How to handle the price objection? How do I negotiate the price when they seem to want to squeeze me for every last penny? When do I walk away?
Those are the questions I got asked during a webinar I just finished doing as a follow up to a session that I did in Bangkok with a regional sales team.
One of the things that I love about doing about these webinars as a follow-up. Is we have people from Bangkok, Jakarta, Singapore (which is where I’m at right now) and London, England. So cool to have the whole team on a call at one time. And one of the key themes that we talked about was how to handle objections. In particular, the price objection. So one of the questions someone had was “How do I sell to a customer?” “How do I negotiate price to differentiate when they seem to want to squeeze me for every last penny? When do I walk away?”
So I said look, there’s 2 parts to price. One is Affordability. The other is Value. So can they afford it? As in do they have budget for it? Versus; Oh they have budget, they can afford it but maybe they don’t see the Value. So I say if you do all the hard work of ‘qualifying’ opportunities early on, it makes it a whole lot easier down the road when you’re negotiating. There shouldn’t be too much back and forth negotiation once you’re towards the end of the sales cycle. In inside sales, all of that hard work needs to happen early on. First things first, find out, does your prospect have the money? Can they afford it? Do they have the budget? If the answer is yes! Then you can start looking at how to demonstrate value and make sure that they see that this is the right solution for them.
If after you go through everything, hard qualifying, value demonstration, if they still don’t “get it”, stop fighting. Stop pushing. And move on. Find another customer who gets it! Who loves what you’re doing and are willing to invest because they see the return on investment. Do that, because then in my experience, customers who were really cheap and squeezed you for every penny, also want the most and best service and they always complain and will be a hassle. But you’ll probably also know that those customers that pay more are ‘low maintenance’ and they refer other great ‘low maintenance’ customers. So focus on that. Affordability versus Value. Focus on the value. Go for it. Take care guys!
- Tom Abbott is the author of 'The SOHO Solution' and 'Social Selling' and the creator of the online sales training platform SOCO Academy. Sales leaders engage Tom for his proven solutions to building high performance sales teams that exceed targets and for motivational keynotes that energise their audiences.