Has this happened to you? You developed
the perfect solution for the prospect's situation. You crafted a
comprehensive presentation and delivered it flawlessly. The prospect
was impressed not only with your polished presentation, but also
with your depth of knowledge about the industry. Your solution was
exactly what the prospect was looking for ... actually, more than
what he expected. There was only one roadblock - the price was
greater than he anticipated. If you would be willing to cut your
price, he would give you the "thumbs up" then and there. Otherwise,
he would have to think about it.
Situations like that are all too common. While you may not be able
to eliminate all price objections - there are some prospects for
whom any price is too much - you can eliminate most of them.
Let's examine six situations that
precipitate price objections and the actions you can take to avoid
them.
- The "price tag" of your
solution is out of line with your prospect's investment
expectations or budget limitations.
In this situation, price isn't the
problem; you are! You didn't uncover the relevant issues surrounding
the investment for your product or service - available budget,
funding, previous investments, and any current limitations - prior
to beginning work on proposals or presentations. Get all the
investment issues on the table before you begin crafting solutions
or developing presentations.
- The perceived value of
your offer is inconsistent with the investment.
If prospects view you as "just
another vendor" for the category of products or services you sell,
price will be the only differentiating factor between you and your
competitors. And, there will always be someone cheaper. In those
situations, price is not the problem. The problem is lack of
differentiation: your inability to develop relationships where
prospects recognize the value you "bring to the table" - value that
they would lose by dealing with your competitors. Find out what
prospects value - what would cause them to choose one supplier over
another - and make that the central core of your presentations. When
you provide prospects with something on which to focus other than
price - some aspect of your product or service, your company, or
your personal attention - price objections tend to disappear.
- You are trying to do
business in the wrong market.
The marketplace is ever changing.
Various market segments that once encompassed desirable prospects
may not present the same opportunity today. In that case, your
problem is not price - any price is too high to someone who doesn't
truly need your product or service. The problem is tunnel vision (or
perhaps lack of flexibility or creativity). Take off the blinders.
Broaden your horizons. Test the waters with new markets. Call on
markets you previously avoided. For every prospect who wouldn't buy
your product at any price, there is one who will - if you look hard
enough.
- You are attempting to sell
what you want to sell or what you think prospects need; not what
prospects want to buy.
People buy what they want, not
necessarily what they need or what you believe they need. If you
enter selling situations with preconceived notions about what you
are going to sell, you will miss the opportunity to sell what
prospects are ready to buy. Price may be the objection voiced by
prospects, but the real obstacle may well be your own rigidity. When
you make sales calls, leave your preconceptions in the car.
- The prospect perceives that
you are only trying to "make a sale."
You must have a genuine, sincere
concern for your prospects - and it must show. If you act and sound
like the stereotypical salesperson who is a bit too eager and
enthusiastic and appears to be out to make a sale at any cost, your
prospects will feel like the proverbial lamb being led to the
slaughter. In those situations, any price will be too high!
- You don't focus on the big
picture.
If your prospects view your product
or service as a temporary or quick fix, and not an integral part of
a long-term solution, the perceived value of the return on their
investments will be far less than what they are really worth ... and
less than the amount you're asking. If your strategy is to "get your
foot in the door" with an initial sale with the hope of securing
future business, then make sure the initial sale is specifically
tied to a predefined future relationship. Not only will prospects be
more willing to pay your price; they won't be looking for another
supplier while you're providing the temporary fix.
Don't blame prospects for "price"
objections. Instead, examine your attitudes, actions, and strategies
and make sure you're not creating your own "price" roadblocks.
©
Sandler Systems, Inc. All rights
reserved.
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