Price is not an issue – it is a symptom. You as the seller are the reason for preventing sales.
“The price was too high — they had no budget left this year” — I have heard this excuse many times. People in my team know to avoid giving me this kind of “line” of excuse. Sales people are feeding an excuse of the prospect to their own management. Without thinking. They don’t even know what has happened to the promising opportunity; even though they were working on it for quite some time.
A potential lead, who entered the funnel, left his contact details. He received essential information and had meaningful conversations with a sales professional. As everything was set to win his business, the prospect declined. He declined because of “budget” and was presenting an excuse to hide the real objection.
If you feed this excuse to your management, you have not elaborated the real issue. You have stood in the way, preventing sales to happen.
You acknowledge that it has been someone else’s fault that the deal didn’t happen. It is easier to shrug it off and to name the price for a reason. Truth is you were not noticing a lurking objection within your conversation. You are stuck in a situation where you have to accept the outcome.
In reality, the price- or budget objection represents the following:
• You have not uncovered the prospect’s real buying motive
• The perceived value of your product doesn’t match the explicit need
The prospect has gone through the sales funnel and declined at the end because of the price. The shocking truth is you failed to make him believe in either you, your company or your product.
It all boils down to YOU as Sales Prevention:
• What is prospect buying first?
• Who is presenting the benefits of purchasing the product?
• Who is showing the capabilities of the customer service department?
• Who is representing all core values doing business with your company?
The Answer is YOU to all the above.
Perceived value of your offering is in direct connection to the perceived risk of the purchase
When the risk that either you, your product or your company can not deliver, the perceived value of your offering decreases. The danger of buying increases, which leads to the famous objection: „Your price is too high.“
How to avoid the apparent end? Engage properly.
- Increase perceived value of your product by understanding the real problem of the prospect
- Do better need analysis, and tailor your value statement towards the discovered need
- Elevate an implied need into a profound want by focusing on positive or missing implications
- Lower the perceived risk through actively addressing common objections before they occur
- Strengthen and back up the overall perception through case studies and client testimonials
Price is not an issue. Perceived value and perceived risk are. Price is a symptom.
By accepting the price as an excuse, you allow sales prevention to happen.