What do we say and do when a potential customer baulks on price? When you want the deal but maintaining margin is also important we recommend the tactics below.
- Defend Your Position
A fabulous response when a prospect, customer or client challenges your price is simply to respond with the following statement and question;
“We thought that was fair, what were you expecting to pay?”
Many sales people become unsettled when challenged on price. This question gives control back to the sales executive. This positive reaction typically takes the other party by surprise and flushes out what they are really feeling in regard to price. A response close to your offer typically says I want to buy but feel I need to negotiate first.
A price challenge presents a wonderful opportunity to re-qualify exactly where the prospect is in the decision process. Here are a couple of nice questions:
“ If pricing were similar would you prefer to deal with us?”
“ How much extra would you be prepared to pay to deal with us?”
“Are you in a position to make a decision now?
- Talk Return On Investment
Purchasers need something to compare your offer with to help them make a decision. If it’s a choice between doing and spending nothing and your offer then your cost will be compared to $0.00.
Similarly if they are comparing your price to that of a cheaper competitor the price difference will be the comparison.
Instead if you can present an impressive R.O.I .then the initial investment will look minimal versus the potential upside.