Overcome Price By Handing Your Customers Objections
“Your product is to expensive. I have seen the price cheaper on the internet.”
Every sales professional has probably heard this statement in their sales career.
Many of us only consider price when purchasing a product. We fail to see the value of the product or service we are purchasing.
When a customer says NO to purchasing the item or service, he or she is not saying NO to you. Rather they are asking you to give them a reason to purchase from you.
We need to realize when a customer has an objection to the product or service, we have not done our job to answer their questions.
Far to many people believe objections to price are obstacles to closing the sale, but really they are opportunities for us to learn what our customers wants and needs so we can close the sale.
Objections In The Purchasing Decision
When objections come up it is time to learn what is bothering the customer, find out what they think and find out what the real problem is that they want to solve.
An objection is a sign that the customer has considered your product or service and needs to see the value, before they make the purchase.
What Causes An Objection?
When we deal with customers and they say no, this means they do not understand our price structure compared to another product or service they may have seen in the market.
Our job is to help customers understand our product, price and value. Many times this is what they need to know before they can make a final decision.
Customers, rarely buy anything without first asking questions and understanding our own purchasing decision.
Our job is to prepare and answer questions the customers has. Every answer we give, successfully, will bring us closer to closing the sale.
We have all gone out, seen something we really want, then decided not to buy the item. We make up reasons not to purchase including:
- That is more than I need now.
- The other one is better, I don’t like this one.
- Do I really need this expensive product or service?
- I’m sure if I wait I can get it cheaper somewhere else.
- My wife/husband and I need to talk about this before I buy it today.
- I need a few days to think this over.
- Can I have your business card? I’ll get in touch with you when I’m ready.
Do these statements sound familiar?
Sure we all have heard them and possibly we have said them.
Why We Raise Objections
One of the reasons we say no to making a purchase is because we do not understand the price, features, benefits, product quality or service quality.
Customers do not always know everything, although many things can be found on a simple Google search, these days.
Just like the days before the internet, customers are afraid of change when it comes to the company they do business with or the product or services they use. It is easy to fall in to a comfort zone and not want to try anything new.
Have you gone out, made a purchase and then a few hours later you have buyers remorse? Well you’re not alone, it happens to everyone. Customers do not want to make a mistake in their buying decision.
No one want to feel like they do not know something. We all want to feel smart and knowledgable. Customers are just like us. If they do not understand the product or service we are selling, they will say no to purchasing it.
Many customers may use anger to get what they want. As a sales agent we need to get good at seeing this and know how to deal with angry customers.
The biggest reason customers say no to purchasing with us is because there is a competitor selling a similar product. Customers will try to tell us that the competitor is more flexible, offers a better quality product and has a lower price.
Time To Handle the Objection
Once the customer gives you the reason they are not going to buy with you today, it is time for you to handle the objection and see the opportunity to make a sale.
We need to give our customers the information they need to remove any objections from their mind. Do not assume that the first objection the customer gives you is always the real reason. Many time buyers will give the easiest reason to not buy, like price.
We have to ask questions to uncover reason the customer has for not purchasing today.
Did you know that most buyers will say price is the reason they are not purchasing? They understand that people do not like to deal with this objection.
Before we can over come the price objection, understand the customers needs first. They could be considering the wrong product or there might be with fewer features for a better price. The price they are looking to pay.
Steps in Handling Objections
Being empathetic and understanding is the first step in the handling objections.
When a customer tells you their objection, pause for a few seconds to think over what they just said. Do not immediately presume you understand.
Clarify the Objection
You can not solve a problem you do not completely understand. Be a good listener and ask questions. Thought those questions we can find out more about customers objection.
You can ask open-ended question to get the customer taking about their needs and why your product does not work for them.
It is important to summarize what the customer is saying, so you show them you are paying attention to their needs, as well as picking up on the reasons they are looking to buy.
Once you understand of your customers objection, you can move on to the next step.
Provide Multiple Solutions
If the customers objection is “price,” they are often telling you they do not understand the value of the products or services, you are selling. They are asking us to build a case to help them purchase, a value case.
Show The benefits Customers Will Experience
Not all customers see the value of a product or service right away. We need to help them understand what benefits our products have for them, over all other similar products in the market.
As sales professionals we need to offer peace of mind to our customers. Remember what we think is important but it is not always important to our customer.
Use the Feel, Felt, Found Method
Many people have used this method and have had this method used on them. It is a great way to relate to your customer and make them feel good about their purchasing choice.
“Say I know how you feel. Others/I have felt the say way. But this is what they found…”
The old Feel, Felt Found Method. Check out the link for a break down of why this method works.
What you have done is shown empathy. You have shown the customer this is not a one of a kind concern. As well, you have provided their reasons to buy back to them.
A powerful ways to make sure customers buy from you is to show them all the other things you and/or your company do, to add value to their purchase decision.
Ask them if each item is important to them. You should have an idea of what is important and what is not during the conversation you have had to find out your customers objections.
Examples of things to ask or tell them:
- Do you like experienced, friendly and motivated people to help you?
- Is a well-trained and knowledgeable staff important to you?
- Let them know you make it easy for them to reach you and your company.
- Share your 1-800 number if you have one for after hours.
- Ensure your customer that they do not need an appointment to come in.
- They can subscribe to your new letter and stay in touch.
- Different methods of payment are available.
- If the service you give makes house calls, let them know.
- Talk about what you or your company does for the community.
All you need to get is a few “YES” answers and the customer will sell themselves on wanting to do business with you.
As you look for ways to handle the customers price objections, make sure you ask yourself, have I address their concern and have I found the right solution.
Sometimes another, new, objection can be brought to the surface. When this happens, no problem, just start the process at, Steps In Handling Objections (above).
If the customer does not have anymore objections, and is satisfied with your answers, at this point in the sales process you should proceed to closing the sale. Remember to ask qualifying questions to close the sale during the process.
Reducing The Number of Objections
To have the best results in your sales process, you need to reduce the number of objections. That means you have to talk about objections that other customers have brought up, before your customer does.
Make sure you focus on all the key points of your sales presentation. Never skip important points in your presentation because you feel they understand what you are saying or because you feel they may not buy from you.
You have to present your presentation to the person in front of you. That means you need to know the type of buyer that you are working with.
Remember the customer comes to talk to you because they need your help in making the best decision. And yes, sometimes our product or service is not the best purchasing decision.
Being A Pro-Active Sales Person
This means as a professional sales person it is important to practice and get good at all aspects of your sales presentation. It is easy to sell to people who want your product or service.
It is much more satisfying to sell to people who you can show why they need your product.
Six Quick Tips
- Make a list of your Top 5 Objections and get good at answering them.
- Gather other members of your team and find ways to answer the objections.
- With your team or at the mirror, practice giving the answer to your customer till it is a natural part of your presentation.
- Use the pre-rehearsed answers on real customers.
- Make revisions to your responses as needed. Remember tone, body language and verbal language is important.
- Keep a notebook for successful approaches and study what you did that worked to complete the sales.
If you follow the process outlined above, you will find ways to become successful and over come the price objection. Remember, no one want to pay the price on the tag if they do not understand what that product or service will do for them. Build your customers confidence in your and you will see your sales go up.
Now its your turn to make a difference. Share the solution people are looking for on your favourite social media platform. It’s easy to do and a proven fact your inner circle wants to know what you know.
Leave a comment and tell us what one tip you will be using to overcome price as an objection.
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