When it comes to B2B selling, by far the biggest objection a customer ever raises is about the price. Ask any B2B sales executives, his biggest challenge will be overcoming price objections.
The one of the primary reason the price objection arises is that the customer cannot see the value of the solution offered in the first place. When they cannot see the true value, it is natural for the customer to fall back to price.
So, to start with, the best way of overcoming price objections in B2B sales is being prepared even before the sales call. It’s the sales executive job to both anticipate and neutralize price discussions early in call and get the attention of prospect to listen to the value of the solution.
As sales executives, one must also prepare well to avoid discussion on the price early in the call. Most customers like to discuss price early in the call.
Customer says tell me the cost first. It may be due to their urgency or they want to compare prices and make a quick decision. And if you fall into this trap and reveal the price, then it will be difficult to recover.
As sales executives, one must ensure that customer is engaged effectively to understand their needs clearly so you can explain the value of your solution before revealing price.
But even after explaining the value, it is natural for customers to negotiate and objects to the price quoted. Let’s see, what are the common price related objections to B2B selling and how to effectively handle the same,
It’s Not in My Budget
Many customers are bound by a budget, and they’ll naturally say their price citing the budget.
If this is a case, as a proactive seller, it is good for one to share the price number before the customer does in this case. And then, one can ask if the price falls within the range and if the customer is comfortable with.
If the customer throws out a number before sales executive had a chance to name a price, ask how they’ve arrived at that figure? Then explain why, based on your value proposition, can or cannot meet them at the budget mandated price.
Customer showing surprise reaction
Sometimes customers express shock as if the price put forward is totally out of the world. The shock can be real, but it can also be a sometimes pre-planned. As sales executives, one must understand if the emotion, real or “drama.”
In this situation, as sales executive ask why they feel the price is too high? Again this becomes an opportunity to link the benefits and features with customer needs that should’ve already uncovered by now.
The Price Is Wrong
Many customers come with the reason the price provided is wrong. If this is happening, politely ask why they think the price is wrong?
Instead of trying to argue or convincing the customer, make an effort to understand their rationale. Arguing with the customer is strict No!
Most customers unrealistic price expectations are usually based out of misinformation and limited information.
Also, some customer would say, for similar product or service they’ve paid less in the past. Here, you must gently point out that if they’d been satisfied with their last supplier, they would not be looking for alternatives now.
Again there is an opportunity here to make the connection between their needs and your goods and services.
Trying to lure in large order only for a lower price
It can be a case that prospect genuinely asks for a quote for a large order and gets a price, but finally, they want a smaller order, only at the same price per unit. If the sales executive is not prepared well enough, there is every chance that one will end up giving the price without knowing the overall rationale.
In these cases, one must work as a trusted adviser, look at the sale as part of a whole and explain about building a long-term relationship, not a one time deal. Make all the efforts to get more insights from the buyer, and then build on that conversation in order to reach a happy pricing ground.
Trying to close in a hurry
Ones in a while, customers make it sound like a decision has to be made right away or the whole deal will be going in to shell. They might use the line, “I’ve got a meeting in one hour and need to present my options. Is this the best you can do for me?”
At which point, there is a choice, get scared and, dropping the price to suit the “emergency.” Or one can say, “I can’t make that kind of concession without company approval.
Sales executive must say, If I’m not able to meet your deadline, I hope we can discuss working together once your meeting concludes later this afternoon.” Wait for the customer to get back and know if customer really wanted the solution or not.
There you go! 5 ways most B2B businesses try to negotiate for the price and how sales executives can prepare for the same.
Reality is, most buyers want to focus on price. Also, the very fact that they are talking means they want your solution. As a company and sales head, you should train the sales Executive, not to lower your need based on their price expectations.
What customer really want is a good product; they know it and you should too. Remember that price isn’t the only thing that makes a sale.
Overcoming price objections is all about practice. Focus on asking about their price related objections and address those concerns. Be a value provider and trusted advisor, making sure that everyone walks away happy—and comes back for more.