At some point, we’ve all been told that our product or service is too expensive.
But is it really?… What’s really causing potential customers to say this?… and how can we overcome this objection.
Here’s a few things you need to consider…
Perceived value is important!
The main reason people use the too expensive objection is that they perceive the value of you product to be less than the price you are asking.
It’s really important then to look at the way you are selling and explaining your products benefits.
When we are selling anything we must understand that potential customers buy things to satisfy needs and wants, therefore we must be able to link our product and product benefits to these needs and wants.
Through effective fact finding and understanding customers current needs and difficulties, you can be sure to explain your products benefits that fill these needs and reduces their difficulties.
Once you know a customers needs, you can even ask them what sort of product would fill these needs… and simply describe how your product does what the potential customer has just explained.
Helping the customer understand how your product can make their life better, increases the perceived value of your product and reduces the ‘its too expensive’ objection.
Another important area to help reduce the number of times you are told ‘its too expensive’, is by qualifying your leads better.
You need to be sure that the potential customer has the budget to buy your product, and you need to do this early in the conversation.
Wasting time explaining away your product to someone who would love to buy but doesn’t have the cash, will only waste your time.
Asking what a potential customers budget is, should be normal in any sales negotiation.
Don’t forget though, consider if it’s possible that you can offer instalment payments to increase your market.
This may not be possible, but I certainly encourage you to consider it as a last option.
Review your product
Ideally you will have already completed full market research on your products and offerings, but don’t forget to keep an eye on the market to keep up to date.
If someone is saying your product is too expensive, and it actually is when you compare other products similar to yours, you have a problem.
Take time to compare the products already in the market.
What are the benefits… what are the products prices… how does this compare to yours.
You may need to make a few changes to make your product more competitive in terms of product quality and price.
Understand customer expectations
To better understand customer expectations means that you have to communicate with them more, which will lead to greater rapport and trust.
Once you understand a customers expectations and they know you do, they will feel like you have an interest in their business and their future… they will see you as someone that cares.
As trust builds you will be in a better position to offer your products that can fill their needs and their help eradicate their difficulties.
Build the relationship, show genuine interest and willingness to help them improve… and you will see your value to them increase (and the products value you represent).
Prepare and train better
Obviously when we are selling we have to expect objections, therefore we need to prepare ourselves and rehearse these situations.
I encourage all of my clients to hold brainstorming sessions to collect all possible objections they can expect from potential customers.
Then the team should work through each objection, and create a playbook of objection handling statements for each objection.
Regular training and role playing should happen weekly, so that objection handling becomes second nature.
The ‘its too expensive’ objection isn’t the end of the conversation.
First and foremost we have to be sure that we are preparing ourselves better by fact-finding, understanding customer needs, being clear on how our products benefits will fill these needs, and selling our product and benefits in the most effective way.
This will proactively ensure you increase the perceived value of your product, and ensure you hear the objection less and less.
Be sure your product is sufficiently differentiated from the competition and your pricing reflects its benefits when compared to others.
And when you get the ‘too expensive’ objection… be sure that you are fully prepared with some top quality objection handling statements!
You can also Tweet the question at Twitter using #askdamian.