Whether you are a corporate salesperson, small business owner, or freelance web designer, there is nothing more frustrating than potential clients who raise objections to your product or service pricing. So how do you handle a price objection? Here are your best three options.
1. Defend your pricing based on value.
While you may have determined your pricing based on the time and resources invested in your product or service, your potential client may not see those as legit options. Chances are, they are objecting because they have seen a competitor with lower rates.
In this case, especially if they say that ABC Company’s is 25% less than yours, your best bet is to prove your value. For example:
- Your agency uses in-house resources to ensure quality as opposed to outsourcing the job.
- You offer value added services along with the final deliverable that the competitor does not.
- You offer a better guarantee that the competitor does not.
- You have more experience in the industry as a whole.
Any one of these alone can show the potential client that you are a better deal even if your prices are higher. Be sure to keep those in mind while defending your value!
2. Offer a first time discount or freebie.
If you see that defending your prices isn’t working, and you think that the potential client may lead to a lot of business in the future, then your next best shot is to offer a discount. If you are in a subscription-based company, you could offer 25% off their first month’s service or a free trial. If you offer hourly-based services, you could offer a percentage discount or a value-add such as a free letterhead design along with designing their logo.
3. Just say no.
This one is tough, especially for a salesperson. But if a potential client has unrealistic expectations in addition to a desire to haggle, you might want to ask yourself if this is really a good fit? Don’t end up having to turn away a good, full price paying client in the future so that you can cater to a difficult and unappreciative client today.
When it comes to a product that needs support, the potential clients that have the most issue with pricing are probably going to have the most support issues as well. You could be opening the door to not only selling your product at a lower price, but also bringing on a client that will tie up your support lines for hours on end.
The worst case scenario is, if they are unhappy, they will tell the world that your business is over-priced and under-delivers. It is just one more thing to consider when it comes to potential clients who seem difficult from the start.
How do you deal with pricing objections in your business? Please share your thoughts in the comments below!