I want to share my opinion on why I think salespeople who are pitching their product or service to a client should not lower their price just to make a sale. No matter if you’re on the phone or meeting in person.
In my opinion when it comes to selling something to a client, it’s never about price even if the client tells you it is.
I’ll tell you a story:
I have a web development company and I make cold calls everyday and I remember being on the phone with a lead who was inquiring about my web development service. I started out by asking questions about what type of site they were interested in getting built and how it we can help him. I had been trying to contact this guy for months to try to get a meeting with him to close the deal. O, and by the way, the sales folks out there know what exactly what I’m talking about. When you’re in sales expect to be following up with a client, weeks or even months. But anyway he told me what kind of website he wants and the types of features he would like out of the site. I made sure I was constantly taking notes so that I can put it in my Customer Relationship Management Software (CRM) and refer back to it the next time he calls. So after he explained what kind of website he wanted I gave him the price, he said:
“Your price is way too expensive, we are on a budget, we’re a startup so can you come down on the price and meet us halfway!”
Here’s how I handled it and here’s how you can handle this objection:
- Agree first – always agree that the price is high it takes the power away from it. Do not disagree and say things like “that’s not expensive” or “I disagree with you” or “I don’t think its expensive at all”. Always agree with them. “I agree it’s expensive”. Now why should you agree? Just think about the times when you’re with your family, friends or coworkers and you were having a debate or argument. It seems as if the people who agree with each others point of view seem to connect and get along better together than the opposing person’s view or “devils advocate”. Acknowledging the person’s response and agreeing with them will not create a barrier between you and the person on the phone and will allow you to continue selling your product.
- Next I wanted to identify the company problem. – so I asked them why they needed a website, and what the company was trying to accomplish by having the website.
If you don’t identify the problem and motivation of why this prospect need your service then you wont sell them.
I remember I was having a conversation with one of my clients David from itzlunchmedia.com and he said some thing that I thought was profound. He said “If the client is stuck on price then you either have not sold them on the value or they are just not your customer.
So anyway the prospect told me they wanted to get more online presence and to be able to sell mobile applications.
Instead of me saying. “Ok The lowest I’ll go is $XXXX” or “Sure I can lower my price” I say this:
“Yes sir I agree its alot of money. and I assure you that you have already received a discount just by using my service. Based on my experience working in this field for XXX amount of years I can assure you that you will be taken care, our company will support you in anyway we can and you will receive Hollywood treatment like you deserve.”
Now what did I just do?
- I agreed with the customer to keep the conversation open
- I built credibility by mentioning other companies we served
- I assured them that they are receiving a good price by using my service even if im higher
- I stressed that we care about the person calling
- I added humor to ease the person up
I was then able to get past the objection, and get the sale.
Now, to anyone out there who wants to get into selling any product or service, You will be faced with this question or something similar. Handle the objection don’t bow down to it.
Post a comment below and let me know what you think and how would you handle this situation. Don’t forget to subscribe for our newsletter for more discussions like this.