It is a misconception that customers are only concerned with the lowest price. Many salespeople and business owners think this is so. If this misconception were true, companies selling high-priced, luxury-type items would not make a profit. What use would a salesperson be if the customer purchases only the cheapest item? We wouldn’t need salespeople just more sophisticated telephone answering machines so customers could simply place their orders.
So, as a salesperson, you must realize customers are concerned with more than price even though you often hear them ask, "how much is it" when you haven’t fully described your offering yet.
Having the question "how much is it?" appear early in the presentation is just as frustrating as such responses as "it costs too much," "it’s more than I expected," "I can’t afford it," "your competition is cheaper," or the classic, "I’ll be back."
As with many objections, price, as a concern, is very predictable. Your prospects and customers will always want to know "how much is it?" early on. And once they know, they often complain. When you realize and accept that price resistance is a natural and predictable objection, you are on your way to the top of your profession.
The Basics of Price Resistance:
1. It always costs too much. A price objection is an automatic response. Everybody asks how much it is and the flinches at the price. All consumers, yourself included, become intoxicated with the idea of obtaining the best value possible. So, no matter what the cost, the initial reaction is always going to be "it’s more than we expected to pay."
2. Price is the common denominator. Why does price come up early in the sales presentation? Because it represents something we all have in common, and that is concern with money. We all relate to dollars and cents.
As a salesperson you must be clear: Is price their objection or yours? Often the price objection appears in the salesperson’s mind first. Rest assured; if you are uncomfortable with the price, then you won’t be able to overcome the objection in the prospect’s mind.
Someone else is always selling something similar to your product for less. Any low level order-taker, other than a professional salesperson, can "give away" the product or service at a lower price. The sign of a super salesperson is someone who can represent the product at a higher value.