When the Competitor’s Price is Lower
February 15th, 2010
By Tom Reilly, author of “Crush Price Objections”
"I can get this cheaper from the competition."
This is the dominant price objection salespeople bring to our seminars. Everyone wants to know how to deal with the competition's offering a cheaper price for what appears to be the same product or service. What they present is more symptomatic than causal.
The real problem is a lack of differentiation, not price. This is a value-based money objection--just one of five types of money-based price objections. With value-based money objections, the buyer either fails to perceive the value in your proposition or fails to see the difference between you and the competition. It is not really a money objection. It is a lack-of-differentiation objection and a widespread problem in sales.
Three separate studies demonstrate that more than half of all salespeople fail to differentiate their solution for the customer. Of course you will get a price objection! If you fail to differentiate, you deserve a price objection. Why should the customer pay a dollar more when they do not perceive a dime's worth of difference?
So, if you are hearing a lot of these types of objections, your problem is a lack of differentiation, not your price. You need to get better at telling your story.
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