This is the final installment of the ‘price is a little high’ objection, for the time being. Previously, we discussed the following two techniques on how to politely refuse the buyer/seller ‘dance.’
First, by not answering an unasked question, by simply saying nothing and when they come back with, ‘Well?’, you can legitimately state: ‘I’m sorry Bill, I did not take that as a question, but before I answer that statement, may I ask you a question?’ As stated previously, they will agree to you asking. I cannot over-emphasize how important it is to be granted that permission. If at any point in the process they get annoyed or upset by your questions, you can default back to: ‘Bill, you did grant me permission to ask the question.’ In this case, you can go back with: “Could you tell me what you mean by a ‘little high’?” Our objective is to get them to support their statement and further justify why they feel the price is high.
Secondly, is by turning the objection around by asking Bill if he is the least expensive in his industry. No one wants to be perceived as the cheapest in their industry. The conversation would go something like this with you asking the first question: “Bill, can I ask you a question?” Bill: “Sure.” “Are you the least expensive in your industry?” Which he will inevitably reply. “No, we’re not.” You would then state: “I didn’t think so. Then, why should I be in mine?” Again, they have to justify why you should drop the price.
For the third technique, I would like to tell you about someone I have worked with in her own business. She works in a highly competitive environment, a personal trainer in a gym. Not only does she never drop her price, but she charges significantly more than her competition. Furthermore, she has a waiting list of clients that want to work with her while her cheaper competition is desperately looking for clients. She is not an employee but is an independent contractor along with all the other trainers in the gym.
When I started working with this client, she was charging around the same as all the other trainers in the gym. She possessed more qualifications than the other trainers, as well as having a proven visible record of successful clients. When I asked her why she did not charge more, the price competitiveness with the others trainers came up.
I encouraged her to increase her rates by almost 20% by simply asking two very effective, poignant and thought provoking questions. I advised her whenever someone asked her why she charges more she was to follow with: “Bill, can I ask you a question?” Bill says; “Sure.” First question: “Why do you think I charge more?” At that point she is to be silent and wait for the answer. Whatever Bill says, no matter what it is, she immediately goes to question two: “That’s it! Anything else?” I always encourage clients to go for three reasons. Bill has justified why he will be paying her approximately 20% more to work with her. This technique has helped my client have a waiting list of clients. My question to you is: ‘Do you?’
British author, John Ruskin said: “The common law of business balance prohibits paying a little and getting a lot – it can’t be done.” You know what the value of your product and/or service is, don’t devalue it.