It’s one thing to encounter a cheapskate, but most times it’s the salesman’s fault to begin with. In my Facebook group, Sales Talk with Sales Pros, members often ask, “How do I handle the price objection?” Price is something we all struggle with. The price is the final step in getting an agreement leading in to the close.
Let’s face it, most of us don’t slap the lowest price tag on what we sell or provide. I don’t think I’ve ever worked for the “cheapest place” in my past. I wouldn’t, and didn’t want to. Cheap places attract cheapskates. That being said, you can’t close on price alone, unless you are, in fact, the cheapest. The public knows you get what you pay for, though. So, don’t discount this fact.
The problem with cheapskates is they’ve been programmed this way. Oftentimes, through your own marketing. For example, if you sell mortgages and you state: “We have the lowest rates,” you can’t get upset when you get rate shopped. Same goes for cars; you can’t say you’re the cheapest, then get mad when your prospect double checks to make sure you’re right.
If you’re talking and negotiating on price, you screwed the sales process up. Don’t worry; if you’re currently doing this, I’m going to teach you how to knock it off.
Your ONLY goal as a salesperson should be to move the prospect from reality to their desired outcome. If you help them reach their desired outcome, you’ll earn your desired income. Once you’ve done this properly, price won’t be an issue.
Think about it. Kohl’s and Nordstrom both sell black pants. Nordstrom’s pants are five times the price. People go in to Nordstrom’s and feel good about buying overpriced pants. Shoppers at Kohl’s, where they offer a percentage off everything, will use Kohl’s Cash and discounts to negotiate their price as low as possible. No one negotiates at Nordstrom. Nordstrom’s rarely even holds sales.
There are certain steps you have to take, in order to effectively avoid the price objection. No salesman likes to get to the end of the selling process then have to start over again, this time selling price instead of the product. I like to be efficient, and making two sales on one person isn’t the best use of my time, unless one of those sales is an upsell.
Here’s What You Do Instead: ASK QUESTIONS!
It’s your job to be a detective. You need to be on the lookout for buying clues, so that you can solve the sales mystery. You never see an episode of CSI where they talk the suspect into confessing. Instead, what they do is ask him questions until he confesses. Take note, that’s how sales works, too.
How can you sell the prospect something, if you don’t know what they want? Most likely, the prospect doesn’t want what you sell, they want the outcome what you sell provides. In other words, no one wants a drill; they want a hole. No one wants a mortgage; they want a house. What is it you’re really selling? It’s an outcome, not a product.
As soon as you make the shift from selling products to selling outcomes, you’ll see your closing ratio increase significantly. As a salesperson, the less you talk, the more you make. We salesmen hate dead silence. We think it’s our job to fill that dead air. It is. But it’s meant to be filled by the prospect, not the salesman. Ask questions. Let the prospect answer and look for buying clues.
What if the prospect hits you with, “So what’s this gonna cost me?” right out of the gate. It’s simple. You break the frame and control the prospect by replying, “We’ll determine that based on what it is that you want and need. So, tell me what made you decide to reach out to us?” Start the questions right then. They will have a hard time resisting answering the questions.
While asking them questions, you’re looking for desired outcomes. Once you have a keen idea of what it is they want from using your products, that’s when you start stacking the value. I’m still not talking price either. Let’s say you’re selling a sports car to a 50+-year old single dude and you find out he’s really into handjobs from twenty-somethings. Before talking price, talk about how this car is a chick magnet, and the young ones love it, etc.
Stack the Value, Then Talk Price
If you’ve uncovered the desired outcome, stacked the value and price is STILL a f’n problem, you most likely missed a crucial clue. Start the questioning process again to find out what you missed. Like I said in the beginning, some people are just cheapskates, but when you follow this process, you’ll be able to bump off a lot of cheapskates, too.
If you’ve been in sales for any period of time, you’ve run into cheaple (cheap people) and you’ve lost deals over price. No matter your skill level, my sales program will help you increase your closing ratios, and decrease your TDs. Check out my online sales training program breakfreeacademy.com/entourage Give me space in your head for 60 days and I’ll change your life.
If you’re ready to invest in your personal success and you’d like to find out about the programs we have developed especially for you, simply head over to breakfreeacademy.com/entourage and we’ll have a sales conversation about your future.