The Economy-Is-Bad Price Objection

February 22nd, 2010

By Tom Reilly, author of “Crush Price Objections”

For price shoppers, this economy offers an excuse for seeking price concessions. After all, everyone knows “how bad” things really are, right? A bad economy is potent negotiating leverage for the buyer if the seller in unprepared to argue his case.

Here are some things to consider (and balance your perspective) before deciding how you will respond to this type of price objection:

• Are you personally responsible for this economy? If not, why should you be solely responsible for the recovery? Customers bear responsibility, too. Invoke empathy by telling the customer that the economy is bad for you also.
• Any time you lower a price without changing the package is tacitly admitting that you were charging too much. Have you been overcharging customers?
• If the customer is asking you to return to pre-recession prices, will he or she return to pre-recession volume? If not, re-read point number two.
• Are other customers okay with the prices that this buyer is resisting? If so, why should this buyer get a price advantage over other customers?

There is no canned response to this objection. Every price objection is different, as every customer is different. The economy is tough for most businesses. If other customers pay your prices, this means your prices are in line. You are doing more than defending your prices; you are protecting your profitability to ensure your future.

Does the buyer out-negotiate you? Are you at a loss when the buyer says, “Your price is too high?” If so, you need to read the new edition of Crush Price Objections (McGraw-Hill, 2010). Visit us at www.TomReillyTraining.com or call our office at 636-537-3360.

Get the latest Sales Bytes from Tom Reilly by subscribing to our RSS Feed.