“It’s too expensive.” “ I can’t afford to pay that much.” “ I’m going to shop around and get more quotes before making my decision”. When you’re faced with these responses how do you avoid competing on price?
Firstly, realise that few buying decisions are ever based on price. Okay, they may be if you are shopping around for baked beans or something that is an every day commodity. But when it comes to investing in knowledge and support to grow a business, pricing is rarely the issue in making the decision to buy from you.
Secondly, if you lower your price to meet what is a pricing objection, this can devalue what you do. In turn, it can make you feel resentful in not getting paid what you know you are worth.
How do you overcome a pricing objection?
- Take your prospect through the true value of what you have to offer, step by step. Spell it out to them so they know why you have priced your services fairly. This justifies your pricing to their way of thinking.
- Point out that if you reduce your prices, it will lead to a poorer service due to your resources becoming over stretched. This will weaken their return on investment and this is not something that you want to happen.
- Have your prices written down and be sure of your profit margin.
- Have a written policy on discounts – which can be that ‘we don’t give discounts’ and stick to it.
- Have an incentive you can offer to add value that will turn their indecision into a decision to buy.
Remember – When that difficult moment arrives and you’ve presented your price, they will be mulling it over as they study the bottom line. At this point, do NOT say a word. Silence is golden. You’ve named your price. You do not need to justify it. If you’ve done your job well, they will see the true value in what you have to offer and go ahead with your proposal.