It's possible to overcome pricing objections with these three steps
Pricing objections are one of the most common objections you’ll face as a sales professional. Even if you think your product or service is priced just right, you’re always going to come across prospects who think it’s priced too high.
The good news is that overcoming pricing objections is possible. It may seem like the hardest type of objection to overcome, but it isn’t if you are, in fact, priced right.
Pricing objections are just that– objections. They are not conditions. A condition is something you cannot overcome. It’s a position the prospect is in that they cannot control.
For example, a prospect may tell you they are in the process of restructuring their leadership, and there is no gatekeeper in place to make a commitment to your product or service. That condition cannot be overcome.
Or if you sell high-end kitchen knives, you won’t be able to sell them to a prospect who doesn’t enjoy cooking. That’s a condition that cannot be overcome.
But objections are within your control. Here are three ways to overcome pricing objections.
Know your value to overcome pricing objections
Another way to overcome pricing objections is to know your value. Do not assume your prospect knows your value. They might have some sense that you are providing a valuable service, otherwise they wouldn’t reach out for a professional to do it. But it’s unlikely they know exactly the value you provide.
For example, if you are an accountant, you can assume your client knows taxes are complicated. But do they know the exact financial penalties for filing taxes incorrectly? Do they know the exact number of hours it takes to deal with a complicated tax code that you know like the back of your hand?
It’s not enough to just assume they know the financial impact. To overcome You have to get them to acknowledge that financial impact.
The greater the problem, the more you can charge. So if it’s a $100,000 problem that you’re solving with $20,000 worth of services, you’re providing great value.
Proactively emphasize value throughout the process
It’s not enough to address value only once you’ve gotten a pricing objection. You have to be proactive about talking about value in all steps of the process.
Start by asking anchoring questions and using anchoring language. This is where you anchor your prospect to the product in your questioning and discussion. If you’ve ever dealt with a realtor you’ve likely seen this strategy. “What would you use this spare room for?” “Here is your new three-car garage.” “Welcome to your gourmet kitchen.” “What would you put in this storage space?”
It can be done with any product or service. This subtle strategy builds value every step of the way– without you even having to specifically address the value you bring. They are telling you how they’d use the product. They are seeing themselves as users of your product or service.
Show them the pain of not using your product
When your prospect raises a pricing objection, make sure you acknowledge it. You can’t gloss over it and continue to try to close.
Instead, clarify their concerns. Ask questions to get to the root of the objection. Is it that you’re not bringing enough value? Is it that their budget doesn’t allow for it right now?
Once you get clarity on their pricing objection, reframe your offering. Show them the impact of not saying yes. This requires you to really know the pain points for your prospects.
The more experience you have with prospects, the easier this will be. You’ll build up a list of clients for whom you’ve solved specific problems. You’ll become an expert in the field and the pain the people within it are experiencing.
If you’re just getting started in sales, talk to your peers or mentor to ‘borrow’ their success stories. A good sales coach or mentor will be happy to give you all the tools you need to overcome pricing objections.