Page 40 - Payout Magazine Online Volume 10.02

The Best
Way To
Overcome
Price
Objections
The sales process can be tricky. Overcoming
price objections is even trickier. You can
have the most stellar pitch and get stuck at
the price conversation. Customers often fail
to buy because of price, and understanding
how to overcome common price objections is
the best way to close the sale every time.
Understand the Real Reason for
the Objection
Some people object to a sales pitch
because they have been taught that sales
people are trying to take something from
them, and it is there job to hang on tightly
to their money. When you ask about their
budget, they balk because they have been
taught that sales people are not on their side
and will try to talk them into buying something
they can’t afford. Position yourself as less of
a sales person and more of an advisor who is
working with them to get them what they need
for success. Understand that many customers
are going into a sales presentation having
already decided they are going to reject your
first offer. It’s up to you to be prepared for this preoccupied with the price of the service or
and be able to counter it.
40 PAYOUTMAGAZINE
Determine Whether the Timing is
Wrong
In many cases, customers object to your
pricing because the timing is wrong for them.
They may have already committed all of the
funds in their budget to other projects, or they
may be at the end of their budget cycle. They
may be just a few weeks away from starting
their next accounting year during which time
they will be able to commit to your product
or service. In some cases, you may be able to
offer financing that allows your consumer to
pay later in their budget cycle. While this may
not be ideal, it can help you to otherwise close
the sale.
Introduce Price Early on in the
Conversation
You’re giving the best pitch ever, selling the
value of your product and how it is going to
work for your potential customer, and they’re
thinking one thing--”how much is this going
to cost me?” At some point, they may be so
product that they are not even paying attention
to your pitch. By introducing the price of the
product upfront, you can allow them to relax
and pay attention to your presentation.
Don’t Introduce Pricing Until the
End
Another opposite school of thought is that
you should not mention price until the end of
the interaction. This will allow you to present
the customer with the entire demonstration of
the product and how it will bring value to them.
By saving the price for last, you will have the
opportunity to sell them on the product and
allow them to visualize themselves using the
product before you bring up price. The general
thinking is that for products, it helps to present
the price upfront, while for services, it’s best
to save the pricing conversation for last.
Pitch to the Right Person
One of the best ways to avoid price
objections is to make sure you are pitching
to the decision maker. This may not always
be possible, as you may have to work with
a subordinate or an assistant first. However,
when you have sold the subordinate, it is