Why Prospects Say "Your Price is Too High" and What To Do

There's a rule....

that says, "The best time to handle an objection is before you get it." Furthermore, if you get a particular objection regularly, you should handle it as part of your sales process.

As you probably already know, I worked with Dave Kurlan for several years and we used Baseline Selling as our basic sales process. In that process, we talk about identifying personally compelling reasons for our prospects to change. Then identify and understand the consequences of doing nothing.

Last year, Pete Caputa wrote "BANT Isn't Enough Anymore: A New Framework for Qualifying Prospects" in which he explained that reps needed to develop "Negative Consequences and Positive Implications".

Then, yesterday, Carter Bowles shared an explanation of The Framing Effect (aka Loss Aversion). You should read it (twice slowly, if you need to.)

So, let me give you a 'real life' example of how this might manifest on your sales call. You're talking with a prospect and they share that they want to generate 1,000 leads/month, or they need to grow revenue by $1M next year. Many reps think, "Cool. We can do that." and they start their demo/quote process. Everyone above suggests that we need to help the prospect realize what happens if they don't get 1,000 leads/month or $1M revenue. So, that lack of attainment can be framed as a loss. Carter suggests that when an outcome is phrased as a loss, prospects take risks. When the exact same outcome is phrased as a gain, prospects want the surefire option.

Read that again. If you frame it as a loss, your prospect is more likely to take a risk with you as long as the loss is bigger than your price (ROI). If you frame it as a gain, they are more likely to need case studies, references, and iron clad performance guarantees.

BTW, the 9/30 deadline appoacheth!


Want updates as they're published?

Enter your email:

About this blog

This blog is for, by and about
Sales Rock Stars,
RainMakers,
Entrepreneurs
(and/or those that strive to be)

Subscribe to Email Updates