“You are too expensive”
You are too expensive, do you make these common mistakes when faced with the statement:-
“You are too expensive”
We have all been there, when we are gently and smoothly guiding that potential buyer towards the sale.
We have pitched to perfection, answered all their questions about guarantees and warranties and have convincingly worked through their fears and “What if this doesn’t work like you say it does”?
All is going great, we are dreaming of building a “life-long relationship” with this person and already planning retreats.
Well . . . maybe not
and then . . .
We quote our price, they suck in their breath and say
“You are too expensive”
And our dreams come crashing down like the proverbial House of Cards.
Gone are our hopes of building a life-long relationship.
Our dreams of the retreats (maybe not such a bad thing) have disappeared.
We, maybe tempted to make some common mistakes people in similar situations make.
Don’t worry we aren’t the only ones to do so. . .
Here’s the one thing we all have in common . . .entrepreneurs, yes you, believe in their product or service so fully that we can sell it with complete conviction up until the point where the potential buyer questions the price.
We have all done it.
Are we unprepared and in being so, we often end up making some of these most common and DEADLY mistakes.
You know who you are.
Nothing to be ashamed of
Like I said
Raises own Hand!
See that wasn’t so bad now was it?
Mistake No 1.
Letting them GO – I will thump the first person who starts singing that wretched song from that film – Frozen has a lot to answer for!
New Age wisdom tells us to just let them go, (careful), because it is not meant to be. . .
Well New Age wisdom is wrong “putting it politely”.
It is mistaken because it discounts the effect that good reasoning can have on any relationship and sales is in effect a relationship.
If we put in extra effort to save out personal relationships why don’t we do the same for a potential sale?
Giving up just because the potential buyer thinks your product or service is to expensive is the worst mistake we can make.
Not just for this sale but for many more if we fall into the habit.
Mistake No 2.
Referring them to someone else – again mucho New Age and oh such bad advise.
Because if we generated the lead and created interest in our product. We have already done 80% of the work.
Taking a lead that is primed to buy and referring it to someone else means we are not just losing that one sale but many more sales that may come from the same person or through referrals from them.
Mistake No 3
Trying to get them to see the light aka being defensive.
Don’t do this. . .
We will come across as needy and desperate.
We will never get them to see out point of view and they would only look at us as a slimy, wheedling sales person trying to secure a sale ——-.
Don’t. Just don’t.
Mistake No 4
Did we feel our temper rising as soon as the words were out of their mouth?
Did we want to kick ourselves (or them!) for having wasted all that time and energy to come to this?
Well, stop right there.
Understand that everyone has the right to get the most value for their money.
No-one likes being short-changed and if they genuinely think we are too expensive.
Well. it’s our job to understand why they think so .
So, . . . .
What to do when we hear the words:-
Ask them this one simple question. . . . . .
“Really! Expensive, compared to what?”
Just ask them this one question and see the dynamics of the argument shift in our favour.
This one sentence has closed million pound deals and win over multi year-long contracts.
Because answering this question means the potential buyer has to prove their statement if we are at a stage where we are negotiating on price.
We have likely overcame all other sales barriers and there could now only be four possible mental barriers stopping the sale from taking place
- They are trying to prove the sale to themselves.
- They don’t know how much the product or service costs. They maybe a first time user and genuinely don’t know the cost.
- They are comparing us to someone cheaper.
- They aren’t interested in buying at this time and is using “to expensive” as a way to buy time.
From the answer they give you to your question, you can judge where they fall on the spectrum and then overcome the barriers by applying the strategies below.
Self Justification for the purchase
When their answer hints that they are trying to prove the sale to themselves don’t stop them.
Let them go on and once they have finished.
All we have to do is remind them why they reached out to us in the first place.
In other words emphasise the pain point but only after they have done the self-justification part on their own.
Doesn’t know the cost
Recount the emotional benefits of your product or service and the pain it alleviates.
Also use a reference point they can relate to :- example a £400 yearly membership compared to costing less than their daily espresso at Starbucks, other coffee shops are available.
Compare it to something similar that they are in the habit of paying for so they see it in context.
Comparing it to someone cheaper
Know your point of parity and use this as an opportunity to emphasise why you are different and better.
Let them come right out and say “X Y Z sells it for £??because this is a wonderful opportunity to remind them why X Y Z would not be able to solve their problem an ease their pain.
However, if there is no point in parity, between you and X Y Z you probably need to reconsider your pricing and/or your product/service.
Not ready to buy
If there answer points to the fact that they aren’t ready to buy at this time. You can remind them of a buy-now-not-later discount that you can only offer with a certain timeframe.
This is also a great time to press some instant gratification buttons that your brands absolutely LOVE.
For example, if you are selling are weight loss system something like ” I want you to know that most of our clients lose about ten pounds in their first month so come xxxxx you will be a different person.”
Basically, any cure that spurs immediate action would do the trick here.
This one sentence will shift the scale from a-seller-trying-to-convince-buyer to buyer-trying-to-convince themselves situation.
Even if they don’t end up buying at this time (which is unlikely if we use the above smartly), they will come back to you when they are ready to buy because they have sub consciously convinced themselves that you are the right business to buy from.