“Your price is too high” are five words that seem to strike terror in the hearts of so many salespeople. But it really need not. In this article, we’ll look at some sage words from 19th century English philosopher John Ruskin that will help overcome this objection.
I’m often asked, “What would you suggest is a good response for when a prospect says, “Your price is too high?”
Actually, depending upon your product or service, there are many good responses. Perhaps, the number one way to overcome this situation is by building the value of your product so high that price never becomes an issue in the first place. Still, it’s a fact of life and an objection that, at one time or another, every star salesperson must learn to overcome.
Here’s a neat little explanation.
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“A Thought on Price”
by John Ruskin, English Philosopher, 1819-1900
“It is unwise to pay too much, but it’s also unwise to pay too little. When you pay too much, all you lose is a little money. But when you pay too little, you stand a chance of losing everything, because the thing you bought is incapable of doing what you bought it to do. The common law of business balance prohibits paying a little and getting a lot – it just cannot be done. So, when you deal with the lowest bidder, it is wise to put a little something aside to take care of the risk you run. And, if you do that, you can afford something better.”
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Now, a couple of suggestions; First is to either memorize that saying, or even copy it onto a notecard so you can read it whenever necessary.
Secondly, instead of answering your prospect directly (which could come off as though you’re talking down to him or her) use the “third-party” approach. This is where you make “yourself” the target of the correction, instead of your prospect. In other words, “you” were taught something; you’re not teaching your prospect anything.
For example (after they tell you your price is too high), “I truly relate to what you’re saying. I felt exactly as you feel about price. Recently though, I read something that really answered my question (by saying “my question” you’re putting the onus on yourself; A very appropriate “I Message”). It went like this . . .” Now recite or read the saying you just learned.
This is a very effective way of getting your point across, teaching your prospect a valuable lesson, and making yourself, instead of your prospect, the target of the lesson. This way, you save their ego, answer their objection and make the sale.
Of course, the above saying of Mr. Ruskin’s will only work if you’ve been able to prove to your prospect that the value of your product does equal or – even better, exceeds – the price you are asking. In other words, make sure the issue is actually the price and not the value as compared to the price.
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Bob-
Love the Ruskin quote. Price objections are not new!
Over the years, I’ve come to realize that “you’re price is too high” is more of a smokescreen on the part of the prospect than the truth. “Your’re price is too high” almost always has an agenda behind it, and surprise! , the price is not it. I like to ask questions to find the agenda behind the statement. If price is a genuine issue, then I help the prospect problem solve in order to purchase. I don’t discount.
You’re right, Karen. Usually, price is not the issue.
The actual issue usually boils down to no perceived need or no desire. Or, the fact that the prospect simply doesn’t see the value of the product or service being equal to or greater than than the money they’d have to pay for it. In future posts we’ll discuss ways to “flush out” the true objection which, as you alluded to, you can then help them to work through.
Let’s look at the advice by Mr. Ruskin as being pertinent when it truly IS a matter of the prospect being a little bit “penny-wise and pound foolish.”
Thank you for your very insightful comments.
Bob
Excellent post. I have built two businesses on selling a product that has a price that is 5 times what some of the competing products cost. I can tell you that it is easier, and more fun, to play from the top of the hill looking down than it is from the bottom of the hill looking up.
Absolutely, Brother Sean! When your product is high-end, as yours is, you’re not going to “win” a price war without putting yourself out of business and leaving the customer with no one to service the product they’ve purchased from you. I think more and more people today are realizing that those who sell on value and not price ultimately benefit everyone involved.Thank you for your comment.
I love the quote from Ruskin. I couldn’t help but reflect on how true it is in all aspect of our live, as anything we ever want or have does have a “price”, that we sometimes think is too high.
Thank you Bob for the advice on how to use it effectively with someone we are hoping to serve.
I can see that delivered in that way, with genuine interest in the person’s interest, we certainly will leave them with an impression of increase by giving them the opportunity to see things in a new light without losing face.
Now what if the prospect is unemployed and truly has extra income to purchase or invest? Is there a possibility that the prospect is looking for freebies–in other words, something for nothing? Should we as entrepreneurs bother with these people?
Hi Sandrine, yes, you are correct; the way it is delivered has much to do with its effective. It must be done with kindness and an authentic desire to help the prospect understand. And, as you also mentioned, in a way that they can accept it without losing face. Excellent!
Hi Nick, I’m not sure I understand the first part of your question, about the person being unemployed and having extra income (not sure I’m understanding the connection between the two). However, the part about him or her looking for freebies and should entrepreneurs bother with them . . . I think that, like anything else, it depends on the situation and the context. The advice from Mr. Ruskin in this article is basically to be used when the situation is truly that the final objection comes down to the price being too high. When the true objection is something else, then this would not be the proper response. Also, if it’s a matter of the prospect trying to simply negotiate a better price then this might also not be the correct response. If I did not answer what you were actually asking, please let me know.
Your timing is perfect. We have been running into the pricing objections more frequently and this suggestion along with your sharing the Zig outlook on cost vs value, provide an excellent response, while educating your prospect to see beyond the cost Being able to be able to stand firm when the price objection is presented will establish you with more credibility, which the prospect will see as an additional value in investing in you and your product. Thank you for the reminder.
Hi Bob. It’s a typo. I meant, “…and having NO extra income…” And you did answer my question. Thanks!
John Ruskin’s explanation on paying too much is simply poetic!
I allow my prospective clients the time and space they need to decide if they will use my services. This is particularly so for those who are 40+ years with children. (Younger people tend to have more options, more time and often no children or dependents though I value/enjoy them just as much for different reasons). Also being a first generation Australian I know that migrating to another country is a very emotional step because it is a life changing step.
How true then to sell the benefits, the “does”. I have heard on two occasions in recent weeks that my price is too high. Admittedly when I first started out in this business I used to question whether this is true but these days I ask “how much is a new life worth to you?” . (Of course I don’t put it as bluntly as that because I don’t want the person to lose face). It is the worth, the value the buyer puts on the item or service which will determine whether your price is “too high”.
I think what is equally important is not just he selling of the benefits. Truth be known the same service providers down the road (who are much larger than me) can also sell the same benefits but it takes time ie a genuine interest in people, to draw out information about what is also their pain. Many people who leave their usual country of residence are often pained to the point of wanting to leave it all behind. I realise there are many products and services which if purchased may not be life changing however whether the thing is big or small EVERYONE seeks pleasure and avoids pain; and the intensity of either will determine if a price is “too high”.
Finally, there will always be a handful of people who truly desire my services but are experiencing genuine financial hardship. There is nothing wrong with taking a few minutes to find a product or service for them which is affordable and/or free of charge. I have a ready made list of other resources which are accessible and affordable for them and sometimes it means referring them to a competitor but better they go to a competitor feeling good about me than not. Thank you everyone for your helpful responses/suggstions.
Maria
Thank you, Maria; it’s obvious you truly care about helping those you serve; that you are “other-focused” (instead of “I-focused”) and I’m sure this comes through, which is why I’m also certain you have a very successful business.
In your fourth paragraph you hit on the key point of how to separate yourself from others; sure, your competing companies can basically provide the same benefits. What you do, however, through your authentic and genuine interest in your prospects, is find ways to add more value to the relationship; thus to their lives. It’s important to understand that in a world in which technology now has most products/services being fairly equal, it’s the salesperson or service provider who can find a way to add more value above and beyond the product or service who will obtain the business and cultivate, what I call an “Army of Personal Walking Ambassadors.”
And, it’s great that you (in your final paragraph) will even refer to your competitors when it “best suits the prospect’s needs.” And you KNOW that comes back to you many times over.
Good for you, my friend, you are a true “Go-Giver.”
Note from Bob: If you are moving to Australia, check out Maria’s at http://www.migrationtoaustralia.net. If you see her, tell her I said…”G’day.”