By Emma Snider,
The prospect loves the product and is convinced of its benefits. They're excited to work with your team on implementation. Everything's going along just as it should, until ... you give them a quote.
"It costs what?" "That's too expensive."
Sigh. Dealing with sticker shock is one of the most challenging aspects of a salesperson's job, but it's also one of the most common. Convincing buyers to part with their money is no easy feat.
Most salespeople agree that overcoming price objections is a matter of conveying value. If a prospect is balking at the cost, it's likely because the rep didn't adequately sell the benefit of their product or service. Many sales experts recommend backing up, dropping the price issue temporarily, and revisiting the value conversation.
That's sound advice. But how should a rep address a pricing objection in the moment? Here are 19 one-liners sourced from real salespeople, along with an explanation of why they really work.
"Expensive" is a relative term. If you can find out what the prospect is comparing your product or service to, you can more precisely differentiate value.
This prompts the prospect to break down their reasoning. Once a salesperson better understands the specific concerns behind the sticker shock, they can more easily address them.
Circle back and make sure the sales process unfolded to both parties' expectations.
Get them to think about the bigger picture. Reveal the hidden costs in the status quo.
This question gets to the heart of whether they are asking for a discount (budget) or payment terms (cash flow). Once the rep categorizes the objection, they can negotiate more effectively.
A fast track back to value.
Asking this (gently) prompts the prospect to explain their conception of your product/service. Hearing a response along the lines of "Well, it's a lot for just X, Y, and Z" reveals their low value perception.
Concerning because this product/service is so valuable for the cost. Nudge the prospect back to value.
If the prospect has any other objections the salesperson needs to address, this question will surface them.
What you're telling the buyer is that price is inextricably linked to value. So if a buyer doesn't want to pay full price, they won't be able to get the full value. This question might prompt them to reconsider.
You're not calling them cheap outright, but you are raising the question in their minds. And no one likes to be cheap, especially when their business is on the line. Alternatively, this will reveal if your product or service isn't the ideal solution for their problem.
If they say yes, you can follow up with #11. If they say no, determine if it makes sense to go back to value or abandon the deal.
This steers them away from thinking in terms of "expensive" or "cheap," and towards the long-term value for their business.
A lump sum can seem scary to anyone. Have figures on how the cost distributes over years, months, or days at the ready.
If your price is indeed higher than the competition's, this quesiton opens the door for the salesperson to differentiate on value. Another possibility is that the prospect has an inaccurate idea of what this type of product or service costs, and you can clear up their misconception.
Feeding their line back to them forces the prospect to explain their position, and might make them reconsider in the process.
Again, no one likes to feel cheap.
Empathize with the prospect, and then address their concerns with a strong case study that proves value.
If you're a B2B salesperson, this is a great line to have in your back pocket. The buyer's organization has to win deals too, and they probably do it on value and not just price. If delivered correctly, this line might elicit a chuckle -- and a signed contract.