How to reduce the amount of objections over rates
Do you want less price objections?
Wherever you have someone selling you will have clients with price objections. While there are many subtleties and nuances to think about when responding to an objection over price there are fundamentally, just two things you can do to save the deal:
1. change the price or ...
2. change the perceived value the client has of the product you are selling.
Now even when you ask rookie sales people when they should build value in the product, before or after giving the client the price, they always answer that you need to do it before. It’s true and everyone knows it. Too bad not everyone does it. Time after time we see people struggling with rate objections and yet not doing much to build value before they get talking price.
Think about the buying decision your client is making as a scale. On one side of the scale is how much the product costs and on the other is their perceived value of what they are getting. When their perceived value exceeds the amount it’s going to cost them they say yes.
More focus on value, less on price
What are you doing to increase the perceived value the client has about your product and company? If you do not make this a conscious effort or have a deliberate plan to build value in your company you are likely getting more price objections than you need to. Why would anyone want more of those!?
Many companies do a fabulous job of differentiating themselves from the competition. They answer the phone “live” with no voicemail; they support local community events, have deposit guarantees or give back a share of the profits every year. It’s a shame these only get mentioned after the client objects to the price. Just like the rookies know, the time to build value is before the discussion about price. It’s been said that “people buy on emotion and justify with logic”. You want the client to start mentally and emotionally owning the product before you talk price.
Decrease the amount of rate objections you get. Have a plan to state clearly how the product you are presenting to the client will solve a problem they have told you they had. Get into some detail describing how a particular feature of the product will personally benefit them. Have a plan to deviate from your product presentation to build value in the company you work for. Know what you are going to say ahead of time; don’t wing it because then it doesn’t sound confident which in turn decreases the value people see it what you are saying. If you do these things you will start to see less price objections and the ones you do get won’t be as difficult.
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