You have a quality product and hundreds or thousands of satisfied customers ; you are negotiating the entry of your brand to a new retail channel or a large purchase by a final consumer; You feel confident about the quality of your value proposition . However, lately you run into the same objection: “It’s too expensive!”.
Surely you are starting to worry because in these times people pay more attention to the purchase ticket ; and, of course, lowering prices could not only affect your profitability, but also the final quality and perception of value of your products or services.
What to do then to overcome the price objection? Above all, do not panic or fall into a war of offers and promotions with your competitors . Then, apply these four effective tactics every time you have to negotiate with your clients.
#1. Put the price on the entrance table
Many entrepreneurs believe that delaying the price discussion is a good tactic to engage the customer with other arguments such as quality or after-sales service . But the reality is that it is much better to be transparent when showing the prices of tickets . This transmits security in the value proposition and also filters out those clients for whom your proposal is out of budget or who will never value it.
If your service is very specific and the calculation of its price will depend on many factors, then you can offer approximate values or a base price. Immediately ask your client what he thinks, so that you can then deal with his negative comments or answer his questions.
#two. Increase the perception of value of your product or service
In most cases, price objections are not about money, but about what the consumer feels they will get in return. Therefore, the first tactic is to increase the value that your customers believe your products or services have.
How to achieve it? Initially, make adjustments that do not mean an increase in production costs , but that more clearly communicate the value of your proposal; for example, in the packaging. Then, review your marketing plan and focus on communicating the solution you offer or how your customers feel after hiring your services. The idea is to make it clear that your proposal is, by far, superior to that of your competition. And that it is worth every penny that comes out of your wallet.
#3. Talk about the risk of not doing business with you
This is an argument that works very well in the B2B market, where one company sells to another. For a purchasing manager, of course, price will always be important when reporting to his superiors. But they also need to bring peace of mind and security about, for example, the ability of software to solve problems with inventory or of a machine to speed up the manufacturing times of a product.
One of the best tactics to overcome the price objection is to focus on the dangers of not making a necessary, but also wise, investment in business solutions. And end up wasting resources and losing valuable customers.
#4. Become an ally of your clients
As in the previous case, many times your customers have to justify a purchase to another person. But that doesn’t only happen in the corporate market , but also with the member of a couple who share expenses or with a university student who is still financially dependent on her parents.
Then think about the type of responses you need to offer your customers after making a purchase. For example, about why your products are technically better than those of your competition or about what are the additional guarantees of operation . A very important part of increasing the perception of value of a product is giving your customers the arguments and evidence they need to justify their choice. How can you share that valuable information? In addition to the sales pitch, there are the brochures, the testimonials of satisfied customers through social networks and the free trials.