Last updated on Jul 25, 2024

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Here's how you can address price objections from potential clients.

When you're in sales, encountering price objections is as common as the morning coffee. It's a hurdle you must be prepared for, and handling it deftly can be the difference between a closed deal and a missed opportunity. Price objections don't always mean the end of the road; often, they're an invitation to demonstrate value, build rapport, and show your potential client that what you're offering is worth the investment. Remember, your goal is to guide them through their concerns and help them see the bigger picture of value over cost.

1 Understand Concerns

To effectively address price objections, first listen carefully to your potential clients' concerns. They may have a limited budget or they might be comparing your prices with those of competitors. Understanding the root of their hesitation allows you to tailor your response accordingly. Empathize with their situation and acknowledge their concerns, but also gently remind them of the unique benefits and value your product or service provides that justifies the price.

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2 Add Value

Instead of immediately slashing prices or offering discounts when faced with objections, focus on adding value. Enhance the perceived worth of your product or service by highlighting its unique features, the exceptional after-sales service you provide, or the long-term savings it could offer. This strategy helps clients see beyond the initial price and consider the overall benefits they will receive, making the cost more justifiable in their eyes.

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Aidan Steinbach

Account Executive @ Brex | Venture for America Fellow and Innovative Change-maker
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A while ago, I started buying nicer shirts. For most of my life I couldn’t see any reason to pay $60 for a T-shirt. It seemed ridiculous to me. Then I did it. And the quality difference. The fit difference. The feel difference… Was totally worth that amount of money. People make pricing decisions based off of their past experiences, and if you want them to shift their mind, you have to open their eyes to new experiences. Some people can see value in things very easily. Other people need to have their eyes opened. These people often think very very rationally. Use cases, ROI calculations, and customer stories are the best way to change someone’s mind on this.

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3 Share Successes

One powerful way to overcome price objections is to share success stories from satisfied customers. Testimonials and case studies can be influential because they provide tangible proof of how your product or service has benefited others, particularly in terms of return on investment (ROI). When potential clients hear about the success others have achieved, it can alleviate their fears and justify the cost in their minds.

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4 Flexible Options

Sometimes, all it takes to navigate a price objection is a bit of flexibility. Offering payment plans or tailoring packages to better fit the client's budget can make your proposal more appealing. It's important to show that you're willing to work with them to find a mutually beneficial arrangement. This approach not only helps in overcoming the immediate price barrier but also builds trust and demonstrates your commitment to meeting their needs.

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5 Reinforce Expertise

Your expertise is a significant part of the value you offer. When addressing price objections, reinforce your expertise and the research and development that has gone into your product or service. Explain how your offering stands out in the market due to its quality and reliability. By positioning yourself as an expert who understands their needs and industry challenges, you can strengthen the perceived value of your proposition.

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Aidan Steinbach

Account Executive @ Brex | Venture for America Fellow and Innovative Change-maker
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Don’t continuously discount something. If you’re constantly lowering the price of something, you are constantly eroding the value of that product in the customers mind. From a consumer behavior standpoint, there’s something to be said about a discount and how it encourages someone to buy something. But if you were to see the new iPhone for only $200… Your first thought would not be “wow that’s a great deal”, your first thought would be “wow that’s incredibly sketchy”. Whether it’s a good partner, nice shirt, or nice bag … There’s usually a higher price to pay. Position yourself for quality. Quality is expensive. Don’t shy away from that.

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6 Final Assurance

Lastly, offer final assurance to your potential clients by reiterating the support and guarantees that come with your product or service. A strong warranty or a customer satisfaction guarantee can often tip the scales in your favor. It reduces the perceived risk for the client and underscores your confidence in the value you're providing. Always end the conversation on a positive note, leaving the door open for further discussion.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Here's how you can address price objections from potential clients.

1

2

3

4

5

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1 Understand Concerns

2 Add Value

3 Share Successes

4 Flexible Options

5 Reinforce Expertise

6 Final Assurance

7 Here’s what else to consider

Sales

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Here's how you can address price objections from potential clients.

1

2

3

4

5

6

7

1 Understand Concerns

2 Add Value

3 Share Successes

4 Flexible Options

5 Reinforce Expertise

6 Final Assurance

7 Here’s what else to consider

Sales

Rate this article

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