Some Do’s & Don’ts On Handling Price Objections

by Paul Castain on April 24, 2012

Don’t do this: Don’t automatically respond with “how much higher?” or “where do we need to be on this?” Doing so relinquishes control, put’s you on the defensive, diminishes the value of your widget and as a bonus, you sound like everyone else!

Put it into a context: Instead of defending your position, have the other party do the “splainin” as my friend Ricky Ricardo would say. When someone tells you your price is too high simply ask them “Compared to what?” Doing this buys you a few extra seconds to think (never a bad thing) and gives you options you would never have had if you just lowered the price. I’ve asked this question and had people say “Well it just seems high. We’ve never done this before” Does that give me room to maneuver? It sure does does! I’ve had people also tell me “Compared to my other vendor” My response to that is now one of several options:

Get confused: I get confused when I have done a thorough needs analysis prior and the prospect/client has told me that the other company dropped the ball. I will literally say “I apologize, but I am a bit confused. Is this the same company that missed the deadline, nickel and dimes you etc?

Get real: Sometimes a price objection is nothing more than a throw away objection to a much deeper concern.

Here’s how I check temperature on that one: “We can certainly address the price, before we do let me ask you, price aside, what else is on your mind? This approach helps to get ALL the issues out on the table. Once again, it buys time and helps me to direct the conversation.

Cash in your get out of jail free card: A “get out a jail free card” is something you must create in advance. Example: your client calls you in need of that 11th hour miracle. If you are able to come through for them, come through and document it by sending an email thanking them for their business and telling them you were happy to have helped them through their challenge. You can cash this in when someone repeatedly tries to beat you up on price. Don’t throw it in their face, but ask them how much those “11th hour miracles were worth to them.

Do not use this Monkey Style Kung Fu line: “Mr/Ms Prospect, I’d rather apologize once for a high price then repeatedly for bad service”

Use this line and you stink: “We offer quality, service or price, pick one”

Don’t be afraid to unleash your Whup Ass! Look them right in the eye and tell them that “the higher price comes with something the other company can’t offer . . .ME! Back it up with some evidence such as some testimonials, a specific example of how you helped a similar company etc!

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