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Ask any B2B salesperson or marketer what the hardest part of selling a product or service is, and there's a good chance they'll answer, "clients who don't want to pay for it." There are few more frustrating responses than, "Well, I really appreciate your time and what you're trying to do, but I'm having trouble justifying the price."
During times of economic uncertainty, buyers tend to drift toward conversations about cost, even when value is what truly matters. Fortunately, there are several proven ways for salespeople and marketers to close deals, even with reluctant clients, by redirecting price objections back into value-driven conversations.
Today, it's harder than ever for B2B sales reps and marketers to reach prospects and close deals. The average B2B buying group contains six to 10 stakeholders, leaving plenty of room for internal politics or differing opinions to complicate what should be an easy sell.
Furthermore, stakeholders today prefer independent research to the word of reps, making it hard for reps to get a word in edgewise and help inform buyers about the sale.
Some clients are just painful to deal with and will haggle for the sake of haggling, true. However, it's also likely that your sales process could be improved. For example:
Positioning yourself as a subject-matter expert who gives objectively useful information instead of sounding overly promotional will do wonders for client trust. This is especially important when price becomes the focal point. Buyers naturally feel more confident when you help them understand not just what something costs, but why it matters. In many cases, the “cool stuff we are going to do for you is so much more than the price you’ll pay,” but you have to be the one who leads them to that understanding..
Sales and marketing departments that collaborate heavily are proven to be more effective at closing deals than their less cooperative peers. When both sides reinforce value early, buyers are less likely to fixate on price.
It may sound cliché, but it's just as necessary to understand the personality of your client as it is to understand their business. For example, a CFO who's more risk-averse will probably want a different pitch than a guns-blazing CEO.
This also means understanding what “buy-in” looks like for each type of client. About 70 percent of buyers have already decided they want your product, but because price is hidden upfront, they are forced into asking about it. Reps who take time to understand each buyer’s goals can guide the discussion back to outcomes rather than numbers.
If your sales process is streamlined, but clients are concerned about your prices, never fear. Here are some ways you can overcome price objections during the sales process:
Don't jump in as soon as you hear them say, "The price seems a little high." Let them tell you why they think that. Are they getting better offers from competitors? If so, how can you combat those offers? Take time to understand the full breadth of your client's concerns.
In uncertain times, this is even more critical. Price conversations become emotional quickly unless the rep slows things down and gives the client space to think through what they are really worried about.
Frequently, there's a disconnect between reps and clients because the rep has an intimate understanding of why a product or service is worth its price. They see the ins and outs of the company and how much effort goes into making a high-value product.
Clients have none of that behind-the-scenes information. This disconnect can lead to reps jumping into pricing details before the client is ready, which is never good. Make sure you're taking time to quantify the value of your product or service before discussing pricing. Talk about what the client gets for the price, not just the number on the page.
"We promise this product will increase your sales" isn't nearly as appealing as hard data proving that statement correct. Have testimonials, graphs and analytics ready. Showing a client how a sizeable up-front investment can statistically save them thousands or hundreds of thousands of dollars in the long run should make closing the deal easy.
The best way to take the focus off price is to share a story about another customer who achieved meaningful success.
Negotiating is when both parties compromise to reach a mutually beneficial agreement. Haggling is when only the seller makes sacrifices. If you've reached the point where you're haggling with a client like you're at a farmer's market buying avocados, you've already lost.
Redirecting price objections toward value keeps you out of the haggling zone. Guide the conversation: clarify what is included, reinforce the differentiators, and explain why the value delivered far exceeds the price paid.
To sum everthing up, here are a few quick reminders to keep in mind when the conversation shifts toward price:
Sometimes, clients just aren't going to budge. In that event, it helps to have a steady stream of sales leads so that you're always working with fresh prospects.
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Article Sources:
https://www.industryselect.com
https://blog.hubspot.com/sales/price-objection-responses
https://blog.hubspot.com/blog/tabid/6307/bid/33907/how-to-talk-about-pricing-without-scaring-people-off.aspx
https://youtu.be/Qz7IYO2zFB4