The Price Objection

Posted by Ann Barr in Handling Objections | one response

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Has this ever happened to you? You make a prospecting call and introduce yourself, your company and your products. But before you have a chance to ask qualifying questions, the prospect asks: “What’s your price?” One of the biggest mistakes new salespeople make is quoting price too soon. If you quote a price too quickly, you risk losing the sale. Focus on the customer’s issues. Then put the price in the context of the value and quality solutions you provide. How to answer the “What’s your price?” question (Without quoting your price too soon.)

“I can quote the best price for you when I know more about your situation,” or . . . “. . . when you tell me what results you are looking for,” or . . . ” . . . how many you usually buy,” or . . . ” . . . whether you are looking for branded or generic,” or . . . ” . . . which type of service you are looking for.”

This way, you will learn what their needs and objectives are and you can talk about the value they will get with your solution before you quote the price. When you think about it, we buy things because the price we pay for something is perceived as being less than dollar value we attach to the result. Whenever you give someone a price quote for anything you should know at least two things.

Questions to Ask

“What is your criteria for making a decision on this?”

“If we meet that, will you buy from us?”

You don’t want to waste your time with price shoppers. What is important is building relationships and getting repeat business. Ask questions like: “Aside from price, what else are you considering in your decision?”

Beware of Serial Price Shoppers

If you find you are dealing with a real price shopper, be willing to walk away. If the sale is based on price alone, the buyer will stay with you only until s/he finds someone who is willing to quote an even lower price. An excellent answer to a price objection is on this page. It is a true story. How do you handle a price objection? Share your wisdom with our readers by posting in the Comments section below.

About The Author

Ann Barr is a telesales marketing success coach with a passion for teaching. She loves helping people who are starting out in new telesales careers and working with experienced sales reps who are looking for new ideas and tips. In addition to presenting monthly e-classes, she writes and edits direct-mail marketing letters and emails for clients. Sign up today for Ann’s free Weekly Sales Tips and get marketing tips and ideas to increase your sales!