Handling The Price Objection - Part 1

This Sales Tip deals with one of the most common questions that I get from sales people every where at my workshops and seminars...

"What should I say when a prospect says they can't afford what I'm selling?"

Yes it's a common objection, so why would a prospect say something like this?

There are a number of reasons and here they are.

1. They do not have the money and have no way of getting it.
   
   This is rarely true today in an age where obtaining cash through a loan, or using a credit card is so easy. There is a big difference between the ability to pay and the willingness to pay. What they are probably saying is that...
   
   
2. They don't see sufficient value in what you are proposing, to justify the cost.
   
   This is much more likely. What they are really saying is that, "It costs too much!", not that they can't afford it. There is a difference. Most sales people don't understand that. Think about your own situation for a moment. Have you ever said to a salesperson, "I can't afford it!", when what you really meant was that you really just couldn't justify the purchase? (ie. the cost outweighed the benefits). Or alternatively you just couldn't see the need for it?
   
   Well your customers are the same. When they say they can't afford it, it often means that either they can't see the need for it, or they can't see the value of having it.
   
   Price objections are often not the real problem.
   
   More often than not, they are a symptom of something the sales person has failed to do at all, or have not done well in the sales process.
   
   Next time you get a price objection ask yourself these questions.
   
   
   1. Have I really asked sufficient questions to understand this prospect's current situation and needs?
      
      
   2. Have I asked questions that have made this prospect sufficiently aware of their needs?
      
      
   3. Have I asked questions that have disturbed this prospect about their current situation, enough that they are now anxious to find a solution?
      
      
   4. Have I sold the benefits of my product or service well enough that my prospect now connects the fulfilment of their needs (that they are now disturbed about) with the solution that I am now offering them?
      
      
   5. Have the benefits I've explained to them been enough to clearly outweigh the cost (investment) of this solution?
   
   If the answer to any of these is "no", then this may be where you slipped up, rather than here at the end of the sales interview. I believe that the majority of price objections can be avoided altogether, through more skilled and more professional selling earlier in the sales process.
   
   I said there were a number of reasons that prospects will say it costs too much, or they can't afford it. Here are the last two.
   
   
3. What you are proposing for them is wrong for them.
   
   Often this is the case with many sales people. Again it's because they have failed to ask the right questions earlier in the process to understand their clients real situation and needs, and of course what they have now proposed is wrong for their client. Of course their prospect is now going to say no. Wouldn't you? Haven't you also experienced a sales person making an inappropriate recommendation to you because they didn't understand your needs? I bet you said no too, right?
   
   
4. A genuine condition exists which prevents them from proceeding.
   
   The reason I call this a condition, is because sometimes there are an unalterable set of circumstances which are a condition which prevents the sale from occurring. eg The person has just declared bankruptcy, lost their job, been transferred overseas etc.
   
   Sometimes circumstances like this do occur and there is nothing we can do about them. We need to accept them and move on to a better prospect. However, questions are the real key to avoiding such situations in the first place. As much as we might feel sorry for someone like this, if we had asked the right questions earlier, we would probably have decided not to waste their time and ours in presenting a solution they were not in a position to take advantage of.

This week think carefully about every objection you hear. Is this the real problem or just a symptom of a problem you have created for yourself earlier. If so start asking better questions.

Have a great week. Make it a great week!

Read more in Handling The Price Objection - Part 2

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