Price Objections: Convincing Customers to Pay the Right Price
Consider that you are selling a line of toys that, because they are made overseas where labor costs are far lower, can be sold using a low-price strategy. If a buyer raises a price-based objection, what would you say to convince him that your price is appropriate?
Price objections are one of the biggest obstacles salespeople have to conquer. There are two important points to keep in mind concerning price resistance. First, it is one of the most common buyer concerns in the field of selling. A salesperson must learn to negotiate skillfully in this area. Secondly, price objections may be nothing than an excuse. Price can be a barrier while selling to a transactional buyer. Buyer 's generally raise a price-based objection under three circumstances.
1. Price comparison to other products - When a buyer compares the price of a similar product with your product. It is important to let the buyer know that they have to compare apples to apples and then lastly look at the price. They have to look at the quality of the product compares to competitors because inferior quality product would not last long. While good quality product for which you might a little more will last much longer giving you the utility for the price. Not just quality of the product but also features and benefits like other products would not offer. The cheap product may have hidden fees or cost which may not be mentioned by the seller initially. The buyer may not be aware of the positives included in your price, such as, after sales service, longer guarantees, and the quality of your products. Buyers may compare prices by looking at misleading advertisement and marketing done by competitors it is important to look into literature and adverts when handling price objections.
2. Expectations of price - Some buyers would have expectations of what the price should be. These are based on their beliefs and past experiences. A common sales objection reason is when they have bought a similar product in the
Price objections are one of the biggest obstacles salespeople have to conquer. There are two important points to keep in mind concerning price resistance. First, it is one of the most common buyer concerns in the field of selling. A salesperson must learn to negotiate skillfully in this area. Secondly, price objections may be nothing than an excuse. Price can be a barrier while selling to a transactional buyer. Buyer 's generally raise a price-based objection under three circumstances.
1. Price comparison to other products - When a buyer compares the price of a similar product with your product. It is important to let the buyer know that they have to compare apples to apples and then lastly look at the price. They have to look at the quality of the product compares to competitors because inferior quality product would not last long. While good quality product for which you might a little more will last much longer giving you the utility for the price. Not just quality of the product but also features and benefits like other products would not offer. The cheap product may have hidden fees or cost which may not be mentioned by the seller initially. The buyer may not be aware of the positives included in your price, such as, after sales service, longer guarantees, and the quality of your products. Buyers may compare prices by looking at misleading advertisement and marketing done by competitors it is important to look into literature and adverts when handling price objections.
2. Expectations of price - Some buyers would have expectations of what the price should be. These are based on their beliefs and past experiences. A common sales objection reason is when they have bought a similar product in the