When faced with objections to price, what do you do?
Here are five mistakes that aren’t setting your up for success when you present your price–and what do to about it. It is possible to avoid discounting!
Today’s blog is brought to you by this month’s Pricing Masterclass. It’s our biggest course yet, because there is so much I want to share with you. Is today’s post helpful to you? Then I encourage you to buy this month’s course here.
1. Weak Value Proposition
This is by far one of the biggest problems salespeople have. Take the time to really listen to what the customer’s looking for, and in turn create a value proposition wrapped around the needs that the customer has. Salespeople who just listen to what the customer thinks they want–and that’s what they offer them–are making a big mistake.
The value proposition is where you set the price.
Never ever state the price until you first have really uncovered the need and exploited the need that they have. You expand the pain that they have. It might be a pain, it might be a gain, but you have to maximize that. You have to leverage that information before you can even begin to think about putting price on the table.
2. Lack of Confidence
- Doesn’t believe in what they can provide the customer.
- Is not confident in having a conversation.
- Is totally wrapped up in the presentation, or maybe in a negative thought that they’ve got going through their mind.
- Or perhaps they’re thinking, “Wow, this is really expensive.”
Remember the customer is not buying, the customer is investing.
When you spend enough time creating a value proposition, it’s going to help you in your confidence. Remember this, you can’t be afraid to walk away from a customer over price. As soon as you start thinking you have to close every deal because of price, you will discount every deal.
Read more about how your price reflects your confidence.
3. Rush to Price
The customer calls you up and says, “Hey, all I need is a price quote, just give me a price quote.” What do you do? You quickly rush to the price. Then they say, “Oh wow, that’s really expensive.” You see this plays again on weak value proposition and lack of confidence. You can never rush to the price.
The price is the last thing that comes out on the table. So when you have somebody call you up and lead with the price, don’t fall for that trap. Instead respond by saying, “Hey, you know what? I want to make sure that what I provide you is the right thing. So can you answer a couple questions for me?”
You have to have that conversation. You have to uncover the need before you quote the price.
There is so much we need to do before we ever discuss price. Find out what in this month’s masterclass: Pricing found at The Sales Hunter University.
4. False Assumptions
This one traps so many salespeople, it’s unbelievable. Here’s what happens, “Well, this is how another customer responded. So that is how this customer’s going to respond.” That’s like trying to drive a car forward by only looking in the rear view mirror. It doesn’t work.
False assumptions trap salespeople into false beliefs. You may believe it, but it doesn’t mean the customer believes it. You may perceive it, but it doesn’t mean the customer perceives it. It’s only when the customer says it that you can begin to believe it.
I want you to slow down, so you can speed up to close. You slow down by being willing to spend time on that value proposition, and that process begins with listening to the prospect.
5. Weak pipeline
It’s the only deal I’ve got. I’ve got to close this or I’m going to starve to death. I’ve got to close this deal, or I’m going to lose my job. I’ve got to close this or…
A weak pipeline causes you to create false assumptions. It causes you to rush to price. It leads you to have a lack of confidence and put out a weak value proposition. You see? Your weak pipeline is really the root of every problem. Because when you have an abundant level of customers, or an abundant level of opportunities, it’s amazing how much more confident you are with your price.
I want you to ask yourself this question: “Is the reason I don’t have enough customers in my pipeline because I’m not spending enough time prospecting?” That’s really what it comes down to. A confident price, the lack of discounting, all begins because you’re spending enough time prospecting.
It is my privilege to help you sell and close more deals at full price.
I want to help you build confidence in your price, and have the strategies to present your price (or price increase) and actually get it. Buyers are (almost) always going to push back on price, but how we present ourselves, our value, and our outcomes can totally change the game.
Coming soon to your earbuds: The Sales Hunter Podcast.
I’m very excited to host this new platform to help more salespeople turn prospects into profits. I’ve invited my friends, my peers, and leaders in the sales community to come on and share their wisdom and ideas to help you. Or in special sessions, I’ll share my own expertise as we consider what new strategies can make you more successful in sales today.
Join me as The Sales Hunter Podcast goes LIVE tomorrow, February 10th.
Listen wherever you stream podcasts.
Copyright 2021, Mark Hunter “The Sales Hunter” Sales Motivation Blog. Mark Hunter is the author of A Mind for Sales and High-Profit Prospecting: Powerful Strategies to Find the Best Leads and Drive Breakthrough Sales Results.