Some of the content in this article comes from our friends “across the pond,” The Sales Experts Ltd from London (www.thesalesexperts.com).
The number one objection that salespeople struggle with is price.
It does not matter what the economy is doing or how the product or service is positioned, most salespeople fall apart when confronted with a price objection. If salespeople have any control over discounting, they will give it all away in an instant when the customer makes a comment regarding price. Small businesses just starting out often undervalue their services in the hopes of gaining a following — this is a poor choice.
The truth is: price is rarely the deciding factor in any purchase. Take a moment to think about the things you have bought: car, smartphone, computer, food in your kitchen, clothes. Do you buy the cheapest option? Most people buy mid-range products made by brands that inspire confidence.
So why is price so often raised by prospects? When a prospect challenges a price, what they are really doing is asking the salesperson to justify the price. If the salesperson understands the product, the market and the value the product delivers, they can rationally support the value of the product.
Why do salespeople struggle with price? They struggle because they don’t believe or haven’t been trained to express the intrinsic value of the product or service: why is the product worth what is charged? What value does the customer receive by purchasing it? What is the return on investment?
Price comparison is simply what occurs first to people. This is laziness, because there is always more to a product or service than price alone. When a prospect asks about price, it is an opportunity for the sales rep to point out the crucial distinguishing factors of the product or service, such as:
- Better quality
- Increased productivity
- Longer-lasting or superior reliability
- Better guarantee or warranty
- Faster delivery
- Outstanding after-sales service
- Higher value for the money or shorter payback on the customer’s investment
- Added benefits such as free installation or training
The take-away from all this is to develop a package of advantages that distinguish your product or service from the competition and train the sales staff to divert attention away from price with the “bigger picture” about the value of the product or service.
- The Top 5 Sales Mistakes Small to Mid-Size Businesses Make - October 7, 2021
- Three Ways a CRM Can Impact Your Small Business - September 2, 2021
- Ten Strategies to Use When Your Competitor Lowers Their Price - August 4, 2021