How often have you heard current or potential clients utter the objection “it’s too expensive”? Probably dozens or hundreds of times. Have you ever considered how many more sales you could have closed if this objection had never come up? Probably many more.
In this article, our objective is to identify what motivates clients to utter that objection and to see whether there is something you can do to eliminate that complaint, therefore producing much better sales outcomes.
When clients tell you “it’s too expensive” or “it doesn’t fit my budget,” is it because they find the price too high or because they don’t properly perceive the value of your offer?
In any transaction, when a client finds that your product or service is too costly, there are two important factors to consider: price and value. In order for an exchange to take place, the client must perceive that the value of your offer is higher than the price you are asking; otherwise there will be no deal.
The easiest solution would be to reduce your price or to throw in complimentary accessories or other products. However, by choosing this option, you would be reducing your business’ profitability and/or your commission would suffer.
On the other hand, if you can position the client’s perception in a way that the product or service value greatly surpasses its price, you will maintain your profitability and will close the sale.