How to handle the dreaded price objection

Contributor - Andy Bounds

Date: 24 October 2016

How to handle the dreaded price objectionI am often asked how to respond when clients quibble about price. If a client asks you to do something about the price, you could always offer to put it up!

If that doesn't work, there are a number of other things you can do to avoid discounting and help you turn a "no thanks" into a "yes please".

Convince yourself. It's essential to convince yourself that your price is fair. If, deep down, you think it's too expensive, you won't handle their concerns very well. If you don't think the price is fair, chat with someone about it - your colleagues, customers… anyone. Ask them to help you feel comfortable about it.

Discuss price last. If I tell you the price of something is £20,000, do you think that sounds like a good deal? Well, you can't tell, can you? It depends what you're buying - it's cheap if it relates to a new helicopter; but astronomically expensive for a sandwich. So, focus first on the thing you're selling. Be clear on the benefits it'll bring them, and how valuable these will be. When you then mention price, they see it in context, and that it's cheap compared to the value they'll be getting.

Provide choice. Offer two or three options, each with different price-points. That way, if they think one price is too expensive, they can choose a cheaper option.

Be prepared. Pre-prepare your response to price objections. Here are a few ideas:

  • "It depends what you compare it to. We've agreed that a successful outcome to this project is worth over £1 million to you. The price is only £20,000 - that's a Return On Investment of 50:1"
  • "I could reduce the price if you wish. What part of my proposal would you like me to remove?"
  • "Yes but how much would it cost if we did nothing?"
  • "Yes but how much would it cost if we did nothing, and our competitors did something?"
  • "The biggest cost here is if we did nothing. How would you advise we overcome this?"

There are some people who enjoy discussing price (though, in my experience, not many). But it's an essential skill to master. Yes, your customers want to feel they've got a good deal. But so do you. So, your aim is to arrive at a price that both of you think is fair.

You need a win-win. And that ensures you'll keep trying and they'll keep buying.

Copyright © 2016 Andy Bounds is a communications expert, speaker and the author of The Snowball Effect: Communication Techniques to Make You Unstoppable. You can sign up for his free weekly tips. This blog first appeared here.

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Andy Bounds

Awarded the title Britain’s Sales Trainer of the Year, and described by AstraZeneca’s Global Communication Director as “a genius, whose advice can’t be ignored”, Andy’s insights stem from the fact his mother is blind.