The Price Is Too High- 5 Ways To Tackle Price Objection

You are in the process of closing a deal and bam … you are forced to face the question you have been dreading since the beginning – “the price is too high”

price objection

Now don’t think that you can crawl your way out of this using a few cherry-picked quotations they taught you in sales training. Because just like you are experiencing a situation like this for the first time, similarly, your prospect might have heard every canned response by now. 

So forsake the conventional and the usual approach and have a look at these powerful ways to tackle price objection. 

1. Can you fit your services into your prospect’s budget? 

Your prospect can’t allocate enough funds to avail your services, so you can allay this problem by offering a customized package that might fit in their budget. 

You can leave out a few services that they might do without and just charge them for the services that are absolutely necessary for your prospect. 

Here’s another solution…

You can also leave out the full billing for later stages. Say, for example, your product has maxed out their quarterly budget and they need to save their funds to make other purchases as well. You can charge them half right away and ask them to pay the other half in the next quarter. 

2. Is Price The Real Objection? 

To be honest, it is not a hidden fact that many times prospects hire the real objection behind the smokescreen of “high price”. 

So get to the bottom of the problem and analyze whether it is something else that is making your prospect hesitant? 

To do this, start by asking the question: 

“Let’s forget about the monetary aspect for a moment, do our services suit your needs?”

This should give you the exact response. Notice all the signs that the prospect gives out. 

For example, is the prospect says “maybe” or an outright “no” then there’s no question about the fact that the problem precedes beyond pricing. Now, in this case, you will have to cajole the prospect into telling you in detail what the real problem is. Is the buyer concerned with the product or the support? 

You have to handle these objections first before moving onto negotiating the prices. Unless the prospect is not happy with your product, negotiating prices would be pointless. 

Now on the other hand, if the prospect says a firm “yes”, it means that they really want to buy your product but it’s the matter of prices which is holding them back. 

Your job is to access why the prospect deems your price to be high. Is it “high” when compared to your other counterparts in the market? Or is it “too high” as compared to the returns? If the situation falls into the former domain, then you have to justify what features make your product stand out that it has higher prices than the competitors. And if the latter situation is making the prospect sceptical, then you have to persuade them how the benefits far surmount the supposed “hefty” price tag of your services. 

3. The Gist Of The Problem: Condition Or Objection? 

Okay, so the classic “the price is too high” situation can stem from two things: one is the objection and the other is the condition. 

Before you scratch your brain to discern what it means, let me tell you that if your prospect poses the “price is too high” aspect as an “objection” it actually means that they are either comparing the price to your competitor or another similar reason. Furthermore, the objection is often negotiable. 

However, when it comes to “condition”, which by the way is non-negotiable, the prospect is outrightly putting a condition. That is, they wouldn’t consider your service unless you certainly do something about the price. 

Now to discover whether the prospect is putting a condition or an objection, ask them whether the price is a big enough problem that it might keep them from taking the dealing further from here. 

You will get one of these answers: yes, maybe, or no. 

If you get a “maybe” or “no”, then you can somehow try to persuade your prospect and proceed by putting forward some winning arguments. 

But if you get the clear “no”, then it means that the prospect really cannot shell out the budget to avail your services. It’s pointless to take the talks further unless you are willing to toe the line with the prospect’s demands. 

4. Echo The Question

“The price is too high”

Now you are stuck in a quandary. How to get out of it? What will you do to get out it smartly without offending the prospect and hurting your sale? 

Use the ECHO technique. 

Echo back the question to the prospect so that they will automatically explain the reason that compelled them to say it in the first place. 

Now whenever your client says, “the price is too high”, just fire back and say “too high?” After your response, the client is likely to tell you what they actually mean and why do they think that your price is too high. After that, it is up to you and the contra points that you offer. 

This Echo technique is actually a wonderful way if you want to have the last word and turning and sending the ball into the client’s court. 

Is there any other way simpler than that? 

5. Offer A Free Trial

It goes without saying that you have probably tried everything by now. 

You have told them about how your product is well worth the price. 

Given them an option to pay half the price after a quarter. 

What else is left? 

So as you can notice, until now you have only “talked” about the value of your product. Your prospect is yet not sold on the idea that your product is worth the price. 

One of the best ways to address is by giving out a free trial for at least 15 days or even a month. You can also offer a “30-day money back guarantee” option. 

This way you are giving your prospect an option to get invested in your service and if it is turning out to be useful to them, then the chances are price problem would take a backseat in favour of the ROI your product is producing. 

Summing it all up 

Now before you exit this page, let me tell you one thing – cutting down on your prices exorbitantly would not get you anywhere unless your prospect is still not sure about your product. 

So the motto is not to cut down on the prices. The way to tackle price objection is by evaluating the deep-rooted problem and to show that your product is worth it. Make sure that the whole discussion revolves around the value that you are offering and make it clear that your services are going to earn them even more profit than what will actually spend. 

So use these steadfast and simple ways to tackle price objection without cutting down on your prices.

What price objection tactics are you using? What is the most difficult price objection situation you have ever faced?

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About Deepti Jain

Deepti is a senior content writer with AeroLeads. She spends a lot of time brainstorming ideas and writing marketing and sales content. She also has a knack for writing and reading about politics and prevalent social issues and regularly pens letters to the Editor of The Hindu newspaper. When she is not working, you’ll find her socializing with friends or binge-watching Netflix. (And devouring sushi).

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