Sell Value before You Quote Price

For decades, sales experts have taught salespeople to sell everything first and give the price last. But no matter how well you try to sell the benefits of your product, you will still have prospects who want to know the price early in the presentation. Some will object to your price, no matter how many benefits your product may have for them. These guidelines are good ones to follow when handling questions and objections on price:

When a customer asks early in the presentation, “How much does it cost?”, a good response is, “It really depends on the options you select. Let me explain our investment structure to you in a moment. Now earlier you said that you wanted…” This takes your customer’s mind off price and gives you the opportunity to relate more product benefits to his or her wants and needs.

A customer who bargains for a lower price is most often better served by converting price quotes from a total investment figure (total dollars) to a monthly investment figure (monthly dollars). A smaller monthly investment is easier to accept than a large figure total investment.

When quoting a price it is a good idea to follow up by stating the benefits (immediate, long-term, or competitive edge) that a customer will receive. One recommendation is to state money quotations without tax and delivery charges. In addition, it is a good idea to avoid using the word dollars because it can strike fear in a buyer when he or she hears it related to spending. For example, say: “This model is only 750 and it includes…” However, do use the word dollars when showing customers a savings. For example: “With this option you can save $75!”

Use phrases that minimize price resistance: “Your return includes…”; “The value you will receive will be…”; “You get this…”; “Your investment is only…” Buyers have reflexes, too. The word cost or price can cause people to think that it costs too much or the price is too high.

Use tie downs throughout your presentation to gain the customer’s agreement. Tie down techniques lead customers to establish a pattern of yes responses. They are used to feed back information obtained during the qualification process. The sales adage, “When a customer says it, it’s always the truth!” applies here. Tie downs reiterate to the customer what he or she had told you. “You did say…”, or, “As you said earlier…”

Introduce prices in ranges. Any price is more easily sold when it is part of a price range. The choice of having three investment ranges allows customers to prepare themselves for a decision.

Instead of lowering your price, offer an earlier delivery date, a company gift, etc. Write down what’s been conceded because, unless you keep track, it’s nearly impossible to determine whether or not the give and take is working both ways.

Keep your distance! Maintain a mystique by not becoming too friendly until they commit to your figure.

The bigger the sale, the bigger the chance the buyer will be tempted to ask for a lower price. When a customer objects to your price, the right words, the right voice inflection suggesting the right product, and the right intent will persuade many price-objectors to buy from you.