How to overcome price objections by communicating value.
When do rate negotiations start? From the first moment you interact with a new prospect. But for many salespeople, conversations about rates and prices are the most difficult to have. The knee-jerk reaction of even some of the most seasoned sales professionals is to reduce the price of services in order to close the deal. Remember: Successful selling isn’t actually about being the lowest priced provider on the block. It’s about adding value to a prospect’s everyday—and it starts from the moment you pick up the phone and have that first conversation with a potential customer.
To help you navigate the waters of overcoming price objections, here are four ways to present the value of your services without ever dropping the price.
4 Ways to Approach Value Based Negotiations
- Listen, Learn and Understand. From that first conversation to every one thereafter, establish credibility and show your expertise starts by asking great questions. The goal is to identify the pain points that are keeping them up at night. Once you understand your entry point, explain in detail why your company is equipped to solve those problems. By presenting your services in a way that shows how you can make their lives better, prospects will feel like they are in good hands, which is step one in establishing value.
- Acknowledge Pricepoint. The fact is that not every prospect is going to immediately sign on the dotted line. But the quality, long term clients that are seeking the value your services can provide, are not going to be easily deterred by pricing alone. That said, when the topic of price comes up, acknowledge the expense, then reinforce the value of your services. Communicate the important details, such as how your product or services will positively impact the pain points you have uncovered.
- Testimonials and Case Studies. “Don’t take my word for it,” is a phrase that all salespeople need to use on a regular basis. According to Salesforce, one of the most persuasive sources of information that consumers seek are customer testimonials. This can come in the form of a case study that tells a great success story or in a simple client referral. Making those success stories available to prospects helps to enforce your credibility.
- Add Value through Services, Not Price Reduction. If price continues to be an object, before reducing the cost of your services, instead consider incorporating additional bonus options to further add value for the customer. If you are in consulting, add on a free bonus workshop to complement the existing package. Add ons that enhance the existing package are oftentimes more valuable than a reduction in price, so get creative about what problems you are solving, then present a solution. The rest of the details will fall into place as long as the value has been communicated effectively.
Negotiations start with the first conversation you have with a prospect. Value based negotiations make it much easier to overcome objections without ever having to reduce the price of your services. Not only will it change the selling conversation, but you will attract more loyal customers. What could be better than that?
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