We hear the price objection all the time – “you’re too expensive”, “reduce your price”, “your competitors are cheaper”, “we can’t afford it”, “it isn’t worth the money”…
This means we need to be brilliant at dealing with it.
I have six favourite ways to do this. I’ll share three today, and three next week. Here goes…
#1 Focus on £value
Focus all your – and the customer’s – efforts on:
- Finding the best solution for them, and then
- Quantifying the £value-add of it
After all, once they know you’ll generate £40million value for them, your price of £10k now looks cheap.
#2 Discuss price last, not first
Only discuss price after you’ve agreed £value-add. That puts your price in context. It helps them understand the return they’ll get for their investment.
The opposite – where you start with "the price is £10k" – gives them no such context – and also makes you sound expensive.
#3 Agree price verbally
It’s tempting to avoid price chats by just putting price in writing.
But that means the first time they learn your price is when you aren’t there – to explain, justify, answer their questions etc. Not good.
Instead, agree the price verbally, then confirm it in writing – “As agreed, our price for delivering this value is £X.”
Action Point
- Next price negotiation, use these three techniques
- Next week, you’ll get three more – use these too
- Click here for more new ways to remove the dreaded price objection