Overcoming price objections using this method will win you more business and help you retain the business you have. Every salesperson alive has heard a pricing objection in one form or another during his or her career. And far too many have no idea how easy overcoming price objections really is. If, that is, you know to use this one sales technique that will help you from ever having to lower your price again.
Let me set the scene for you. You’re starting your sales career and your pumped. You walk into one of your customer’s office and the first thing out of his mouth is “the other guy” has a lower price. “You’ll have to sharpen your pencil if you want my business.”
Never Sell on Price
Your first thought is no way. I’ve been selling this to you for sometime now and I thought you were happy with the way this have been going.
Then shock sets in and you immediately tell your customer that you will meet the other guy’s price by lowering yours. If you do this, you are surely headed for sales doom.
You just lost all credibility with your customer that you had been working so hard to build.
Overcoming Price Objections Really is Easy
Does this sound familiar? I’ve talked with salespeople who have been in this exact situation and have dropped their price because they didn’t understand that overcoming price objections really is easy. Maybe you have been in this situation yourself.
If you understand this one sales technique, you should never be afraid of the price objections you come face-to-face with ever again.
It’s called the “customer cost savings report” and here’s how it works.
Creating the Value
I hear what you’re thinking. “Oh, no, here comes the part about selling the value.” Well, not quite, though it is about creating value.
Before I get further into the cost savings, I’ll tell you a truth about value. Value is “not” what your customer perceives it to be.
Contrary to what most sales trainers will tell you, customers don’t perceive anything, especially value. You have to prove the value to them.
The Price Objection Buster
One of the very first things you should start doing right now is be proactive and find areas where you can save your customer money. This will set you on the right path to overcoming price objections. Do NOT look for ways to “cut” your price! That is totally the wrong approach.
Start by changing a process or system they are using. This will be money they can put in the bank forever. You want to keep your business and keep the competition out.
In order for this to work in overcoming price objections, you have to do a couple of things to set it in motion.
- 1. Once you find a legitimate cost savings for your customer, document it. Write a short two or three paragraph report summarizing how much they will save over time.
- 2. Never base it solely on the price of an item. The cost saving has to come from a system or process because this is something they do day-in and day-out.
- 3. Next you must get the person you are working with on the savings to acknowledge it by signing your report. You read that right, they MUST sign the report.
- 4. Don’t stop there. Take it up the ladder of your customer’s organization. If you work with engineering and they sign your cost saving report, take it to purchasing. Show them what you and their own engineers have done to save their company money.
- 5. Get the management to acknowledge by signing as well. Take your report to as many people in the organization as you feel necessary.
You Keep the Business & the Customer
If you do this each month, you may find one, two or three areas where you can save the customer some money. Keep all of your signed reports in a notebook for that moment when the customer says, “the other guy” has a lower price.
You can smile and produce your cost savings notebook. The one with the many reports that shows how much you have saved them, that they have signed.
You simply remind them how much you have already saved them by working closely with everyone in their organization. This shows them the true value that you bring to the table. Everyday.
It lets them know that a lower price is only a perceived value, not the real value. This is how overcoming price objections works allowing you to keep the business while building a lifetime loyal customer.
Do you have a specific technique that helps you in overcoming price objections? If you do, tell me about it. You can use the box below to post your ideas.