Sales - Handling Price Objections

A big part of sales is handling objections. Most folks in the service world are uncomfortable handling objections, especially objections about price. But I’m going to suggest that objections are GOOD, because once you know the sticking point you can address it and close the sale. 

Here’s a strategy for handling objections related to price:

1. Cushion
2. Respond
3. Close

Cushion

“I appreciate your concern about the cost of _________.”

"I understand...." implies agreement that the price is too high. "I Appreciate....” doesn't imply agreement, it implies empathy – you hear them and take their concern seriously. And we want to focus on cost, not price. Price is personal – YOU charge a high price. Cost isn't about you, it's about the work and what ANY good company would charge to do it.

If price is a wall the cushion helps us get to the other side – the customer's side. Once we're on the customer's side we can respond to their objection.

Respond

This is where you answer their objection and you have a couple of options depending on the customer.

The first response is a low-key way to handle price objections and it’s appropriate for most, if not all, situations. Let them know their concern is reasonable, then build value. Use these sample responses for ideas:

Response #1

“I appreciate your concern about the cost of ___________. Other customers have expressed that concern and what they’ve found is that…”

• “…my rates are reasonable considering my experience and the quality of my work.”
• “…they can trust me to do the job right. I take pride in my work, don’t cut corners, and stand behind my service.”
• “...my rates are upfront and transparent. I don’t quote a low price then show up and sell you services you don’t need or charge you extra for things that should be included.”
• “…I do good work at a fair price and treat my customers the way I’d want another company to treat my own family”.
• “…my pre-purchase pipe inspections are thorough, to protect the buyer. I have multiple cameras so I can inspect the main line as well as the smaller branch lines. I use SeeSnake cameras with TruSense® for the best possible image, and I have a tablet so you can watch the inspection live. When I'm done everything goes up on Google Drive so you can download copies for your record.”

The second response is for customers with ultra-Type A personalities and you will rarely (if ever) use it. These folks are assertive, decisive, and don’t like to lose. They respect confidence, but if you are cocky, aggressive, or rude it will be a battle of egos (and you will lose). Look them in the eye, tell them why you will be doing the work, then STOP TALKING. Don’t break eye contact and don’t speak until they do.

Response #2

“I appreciate your concern with the cost of __________. And that’s why you want me to do it.”

• “I’m not cheap, but neither is my work. When I leave here today, the job will be done right, and the area will be clean. I can start now.”
   NOTE: “I can start now” is your close, see below

Close

After answering the objection use a trial close to get a commitment or uncover other objections.

• “Does that sound good?”
• “Does that sound reasonable?”

OR… just go right for the close:

• “Are we good to go?”
• “I can start now if you like.”
• ”Do you need to use the bathroom before I get started?”

These ideas are starting points, time and experience will reveal what feels most natural for you and works best with your clientele.