Episode #104: The Sales Price Objection with Jeff Shore
In This Episode of The Buyer’s Mind with Jeff Shore:
Some watches sell for $10, while others sell for $10,000. Both sell. So, is the objection – The Price is Too High – really an objection? As a sales professional, you know you’re going to encounter this objection. In this episode, Jeff explains how to decode the meaning behind this objection and how you can handle it with ease.
Topics we’re going to cover on today’s podcast:
[0:42] An objection we hear all the time
[1:40] You don’t see the value
[1:54] You don’t have the money
[2:14] I want you to come down
[2:26] It’s not on sale
[2:42] It’s outside of my cost paradigm
[4:01]There are two things you can do to answer this objection
More about our guest Jeff Shore:
Jeff Shore’s highly sought-after sales keynote speaker sessions inspire audiences across the globe to change their mindset and change their world.
As an in-demand sales keynote speaker, author and trainer for over three decades, Jeff has a unique ability to connect with audiences on a personal level and transform the way they look at what they do, inspiring meaningful and lasting change.
In a crowded field of sales keynote speakers and sales training programs, Jeff Shore stands out with his research-based “buying formula” methodology. Combining his extensive front-line sales experience with the latest leading-edge research into buyer psychology, Jeff has created a highly effective, personalized way to reset sales paradigms and deliver industry-leading results.
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Links from today’s podcast:
Jeff: Your customer tells you that your price is too high. What does that even mean?
Announcer: Welcome to “The Buyer’s Mind,” where we take a closer look deep inside your customer’s decision-making mechanism to reverse engineer the perfect sales presentation. Now, please welcome your host, Jeff Shore.
Jeff: Welcome, everyone, once again to another episode of “The Buyer’s Mind,” the show where we try and take a dive into the way our customers are thinking, the things that they say, what do they mean behind it? And today we’re gonna deal with an oldie but a goodie, “Your price is too high.” It’s an objection we hear all the time, right? But what does it mean?
Seriously, you need to answer that question, what does it mean? Because the fact is your price is too high could mean a number of things. So, let me give you a scenario. You’re thinking about buying a nice watch, not just to tell time. You’re thinking about buying a nice watch that’s going to be a showpiece, right? It’s not just a watch, it’s jewelry. It’s part of your image.
Now a watch really is an optional accessory these days. We can get the time on our phone and I think a lot of people, they don’t ever wear a watch, but you say to the salesperson as you’re looking at the watch, your price is too high, right? The price for this watch is too high. Now, what could that mean? Well, brainstorm with me here because as I mentioned, it could mean a lot of different things.
It could mean that you just don’t see the value. You may like the watch, you might have the money, but you just don’t see the value. You’re looking, you’re saying, you know what? It’s a nice watch, but it’s not that nice, not for that kind of money. Now, it could also mean that you don’t have the money. Maybe you’re looking at a Rolex that’s gonna cost you $10,000 and you go, “Well, maybe if I scraped up everything that I had and borrowed some from friends, I might be able to come up with $10,000 but there’s no way that that is worth it for me to be able to do that. I don’t have the money.”
Another thing that your price is too high could mean, I think you’ll come down. Sometimes we have people who say, “Your price is too high, therefore I want you to lower it.” This is a negotiating move. Another person would say your price is too high and they’re looking at the watch and saying, “Well, you know what? It’s not on sale. I’m standing here at a Macy’s and you have sales all the time but this watch is not on sale and so I’m not gonna buy something that’s not on sale.” Or maybe you’re looking at the watch and you say the price is too high because that watch is just outside of your watch price paradigm. You walked into the store thinking that $200 is a lot of money to spend on a watch, but now you see a watch in the case that’s $2,000. You might have $2,000, you might even think the watch is worth $2,000, it’s just not worth it to you because it’s outside of your watch price paradigm. You’re not the type of person that’s gonna spend $2,000 on a watch.
All right, so there are five different issues or five different meanings behind “Your price is too high.” “I don’t see the value,” ”I don’t have the money,” “I think you’ll come down,” “It’s not on sale,” or, “It’s outside my watch price paradigm.” Now, we could have come up with more, but those are five different responses to this same objection or five different meanings to this same objection. And if you have five different meanings, well, that means that each meaning requires a different response. So if somebody is telling you that they just don’t have the money, well, let me ask you, is a discussion on why the watch is worth the price going to get you anywhere? It’s absolutely not.
This idea that your price is too high is very, very common. It doesn’t matter what product you are selling, you have all heard it. You all know that it exists, but you want to be careful about two things. The first thing you want to watch for is what is your mental response. Because if you have a flinch, if you have that part of you internally that’s going, “Oh, he thinks the price is too high,” you’re going to immediately get on your defensive side. You’re gonna feel like you have to defend that statement. You’re gonna be selling from a position of defense. You don’t want to do that. You want to sell from a position of partnership. You don’t want to look like you’re afraid of that objection.
So the first thing you have to do is understand that that objection, your price is too high, is about as normal as the sunrise. So what are we gonna do with that? We’re gonna accept it as normal and we’re going to be okay with it. You’ve got to train your brain to be okay with it. Then what we want to do is that with every price of objection, there is one thing you can say that will be appropriate every single time and that is, tell me more. Tell me more. You say it’s too high, what does that mean to you? It doesn’t matter what the objection is, if you ask them to elaborate, they have to give you the real meaning behind the statement, the price is too high.
You want to do two things. You want to train your brain first to stay mentally strong when you hear your price is too high and then you want to train your behavior so that there’s an automatic response. Well, tell me more. Talk to me. Tell me why you’re thinking that. If you can get yourself into that mind frame, you’re going to be in this wonderful position because now you’re not gonna be an adversary getting into an argument over whether the watch is worth it. You’re gonna be a partner. You’re gonna help your customer with a needed perspective because the last thing I want to say is this, if that customer is looking at a watch and the watch costs $5,000 and they cannot afford more than $100, do you think they’re gonna stand around and argue with you about that watch? That watch is not even in play in the first place. The fact that they’re willing to have a conversation says, “This purchase is in play. I’m thinking about it, but I can’t get there myself. Can you help?” And this is where you as the sales professional, swoop in like a superhero and save the day by helping the customer to see what they can’t see by themselves. This is what we do.
“Your price is too high” is an objection you’re gonna get all the time. You already know it. There are things that you could do to avoid that objection, but you’re still gonna get it. So when you get it, what do you do? You prepare mentally and you have that auto response, tell me more. Do those things right, and you will be well on your way to dealing with this objection to help your customer get what they want and then to change their world.