When you are selling your products or services, how do you handle the objection that you are too expensive? Potential customers could think that the price you charge is “too expensive”. If someone thinks a product is “too expensive” they could genuinely think that you are too expensive. However, it could be a negotiation tactic to bring down your price.
They might think it’s too expensive due to several reasons:
- Compared to their budget.
- Compared to what they’ve paid in the past.
- Compared to what they were expecting to pay.
Unless you deal with it quickly, they consider you too expensive – it’s unlikely you’re going to be able to win this deal and get them as a new a customer. Fail to change their belief and you’ll fail to pick up their business.
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If someone says that you’re products are “too expensive”, make sure you don’t dismiss the sales opportunity too quickly. The majority of the time, a price concern (or price objection) is normally the salesperson’s fault, not the customers.
It might be that the customer:
- Doesn’t see enough value in your offering to think it worthwhile paying the price you asked for. Tell of your business values and how it can help them.
- Doesn’t have the budget to pay the price you want. The first thing to find out is if they have or need a new budget.
- Has bought a similar product in the past and not paid anything like the price you want to charge them now. You need to find out their buying history.
Find out and set expectations
One of the biggest reasons people have price objections is that the price isn’t what they wanted to pay. This happens when the salesperson fails to find out, manage, or – on some occasions – set the price expectations of the prospect.
Qualify harder early in the process
Another reason for price objections is that they’re or speaking to the wrong person. People that may not have the money to pay the price, or have the authority (and ability) to find extra money if necessary. This is usually caused by a failure to qualify well enough (or hard enough) earlier in the process. This results in the salesperson spending lots of their precious time dealing with people that aren’t able to buy what they offer at the price they want to charge.