price is too high

On nearly half of my proposals, my prospect tells me my price is high, can’t I do better? When I was just starting out, this really threw me. I’d tuck my tail between my legs and crawl back to my manager to get his approval on a discount.

Then I learned how to play the price objection game. First of all, I figured out that often the price objection isn’t real; it’s just a negotiating tactic. The prospect says my price is too high to test the water and see whether I will give. But that’s not always the case. Sometimes they really think my price should be less.

Now, when I present my proposal and the prospect objects to the price, I arch an eyebrow as if nobody has ever told me this before, and say:

“Really? Hmm. Why do you feel it is too high?”

When I do this, first of all I am making it clear that I don’t agree, and I’m suggesting that the rest of the world thinks my prices are right on the mark.

But more importantly, I am going to find out why the prospect thinks my price is too high.

  • Is the problem that he has talked to one of my competitors and they are offering the identical thing for less?
  • Is it an apples/oranges thing where I’m including more in my price than anyone else?
  • Does he mean that he doesn’t see the payback in terms of value?
  • Is the issue simply that my proposal exceeds his budget or capacity to pay?
  • Is this just something the buyer always says as a negotiation tactic?

I haven’t a clue why my price is “too high” until I ask. And once I know what he means by too high, I’m ready to go to work on the real issue.

Only when I’m convinced there is a fair, apples-to-apples comparison in which my price is out of line will I go back to my boss and ask for a special price.

A. Trotman, Celedonia, MI

Read in-depth articles about Responding to Sales Objections

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