Best Answer To A Price Objection

Every now and then you hear a statement or read words that really make you stop and think.

First: Thank you to Patrick Martin for allowing us to share this with you.

Patrick participated in one of my online seminars. During the third week (of the four-week seminar) everyone was asked to write their most effective response to a price objection.  Patrick’s response was unique because it accomplished two important objectives.

(1.)  His response let the customer know Patrick was not going to be defensive and was not going to argue, which sometimes happens when sales reps hear a price objection.

(2.)   The answer to his response gives him important information about the competition.

The statement and the question places Patrick in the position of being more like a consultant and NOT a sales person.   And that is very important because although we all like to buy (look at the crowded shopping malls on Saturdays) we do not want to be sold.

It is important to know that Patrick has spent years building solid relationships with his customers. They trust him.

Whether you can use this or not depends on your particular situation.

Customer: “ I can get it at a lower price.”

Patrick: “Well, our costs do change every time we receive new inventory. We will have to keep an eye on that one. Who has it at that price?”

See what happened? Saying “we will have to keep an eye on that one” lets the customer know Patrick is looking out for him/her and not just trying to sell, sell, sell.

Then, the answer to the question “Who has it at that price?” lets him know what kind of pricing the competitors are offering.

Five Ways to Handle the Price Objection

It is exactly the same product, but somehow your competitor’s retail price is just a fraction above the price you pay for the same product. There is no way you can lower the price without giving away all or most of your profit. What do you do?

1. Tell the truth. Admit that you can’t be competitive on this particular product. The customer will respect you for being honest.

2. Offer a generic or a compatible product if you have one. It helps if you have a few testimonial letters from customers who are happy with the generic or compatible product you sell.

3. Find out what ELSE they buy. You can say for example: “Unfortunately our price on the 51645A is not competitive, but we have a GREAT price on the 92298A. Do you need one of those today?”

4. If the prospect doesn’t need anything today, tell her/him you will create a file listing the items they buy on a regular basis and ask if you can mail, fax or e-mail monthly sale information. This keeps the door open for future opportunities with this customer.

5. If all else fails, ask to be considered as a second or “back-up” source for this and other products in the event their current supplier is out of stock.  “We would love to be your alternate source for these products.  We keep most items in stock and you can get next-day delivery.”   This response takes the pressure out of the situation and you will be surprised at how often you hear back from prospects.  Be sure to send a short thank-you note (for their time on the telephone) along with your business card

More Answers to “Your Price is Too High”

• “If it weren’t for that, you would go ahead and order from us?”
• “Assuming we agreed on price, what else is important to you?”
• “I’m glad you mentioned price. That is one of the best parts about buying from [your company]. We will divide the total cost into installment payments, so your actual cost per month will be very low. You can take delivery next week and your payments won’t start until next month. How does that sound to you?”You can see 29 different answers to objections in my e-book  How to Win the Sale and Keep The Customer.

  What is your best answer to a price objection?   Share your experience below so my readers can benefit from your wisdom.

9 Responses to “Best Answer To A Price Objection”

1. Retailing says:

   February 8, 2010 at 8:27 am

   In your opinion is retail still affected by recession? December sale looked good, however it seems there is cautious optimism with many retail companies in the throes of recession. Walmart has just fired close to 14,000 employees! What is your opinion?

   Reply
2. Ann Barr says:

   February 8, 2010 at 8:12 pm

   I, too, continue to be cautiously optimistic. People are concerned about their personal situation, job, savings, etc. Therefore, retail will continue to be affected by the recession, but I do believe there is a very slow recovery.

   Reply
3. Mickey Depetris says:

   February 17, 2010 at 5:46 am

   I was very pleased to find this site.I wanted to thank you for this great read!! I definitely enjoying every little bit of it and I have you bookmarked to check out new stuff you post.

   Reply
   • Ann Barr says:

     May 8, 2010 at 7:08 pm

     Glad you enjoyed it, Mickey!

     Ann

     Reply
4. Judy Levi says:

   February 23, 2010 at 12:35 am

   Excellent post. As always I enjoy reading your posts…

   Reply
   • Ann Barr says:

     May 8, 2010 at 7:09 pm

     Thank you, Judy!

     Ann

     Reply
5. Sales Negotiation Skills says:

   March 8, 2010 at 3:31 am

   While searching for sales negotiation skills on Sunday, your blog came up and your post regarding Best Answer To A Price Objection : Ann Barr : Teaching You How To Outsell Your Competition : Sales Coach looked very interesting to me.I just just wanted to drop you a note telling you how impressed I was with the information you have posted here. I also have websites & blogs so I know what I am talking about when I say your site is top-notch! Keep up the great work, you are providing a great resource on the Internet here!

   Reply
   • Ann Barr says:

     May 8, 2010 at 7:11 pm

     I appreciate your comment. Come back again and check out new posts.

     Ann

     Reply
6. The Price Objection : Telesales Marketing Tips : Increasing Profit with Effective Telesales Marketing says:

   May 6, 2010 at 1:03 am

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