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That Much?? Overcoming The Price Objection

October 26, 2010 Leave a comment

So you’ve established your target billable hours and billable rate. You wisely are pricing all your work “by-the-job” NOT “by-the-hour.” Your newfound motivation is opening doors and opportunities to bid on jobs are starting to come in. You calculate the estimated billable hours. You apply your “profitable” billable rate and get excited knowing that now you will be making money. With a smile, you present the estimate to your excited prospect and the first words out of his mouth are…”That much?!”

Your heart sinks, panic begins to set in. What have you done! – your lizard brain screams. Before getting defensive, argumentative, or antagonistic BREATH (and keep smiling). Zig Ziglar once wrote:

When the prospect says, “too high,” or “not interested,” he is merely saying or implying that he is not going to give you his “big” stack of money for your “little” stack of benefits. In those cases…become a little “hard of hearing.”

Think steps. Walk your way through this.

  1. Remain optimistic and positive. You wouldn’t be there if your prospect customer hadn’t needed what you had to offer.
  2. Ask what your prospect’s expectations were. If he doesn’t want to talk about that, ask if he would take it for free. Of course, you aren’t going to give it to him for free, but you are getting the prospect to admit that, in truth, he does want what you are offering. This gets you and the prospect back to price.
  3. Focus on the difference not the original amount. For example, if your estimate is for $1000 and your prospect informs you that he had hoped to pay no more than $600 – you have a $400 sale to make. In reality, you’ve already made a $600 sale, you simply must now make an additional $400 sale. This will make it easier on you.
  4. Break that amount down. The smaller the amounts – per day, per hour, per piece, etc – the more affordable and desireable the decision to buy becomes.
  5. Emphasize the difference between price and cost. Is the price difference so great that the prospect is willing to forego the cost savings making the “buy decision” will provide?
  6. Benefits, Benefits, Benefits. Refer to what you know about your prospect. Having done your homework upfront, you know what benefits are most important to your prospect. Reemphasize those benefits and expand on them as much as possible.
  7. Create the vision – be an artist. Your prospect might not really know what he wants because he can’t see how all the benefits are not options but completely necessary. Paint a vision for your prospect of what all those benefits will do for him and his bottom-line. Open up new horizons for the prospect – exceed his expectations.

Using these steps will help you to get to the YES you desire and the price you need to grow your business.

Categories: Pricing, Sales
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