Best Answer To A Price Objection

young-womanthinking-tnEvery now and then you hear a statement or read words that really make you stop and think.

First:

Thank you to Patrick Martin for allowing me to share this with you.

Patrick participated in my online sales training e-course.

         (If you have been reading Weekly Sales Tips for more than a few years, you have read this story.  It is too good not to share again.)

This is what happened:

During the third week (of the four-week seminar) everyone was asked to write their most effective response to a price objection.

Patrick’s response was unique because it accomplished two important objectives.

(1.)  His response let the prospect know Patrick was not going to be defensive and was not going to argue, which sometimes happens when sales reps hear a price objection.

(2.)  The answer (from the prospect) to Patrick’s response gave him important information about the competition.

Patrick’s statement placed him in the position of being perceived more as a consultant and NOT a pushy sales person. And that is critical because although we all like to buy (look at the crowded shopping malls on Saturdays) we do not want to be sold.

It is important to know that Patrick has spent years building solid relationships with his customers. They trust him.

Whether you can use this or not depends on your particular situation.

Customer: “ I can get it at a lower price.”

Patrick: “Well, our costs do change every time we receive new inventory. We will have to keep an eye on that one. Who has it at that price?”

See what happened?

Saying “we will have to keep an eye on that one” lets the customer know Patrick is looking out for him/her and not just trying to sell, sell, sell.

Then, the answer to the question “Who has it at that price?” lets him know what kind of pricing the competitors are offering.

Five Ways to Handle the Price Objection

It is exactly the same product, but somehow your competitor’s retail price is just a fraction above the price you pay for the same product. There is no way you can lower the price without giving away all or most of your profit. What do you do?

1. Tell the truth. Admit that you can’t be competitive on this particular product. The customer will respect you for being honest.

2. Offer a generic or a compatible product if you have one. It helps if you have a few testimonial letters from customers who are happy with the generic or compatible product you sell.

3. Find out what ELSE they buy. You can say for example: “Unfortunately our price on the ____________ is not competitive, but we have a GREAT price on the _______________. Do you need one of those today?”

4. If the prospect does not need anything today, tell her/him you will create a file listing the items they buy on a regular basis and ask if you can mail, fax or e-mail monthly sale information. This keeps the door open for future opportunities with this customer.

5. If all else fails, ask to be considered as a second or “back-up” source for this and other products in the event their current supplier is out of stock.  “We would love to be your alternate source for these products.  We keep most items in stock and you can get next-day delivery.”   This response takes the pressure out of the situation and you will be surprised at how often you get a return call from prospects.  Be sure to send a short thank-you note (for their time on the telephone) along with your business card.

 

To find out more about a private one-to-one online e-course developed for your situation, contact me and I’ll get back to you within 24 hours.  I would love to hear from you!