Learning Reinforcement

Overcoming Price Objections Part 2: When an Objection Happens

By Susan Hall

Overcoming Price Objections Part 2: When an Objection Happens

So what do you do when your client does question your proposal pricing? Susan Hall continues the discussion on strategies you can take to overcome the price objection conversation with Tim Deuitch and Joane Ramsey.

Susan Hall: 00:01 In a previous video we talked about the most powerful way to deal with an objection is to just avoid it. Do your homework up front. Understand what's of value to the customer so that when you present your solution, they see how it connects to what's important to them and they see the value of it. You know what the budget is, so there's no mystery there. Inevitably though, it's going to happen, those price objections. So, let's talk about when it does. I think it's important to remember that an objection is just a question with some tension. You're going to get that "ugh" feeling when it comes up, but just remember that the customer needs to know for a good reason. If you can diffuse the tension and clarify what's important to them, a lot of times, you can overcome those objections.

Tim Deuitch: 01:01 So clarify, the word you used, is really the first tip. So many salespeople, they jump over getting a greater understanding of why there's sort of this tension around that price point. We jump over and we immediately go back. Certainly, we don't want to discount, but immediately we should go back to restating value. So clarifying what's behind that comment. Simple discovery questions like, "Tell me more about how this is landing to you?" and "What's going on there? What should I know about this price point and it's importance to you?"

Joane Ramsey: 01:39 I think it's having the problem solving attitude that really makes a difference when you get to the point where you have to deal with an objection. Get the question behind the question. What is really going on with the customer and have the attitude of "Okay, well maybe the price point where we are at no longer is of value to the client." So, what can we do? Is it a situation where we can take a couple of things away? How can we be flexible to be able to meet the customer where the customer is at? Maybe change the scope of the project?

Tim Deuitch: 02:13 Especially, if they're really hard and fast on it. Sometimes, when they share what the dynamic is behind that price point, it's still a good opportunity to say, "I want to revisit what your objectives are here, what are we trying to solve and get after?" Help find consensus with them, that this solution does in fact, make sense.

Susan Hall: 02:36 Has something else changed that you need to know about, that might change the scope of your solution as well? I think another thing to keep in mind is just taking that breath, one that comes up, because you've put all of this work into your proposal, but it's about helping the customer. So taking a breath and trying to understand, and please don't be cheesy. I mean that's one of the things that just drives me crazy. I actually had a contractor recently ask me, "Well, is price really going to get in the way of what you want?" Yes! Or, "What will it take to get your business?" Those things come across as "salesy" and "techniquey" and we always want to keep our problem solving consultative hat on through this whole process.

Tim Deuitch: 03:29 You're there to meet their needs, whatever this situation is, and you've put this thought process and this concept together for them. I think at that moment, what is the opposite of cheesy? It's asking them, "Where would you like to go from here? How can we help make this come about for you?" So, it gets back to that creativity.

Joane Ramsey: 03:48 The problem solving attitude that you want to have, so it's a win for you and it's a win for the customer.

Susan Hall: 03:57 To summarize, we talked earlier about how critical it is to do your homework up front to avoid objections, but when they happen, pause, take a breath, make sure you're listening to the customer. You're clarifying what is really at issue here. You're doing some additional discovery where necessary. You're being consultative and getting their input in terms of scope and how to move forward.

Published: May 12, 2021

Continue Your CSP Reinforcement

Monthly Tips and Insights to Help Develop Your Best Sales Talent

Join over 1,100 professionals for the Strategic Insights Newsletter
Copyright Strategic Enhancement Group 2006-2023 All Rights Reserved
Site by Neuvocreate