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"You are your greatest asset. Put your time, effort and money into training, grooming, and encouraging your greatest asset." ~ Tom Hopkins
Author: Tom Hopkins
If you’ve been in business longer than a week, you’ve probably heard this objection from at least one potential new client: "It just costs too much." Or, you might have heard it in this way,"I’m really interested but I think I can get it cheaper somewhere else."
Everyone wants a bargain, but not everyone really believes they can get your product somewhere else for less. And, many who use this line will never invest the time required to shop around for a better price anyway. So, how do you handle this situation?
Begin by understanding that most people are afraid to part with their money. Money equates to security. It doesn’t matter whether you’re asking them to exchange $19.95 or $1,995.00 for your product.
People are happy to spend their money when they see that there’s more value in having your product than in having their money. That’s where you need to take them in their thinking before they’ll consider making a buying decision.
When a client objects to your price, the first thing you should do is to feed it back to them. Warmly say, "You think the muffler costs too much?" They’ll either agree or hesitate, re-thinking why they said that. If they agree, ask how much they had expected to pay for a product like yours with all the quality and benefits it offers. List the benefits of the product briefly. What you’re doing is building value in order to decrease their money resistance.
Use ownership terms when discussing the product. You should have built some rapport, qualified and presented the product by the time they object. So, you’re not discussing "a" product anymore. You’re discussing "their product," "their benefits."
If they’re still stuck on the money, say: "It may very well be true that you can find a similar product for less money elsewhere. And, after all in today’s economy, we all want the most for our money. A truth that I have learned over the years is that the cheapest price is not always what we really want. Most people look for three things when making an investment: 1. the finest quality; 2. the best service; and 3. the lowest price. I have never yet found a company that could provide the finest quality and best service for the lowest price. I’m curious, for your long-term happiness, which of those three would you be most willing to give up? Quality? Service? Or, low price?"
No one wants to own inferior products. And great service is always important. These words help minimize the price issue
On a larger ticket item, you will want to determine how much less they would want to invest in your product. When they say, "It costs too much," say, "Today, most things do. Can you tell me about how much too much you feel it is?" If the difference between your price and what they want to pay is only a few hundred dollars, build the value once again. If the amount is larger, try the "reduction to the ridiculous" strategy.
It goes like this: Let’s say the challenge is $1,000. Next, determine how long they’ll keep or use the product. "Mary, if you were to invest in these new cabinets for your bathroom, how long do you think you’ll enjoy them? Are you planning to stay in your home at least five more years?” Get them to give a number. Divide that number into the dollar amount to get an annual amount. If it’s 5 years, then that breaks down to only $200 per year or $16.67 per month. Walk them through the math. You might even hand them a calculator to do the division themselves. People believe the numbers when they are the ones entering them. To break it down even further, divide by 30 days in the month. That now brings our $1,000 down to $.56 per day. Then, you would say, "Mary, do you really think you should keep yourself from enjoying these beautiful cabinets for the next five years for $.56 a day? That’s less than you would spend for a soda from a vending machine."
This strategy puts the larger amount into a daily perspective and makes it seem more manageable. If they see it as manageable, their hesitation very often loses it’s strength, and they go ahead with the purchase.
Overcoming it costs too much sales objection, © Copyright 2008 - 2010 Tom Hopkins International, Inc. For more information on this sales training topic and others visit our blog
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