By Jeff Watters

You're Price is Too High

What salesperson hasn't heard that the price is too high? Not only have we all heard it but I would bet you as a salesperson has used it when you were out shopping. Higher price is the one objection that has to be handled in a systematic method which neutralizes the objection uncovering the last hiding place the customer has before he or she makes their purchase.

Before we analyze the objection it must noted that this objection is a tactful conditioned response that everyone has used when negotiating a purchase. We do it because we know most salespeople cannot overcome this objection. It allows us to escape a showroom with our made up excuse to the comfort of our cars and return to our safety zones. We have all used it so we know it isn't the price, yet it still has to be dealt with in order to close the sale.

Years ago I heard sales trainer Zig Ziglar give a presentation stating that when customers make a decision which involves spending money a pain signal goes through their minds. If you have been selling long you can believe he is right. I don't necessarily like spending money, but I realize I have never made any progress, never improved my life unless I did spend money. As painful as it may be, to better our lot in life, we must part with the money.

Now let's analyze the objection response order.

Here are the steps you must take:

1. Neutralize the objection by acknowledging it.
2. Check for other objections
3. Ask what makes the price too high
4. Rephrase then Answer the objection
5. Close the sale

To be effective follow the outline above by first acknowledging the customers objection. You cannot run or hide because it is your turn to implement your training and guide the conversation towards the close. When the customer says the price is too high, you reply with I understand the price is more than you expected. Can I ask you, moving into step two now, other than the price, do you have any other concerns about this product? If the customer says no move onto step three. If the customer says yes than you may have uncovered the real objection. We will cover those later, let's stay on the price for now.

Now you ask why the customer believes the price is too high. You can do this in one of two ways, restate the objection back to the client as a question. Do you believe the price is too high for this model? or is it you wanted a model with less features? The voice inflection is stronger, but low keyed, on the word price. Or as an alternative you can apologize for the high price and state you haven't explained the product correctly. Your client may have been shopping elsewhere were they saw a product somewhere else with a lower price tag. It may not of even been the same product but people remember $1299.00 when your product is $1599.00 because it is easy to remember a single price.

Listen to your clients reaction, not only what is said but how he or she says it. If your customer only wants to spend less you did not qualify correctly. You can now go back to step two in the process and start over. If they truly belive your price is higher for the exact same model you now begin to solve the question in the clients mind by dissecting the two offers. Now you can rephrase the objection. Mr. Customer you said our price was high but what options were included in the other model? Are you comparing apples to apples? Here you are drawing out the conversation so you bridge the objection into more pleasant conversation, relieving tension. Again, many clients feel pained to spend money or commit to a purchase so bridging may quite possibly turn things around at this point.

Another way to rephrase it is Mr. Customer you said the price is too high." What I am hearing is that you want to know why our price is $1599.00, is that right? Wait for the customers answer. This is where they disclose that the saw a similar product or the same product somewhere else or that they planned on spending only $1200. If they tell you it is the same product get on the phone or have a colleague get phone to the business where they saw the product and verify. Explain that you have a price match guarantee and you just need to check. Of course you need to be able to discount or get someone involved with that power at this point. Then answer the objection.

Mr. Customer, I just called the other company to verify price and availability and it is the same model (or not) but doesn't have these two options! Do you need these two options? If they tell you yes, go ahead and close. If they tell you no, go ahead and close without those options matching the price. If you must order the product without the two options many people will take go ahead as is so they don't have to wait.

The other point that could be mentioned is budget price. My budget is $1200 and you want $1600. This scenario is almost exactly the same as the client seeing the product elsewhere for $1299 which is a dollar short of $1300. Except when the customer is negotiating price. Then it is 1200 but dealing with this objection becomes working the spread, not the entire price.

The order in which you work the spread is the real difference first. If the clients says twelve hundred and you want sixteen hundred then you have a difference of four hundred. Here the clients mind is usually on splitting the difference. So you can settle in the middle if you want or you can reduce the difference to what has be called the "reduction to the ridiculous." You break the difference down, in this case by four hundred dollars over the length of time the product will last. Let's use ten years as an example. So $400 over ten years is $40 a year, or 3.33 a month, 12 cents a day. Now you turn to your customer and ask him if he ever bought something cheap that didn't last and wouldn't it of been better to add a little something more to the purchase price to ensure quality and satisfaction. Put the order in front of your client with the pen and ask for the order one more time.

When you ask for the close don't speak. Don't be the first one to speak unless you are not sure the customer heard you. Remember to persuade your clients by selling value, not price. Use this method to guide you clients using the skills you just learned. Your success in selling comes from closing attempts, as many as six or seven before you produce the sale, so motivate your clients by fighting for the order. Only those salespeople that establish an aggressive conscientious direct approach walk away with the order.

This article is continued with Body Language

Beginning 12/05/2008 this book will be available for sale at sellinganythingeasily.com the web site may not be available until that time as the Domain Name needs to be updated in the Name Server Tables.

© 2008 Jeff Watters all rights reserved