Remove the dreaded price objection
One of the questions people ask me most often:
What can I do when someone says “Can you do anything about price?”
Well, one response is “Sure. I can put it up if you’d like?”
And this might work! But it mightn’t be for everyone. So here are some other things you can do:
Convince yourself. Most importantly, convince yourself that your price is fair. After all, If deep-down you think it’s too expensive, you won’t handle their concerns very well. And if you don’t think the price is fair, chat with someone about it – your boss, colleagues, customers… anyone. Help them 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 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 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 options. Don’t say ‘it costs £20,000 – want it or not?’ They might say ‘not’. Instead, offer 2-3 different 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 them saying “That’s too expensive. Can you do anything about price?” It’s a key part of your prep to be able to deal with this. 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 £1million 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?
• But we spend lots of money on other, less essential things – for example, X and Y. Why can’t we transfer budget from them to this?
• 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.
That means you’ve got a win-win. And that ensures you’ll keep trying and they’ll keep buying.
Got a price negotiation coming up? Prepare – a lot, if need be – how you’ll handle it. Remember, the first step is convincing yourself the price is fair. After that, it’s a question of working on the scripts you’ll say to present your price in the most compelling way.