Diffusing Price Objections

Marketing

Diffusing Price Objections
by David Yoho CPAE



There are two occasions when you need to defend your price. The first is when prospects feel they can obtain the same product, service or result from someone else for less money. The second is when prospects don’t see the pay back.

You can separate yourself from price comparison by conducting examinations and offering recommendations that are different from and more personalized than your competition. Then, your prospects are more likely to compare products or services based on your advice – not on your price. Whenever two options appear the same to buyers, the decision will almost certainly be made on price.

In order to help the other party see the pay back and the value, it’s crucial to identify their alternatives and the costs of each, especially the cost of "doing nothing". Although it costs money to buy, it also costs money to do nothing.

The key issue though, is your ability to determine the difference between real and perceived price resistance. If you defend your price when the prospect’s remarks are misunderstandings, stalls or tactics, you may create a problem that didn’t exist. When you justify or defend your price, you validate the objection whether it’s real or not. Therefore, your successes will not be measured by your ability to handle an objection properly but your ability to handle the proper objection properly.


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David has delivered more than 2,500 speeches and seminars to executives, managers, salespeople and business owners on negotiation, sales, management and database marketing. Professional Educators Inc ~ Louisville KY www.davidyoho.com ginablack@davidyoh