Both price and budget revolve around money and are the most common objections you hear. You're told your product or service is either too expensive or they don't have the budget to buy. Expect this, be ready for it, and focus on the value of your offering.
- You're the regional sales representative for a company that offers IT training packages. Three months ago, you were given a lead to present your company's program to Mark Evans, who's the learning and development manager for Midwest Pharmaceuticals. He will be making the final decision to purchase licenses for the 1,500 employees of the company. Your meetings have gone well up to now, and then today, Mark brings up an objection that halts the conversation. He says, "I've appreciated your detailed presentations, "but I'm concerned about the price, "and I think your offering is too expensive." Or, maybe Mark has a different money-related objection, and tells you, "I just don't have the budget right now for this expense." Pricing and budget concerns are the two most common objections.
You need to anticipate Mark raising one of those issues and have an honest response already prepared for your visit. There are dozens of responses to the price or budget objection, but here are three essential approaches you must follow. First, you need to get more information. In the scenario with Mark Evans, why is price suddenly brought up now at this late stage of the process? You need to ask more questions to get to the real issue.
Second, focusing on the value of your service is essential. You must believe in what you're presenting and be confident in your response. Third, be very careful with any negotiation on the price right now. Once you give in, you can never go back, and the buyer will always want more concessions. For the cost objection, here's a reply you could use. The price of our program is more expensive compared to what? You can isolate the objection by asking, putting price aside for a moment, were there other matters you needed me to review? You can tell your buyer what you're hearing in the marketplace by saying, our customers are giving us positive feedback and exceptional testimonials that our training programs have been well worth the investment.
Mark's budget concern could be an effort to slow down the buying process before making a final decision. Remember, you wouldn't have been in his office if he didn't have some need or interest. Ask more questions, and then use some examples like these that show that you can help provide a solution to the budget or pricing concern. How can we work with you so it's not an immediate impact on your budget? Or, let's look at a staged rollout of the 1,500 licenses so that your cost is spread over a period of time.
Or maybe, we can manage the invoicing and delivery in a way that will work within your budgetary constraints. You must anticipate price or budget issues in the course of any sales opportunity, and be prepared to handle them. Believe in your service and focus on the value of it. However, it's critical that you take time to have potential responses prepared in advance. This way, you can work in partnership with your buyer to solve their price or budget issues.