"How much will this cost?"
Many salespeople shudder when faced with this question. They stutter, stammer, hem and haw, fearing that their prospect will put the brakes on the buying decision if the price is perceived as being too high. They flinch - mentally or physically - when responding, and the buyers take note.
Over the years, I have learned that the sooner price is discussed in a conversation, the more of a focal point it becomes. If you have not fully uncovered your prospect's problem and determined exactly how your product or service can help him, then your price will always seem too high unless yours are the lowest prices on the market.
The key to responding to the price question is to establish the value before you discuss price. Unfortunately, the vast majority of salespeople fail to do this.
Here are few strategies you can use in future sales situations.
First, if your prospect asks this question before you are prepared to respond, you need to defer your answer. This sounds easy but in the real world it can be extremely challenging. I remember talking to a prospect about coaching services and one of his first questions was, "How much do you charge?" While the price of coaching is relatively consistent from client to client, each person has different motives for utilizing this type of service. I knew that stating my fee too soon would likely cause my prospect to balk so I said, "It would be unfair for me to state a price without knowing more about your particular situation. Let me ask you a couple of questions, and then we can discuss the investment."
Your goal is take control of the sales conversation, and you do that by asking high-value questions. You need to invest enough time learning about your prospect's needs so you can effectively position your solution. This sounds fundamental; however, after working with salespeople for the last 14 years, I have discovered that most people do not ask enough high-value questions.
After you have determined the importance and the impact of a particular problem, you can then demonstrate the worth or value of your product or service to your prospect. Not before.
Another challenge with this approach is that it takes time. You need to exercise patience. You need to be able to clearly demonstrate why you're worth the investment. If you discuss price too soon then everything you say afterwards will seem like you are trying to justify your cost. However, when you first demonstrate how your product will benefit the company and or prospect, your price will be more likely to appear reasonable.
Remember, there is a significant difference between cost and worth. Here is a simple comparison. A low-end, entry-level pool will let you swim. However many people will pay extra to do that in a luxury pool. So help your prospect see the value and worth of what you do, and cost will become less of an issue.
Comments or thoughts on this article? Please e-mail [email protected].
