If you've been in business longer than a week, you've
probably heard this objection from at least one potential new
client: "It just costs too much" or "I'm really
interested, but I think I can get it cheaper somewhere
else."
Everyone wants a bargain, but not everyone really believes they
can get your product somewhere else for less. And many who use this
line will never invest the time required to shop around for a
better price anyway. So how do you handle this situation?
Begin by understanding that most people are afraid to part with
their money. Money equals security, and it doesn't matter
whether you're asking them to part with $19.95 or $1,995 for
your product.
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People are happy to spend their money when they see there's
more value in having your product than in having their money.
That's what you need to get them to think before they'll
consider making a buying decision.
When a client objects to your price, the first thing you should
do is feed it back to them. Warmly ask, "You think the muffler
costs too much?" They'll either agree or hesitate,
re-thinking why they said that. If they agree, ask how much they
had expected to pay for a product like yours with all the quality
and benefits it offers. List the benefits of the product
briefly. What you're doing is building value in order to
decrease their money resistance.
Use ownership terms when discussing the product. By the time
they object, you should have built some rapport, qualified them and
presented the product. So you're not discussing "a"
product anymore. You're discussing "their product"
and "their benefits":
- "When you drive home with your new muffler, your neighbors
will be happy not to hear you coming for a change, don't you
agree?"
- "Just picture how proud your child will be when their next
report card shows great improvement from our tutoring."
- "Knowing that your mom won't have to worry about
keeping up with the groceries and housework will be a load off your
mind, won't it?"
If they're still stuck on the money objection, say something
like, "It may very well be true that you can find a similar
product for less money elsewhere. And of course, we all want the
most for our money. A truth I've learned over the years is that
the cheapest price isn't always what we really want. Most
people look for three things when making an investment: 1) the
finest quality; 2) the best service; and 3) the lowest price.
I've never yet found a company that could provide the finest
quality and best service for the lowest price. I'm curious: For
your long-term happiness, which of those three would you be most
willing to give up? Quality? Service? Or low price?"
No one wants to own inferior products. And great service is
always important. These words help minimize the price issue.
On a larger ticket item, you'll want to determine how much
less they'd want to invest in your product. When they say,
"It costs too much," you should say, "Today, most
things do. Can you tell me about how much too much you feel it
is?" If the difference between your price and what they want
to pay is only a few hundred dollars, build the value once
again.
If the amount is larger, however, try the "reduction to the
ridiculous" strategy. It goes like this: Let's say the
difference is $1,000. First determine how long they'll keep or
use the product. "Mary, if you were to invest in these new
cabinets for your bathroom, how long do you think you'll enjoy
them? Are you planning to stay in your home for at least five more
years?"
Get them to give you a number. Then divide that number into the
dollar amount you want them to pay to get an annual amount. If
it's five years, then that breaks down to only $200 per year or
$16.67 per month. Walk them through the math. You might even hand
them a calculator to do the division themselves-people believe the
numbers when they're the ones entering them. To break it down
even further, divide the figure by 30 (the number of days in a
month). That now brings our $1,000 down to $.56 per day. Then
you'd say, "Mary, do you really think you should keep
yourself from enjoying these beautiful cabinets for the next five
years for $.56 a day? That's less than you'd spend for a
soda from a vending machine."
This "reduction to the ridiculous" strategy puts the
larger amount into a daily perspective and makes it seem much more
manageable. And if your customers see it as manageable, their
hesitation very often loses its strength and they go ahead with the
purchase.