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Objections to Pricing and How to Answer Them Effectively

Monday, December 16th, 2019

By Michael Vidan

“You are too expensive.”

The normal first reaction to this statement is to get defensive, isn’t it? The next thought is to start to think of ways to reduce your price just to get the business, right?

You have set prices based on your pricing strategy, and there is a reason for the price structure. It is not some arbitrary number you chose at random. If you don’t believe that you are worth what you are charging, neither will your customer.

I hear these pricing objections on a daily basis and here are a few ways I address them.

Customer: You’re too expensive.
Me: Yes, I am.

OR

 Customer: You’re too expensive.
Me: Yes, we’re very proud of that.

OR

Customer: Your competition will do it for less.
Me: We may not be the cheapest, but we are the best and worth every penny.

I believe it, and I tell my customers and employees that!

Of course you don’t just end the conversation there. You need to be able to sell your service to your customer. Never follow up with close-ended questions. “Yes” or “no” are not the answers you want. You need to get them to see the value you offer and why it might cost a bit more. After this exchange I might ask something like “Are the other companies you talked with offering ‘value’, ‘value’ and ‘value’ like we do?”

Another script I use is: “Would you be willing to let me share my thoughts on the value we bring? It is very important to me that you understand exactly what you are getting with our service.”

Rarely will a customer say “no” to this, which will lead into a great opportunity to let them know how you will be able to solve the problem they are having.

Here are a few of my talking points:

  • We have been in business for X-amount of years, are fully insured for any occurrence and licensed by X.
  • Our uniformed staff is well-trained, educated in this industry, and we will save you money in the end because of our efficiency and know-how.
  • Due to our standing in the industry, we have exceptional resources and buying power, which we will use to your advantage.
  • We offer a 100% Satisfaction guarantee, if you are not happy, we fix it!

Now your competitors may be saying many of the same things, so you probably want to have concrete examples ready of how you have saved money and solved problems for other customers.

A good customer will pay for value. Remember that not everyone is a good customer.

We in the service industry want to call ourselves professional. If we truly believe this, then we will believe in our own value and the associated pricing.

Make yourself and your company a promise: price things fairly and profitably. Then stick to it, with a smile and with conviction. Your customers will have more respect for you and you will make more money.

Thanks for reading, to learn more about Marketing and Sales for your business, check out our books.

Marketing Domination by Michael Vidan.

The Marketing Tune Up by Michael Vidan.


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