We will often get objections that our product or service costs more money in comparison to a competitor.
There are two main questions you need answered before proceeding:
Question 1: “Mr. Client, when you say the price is too high, how high is it? And compared to what do you feel it is too high?
When the client answers this question, you know what amount you are dealing with. The important thing here is to separate that amount from the total amount. By the client telling you the amount, you know what they are happy to pay, so you do not sell them on that amount, they are already sold on it. Focus on the difference.
Client: “I am sorry, but the purchase price of that house is too much.”
Salesperson: “When you say too much, how much too much?”
Client: “About $20,000 too much.”
Salesperson: “So what you are saying is that $280 000 is okay with you, but it is the additional $20,000 that is holding you back?”
Salesperson: “Well, let’s take a look at what you get for that extra $20,000 or $250 per month in payments. For an extra $250 per month:
- You are just across the street from the elementary school, and you said you wanted to be close to the school.
- The area you were looking in is 10 miles further away from your office. You save yourself 20 miles of travel per day, and in gasoline and wear and tear on your car it translates into $5.00 per day, which is over $100 per month. That is almost half of the $250 per month.
- The house has a view and you really feel a view gives you a sense of freedom.
- You have a two car garage that is very secure.
- Your wife is in love with it.
- You reduce your worry about your children walking to school.
- You save time not having to drive or walk the kids to school.
- You are closer to the office and save time again.
- You end up with a view you want.
Salesperson: “For a $150 a month on your mortgage I feel this one is the best option we have looked at today.” (You would not use the entire list but probable focus in on the top ones you would feel the client would relate too)
Note: The salesperson does not say “for an extra $20,000 or for $300,000” which is the total price. The focus is on the difference and the lowest amount and then broken down to a monthly cost
Your Assignment today is:
#1) Look at which services or products you have where you have price objections
#2) Assess how much more they may be perceived to cost in comparison to similar products or services.
#3) Brainstorm all of the additional value financially and otherwise someone would get from paying the extra amount.
#4) Memorize your value added list.