Most of us know in our bones that if a client objects on price, the problem is not really price. Conventional wisdom says the problem is value. But conventional wisdom is occasionally wrong, and price is often one of those cases. To test the truth of this, just check your own experience.
How often have you tried to convince a price-objecting client that actually, the value is quite high, a bargain, underpriced for the value you get, etc. I don’t know about you, but in my experience, it has rarely worked. The reason is that both price and value are economic issues, but price objections are usually emotional.
Why price is like dating
Remember (if you’re a guy) asking out the prettiest girl in school for Friday night? If she said, “Oh, I’m sorry, I’m busy Friday night,” did you get the hint? The hint was not that she was actually busy Friday night–she was telling you “no” in a socially acceptable way, allowing you to pretend it was a scheduling problem.
The truth was she didn’t feel like going out with you. And you probably got the hint: You instinctively didn’t push for Saturday. You didn’t try to respond to what was really an emotional issue with a scheduling solution. You knew that if she had wanted to go out with you, she’d have said, “I’d love to–I’ve got a previous commitment for Friday, but could we make it next Tuesday or Thursday?”
Price works the same way. If your client says to you, “Oh, I’d like to, but that’s really just too expensive for me,” they probably don’t mean it’s too expensive. They mean they don’t feel like buying that insurance from you. If you respond by trying to argue value, it’s like trying to convince the “I’m busy Friday” girl to reconsider for Saturday–it’s just not going to happen. You don’t respond to emotional objections with economic arguments.