“Price is a factor in every sale but it is seldom the primary reason behind someone’s final buying decision.”
I often open keynote presentations or sales training programs with this statement. Twenty years as a trainer and speaker, plus a lifetime as a consumer, has taught me that just because someone says you’re too expensive does not necessarily mean your price is too high.
Here are the top seven reasons people may tell you you’re too expensive:
1. They don’t see your value.
2. The cost exceeds their budget.
3. A competitor is cheaper.
4. They can’t afford it.
5. Their expectations are unrealistic.
6. It’s an excuse.
7. It’s a negotiating tactic.
Unfortunately, in too many cases, the salesperson sees this statement as a request for a discount and automatically reduces her price. This means she loses margin (and sometimes commission) and conditions her client or prospect to ask for a price break during subsequent sales conversations.
It is much more effective to ask: “What do you mean by that?” or “Compared to what?” This usually gives you additional insight into the meaning behind this objection. With this information in hand, you may be able to close the sale without conceding a discount.
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