerns and responding to buyers to influence their decision to purchase.
Here are the top 5 Customer Price Objections
#1 Objection: “It’s too expensive.”
Answer: We help you solve this X problem with our valuable Y feature. Add a point on its merits and value.
Note: You need to focus on value instead of only pitching yourself as a salesperson.
#2 Objection: “There is no budget left this year.”
Answer: How about we reschedule the call to a time you’d have the funding. Is it possible for you to let me know when shall we connect? Note: You must ensure the customer sticks around with the brand today or tomorrow.
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#3 Objection: I am not comfortable with this contract.
Answer: That’s ok. Let us go through other types of contracts and payments. We are flexible to see that we could be a better fit.
Note: If the prospect has cash-flow problems, you can keep their genuine interest and need in mind.
#4 Objection: We are working with the competitor brand already.
Answer: What is working well with them? Is there some aspect you are finding difficult? We are different with <value proposition>.
Note: These customers are resourceful since they already know the problem. This can help sellers showcase how they are doing the solution differently.
#5 Objection: Competitor brand said this about your product
Answer: That’s not true. We have <value proposition>.
Note: Your prospect needs to know that you have a strong value proposition. You need to be confident and sure about the product.
Top 5 Tips to handle price objections
Here are the top 5 tips for handling price objections-
The price must not be the first thing you talk about
Sellers must not introduce prices early in the conversation. You must put the value first and disclose it later. If you put the price out early, you can face multiple concerns. Hold off price talks till you know the prospect appreciates the product. Pricing decisions must not be the first aspect of the discussion. You need to use sales enablement tools, case studies, and testimonials to showcase your product’s uniqueness.
Be an active listener
Sellers must be active listeners. You need to listen to their concerns and problems. Active listening is when you take their issues to heart. Listen carefully, find their problem, and then respond to them. You need to give prospects and customers the space to express their problems and objections. Being an active listener is a great skill or trait that all sellers must develop.
Put value first
Your customer looks at the value- nothing else matters. Start with the product discovery and motivations of the buyer. You need to put customer issues first and match the value accordingly. The prospect must be able to understand their value correctly. This will influence their buying process. You need to work with prospects to see what the success and value look like. You need to ascertain the product’s value and not go lower than X price.
Keep track of any discounts you have given
If you have given other buyers a discount, keep that in mind. It is normal for buyers to look at various pricing sites and discount sales. This will help buyers ask for discounts. You must either meet the discounted prices or lose out on the deal. This is because the discounted version is now considered the product’s real value. Don’t go lower than the value you decided on for the product. You need to hold your ground and keep the pitch clear and sure.
In either case, sellers must be confident while dealing with money. You need to plan your comebacks and know the answers to tough questions. You must be confident about the value of the product. You must stick firmly to how your product is super helpful for their problem. However, you also need to know when the lead is wrongly qualified.
In some cases, the lead might not be the right fit. This can clog the sales pipeline and bring down resources. So you need to be confident and make a call on the effectiveness.
The primary keyword for handling price objections is value. You need to put value first and not drop your price so low that it is problematic. Be confident in the product and the value it offers. You must find answers to the questions and close more sellers by overcoming price objections.24
You need to focus on the customer experience part of it as well. Keep testimonials and case studies ready to ensure buyers are convinced. Either way, you need to be confident and sure about the product and its value.
You might also like:
- The Ultimate Guide to SaaS Pricing Models – Let’s take a dive into this ultimate guide to SaaS pricing models and learn about different pricing models that can help you grow your business.
- To see how SmartKarrot helps B2B companies streamline and scale customer success, Request a Demo.
Stanley Deepak is an accomplished sales and marketing professional with 15+ years of experience. He loves tech products and book reading. He writes on philosophy and culture on LinkedIn.
Published July 08, 2022, Updated March 02, 2023