The price objection….welcome it!

Posted: June 18, 2012 | Categories: Sales

The price objection….welcome it!

A couple weeks ago, I was having a conversation with an entrepreneur business client.  She had checked around with her competition, and was considering lowering her prices to be more competitive.  We talked about her situation and took a “deeper dive” in to this dilemma.  After doing so, she came to the firm conclusion that lowering her price was not the solution to the problem.  Instead, she decided to focus on selling the added value she had to offer.

A Chevy is cheaper than a Cadillac, and they sell a lot more Chevy’s than Cadillac’s.    Cadillac has an added value that people are willing to pay for.  How do we sell added value?  Let’s break it down:

1. Determine exactly what the prospects want and why they want it.  (http://www.durhamcoach.com/blog/2012/06/06/selling-vs-telling-the-critical-factor/)
2. Know about how your product is unique and be able to communicate this distinction.  Break down your knowledge into facts, features, and how they relate to the needs expressed by the buyer.
3. Be able to create a word picture that can take the prospect forward.

To illustrate, let’s use an example:  Here is the situation:

You are at the point where you are looking to close the sale.  The prospect says they are going to shop around:

Me.:  “That makes sense.  In fact, I like to make sure I shop around myself when considering an important purchase.  As you do your shopping, here are some key features you can keep in mind as you are preparing.

1. This event will be an exclusive.  You people will enjoy personalized treatment
2. We have twice the average number of servers.  You mentioned how important that your guests were responded to promptly
3. Each server receives 6 months training in our special customer service program.  That means you can count on us serving your needs with excellence and professionalism.

(Word picture)

Cheryl, as I understand your situation, you want your wedding to be fun and memorable, and you would like your guests to reflect positively on the whole experience for many years to come. Is that correct?  Let’s imagine it is your wedding day.  Here you are walking in with your new husband.  As you enter….

From this point, we would project a picture that was clear, vivid, and unforgettable.  Here are the fundamentals:

1. Details
2. Present tense
3. Positive

One of my friends describes this part of the sales process as “play the movie”.  We all like good movies, and when a sales professional is able to put us in a nice picture, they touch off our positive emotions, and make us want to move forward.  This process creates added value, and can be very powerful.

Summarizing, the next time you are tempted to lower your price, make sure you have made time to take stock of your qualities.

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