Dealing with Price Objections Successfully
Originally published in Sean D’Souza’s Psychotactics newsletter
You’ve made an outstanding presentation. You’ve explained the deliverables and the benefits of your product or service in great detail. Your client is ready to buy right away. There’s just one itty-bitty problem. One little nuisance.
Um…Your price is too high.
Not that darn price objection again…
If you’ve run headlong into the price objection, it’s probably your fault. Yes, you read right. You’ve failed to structure your proposal so that the client has to choose between yes and yes. Ah well, it’s too late to back track now, and you’re in the middle of a soup of your own making. But fear not. There’s a way to clamber out of the soup bowl.
Here’s what you do
- Smile when the client objects about the price.
- Then simply summarise all you’ve just presented.
- Turn to the client and ask: Which part of the package would you like me to leave out?
The client will be surprised…
He wants the whole enchilada and here you’re asking him some daft question. "What do you mean by that?" he’ll ask. You say: "We can reduce the price, if you like. We just need to take out some of the components."
While the client is still gasping at your audacity,tell him that for you to deliver the goods/services, this is what you need to charge. If you charge the clients less, you have to take out some components.
At 5000bc.com, you can get a lower-priced product. That is, you can take the Regular Membership instead of the Premium Membership. Yes, some customers think the Premium is a touch too expensive.
Of course, you only realise how much value you get in the Premium, once you’re in. But sound reasoning won’t necessarily dissuade some customers. They still want the cheaper option.
So we take out the components. You get the Regular Membership. It’s more economical, but it doesn’t have the 12 interviews that alone are worth more than $400.
You can use the same concept. If your client wants to reduce the price, go right ahead and reduce the price. Just make sure he knows that there’s a price for reducing the price.
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