8 Sales Objections to ‘It’s Too Expensive’
Customers always try to negotiate the price and it’s a normal practice. In some cases, clients even use objections to avoid the deal. At the same time, your primary goal should be to explain the value and increase profit. By explaining the price of a product or service, you address B2B customers’ pains and increase the chances to sell your products/services.
Here we explain how to address customers’ objections related to price.
If you hear the objections like “It’s too expensive for me”, “I can’t afford this” or “This purchase is out of my budget”, you may ask your customer how he/she came to such a conclusion. If your customers make this statement, this means that they compared the price of your products/services to those of your competitors. You need to present them with the arguments on what makes your company stand out of all other similar businesses.
Explain the Quality
Sometimes customers don’t understand the reasons for price differentiation. High-end products/services are priced higher than their low-end alternatives. You may try to explain why your price is exactly in this range but not the other. If your explanation doesn’t help persuade your prospects, you need to either switch to another segment or reconsider your pricing policies. Some customers use this objection to have a discount. Therefore, think about the final price and the maximum discount you can offer.
Ask for Their Reasoning
If you hear an objection related to product/service price, the best response is to ask for their reasons that led to this conclusion. By asking this, you can derive more information about customer’s preferences, attitudes, and lifestyles. Also, you can analyze which components of a product/service are well-developed and which fail to meet customer needs. This helps better understand their way of thinking and logic. If you know customers’ concerns, you can better address the issues of pricing.
Discount or Payment Terms?
There are two reasons for raising the objection related to price: customers may not have enough money to make a purchase or try to negotiate payment terms. Your goal is to get to know whether the price is high for the customer, or he/she is trying to negotiate different payment terms. In the former case, he/she wants to have a discount. The latter case means that a customer may want to split the payment into several parts. Consider your capabilities and decide what will work better. This will make negotiations more effective as you can potentially offer better payment conditions.
Try to get more information related to the concerns raised by your customers. For example, a possible reason for objection is a set budget. Talk to your customers more and ask a lot of questions. Sometimes companies allocate funds for purchase and set another budget for maintenance, but you will never know this if you don’t ask them. Use your creativity to offer several solutions as you’re interested in sales increase.
Customers appreciate when sellers are flexible. You can bill them in stages: one part should be paid in the current month and charge the second part the next month. This is one of the ways to rescue the deal without decreasing the price.
Refer to Their Pains
Each product/service solves some problems, but sometimes customers forget about this. You can remind them about the benefits to justify such high prices. Showing the bigger picture will help your clientele visualize its advantages and make the decision faster.
Remind of the Leverage
B2B customers buy products/services to leverage their businesses. Compute ROI in advance to play your trump card in case of necessity. Let them consider this purchase as a long-term investment, and they may change their opinion regarding the price. Customers may change their minds if they understand that your product/service can help them earn more, improve the working process or cut expenses.
To summarize, customer concerns related to the product/service price arise from the lack of information or communication. Strong ties among buyers and sellers help discuss product value and reveal product/service deficiencies. Experienced sales managers can explain the value of the product/service and persuade customers to buy disregarding the price. However, this is not always the case. Therefore, you should take efforts to develop trustworthy communication with your clients to address their concerns and offer effective solutions.
Originally published 2021.01.11 , updated 2021.01.19