You’ll hardly meet a sales rep who has never faced the “price objection”.
Almost all sales professionals have faced this objection in their sales career.
Some sales reps grumble while others tackle it wisely.
Do you remember the times when you thought of not purchasing a product due to its high price? But then suddenly some words from a sales rep worked like a magic spell and made you change your decision.
Oh yes, words have great power. It’s all about how you persuade your potential prospects.
Price objection is like a poison that can kill your sales. However, even the deadliest poison has an antidote. You just need to find it.
Examples to handle the price objection in sales?
“Sorry, the price is too high”.
It is exasperating to hear this after all that hard work. Isn’t it?
After spending several days on a deal, you can’t afford to lose it due to the “price objection”.
So, stay confident and try to overcome the price objection.
“Offering a discount” is the first thing that comes to mind when you think about tackling the price objection. That might seem like the easiest and quickest way of closing a deal, but it has a huge impact on the profit margins.
So just discard that thought. Find a different approach to handle the price objection.
Well, I’ll help you.
Here are a few tips with examples for handling the “price is too high” objection.
1. Answer back with a smart question
Ensure you take a brief pause whenever someone raises a price objection. Don’t be in a hurry to answer; as what you say next can make or break a deal.
Instead of giving up, ask some questions to your prospects and move them to a different track for thinking beyond the price.
Handling price objection example:
Prospect: Your product is too expensive. Sales rep: I appreciate your honesty. But setting the price aside, do we have the product you would want to purchase? [If Yes] Sales rep: Which features did you like the most? Prospect: [States the features] Sales rep: Using these features, you can [state the benefits]. Set aside the price for some time and mull over this solution that would help you in saving your time and efforts. [If the prospect responds with a “No” to the initial question “do we have the product you would want to purchase?”] Sales rep – What are you looking for in a solution? Prospect – [shares their needs] [If you have the features that the prospect is looking for, then link it to their needs and explain to them how it can help. If not, then thank them for their time and focus on another deal.] |
With the help of questions, you can make the prospect ponder over your offering. So do not give up when you come across a price objection. Try once more before abandoning the deal. You never know things might work in your favor.
2. Agree to the prospect but hit on the pressure points
The prospects might be facing some issues where your solution can help. So, it is essential to find out the prospect challenges and goals during the initial stages of the sales process.
If you’ve gathered enough information during the discovery calls, then you won’t face much problem in tackling the price objection.
People tend to react quickly when they are under pressure.
Think about this hypothetical situation.
You got a job offer from a renowned company in a different country and you need to migrate. So, finding a house in a new country as soon as possible would build pressure on you. You wouldn’t spend time exploring options there; you might settle for something that serves the primary purpose.
Similarly, you know what the prospect needs the most at present. So, just remind the prospect about the problem they have and make them visualize the consequence of not addressing the problem immediately.
Handling price objection example:
Prospect: The price is too high Sales rep: Yes, I absolutely agree this is a big investment. But as you mentioned earlier that you are facing [problem] that’s impacting your business. Besides, I even read a few of your customer reviews on [reviewing site name]. They were unhappy about [the issues]. If you don’t resolve the problem, you might see an increase in the customer churn rate as well as face difficulty in reaching this year’s revenue goal. A little investment can save you from losing your valuable customers. So, do you want to give it a second thought? |
3. Share case studies of a satisfied customer
You’ve worked hard in creating a database of happy customers, so use that to your advantage. Create case studies and share them with your potential prospects. You can even share experiences of those customers who had price objections earlier but are happy using your product now.
Handling price objection example:
Prospect: Sorry I wouldn’t be interested; the price is a bit steep. Sales rep: Our product might seem expensive to you at present, but it is an investment that would bring you the best returns in the future. One of our customers had the same concern when I revealed the price of our product to him. But now you can read his positive statements in the testimonial section on our website. I can even share his case study as he had the same business issues that you are facing right now. You can read how we helped them overcome the issue and increase profits. Do you want to take some time, go through the case study, and then take the final call? |
4. How are you better than the competitors
Most of the competitors are low-balling their prices to attract customers. Several prospects use this as a base to support their “high-price” objection.
Here you need to play it smart. First, analyze your competitors and find the gaps. See what more you are offering. You can contact the competitors pretending as a potential buyer to find out their strengths.
Once you do the competitive analysis, create a list of USPs that makes you different from the competitors, and use it to handle the price objection.
Handling price objection example:
Prospect- Your product is more expensive than other solutions. Sales rep – OK. Can I know what you are comparing the product to? Prospect – [Competitor A] Sales rep – Yes, they do offer the same solution at a lower price but the product lacks [X, Y, Z features] that you currently require for solving[issue]. Besides you can read their customer reviews on [reviewing site]. They had problems in [product glitches]. The same sites have reviews about our product too, so you can go through them. Take your time and read various reviews before coming to any conclusion. Let me know when I can call you back to discuss the same. |
5. Offer a free trial
Your potential buyer might be having some doubts about the product that they aren’t sharing. So, they took the easy path by bringing up the price objection.
Try to clear their doubt. The best thing to do here is to offer a free trial. Let them use the product to clear the doubts that they aren’t comfortable sharing.
Handling the price objection example
Prospect – “We don’t have the budget for it right now”. Sales rep – Is price the only thing that’s keeping you from proceeding ahead? Are there any other concerns that are stopping you? Would you like to try the product for free to see how it can help in resolving your current issue? (If the prospect agrees, then share the link of the free trial. If not, then invest your time and efforts on some other deal as the prospect might genuinely not have the budget for your product.) |
Wrapping up
The price objection isn’t the end of the road. You can handle this objection. So, don’t give up, try once again in a different way. If there are certain concerns, then find out and address them.
Try to change your prospects’ perspectives and give them some time to think. Follow-up with them. If they aren’t responding to your call, then send them a follow-up email.
With the best CRM like Salesmate, you can put your follow-up on auto-pilot. It allows you to create a sequence of emails that will be executed as per pre-set day and time. So, you don’t even need to worry about the follow-up. Just ensure you don’t give up at any point.
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