First, note the sales jargon for this situation-it gets called "objection handling." The wording is revealing. It suggests we have a conflict with our customer, an oppositional situation-their side is objecting to our side. And our job is to "handle" it. Kind of like a counter-move in wrestling.
But what if you're trying to create a trust-based relationship with a customer? In that case, this isn't about "objections," much less "handling" them. Instead, it's about a mutual inquiry as to whether joint value can be created-or not. Price is-at bare minimum-a simple and necessary part of the discussion.
But much more importantly, when we hear price comments as "objections," we immediately jump to a place of high self-orientation-the trust-destroying denominator in the trust equation. Omigosh, they're pushing back against me-I've got to counter-attack.
Thought one in responding from trust-it's not about you. In fact, it's never about you. It's always about the customer. What looks like a threatening price objection is actually a great opportunity to learn something important about a customer, and a chance to add value right in the sales process itself. Here's why.
Most price "objections" are simply expressions of dismay or concern-feelings-on the part of the customer. Most fall into five categories. Helping the customer identify these feelings and these categories is a positive help in and of itself. The actual words spoken can be identical: "- that sounds kind of high to me." But they mask very different meanings:
The categories are:
1. Naïve. Uh oh, that's way bigger than I thought. Subtext: "I feel ashamed; I didn't understand what was involved in buying this product/service before talking to this person."
2. Out of Date. That's more than we can afford. Subtext: "I feel embarrassed-I invited this person in thinking we could do it in this year's budget. Now I see that won't work."
3. Engineer. Wait a minute, I don't see why it should be that much. Subtext: "That doesn't make sense-they must be quoting me the fully-loaded version, let's reverse engineer it."
4. Comparison Shopper. Hey wait-how do I know you're not screwing me? Subtext: "I want to get a good deal, maybe not the best, but in the top half, so I need to know the real prices."
5. Bazaar Lover. Aha, the game is on! Subtext: "I don't care what you quote me, I'm going to get 20% off! I love this part of the buying process!"
Each of these subtexts requires a very different response. The good news is-the responses are obvious. All we have to do as the seller is to ask! Ask the buyer what's behind their words; what kind of concern are they expressing when they say, "I don't know, sounds a little high to me." What are they feeling?
Our job is simply to explain that all reasons are valid, and that we simply need to know which is operative here. Simply by stating them for what they are, buyers one and two feel relieved of their shame and embarrassment. And while this transaction won't happen, you just vastly increased the odds of them buying from you in the future.
Number three becomes a simple job of itemizing features and costs-as long as we are not attached to the margin on every little feature. An easy sale.
Number four is solved by the willingness to be transparent, within the bounds of what's legal. Another easy sale-as long as your price is fair.
Number five just wants to have fun. So build in a little upside, and be prepared to give a little more up; and enjoy yourself along with the buyer.
This is not about "handling objections." It is about using curiosity and customer focus to build relationships. The profits follow-as long as we remember we're supposed to be on the same side of the table as our customer, and in a relationship that is the sum of multiple transactions.