Price comes up as an objection probably more than anything else. Anticipate it and have bulletproof responses ready to go. There are no excuses not to be prepared to handle this.
Following are some closes/objection reframes that you can apply and tweak to suit you particular sales situation.
Will these always work? No.
But I can guarantee you 100% that they will NOT work if you don’t try them!
Please note that this is not an objection-handling article. This is a closing article. We will deal with the art of objection handling separately although clearly there is some overlap.
Have conviction and belief in your product, service and price and remember to maintain rapport as you shift from “price objections” to a close.
Prospect: “It all looks great, apart from the price…”
You: “ The price looks great from where I am standing! (smile). Seriously though, I cant move on the price so if everything else looks ok let’s get it done..”
This may look like a cheeky retort that fails to deal with the “objection” but at this stage it’s not even an objection – it’s a comment nothing more. Don’t defend, don’t justify, just state the price is the price and move to a close. You will find that this will work some of the time and sometimes it will open up a genuine objection or more comments. Either way, first ask for the business and then see what happens.
Prospect: “You are going to have to lower the price.”
You: “First of all, I assume you are negotiating because you have decided to move ahead/buy/commit ?”
Prospect: “ not yet, depends on the price.”
You: “ Well let’s take a step back. If you haven’t even decided that this is the right product for you then price is irrelevant at this stage. If the price wasn’t an issue, would you go ahead and a sign this off?”
When a prospect starts to negotiate the temptation is to rush in and start that process. Don’t! Qualify the prospect to see if they have made a decision to even buy your product. If they haven’t, understand why not and then deal with the true objection. Do not get into a negotiation.
Prospect: “You are going to have to lower the price.”
You: “First of all, I assume you are negotiating because you have decided to move ahead/buy/commit?”
Prospect: “ Yes. But the price is too much”
You: “ What do you mean it’s too much?”
Prospect: “…compared to XYZ product/service..”
You: “ Which one would you prefer, XYZ or ours?”
Prospect: “ Yours”
You: “ why is that? And what else? Any other features? Ok so now you can see why ours is higher value. Lets get this confirmed for you..”
This is the same as the 2a but this time to prospect says yes to your first question and then raises a product comparison that is driving their price negotiation. In this instance, use the above to differentiate the value/offering in order to maintain the price point.
Prospect: Can you give me a better price?”
You: “ No can do sorry mate! (cheerful) ok, lets get the paperwork done..”
Here the prospect is asking if there is a better price. The answer is no. Simple. Move to a close…You have to ask for the business. You will be surprised at how many times it works. But if you never ask you wont close!
Prospect: “Can you give me a better price?”
You: “I would love to but the price is the price, it’s out of my hands. Are you ready to go ahead?”
In this example you are aligning yourself with the customer’s request but you are also removing the decision not to give a discount from your control; essentially this nullifies the conversation. So you may as well move into a close!
Prospect: “What’s your best price?”
You: “You already have it (smile).”
Prospect:” come on…that’s your first price, tell me you best price..”
You: “ It’s my first and final price! I just can’t move on that, wish I could for you. Lets get this done.”
A common negotiation tactic is to ask for the final price/best price etc. and depending on the country that you are in this is a perfectly reasonable request. (Therefore you will need to factor that into your pricing!). In this example though we are closing the negotiation down and moving into a close. Remember; at first ALWAYS go for the close. Then see what comes back at you in terms of problems/objections etc.
Prospect: “ The investment is too high for our budget.”
You: “ I understand and some of my best long term clients said exactly the same thing to me but they ended up buying anyway, do you have any idea why?”
Prospect: “They must have seen the value…”
You: “Exactly! Of course they had to do some juggling to make the budget work but the value/investment was a no brainer for them. Shall we go ahead and get this locked away for you..?”
Your product and service is nearly always going to be “outside of budget”. This is a tactic that will be used by organisations to negotiate. Of course it might be genuine. But don’t let their budget “constraints” dictate your pricing.
Prospect: “ I want your top package for $x”
You: “ and I would love a Mercedes [insert relevant object] for $x too. But that’s not going to happen either! (smile). The top package is at price $y. Price $x is our 3rd option which you are welcome to take of course but it looks like you want the value contained in option 1 is that right? [yes] then the investment for that option is as stated in the proposal. Shall we go ahead with that….”
Again, this is a slightly cheeky. You must have rapport with your prospects to be able to pull this off effectively. But then you should already have built strong rapport and created a “buying atmosphere” during the sales stage of the process anyway.
Prospect: “You need to work on the price..”
You: “ I hear you, and you knew we were at the high end of the market when you approached us/when we initially spoke…you know I cant move down on price. That’s not the end of the market that we play at. And that’s probably why you want to work with us…lets get this done…”
Strong defensive play on value, shutting the argument down and standing firm. This should garner respect from your prospect if delivered in the correct way. Don’t be arrogant or aggressive. Have an empathetic tone to your voice throughout these closes. Remember you are on their side too…they are just about to become customers!
Prospect: “It’s expensive..”
You: “Reassuringly so! (smile) and everything worth while is! Seriously though its better to pay more for the best quality than pay a little less and compromise on what you really want. Ready to go ahead..?”
You will notice that most of these responses start with a “stonewall” retort; meaning that you stop the objection dead and immediately reframe the prospects thinking/perspective before offering a counter view. It’s an upfront technique and takes skill but remember, you MUST differentiate yourself in the market and not answer these comments in the same way as everybody else.
Prospect: “ That’s too much”
You: “How much too much?”
Prospect: “about $1000 too much..”
You: “ Well if you have $12,000 you can find $13,000 [the price]! Come on, lets get this confirmed for you..”
I agree that not all conversations will go this smoothly, but often people/organisations are negotiating on such small amounts that your job is to lend some perspective on how this is not really an issue, especially as the numbers get larger. E.g. if you can find $90k you can find $100k or if you can find $450k you can find $500k etc.
There are plenty more closes that can be used surrounding price. I will cover more in the future.
Go ahead and use these, tweak them and experiment.
Good luck and happy closing.