"I'm really interested, but it costs too much!"
"I like what you're offering, but I think I can get it cheaper somewhere else."
You are about to close the sale but when you get to the price, you receive price objections or that "shocked face syndrome."
Clients often use price objections because it is a convenient excuse. They use price objections as a way to shop around for a better price or offers somewhere else. This can take you off guard and allow your confidence to wane as thoughts of a lost sale arise.
Price objections are part of the sales process that salespeople encounter. It is a challenge. But when you know how handle these cost objections, you can emerge successful.
Techniques to Deal with Price Objections
You can handle and respond to price objections through these techniques:
1. Consider client's budget
Budget is different than price. For instance, take selling real estate. You have to know the price range that your buyer is willing to consider before setting up a showing. You have something to work on if they give you a range of $50,000 - $100,000.
In selling digital LED signage, you should ask your client up front what their budgetary restrictions are. From their budget, you can provide the best pricing options and then build value from that proposal. You can change the package or restructure the deal to meet the price that your client is willing to pay. Don’t discuss pricing right away, but understand early on what your client is working with so that you don’t shock them later.
Respond with something like, "If budget is your main concern, we can restructure our package for you."
2. Reassure your client
Warmly ask your client, "You think LED sign costs too much?"
Your client will agree, hesitate or think about what they've said. From their response, ask how much they expect to pay for a digital sign considering all the benefits you offered.
From there, support your price with customer satisfaction data or testimonials from customers. Reassure them with guarantees, commitment and value.
3. Walk your client through the proposal
When discussing your digital signage with a client, avoid handing them a folder with mountains of information (company info, products, benefits, solutions, cost, etc.). It is better to walk them through the proposal and hand out each part as you discuss it. This makes them pay more attention to your presentation.
For instance, you can discuss it by parts -
- Part 1: How your offerings fit their business needs?
- Part 2: The solution and benefits
- Part 3: Implementation and installation
- Part 4: Guide on using digital sign
- Part 5: Your company (why you're the best sign provider?)
- Part 6: Cost breakdown, final price and payment terms
Doing this builds value on your offerings. Your client will get to see how digital signage helps them achieve their objectives and steers them away from thoughts of the price tag.
4. Focus on the selling value
You'll get less resistance on the price and objections won't be too high when your clients have seen the value of your offerings. You can do this by making them see that it is a worthy investment and not an expense.
5. Avoid early price discussions
Price objections often come when you give out costs and talk about price too early. You have to get your client to see the value of your solution. When your conversations are moving forward and value is seen in both the product and your business, then pricing can be discussed. Doing this will increase value perception and decrease cost objections.
The next time you face a hard time about costs, don't give up. Instead, use the strategies above so you can handle any price objections.