Page 41 - Payout Magazine Online Volume 10.02

important to get the decision maker into the
equation as quickly as possible. Once you
have thoroughly convinced the subordinate of
the value of your product, set up a meeting
with the decision maker in order to effectively
close the sale.
Know Your Competitor
When your customer is ready to make
a buying decision, they will have all of the
facts they need at their disposal to make
the right choice. This means that they will
have shopped your competitors before they
come to you. They will know the competitor’s
pricing and value prospect, and will use that
in their negotiations with you. It is imperative
that you know your competitor’s product and
pricing inside and out. You need to know what
benefits they offer and how your product or
service is better.
Be ready to tell your customer why the
competitor’s product is not as good as yours.
Show features that your product has theirs
does not. If you don’t know your competitor,
you can’t answer any price objections that
may come up as a result.
Know Your Customer’s Pain Points
There are some elements of their business
that absolutely cause them “pain.” Maybe
their company is spending too much time on
administrative tasks that don’t bring in profits.
You can demonstrate how your product will
assist them in relieving this “pain.” Perhaps
they have been losing a lot of money because
of a weak social media presence. Be prepared
to show the customer how you can solve one
of their biggest challenges and you will be
more likely to overcome price objections.
Demonstrate Price Value in
Practical Terms
Demonstrate your product or service’s
value in practical terms in order to overcome
price objections. If your customer is spending
$25 an hour on an administrative assistant,
and it takes the assistant 10 hours to
complete a task, the customer is paying $250
for that one task. If your product can perform
the same task for half the price, present the
price to the customer that way. If your product
costs $200 and your customer is paying their
administrative assistant $500 a month, your
product just saved your customer $5,800 a
year. By making your pricing concrete, you are
more likely to overcome pricing objections.
Offer a Free Trial
When all else fails, give away your product.
This allows your customer to try out your
product or service with no risk. Chances
are they will love your product and want
to continue to use it and pay for it. If you
are selling software, this is an especially
successful strategy. Your customer will likely
start filling in information and sharing logins
with assistants and subordinates, making it
less likely that they will cancel at the end of
the trial. The more people that are using the
product, the more likely they will keep it and
pay what you are asking.
Prepare in Advance
It is best to be prepared when entering
your sales pitch. This means being prepared
for possible objections. Make a list of possible
price objections and think about how you will
address them. This will help you avoid any
surprises and be prepared to counter those
objections.
Be Silent
One of the most effective ways to
overcome pricing objections is to not object
to them. When the customer says the price is
too high, simply say nothing. People are often
uncomfortable with silence, and they will often
start talking to fill the silence. In talking, they
will often talk themselves into buying. They
may begin asking more questions to get more
clarification on parts they don’t understand or
they may start asking about payment plans.
Either way, it’s best to let the customer lead
the conversation and circle back to their own
objection and solve it themselves. This tactic
doesn’t always work, but it has been shown to
be effective in overcoming objections.
When it comes to closing the sale, it helps
to understand common objections and how
to overcome them. By understanding your
competitor and your customer, you can close
more sales at any price point.
PAYOUTMAGAZINE 41