Is the price objection really an objection? Will you need to lower your price to get the order? Is this just a buying ploy? You have no idea until you ask what’s behind “Your 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
Do you have a great tip for Strong Closer Readers? Click HERE to submit your tip, and we’ll let you know if we can use it.
Thank you, and be sure to include your:
- First initial
- Last name
- State or province
- and Country if other than the US.