Last post, we explored the timeless issue of price vs. value. When a prospect objects to the price of your product or service, it typically means that they feel (whether consciously or subconsciously) that the price they are being asked to pay is greater than the value they would receive.
In this case — and it’s up to you to determine this through asking the right questions — your job is to effectively communicate the true value. However, there are those rare times when price is the true issue and no amount of value will overcome this. This is not due to an objection but instead a “condition.” Let’s take a look at this through two examples:
1. Lack of funds. Even though the value of your product far exceeds the price, sometimes it really is outside what they can invest or spend based on their current financial situation.
A clever example from a reader, while extreme, I believe makes the point. You have a new techno-gizmo and a great idea for a commercial you just know that, if you could air during the Super Bowl, would bring in more than enough revenue to cover all costs and net you a humongous profit. However, with the $2.5 million price tag to air, plus production costs, there is no way you can raise the money; at least not before the slots are sold out.
Do you have a price objection? No. Whether right or wrong, you place the value at much higher than the cost. It is a condition. You literally cannot make it happen.
2. Lack of credit. When I sold a somewhat high-ticket item early in my sales career, about one-third of the people who really wanted it simply didn’t have the credit to qualify for a loan. The challenge was not a price objection, a value question, or a matter of priorities.They wanted it; they simply could not qualify. It was a condition.
Yes, usually a price objection simply means a lack of perceived value. But not always. The point is only that, as much as we speak of value overriding price, there are exceptions.
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Bob Burg speaks at sales and company conventions on the topic at the heart of his books, “The Go-Giver” and “Endless Referrals.” For more information (and to download Chapter One of his books), visit www.burg.com.