Most of your clients will want to pay less than the prices you’re offering. Here are some sales tips you can use to handle the situation.
“Your prices are too high!” As a sales person, you’ve probably heard this objection stated repeatedly by various clients. In fact, it’s probably the most common objection you’ll hear over the lifespan of your career. Regardless of the sector you’re in, you’ll hear this sentence uttered time and time again. The fact is, almost all of your clients will want to pay less than the prices you’re offering, no matter how reasonable those prices are.
Though it may be difficult to overcome, this objection isn’t always a deal breaker. However, the way you handle it can make or break the sale, and either build or ruin a long-lasting and profitable relationship with a client. Here are some sales tips you can use to handle the situation.
Unfortunately, your own mindset can be the problem. If you personally believe that your prices are too high, you’re going to have a hard time convincing your client that it’s a good deal. One of the first sales tips we can share with you is for you to change your price perception by finding competitors who are pricing their products or services at a higher rate. If you can’t find a competitor with higher prices, then start listing off all of the benefits the client is getting out of the deal. You’ll quickly understand the value of the offer and realize that your pricing is actually quite affordable considering what the client is getting out of what you’re selling. You must be 100% committed to the sale and believe that your pricing is affordable and realistic if you’re ever going to convince your client of the same.
Before giving the client any written offer, verbally propose approximate prices and see what reaction you get. If there is a strong objection, you’ll be able to deal with it face-to-face and hopefully come to some sort of pricing agreement. If you send over a written offer off the bat and the client thinks the prices are too high, there’s a good chance that he simply won’t call you back rather than having a conversation about the prices with you.
“Too high” is a subjective statement. When you hear that dreaded objection, you might automatically associate the phrase with a specific number. If you assume that the client is thinking your pricing is 20 or 30% too high, you will provide discounts according to these assumptions, when in fact, your client may agree to a lower discount.
Instead of assuming you know what your client means when he says “too high” and providing lower prices, try to get him to elaborate. Just staying silent for three seconds after the objection can be enough for him to volunteer that pricing information on his own.
Once you hear an objection about your prices, there’s no reason to start getting defensive. The client might already think that stating it automatically means you’re going to be in a showdown. Instead, show him you’re on his side by thanking him for bringing up the pricing issue and that you appreciate him sharing it with you. Of course, the client has the right to raise objections over prices if he believes they are too high. Instead of starting a confrontation, work with him to figure out what you need to do to close the sale and ask questions to understand how you can make the relationship work.
If you’ve talked out the pricing issue, asked the appropriate questions, and realized that you simply cannot offer the type of discount the client is looking for, don’t be afraid to move on. This is one of the most important sales tips we can give you about price negotiations: sometimes, it’s just not worth the sale and you have to walk away.
Rhys is a tenacious, top performing Senior Sales Recruiter with 15+ years of focused experience in the Digital Media, Mobile, Software, Technology and B2B verticals. He has a successful track record of headhunting top performing sales candidates for some of the most exciting brands in North America. He is a Certified Recruitment Specialist (CRS) and has expert experience in prospecting new business, client retention/renewals and managing top performing sales and recruitment teams. Rhys enjoys spending quality time with his wife, son, and daughters, BBQing on a hot summer day and tropical vacations.