Sales Objection: Mastering the ‘Too Expensive’ Challenge with 7 Key Strategies

Sales objection handling is the art of convincing your prospects to buy your product or services. It is quite difficult to make your prospects understand the worth of your goods and services because they should understand the worth of your products and services. There are various factors that will influence the buying behaviour of the prospects one such is the ability to handle a situation wherein the prospects feel like your product has been sold at a higher price.

“Sales objection handling is the art of convincing prospects to buy your products or services by addressing their concerns and demonstrating value. Factors like price, product knowledge, and quality influence buying behavior. Effectively handling objections can prevent prospects from seeking alternatives and significantly impact the success of startups and small businesses.”

They might lack knowledge about the product or services, the quality of goods or services you provide and the entire manufacturing cost involved in making a particular product or service. Here, in this scenario, the prospects may have a better option at a better price or a better quantity or quality.

These are some of the reasons why some of the prospects may find alternatives and tend to find affordable options. This is one of the factors that tend to affect the overall performance of a company that’s a startup or a small business firm and here we are to help you with that major breakthrough you may face while trying to market or sell your products or services.

Managing objections head-on is dead on.

– Kraig Kleeman, Author & Entrepreneur (source)

What is a sales objection?

A sales objection is an explicit expression by a buyer that a barrier exists between the current situation and what needs to be satisfied before buying from you. In other words, it’s a clear signal that you have more work to do in the selling process.

To be more precise let us look at a statistical analysis provided by Web Strategies which provides solutions to web designing and marketing-related competencies,  “Ask for the sale – 48% of sales calls end without an attempt to close the sale and the national sales closing rate is 27%.” (Source)

Any job that’s not in sales – any job where I can’t help create value and make a difference for a client — would be a nightmare job for me.

— Anthony Iannarino, Author and International Speaker. (Source)

“When making a first impression, 55% is how you look, 38% is how you sound, and only 7% is what you say. The processing speed of your eyes is about 25 times faster than your ears. You have about 13 seconds to make a 1st impression and people make significant judgments about you in the first 30 seconds of meeting you. Prepare for that first meeting to make a lasting positive impression.” (Source)

The positive side of the sale objection

Sales objections, while not always easy to manage and rarely if ever convenient, are not bad. They are, as Martha Stewart (American Retail businesswoman, writer and TV Personality) would say, “a good thing.” Here’s why: (Source)

1. Objections often mean the buyer is engaged.

2. You can seize the opportunity to add value.

3. They can tell you if a buyer is qualified.

Usually, we want our prospects to buy our goods rather than end up being rejected by them so it is important for a business to consider the prospects engage them with good communication and observe them to understand their concern and objections towards a product. As a result, we are getting to know what you can do to rectify the objection or how you’re going to handle the issue in a better convincing way where your prospects understand the reason behind the price.

When you present the value of your products and services in a clear, compelling way, then you’ve tackled 90% of objections

– Nancy Marmolejo (Source)

The number one sales objection is “This is too much Expensive”

However, you can’t make anyone buy your product just because it’s good in quality or quantity. Not much of people stick with a single brand people will have opinions but we can win a hold of prospects if you’re capable of getting the opinions from them and implementing them if possible or can able to compromise your prospects to buy your product.

More than 40% of salespeople say prospecting is the most challenging part of the sales process, followed by closing (36%) and qualifying (22%)

(Source)

The Art of Convincing Prospects

• Underestimation of a product or service: There is a chance for your prospects to feel that your product is too pricey. This may be because of the package or due to some external reasons such as buying behaviour or other alternatives.
  
• Prospects under Budget: If your product is costly or too pricey although you may be using a good quality of products and services they may stay aloof and tend to develop a distance from the product. This is because of their economic or financial status that they may be under budget.
  
• No Needs: If your prospects didn’t have a need or didn’t find a need to buy your product they may consider buying your products or services is not that necessary for their survival and sustenance.
  
• Better pricing: If your prospects find an alternate product with better pricing in or under good quality, there is a chance for a shift in their buying behaviour. This is due to the alternative options available in the market and it is usual for them to leave your brand and stick with something else at a low cost. (Source)
  

Every sale has five basic obstacles: no need, no money, no hurry, no desire, no trust.

– Zig Ziglar (Source)

Keys to Overcome Pricing Objections

Understand Consumer Buying Behavior

In order to get a hold of your business into existence you should find your potential customers and tend to make them buy your products and services but here it becomes more and more serious because you’re making your prospects buy your product or service their it gets crucial as they spend money to buy your product or services so there are some convincing ways to overcome this sort of pricing Objections such as:

Determine how you get here: Product Value

This deals with getting your prospects in your shoes wherein they’ll know how the products and services are made and manufactured as a finished good. This will make the prospects understand why their product is pricey or expensive with respect to the product.

Own your high-priced upfront

Setting up a low price for your product will lead to a loss so it is important for the brand to establish a good price for the benefit of both themselves and also the prospects. Thus the product should be convincing in terms of the Selling Price for both the Brand and the prospects. Selling your product at a low price is not the key to success in a business for a long time run.

Remembering 20% must be DQs

To understand how the prospects buy a product it is important to understand how they tend to buy goods such that we can get to know who are our target prospects so let us know the different types of prospects beforehand:

• Prospects who buy for the Value: Here a decent amount about 20% of prospects stay in this zone wherein they buy the product for the value of your product. There’s no need to convince these people to buy at any cost.
  
• Prospects who need Justification: Here there exists a majority of prospects wherein a larger 60% of them rely. All they need is a proper explanation and the reason for why the product is pricey. Overall it is really easy to sell a product to these individuals if you’re able to explain to them in a proper manner.
  
• Prospects who need the best price: It is better to avoid this 20% of people who are not at all convinced by any other aspects than price reduction. So it is better not to stick with them and waste your time in having a useless conversation..

Slow it down

This is a process wherein you can’t make decisions or arrive at one at a fast pace so it is mandatory to slow down the process and work without any haste to achieve your target. Also, we should give some time for the prospect to think and respond to keep it as efficient as possible

[Sales and marketing] have to start talking to each other. They’ve got to stop spilling each other’s beers.

– Ann Handl (Source)

What prompts you to say that

If your prospect isn’t convinced about the pricing of your product you should be patient and ask for feedback or opinion from them. Instead of reacting at that time one should be proactive and make use of the time to listen and understand the importance of the prospect’s opinion.

I have never worked a day in my life without selling. If I believe in something, I sell it, and I sell it hard.

– Estée Lauder (Source)

Dig, Dig, Dig

This simply deals with how to dig deeper to achieve a good relationship with your prospects also helps you understand them a lot some of the key factors we should consider are:

• Respond: You Respond in a proper manner to the prospects. Make sure you are capable of explaining things if needed and pay attention to everything said in order to attain valid points from your prospect for proper justification.
  
• Listen: Active listening will help you to focus on what the prospect is trying to convey. Having a good listening skills will help you. Understand the prospects in a better way.
  
• Prospect: Pay attention to the prospect and try to get on with his flow in order to hear what he says. Keep a note in your mind about the crucial things he said and make some implementations if needed in the future.
  

You have to drop your sales mentality and start working with your prospects as if they’ve already hired you.

– Jill Konrath (Source)

Can I throw some ideas at you?

Honestly this is another way of getting in touch with your prospects as this process involves a way better option than arguing with them. This deals with giving opinions or alternative measures to your prospects in a very polite or poignant manner. This will help you to promote Creative ideas and throw ideas to your prospects about the brand and the product.

Ask that extra question. It’s that one little extra question that makes the difference

– Steve Richard (Source)

Conclusion

In conclusion, effectively addressing price objections in a business requires a multifaceted approach that encompasses understanding the context, confidently articulating value, prioritizing quality, taking time for thorough discussion, seeking to understand customer concerns, digging deeper into customer needs, and fostering a collaborative environment for problem-solving.

(At the prospecting stage, some objections are “knee jerk” or automatic on the buyer’s side. But the mere fact that they are responding lets you deal with that objection and segue into a genuine conversation—if you are prepared.) (Source)

By implementing these strategies, businesses can overcome price objections, enhance customer satisfaction, and ultimately drive sales and revenue growth.(Prospects are open to communicating with sellers at industry events (34%), via LinkedIn (21%), text (21%), voicemail (21%) and social media (18%). (Source)