5 Common Sales Errors to Avoid in Price Discussions

If you’re a home buyer, how much do you think about price?

Anything short of “All the time” is probably a fib.

With that in mind, let’s talk about errors salespeople make when talking about price.

If you’re a home builder, you’ve got a lot on your mind. It’s never a bad idea to stop and brainstorm the number of things a customer has to deal with in purchasing a home. The mental considerations are non-stop, and they are grueling.

Somewhere near the top of that list is how a customer thinks about price. And there is no question they think about the price a lot. 

This is, of course, standard consumer behavior. When considering a purchase decision, especially a large one, we’ll think a great deal about the price. Why? Because of the traumatic fear of overpaying. Everyone carries around that same sense of future regret.

Think about the last car you purchased. You think you got a better deal. But was there still more left on the table? That reflection often causes a great deal of mental strife. Your role as a sales professional is to alleviate those concerns during the sales conversation. You want to take away the fear of overpaying. 

The price discussion is critical to any sales presentation, and salespeople need to get it right. So let’s deal with some common mistakes salespeople make when discussing price with potential customers. Here are five errors that salespeople sometimes make when talking about price. 

Not Being Transparent About the Total Cost

salespeople need to be upfront about the total cost of owning the product, including any after-move-in costs. Hiding these costs or confusingly presenting them will erode trust and make it difficult for customers to make an informed decision. 

If the customer believes that you’re painting a too rosy and unrealistic picture, you can expect some harm done to that relationship.

Failing to Consider the Customer’s Budget

We tend to look at price as the exchange of fair market value. You give us this money; we give you this home. But that’s not the way the customer sees the price. The customer is much more concerned about how the total price will translate into their monthly payment.

Put simply, the higher the price, the higher the payment. Every customer has a budget in mind, and it’s the salesperson’s job to understand that. Failing to consider the customer’s budget constraints can result in a lost sale or a discounted price. That leaves money on the table. 

Neglecting to Differentiate the Product or Service From Other Offerings

What we’re talking about here is the problem of commoditization. When there’s no differentiating factor in the home or the service, the customer is forced to decide entirely on price. At that point, you are a commodity, and you’ll lose to another builder willing to give away more than you are. Establishing your unique value proposition and sharing it in a way that’s beneficial to the customer is essential if you want to be in an excellent position to talk about price.

Taking a Combative Stance

When discussing price, it’s best to speak as a partner, not an adversary. You need to assure the customer that you will get them the best price possible. If they challenge you on some pricing aspect, you must remain positive and cooperative. When you get defensive, it looks to them like you do not believe in your value proposition.

In some cases, customers may be willing to pay more for a product or service that meets their needs perfectly. But salespeople should also be open to negotiating and finding a pricing solution that works for both parties. 

Failing to Follow Up

The sales process doesn’t end with the initial presentation. It’s essential to follow up with the customers immediately after that initial conversation to address any lingering questions and concerns about the price and the payment and to remind them of the value that your home and the way that you serve their needs is going to bring them a lot of joy in the future.

You know that the customer will be talking about the price. You must be a part of those conversations. This is too important a subject to get wrong. By doing this right, you can effectively communicate the value of your home and the service you provide, making it a win-win for you and your company.

For more on this topic, check out my new book, Tougher Market New Home Sales.

Until next time, learn more to earn more!