Lowering price or throwing in add-ons are sometimes not the best methods to respond to price objections. Although all sales involve negotiation, usin
Lowering price or throwing in add-ons are sometimes not the best methods to respond to price objections. Although all sales involve negotiation, using these tactics overlooks the reasons behind most price objections, which is that in the prospect’s eyes the value is not quite at the level of the outlay required to obtain a deal. Great sales people use the three tactics below to respond to price objections without cutting into margins for their organizations or their own commissions.
A great sales person who has spent time enough with a prospect to know that he or she is committed to moving forward with a deal and has the support of his or her organization knows enough to suspect that price objections are really masking another reason for hesitating on signing a contract. Follow the lead of great sales people in dealing with these price objections and dive deeper into why a prospect may be raising price as a reason for not moving forward:
Once great sales people have explored all other avenues, if the price objections remain it is possible that the objection to price can cause the prospect to walk away from the negotiations without making a purchase. It is crucial for great sales people to find out whether this is a possibility before the prospect begins to distance him or herself from the deal. Great sales people handle this by:
Big ticket sales cause pressure for prospects, especially if a prospect is worried about how his or her organization will react to the changes that a product or service may introduce. In other cases, it’s only the number that a prospect is worried about. In either circumstance great sales people help prospects overcome price objections by putting the price in a different perspective relative to value using tactics like amortizing the price and creating timelines that compare the price against the potential gains in revenue or margin. Using a combination of all of the above tactics, great sales people are rarely stymied by price objections.
Claire has 4+ years of experience in sales and recruitment. As a Director of Client Services, her main objective is to connect great people to great companies by building strong relationships with both top clients and candidates in the sales industry. She specializes in sales roles of all seniority levels for both enterprise and start-up clients North American wide. When Claire isn't networking with top talent, she enjoys being outdoors, traveling and spending time with friends & family.