Thoughtful Thursdays – The ever present price objection
No one enjoys selling something for less than they feel it is worth.
Think about the last time you experienced the price objection. The bottom line is that you are being asked to supply for less than you originally wanted. Price points are determined during the sales cycle, as part of the sales process.
It is after making your recommendations that negotiating often begins in earnest. Once you are at this point there should be a reasonably high probability of making the sale. You want to be prepared to confidently address anticipated price objections.
The last time you experienced a price objection, were you prepared to walk away from the sale, or did your customer negotiate a concession?
Too many times, fear of losing the sale results in needless price erosion. The customer wins and profits suffer as a result. Your defence is to have a well-prepared response, with the objective of having two winners, not just one.
Yes, there are many scenarios to consider, however there are common points to consider for most business negotiations.
- Know at when you have to walk away
- Do the math, quantify the price differential and know how it relates to your service or product pricing – consider options that will offset the differential without moving on price.
- Quantify the benefits of buying from you
- Be clear in your mind where you can afford to be flexible and where you must stand firm
- Understand the consequences of taking price out of the service/product and be prepared to talk about it with your prospect
- Value = Price + Benefits
- Are there strategic reasons to consider such as additional business
There may be instances when you decide to concede on price. Be sure you have considered all your options. Know clearly why you are doing it and understand the potential consequences.
Good selling,
Richard
Have a question about sales? Contact Sakanashi and Associates Inc. and I will be happy to respond.
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