Price objections can be divided into three classes:

1. Those which are not meant by the customers from the point of view of value, but that the prices are higher than they can afford to pay. These customers desire a cheaper grade of products.
2. Those which are made solely for the sake of argument. Many customers think it is their duty to make many objections in the course of buying, and their most frequent objections are to price.
3. Those objections which are made with all sincerity. The customers object because they sincerely believe that the prices are too high for the products. They are sincere in their objections, and believe in what they are saying.

When an objection is made to price, you should be able to tell to which class it belongs. If the products are too expensive, you should be able to read this, and to judge what the customer is able and willing to pay.

Many salespersons can’t tell this kind of price objection, and continue with presentation to prove that the price is satisfactory from the point of view of quality. This is not the cause of the objection made, and the customer knows it. If the customer can afford to pay the higher price, in a few cases you may be successful. If this is the case, you should know it, and continue to sell with that in mind. On the other hand, if the customer can’t afford to pay the higher price, the sale is lost.

Great number of sales people are not able to distinguish between these two classes of customers, and they wonder why they are not more successful. Let me give you an example.

Recently, I was shopping for a Christmas present for my spouse in a big retail store where I witnessed a conversation among the customer and a saleswoman.

The saleswoman showed to a customer a nice dress with a higher price tag. The customer said the price was too high. The saleswoman thought that she meant that there was not a value in the dress priced higher. Arguments were used to prove that the price was not too high considering the quality of the dress.

The customer repeated that the price was too high, and added that she wished to see something less expensive.

The saleswoman even then did not understand the reason for the objection, and continued with arguments to show value. Eventually, the customer went out without buying. The saleswoman wondered why she did not make the sale.

If she had been able to read human nature, she could have told that the objection was because the price was higher than the customer could pay. This being the case, the sale under ordinary circumstances would have been made if a products of lesser value had been shown.

Next time when you hear a price objection from your prospects, try to understand to which class of this three this objection belongs and than try to handle it properly.

How to Handle Price Objections is a post from: The Science and Art of Selling by Alen Mayer

1. I’m not interested.  Create interest by telling a short anecdote of how someone else benefited her home/work/play by using your product.
2. I don’t  have enough money.  Quickly recount how using this product saves money in the long run by  improving the client’s health, saving  his time, or increasing his influence.  State dollar examples of savings gained.
3. I don’t need it.  Be alert to the needs of the customer.  Don’t try to push more on the customer than she needs.  Does she need more space, more time, better methods, or just the basics?
4.  It’s too much hassle to set it up (such as a new phone, exercise equipment). Offer to set it up for him, according to your company’s regulations.  
5. My old one is good enough.  Make sure your client has product knowledge. Teach her the new features as you promote the latest device or service.  Discount it. 
6. Another company has a better offer.  Don’t say “no” to the customer.  Provide an in-store coupon, a sample, a gas card, service, delivery, or warranty.  Give people what they want.
7. I can’t decide.  How to handle objections involves eliminating excess information.  Narrow down the decision to two or three options and focus on the best selling point of each.  Offer your personal preference, if the client asks.
8. I’ll think about it.  Don’t let the client leave without providing specific facts and figures with which he can compare.  Tell him what day and time you will personally be available to discuss it again.
9. It’s not exactly what I want. If you are going to make a sale, you must know how to handle objections like this one. If it is not in stock, order the closest approximation to your client’s need. 
10. It’s just not for me. Show proof that having your product gives your customer greater advantage, potential, and possibilities than not having it.  Be honest, but do what it takes in devising how to handle objections.  Let your client know that you will make it happen for her.

10 Ways to Handle Objections Effectively is a post from: The Science and Art of Selling by Alen Mayer

However, there are a few time-proven methods that sales reps can use to overcome this objection. Here are a few of them:

1. Stop the objection from coming up in the first place. If the sales rep asks the right questions, shows passion, appeals to the client’s emotional hot buttons, demonstrates product knowledge and creates excitement, a lack of money will not be a deal killer. The funds will be found. Seldom is it that money stands in the way of people who really want to do something.
2. Frame the price in relative terms. This begins by researching the market and seeing what the competition is charging. If the price your competitors charge is higher, contrast your price. If their cost is lower, emphasize the unique selling proposition of your product/service and quote a higher price than your product/service sells for – then immediately let your client know that they can purchase it for a reduced price. This approach will sound like a bargain…and who can resist a bargain?
3. Drive home the cost of not buying your product/service. This means educating your client on the benefits of your product/service, and the rewards that they will reap by buying now. This begins with the sales rep having detailed product knowledge, then illustrating the savings of time and/or money that your product/service can offer your client.
4. Know your client’s deepest concerns, and explain how your product/service will solve them. Become familiar with the business and industry your client is in. What keeps them up at night? How can they gain a competitive edge? How can your offer make their life easier? Once you have answered these questions, it is then only a matter of presenting your offer as a way of solving your client’s problems and thus making their life easier if they accept your offer.
5. Remove the price from the conversation and qualify them again – “Let’s forget about the money for a second – do you see your company benefiting from this product?”

Keep these points in mind, and remember that it is all about the client – not you! If these ideas are presented correctly, many price objections will be overcome.

5 Ways to Handle Price Objection is a post from: The Science and Art of Selling by Alen Mayer

To see a fresh approach about how to handle objections during a sales presentation, smart sales professionals can take lessons from smart politicians.

You share a lot of goals with them, but they have one big drawback that most marketers never face; the politician has nothing real to give the person at the time he is seeking something quite real from them, like money, votes and support.

The politician takes a four-step approach to handling challenges.

First, listen to the objection carefully. Don’t rush to meet the objection head on. Don’t let the fact that the question interrupted your momentum and the flow of your presentation annoy you into a curt or dismissive comment. The best approach in how to handle objections always begins with the phrase, “Yes, and….”

Next, refine and narrow the question with your own questions. This uncovers the real scope of the objection, as opposed to only rhetorical challenges. It also exposes and isolates the person who is simply opposed to your presentation on general principles, as distinct from the person open to compromise and persuasion. You can restate the question, but never distort or minimize it. This is a tactic used by desperate meeting facilitators and hard-sell artists, and most people recognize it, even if only unconsciously.

There’s a point where you want to suggest a “lay all your cards on the table” approach which gives you clear targets and paints the challenger into a corner with his own words. This is key to how to handle objections, because once his points are addressed he cannot honestly bring up new ones. “Is fuel mileage your only concern with this car, or do you just not like its looks?”

By now you should be seeing a solution. Use positive phrases, such as “Yes, that is a very important question that leads to an equally important point we are making about our product…..” Most politicians have a deep supply of such stock phrases they can roll slowly off their tongues when most of their brain cells are working quietly on the final details.

Finally, frame your answer in the form of a solution for everyone. Stress what you give up, like a discount or an added feature. You’re being reasonable and more than generous, so invite the challenger to do the same. Seek confirmation that your answer is understood and accepted.

How To Handle Objections Like The Politicians Do is a post from: The Science and Art of Selling by Alen Mayer

• You can practice reading from it before you call to help you sound more knowledgeable, professional, and in control
• The script contains a list of common objections, with suggested responses
• Reviewing the script will allow you to become more familiar with your product/service

However, there are a few disadvantages of using a script:

•  It may sound like you are reading from a script and just going through the motions. This is often done with no passion whatsoever, and many potential customers will pick up on this immediately
• Many people who are forced to listen to a script reading will feel like their intelligence is being insulted, and may also feel like they are not being addressed personally – but instead are being treated like a number, rather than a person
• Many new cold callers will read through the script too quickly, and consequently fail to pick up any responses from the listener…until the line disconnects
• Scripts are often filled with cliches such as “Congratulations! You have been selected…” or some phoney sounding story such as “you won’t believe this, but our warehouse has just been damaged, and we are getting rid of out inventory at unbelievably cheap prices, so this is your lucky day” or “put your buying hat on, and grab your buying pencil” or some other such nonsense.

Therefore, when all things are considered, most successful cold callers use a script – but make it sound like they don’t. This means knowing what you are going to say, and how you will handle objections.

The keys to this are to adapt a conversational tone; don’t rush through your introduction and listen – really listen – to the person you are talking to. At times, this may mean that you will deviate from the script somewhat: but that is okay, as long as you are developing rapport with who you called and a friendly conversation is developing.

Finally, read the script, and if there are words in the script that you normally don’t use, and feel uncomfortable using them, then don’t use them! They will sound phoney and insincere, and may result in losing many sales.  

By keeping these ideas in mind, the script can be a fantastic and useful tool.

Setting Up Your Cold Calling Script is a post from: The Science and Art of Selling by Alen Mayer

Having discovered the need to identify objections and deal with them appropriately, it is also important to keep in mind that objections should not be handled aggressively. Why am I saying this? Because there are many different reasons for objections being presented, each one must be handled in its own way, on its own merit. You need to understand the nature of an objection if you wish to address it properly and with the right amount of care.

The nature of an objection is based on the fact that the buyer’s heart and his mind are engaged in a struggle. As we know, it’s the heart that does the buying and the mind that prevents the purchase. Therefore, when a buyer is making an objection, it’s clear that his mind is creating an obstacle for the bit of interest that has been stirred in his heart. In other words, your buyer is interested in your product or service. If he wasn’t, he would have walked away. But the fact that there is an objection means that his heart and mind are competing in a battle of wills over the validity of the purchase.

If an objection has been made in good faith, it may simply be that the prospect is interested in the products but hasn’t the means available to buy them. His common sense (mind) may be trying to prevail over his desire (heart) to make the purchase; but only because he knows that he should keep his money aside for a more essential need. This is a difficult resistance for any salesperson to overcome. However, it may well be in the prospect’s best interest to purchase your product as opposed to buying a new pair of shoes or some other essential item. It is your responsibility to demonstrate this to him, in the appropriate manner.

Again, if the prospect has objected with good intentions, it may be that he does have a strong desire to purchase your product but he thinks that it’s not a wise decision to make as there are other essentials that he needs to buy. Subconsciously, he’s wistfully hoping that his heart is right and his mind is wrong.

Let’s suppose that he thinks it’s foolish to spend money on your product when he needs a new pair of shoes; but he’d rather do without the new shoes if he could have your product without seeming foolish. All that you need to do in this case is to demonstrate to the prospect that making the purchase is a wise move and is not a foolish decision at all. The degree of opposition is in proportion to the weakness of his desire. If he has a strong desire to purchase your product, the opposition of his mind won’t be difficult to overcome and his heart will eventually win the duel.

Most failures in objection handling are due to the salesperson failing to understand the double nature of what he or she is dealing with. You will not succeed in trying to overcome an objection by using a purely mental approach. This is because when two minds are opposed it can only result in antagonism instead of the harmony that you need to acquire the sale. Similarly, meeting an objection with a purely emotive approach will also not secure the deal. A prospect’s mind also needs to be satisfied before he resolves to make a purchase. Even his heart will suspect the sincerity of your emotional appeal.

To be effective, you need to know how to proceed without causing the prospect’s heart to doubt your sincerity or antagonizing his mind to reject your approach. To do this, it will help if you can classify an objection specific to its cause. Objections may be due to one of the following six causes:

1. The buyer’s fears
2. Buyer’s unwillingness to change his buying habits
3. Objection to some feature of the product; or to the proposition itself
4. To general conditions
5. Buyer’s opinion of the salesperson
6. To a “personal” cause that the buyer presently has

The objection is merely a symptom of the ailment – it is not the disease itself. The CAUSE of the objection is the disease. If you discover the cause, you can treat the disease and alleviate the symptom of objection.

Read my previous post: Nobody likes to be sold (but everyone wants to buy!).

The Objection Handling: Mind vs. Heart is a post from: The Science and Art of Selling by Alen Mayer

To ignore or try to dodge them is a confession of weakness which will not be overlooked by a prospective buyer. It is an opportunity for you to treat the question raised as if it were a point you would have reached very soon in your presentation even if the buyer had said nothing about it.

Among the usual objections are:

1. The product is cheaper elsewhere.

This may or may not be true. You may not know whether the statement is truth or false. If you know it is not true, it is not a wise plan to say so in a blunt, positive way. Neither is it wise to offer to bet that it can’t be done nor to offer an amount of money to charitable institutions if the prospect can make his word good. This comes too near an insinuation that the prospect is speaking falsely, and while he may know that what he says is false, he does not wish to be told so. You can simply ask: are you comparing apples to apples? What is included in that price?

2. Good points of a competitor’s products

An objection raised in this form is usually made for the purpose of starting you on a discussion of a competitor. This is always dangerous ground. You should say as little about the competing product as possible, emphasizing the points of difference strongly, and demonstrating the benefits of your own product for your previous customers (your own success stories create credibility!).

3. Your product is costing too much; customer can’t afford it

If you can show that the product you are selling will produce or save for the buyer more than it costs, your prospect can’t afford to be without it. Two classes of buyers raise this objection. In one class are those of whom it is true or for whose purposes a cheaper product will serve as well. In the other class are those who desire to put the salesperson off or whose experience has not been sufficient to enable them to know that the best is the cheapest in service and satisfaction.
To those in the former class you should make no further effort to sell. For those in the latter class you have a message. The price paid for a product is forgotten, but the service secured from it and the satisfaction enjoyed while using it are what counts toward future trade and repeat orders.

4. The product offered is not needed.

In meeting this objection it is worth while to raise such questions as:

• Is what the prospect has the best solution for them?
• Does it do the work in the most economical way?
• Does it enable the owner to meet the competition of those who are better equipped?
• Does it make the best possible impression upon those with whom the owner comes in contact?
• Would continued use of the inferior product indicate a lack of progressiveness (or vision)?

5. The prospect has no time to discuss your proposal further.

This is a method often employed to get rid of you in the hope that you will not return. A courteous request for a future time will usually find available time at the present. When the prospect realizes that you are not to be put off in that way, he will usually agree to hear immediately what you have to say.

6. Time to think it over.

In some cases this is bona fide, but in others it is only an excuse. You must judge between the two. If you decide that you are facing the maneuver or excuse, and your decision will probably lean in that direction as a rule, you should point out the disadvantages which are liable to arise by postponement, and the desirability of immediate action. If your products are satisfactory and desirable, if their ownership promises to be profitable, each day of postponement means so much loss to the buyer. Have you ever asked your customers – what is the impact of not making the decision today to buy? How much it cost you to stand still for next 60 or 90 days of postponing your decision?

Further reading:

• If you live by price – you will die by price
• Three Classes of Price Objections

Six Common Objections and How to Handle Them is a post from: The Science and Art of Selling by Alen Mayer

Objections that are raised to price are probably the most frequent of all honest reasons for prospects refusing to buy. It’s important to understand where the price objection is coming from, before you can handle it effectively.

Sometimes a prospect will object to price because it is simply more than he can afford to pay. The products or services are too expensive and the buyer can only afford something of a cheaper grade. As the salesperson, it is your duty to enrich the prospect with the knowledge of how the purchase of a quality item will be more economical in the long-term as opposed to buying the cheaper article of a lesser grade.

Scripts:

• “Compared to what?”
• “You know that our quality is the highest you can find, which means that you pay much less over the life of the product. The higher quality saves you money in the long run. Why not order today?”
• “If our products were cheaper, would you want it? If yes, let’s find the way you can afford it!”
  

Alternatively, an item which is more expensive usually offers additional features that may convince the buyer of the validity of such a purchase. In other words, there are times when a quality item will speak for itself. At other times it is up to you, as the salesperson, to educate the buyer of all the features and the value it holds, before he can make an informed decision.

Script:

• “Yes, we can lower the price right now, however you need to decide on what options to cut from our proposal.”

An objection to price doesn’t necessarily mean it’s the end of the line. A buyer may be in a position to arrange alternative funding, if he sees that there is just cause. It is the duty of the salesperson to discover the cause of the price objection before being able to deal with it appropriately.

Another common objection when it comes to price is the follow-on that “times are tough” and “we’re in a recession”. Naturally, a business depression will send most buyers running for cover. However, a skilled salesperson will quash this objection by agreeing that times are indeed bad and the recession has affected all aspects of daily life; but that the product on offer has been specifically engineered and priced to accommodate the current recessive period and its characteristics. In fact, a buyer can only benefit from purchasing your product in a particularly recessive time, for all the various reasons that you can provide. You don’t have to succumb to the pessimistic mood that surrounds a recession. You can provide a quality product at a price that is uplifting in a time of downsizing and depression.

With price being the most common objection made to many sales people, a skilled manner of dealing with such a sensitive issue is to delay any mention of money matters until the very end of a discussion. In this way, you have had the opportunity to demonstrate to the prospect the quality and worth of the product and ensure that these have been firmly established before the price is mentioned. If a price is requested early on in the presentation, a skillful side-step would be to say something like,

Script:

• “…let’s decide if you actually want to buy this product. If you do, I’m sure I can put it within your reach…”

The point is to sell the item and all that it’s worth before you’ve even mentioned the price.

Learning to handle price objections effectively is one of the most vital skills that a successful salesperson can acquire. Remember, you can’t sell an item without agreeing on a price. There is no success without the sale – and there is no sale without the price.

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If you want to learn how to recognize and handle objections effectively, our one-day workshop can help you overcome objections and close more sales. Even better – at this workshop we will give you exact objection-handling techniques and scripts that sell!

Hurry up, register today because seats are limited!

September 15th – Hotel in Mississauga, ON – register here…

Other Seminar Cities in October and November: Ottawa, Montreal, Buffalo, and London. Registration will be available soon, please keep following our website for updates.

Become an Expert at Handling Price Objections is a post from: The Science and Art of Selling by Alen Mayer