What to Do When a Customer Says Your Price Is Too High

Brad Shorr
Tue, 17 Dec 2024 23:55:28 +0000
Merchandising, Price-is-too-high, Pricing-models, Pricing-strategies, Pricing-strategy, Price-too-high, Sales, Sales-techniques, Sales-advice, Sales-tips, Pricing

Taking your customer’s statements at face value when you are trying to sell can often lead to trouble. For one reason or another, customers often tell salespeople one thing when they mean something entirely different. Their motives are not always sinister—indeed, sometimes customers are only trying to spare a salesperson’s feelings—but regardless of the motivation, success in sales requires one to root out the real message.

What the Customer Says Isn't Always What They Mean

For example, the most common way for a customer to say no to a deal is to say the price is too high. But a customer may have multiple reasons for saying this. Perhaps saying the price is too high is easier than getting into a lengthy discussion about the real objection, say, the seller’s lack of a track record. Perhaps the customer doesn’t want to offend the seller by saying his or her product is inferior. Perhaps the price is not high, but the customer is angling for a better deal. Or perhaps the customer has only a vague idea of why he or she is reluctant to buy and is just saying the first thing that comes to mind.

If any or all of these motivations lie behind a price objection, it obviously would be a mistake for the seller to drop the price or even start negotiating. Instead, the seller should ask questions aimed at determining if price is indeed the issue. There are a number of ways to go about this.

What to Say to the Customer Who Says the Price Is Too High

Ask for specifics. How high is my price, exactly? At what price would you be willing to order? The more vague the answers are, the more likely price isn’t the real problem.

Invite other objections. Is there anything besides price holding you back? If my price were acceptable, would you order? Sometimes customers need a little encouragement to tell you what’s really on their minds.

Suggest another product or service. Would you be more interested in our economy model? How about our pay-as-you-go service plan? If the customer jumps at the opportunity to consider a less expensive alternative, pricing is likely the problem. If the customer hesitates, the price objection is a bluff or something else is standing in the way.

This same type of qualifying process applies to many other types of customer statements, for example:

“I’m not ready to order” could mean I just ordered from a competitor, or I’m not authorized to place an order.

“Your product is fantastic” could mean I want to make you feel good although I have no intention of doing business with you.

“We do business only with authorized vendors” could mean you haven’t given me enough reasons to go through the effort of setting you up as a vendor.

Bottom line: Sellers should be wary about getting sucked into a conversation about an objection -- or even a compliment -- until they are reasonably sure they will be talking about the real objection. As with so many aspects of sales, the key to success is not a glib tongue, but a knack for asking the right questions and an attentive ear.