Price Objections Require More Than An Apples-To-Apples Comparison

Added May 15th, 2009

By Tom Reilly, author of “Crush Price Objections”

All price objections are not created equal, just as all apples are not created equal. There are over 7,500 varieties of apples worldwide with 2,500 varieties growing in the US alone. So, what’s the point? Asking customers, “Are you making an apples-to-apples comparison?” sounds good but really doesn’t tell us much about the price objection.

Price objections are as different as the buyer offering them. Your challenge is to drill down on the price resistance to discover the real motive behind the objection. Then, you can effectively respond. For example, a buyer requesting a cheaper price because his company is attempting to become more operationally efficient is different than a buyer who objects to your price because the competition has offered a cheaper price. A buyer facing her own competitive price pressures may view a cheaper way to compete her best strategy; therefore, she squeezes you for a cheaper price. That is a different price objection than the buyer who tosses out a price objection as a knee-jerk reaction to any price.

Having one or two or three ways to respond to a price objection limits your effectiveness because the buyer’s motive may be different than your planned (canned) response. Step One is to clarify the objection. Ask why price is an issue. Is it really a price objection or a value objection? Is it really a price objection or a competitor objection? Is it really a price objection or a cost objection?

Responding without clarifying to what appears to be a generic price objection will bring limited success. Your best strategy is to understand first then respond. It tells the buyer you are listening and demonstrates your concern.

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