Your Price Is Too High
On nearly half of my proposals, prospects tell me my price is too high. WhenI was just starting out, this really threw me. I'd tuck my tail between my legsand crawl back to my manager to get his approval on a discount.
Then I learned how to play the price objection game. First of all, I figuredout that often the price objection isn't real; it's just a negotiating tactic.Many prospects say the price is too high to test the water and see whether Iwill give. But that's not always the case. Sometimes they really think my priceshould be lower.
Now, when prospects object to the price in my proposals, I arch an eyebrow asif nobody has ever told me this before, and say:
"Really? Hmm. Why do you feel it is too high?"
When I do this, I make it clear that I don't agree, and I suggest that therest of the world thinks my prices are right on the mark.
More importantly, I find out why prospects think my price is too high:
- Is the problem that they have talked to one of my competitors, which is offering the identical thing for less?
- Is it an apples-and-oranges comparison in which I'm including more in my price than anyone else?
- Do they mean that they don't see the payback in terms of value?
- Is the issue simply that my proposal exceeds their budget or capacity to pay?
I don't have a clue why my price is too high for them until I ask. And once Iknow what prospects mean by too high, I'm ready to go to work on the realissues.
Only when I'm convinced there is a fair comparison in which my price is outof line will I go back to my boss and ask for a special price.
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