September 14th, 2019 by Kim Reynolds
One of the most common objections we hear, and most sales people have heard it, is “This is too expensive!” The gut reaction of many salespeople is to race to the bottom. This becomes more evident in new sales staff who are desperate to close and only biting on the objection they hear. Expense. Expense alone is not an objection and we should handle the subtext of what that word represents.
The first thing that newer sales people miss when told “This is too expensive!” is the customer perception of the product. The customer perceives little value in the product and the price point is too high for that perceived value. If the only deciding factor is price we would all drive the cheapest car; or live in the least expensive house, we can find. We pay for things like heated seats and better school systems because we value them. The customer will gladly pay more for delivered value.
“This is too expensive!” does not equal “This is beyond my budget.”
If you have a $400,000 budget for a new house and a child on the way you would not spend $300,000 for a 1 bed/1 bath bungalow with 0.3 acres in Marengo county. You would more likely spend $350,000 for a 3/2.5 to be in a top ranked school district and have more space.
To avoid this, we must qualify our prospects! Observe your soon to be customer and coax out the information you need to demonstrate value in your product.
If the prospect sticks to “It’s too expensive!” after you demonstrate value, ask the best follow up question possible.
“Too expensive compared to what?”
Great salespeople ask great questions; and when the time calls for it confrontational questions. Your product costs more, but it solves more problems than the cheap option. This is where you can work hard to make the sale!
Stick to your guns and work through the product offering with your new customer. Expense is not an objection. Expense is an open invitation to demonstrate value.
Posted in: News