Three Ways to Overcome Price Objections

A prospect is 99 percent ready to buy your product or service. Now comes the hard part: convincing them to sign the contract at the price you deem as reasonable.

This is when the soon-to-be client asks for a lower price, discount, or another type of reduction.

Small and solo business owners know all about these tactics. We do it ourselves when negotiating. It’s a common pause before signatures and handshakes.

The September issue of Sales & Marketing Management addresses “how to beat the most common objection - pricing” in a column entitled, “Cutting Your Losses.” Daniel Adams of Chicago-based Adams & Associates shares three tips to remember during the negotiation process.

The captions are featured in S&MM along with my explanation for each.

1. Don’t Drop the Price
This is the worse thing you can do, especially during a pause in the conversation. Ask questions to uncover why the client believes the price is too high. The response should help you re-state or re-phrase the benefits that accompany the product or service, which may satisfy the client’s objections.

2. Establish a Timeline
Show the client how the investment will benefit his firm throughout a certain time period (6 months, one year, etc.).

Another option is to offer what you’re selling on a six-month basis. In this case, cut the product’s price by one third or two fifths, not one half. When the results are satisfactory, the client will be ready to invest for a longer period of time.

3. Add More Value
If the client continues to press for a price reduction, offer more service such as a better warranty or faster technical support.

Everyone wants a lower price, but other options are just as meaningful. Keep your sales on target with help from a list of services you can realistically provide, created by you and ready to offer as benefits during the negotiation process.

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