Handling the Price Objection (and others)
“A person’s worth in this world is estimated according to the value they put on themselves.” Jean De La Bruyere
or if you prefer “If you really do put a small value upon yourself,
rest assured that the world will not raise your price”- Anonymous
“Your fees are just too high”
or “We have an offer from someone who will do it for less”
or “I don’t see why I have to pay all that money just to have you create a plan”
When we hear those things said…How many of us try simply to lower our fees to get the work?
Especially if we are selling ourselves to deliver the service
However once we lowering our fees for a particular piece of work, we have established our value at that lower amount.
As above If we put a low value on our own work, certainly no one else is going to suggest our value is any higher.
Why do so many of us do this?
Let’s take a look at where objections fit into professional services selling.
Often an objection is seen as a sign of rejection.
However most objections can be overcome with a little effort.
Objections signal usually one thing.
There’s some kind of barrier to overcome in the mind of your prospective client.
Other objections, on the other hand, may simply be questions that have yet to be answered.
Others may be a true obstacle that may need further investigation to truly understand and a modification made to the plan
Your objective: Test if the objection is real and if so overcome it somehow:
We suggest that you might use our 4 C’s approach
1. Clarification :
Ask lots of questions to help you really understand the issue being raised
Listen with two ears and one mouth!
Establish that it’s real and not game playing or negotiating.
Explore the implications and knock-on timing effects
Play back to your prospect (Parrot-Phrase not Paraphrase here!)
Say back to them what is your understanding of what they just said
Revisit the benefits and roi of the project. Do they really believe their numbers?
Reiterate and your track record of delivering
Work with them to come up with a solution that does not mean you drop your price.
Explore with them different options on payments
Explore different ways of delivering the benefits and changing the price or phasing of payments
Remember you are equal partners on this, you have a business too.
Ask yourself (a bit late) if you dealing with the right level of person here
Get them to say that this solution is acceptable and there are no further objections.
Then … If all of these tactics still don’t work and you still firmly and confidently believe you have fairly priced your products and services…
and provided the solution you know will help the prospect….
And your prospect says “Your fees are too high” . We suggest that you are in the wrong place.
Walk away. Head held high.
Go find someone who does appreciate what you do. And will pay for it.