Colleen Answers: “What’s the best way to handle price objections?”

Thanks to those of you who have responded to my survey, which asked for your biggest questions about selling more in this “new” economy. As promised, I’m posting another question and answer here – and you can get even more information during my January 21 call.

 “What’s the best way to handle price objections?”

 As today’s economy puts a strain on everyone’s finances, pricing proves a tougher-than-usual issue. People are looking for ways to cut their budgets, whether it means cutting employees’ hours or haggling with you over prices of products they want and need. This “new” economy takes “nickel and dime” to a whole new level.

 Here’s a proven two-step formula that can help you handle any pricing objections your prospects throw at you.

 Step 1: Shut up!

 Whenever you’re faced with a difficult question or objection, the first thing you need to do is take a deep breath, make eye contact with your prospect and silently count to three.

 It is amazing how many clients will answer their own objections, or at least give you some much-needed information, when you simply say nothing. Don’t be afraid of silence. Practice it until the three-second pause becomes one of the most effective tools in your arsenal. 

 Step 2: Ask questions.

 You can ask up to three questions before you have to answer an objection – provided you ask the right questions in the right way.

 The key is to acknowledge what the customer is saying and then offer them a compliment before asking your question.

 Which questions should you ask?

 Once you’ve acknowledged the objection, ask them a question that is both direct and phrased to elicit more information. Try the following.

 Prospect: “Your price is too high!”

Sales professional: “Thanks for sharing that. How much too high are we?” or “You’re right; we are more expensive than most. How much were you hoping to pay?” or “I appreciate your honesty. Is our price a showstopper?”

 Prospect: “I need a discount!”

Sales professional: “It’s good of you to be looking for the best deal. How much of a discount do you need?” or “Making sure you’re getting the best deal for your company is a good idea. If we can’t budge on the price, does that mean it’s over between us?”

 For even more ideas about how to respond to a prospect’s price objections, join us for our FREE event, “5 Secrets on How You Can Sell More in 2010,” Thursday, January 21 at 12pm Eastern.

Click here for more information or to sign up:

8 responses to “Colleen Answers: “What’s the best way to handle price objections?”

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  2. Hi Colleen,

    Great advice about being quiet immediately after someone has expressed an objection.

    Another effective approach is to simply repeat what the customer said but in the form of a question. So in the example of “Your price is too high” you say, “Our price is too high?” Then you wait for the customer to respond. In many cases, they will elaborate and tell you what they mean by that.

    Keep up the great work!

  3. Great advice Kelley. I love that technique – we call it “echoing”. It’s a fabulous way to get the client talking about their objection and often you get the true concerns behind what they are saying without having to ask anything else! Have a great week and thanks for following the blog. – Colleen

  4. Colleen, Thank you for your appraoch to getting the questions on sellers minds in the open.

    Price objections, like any objections are an opportunity to expand the discussion. As you point out, NOT talking or pausing is really needed first. Then acknowledging the objection and validating that it is ‘safe’ for that person to continue on “I understand…” “I hear you saying…” before the question is powerful.

    Thank you for laying it out so clearly!

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