There is a daily discussion, dilemma, hot take, whatever you want to call it that plagues salespeople: the challenge of overcoming objections and price negotiations. ‘Should I drop my price to secure a deal?’ It’s a common scenario born out of the fear of losing a potential sale and creating a ripple effect in your quarter. Stop doing it. If you sell properly you will never have to discount an offering ever again.
Value Selling & Overcoming Objections
Value selling should be your number 1 priority. Forget the price. When the value that comes from a product exceeds the cost, price loses it’s significance. Buyers will shift from their budget objections or roadblocks and become engrossed with the transformative outcomes your solution can provide. This shift is pivotal.
Shifting Away From Discount Pricing
To understand why this is true, we need to start with the buyer’s journey. People make purchases because they are looking for a change. Their current state is intolerable and they yearn for a better place. When they are shown a solution to the problem, they stop caring about discount pricing and start focusing on how quickly they can leave their current state and reach their future state and desired outcomes.
Offer Value Not Discounts
Our recent survey results prove this. It’s a fact. If you do not lower the selling price and your offering is genuinely valuable, buyers will still proceed with a purchase 85.9% of the time. You need to prioritize value over price.
To apply this knowledge effectively you need to embrace the following three principles:
Is Your Product Worth it?
Your role as a salesperson is to demonstrate the value of your product or service. This is more than a stupid ROI calculation. You have to get deeper, understanding their current state problems, the impacts, root causes, and their desired future state outcomes.
Can You Solve The Problem?
It’s not enough to claim that your product or service can get the job done. You need to provide irrefutable evidence of how your solution specifically address you customer’s problems and challenges. Demonstrating the products competency is key.
Stop Selling Scared
Fear is a real bitch for salespeople. The fear of losing to competitors, not hitting quota, or losing a sales entirely leads to salespeople caving on price. You must overcome this fear. Once you have a comprehensive understanding of your customer’s world, can clearly demonstrate how your offering can solve their problems, there’s no need to discount.
Bonus: Shut the Fuck Up.
Stop trying to defend your price, let the buyer defend their decision to haggle. We hear from people quite often that when they take a second to think about the price a seller just gave them, the seller loses their nerve when there’s a second of silence and offer a discount. Give the buyer your price and wait.
Overcoming Price Objections
If they come back with something like “I didn’t budget for this”, “you’re a little expensive”, then turn it around on them. ‘I’m confused, you said you’re losing $10,000 a month because of this problem, we can make that go away for $2,000 a month, why would you say that’s too expensive?’ Let them squirm to come up with an answer.
Negotiating Price is a Choice
Next time you find yourself wanting to offer a discount, remind yourself that you don’t need to. Effective selling lies in your ability to convey the value of your offering. It’s proving how your product or service can turn their goals into a reality. Stand your ground. You have all the tools you need to succeed without comprising on price.