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How to Answer the Sales Objection: “Your Price is Too High”

By Evan Lamolinara | 07/07/2019 | 5:42 PM | Categories: Current Affairs

ClockAsk any material handling or logistics sales rep and he or she will probably agree: The price of a product or service is one of the most common reasons a prospective buyer objects to an offer. If a prospective buyer believes a product or service costs more than what it's worth, he or she won't buy it. As a material handling sales rep, however, there are ways to overcome most sales objections, including price objections. By addressing price objections directly, you can often convert these productive buyers into paying customers for your material handling company.

Wait to Mention the Price

First and foremost, you should wait to mention the price of your material handling's product or service when communicating with prospective buyers. If you initially open with price, it may deter the prospect from continuing to communicate with your material handling company.

So, when should you talk about the price? It depends on the length of your sales cycle. If it’s a long sales cycle, 6 months or more, price should not be a consideration until after the needs analysis is complete and accepted and you are ready to go into the proposal stage. However, during this time, it is the responsibility of the material handling sales rep to begin trial close questions that contain questions about price. Now you’ll have a better handle on where you stand on price.

However, if your sales cycle is short, less than 6 months, then according to Gong, sales reps have the best chance of converting prospects into customers when they mention the price of their product or service at 13 to 20 minutes into their communications.

Research Your Competitors' Prices

Another tip to overcome price objections is to research your competitors' prices. If a prospective buyer rejects your offer, he or she may have found a competitor's product or service at a lower price. By researching the prices of your competitors beforehand, you can tackle these objections with greater ease. How? First compare your product or service offering with that of your competitors. Many sales leads don’t necessarily know how to compare the differences or what makes your product better.

You can create a checklist or a comparison chart of your product and/or service and that of the ‘leading’ brand(s). Of course, you want to do some of the obvious comparisons, but you also want to insert line items that make your product unique in comparison. The benefit of the checklist or comparison? You’ve created a business case for the person who needs to gain approval. Now they clearly know why they should purchase your product even at a higher price.

Convey the Monetary Value of Your Product or Service

Perhaps the most important tip to overcome price objections is to convey the monetary value of your material handling’s product or service. In other words, tell prospective buyers how your material handling product or service will increase their business's revenue. (This can also be addressed in the checklist mentioned above). You can do this by showcasing case studies of previous buyers. If a previous buyer was able to increase his or her business's revenue by 10% after using your material handling company's product or service, turn this into a case study so that you can present it to prospective buyers.

Drop the Price - Strategically

You don't have to lower the price for all prospective buyers. Rather, offer an exclusive one-time discount for select prospective buyers. If the prospective buyer is on your strategic account list, then you may want to consider it as an option.

Get Control Early On

In order to get control of the sales cycle early on, you need to be in at the conceptual stage or planning / design stage of the project. Once they go to approvals, the price of what they’re willing to pay for the project stays constant. It’s tough to find out about those projects…well not for SalesLeads. That’s what we do. We uncover projects and notify you as soon as it’s been identified. This way you can help influence the project from specification to installation to price. Take a look for yourself.

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The opinions expressed herein are those solely of the participants, and do not necessarily represent the views of Agile Business Media, LLC., its properties or its employees.

About Evan Lamolinara

Evan Lamolinara

Evan Lamolinara is president of SalesLeads, Inc., a company that has been around for over 60 years, generating high quality sales leads dedicated to the sales & marketing professionals in the industrial marketplace. Mr. Lamolinara, an entrepreneur and competitor, purchased the legacy company in 2014. Since then, he's redeveloped its core software delivery platform and grew the company over 400%. Evan graduated from Mount Union College with B.A. Business Management and honed his competitive skills as a 3-year letterman on the College football team.



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