Ever find yourself stumbling when someone balks at your prices? We’ve gotcha covered! Here’s how to handle being “too expensive”.
If you’re running your own business, you’ve probably heard it already.
You pitch your product or service to a potential client, and at some point in the discussion, you hear that you’re too expensive. It can be the most uncomfortable of observations, and you feel compelled to respond.
What’s the best way to handle a comment like this? How do you convey your value without losing business? How do you maintain credibility in what can feel like an awkward moment?
The Common Denominator
Objections to price are the most common objections in business. Regardless of someone’s knowledge base about a product or service, everyone knows his or her money, and as a result, we tend to shop based on price. But objections from a prospective client can feel awful — and they can sometimes be intimidating.
An effective way to proceed is by using an objection as a platform to find out why your prospective client is saying no.
For example, when I hear an objection, I try to explore it a little more. If someone says no and shares more detail about their reasoning, they’re actually revealing a high level of consideration. In other words, my prospect is thinking through the idea of working with me. And that’s a good sign!
How to Respond
If you’re feeling stuck for words in a conversation like this, here are four responses to consider employing when discussing objections to price.
“What would be the cost of doing nothing?”
It’s easier to do nothing than to change directions or kick into gear—but that’s exactly why a prospective client is considering you in the first place. The cost of doing nothing may end up being far more expensive for a company in the long run than the cost of hiring you now to move the needle. Know how your prospect evaluates growth, and align your value with their potential performance.
“Let’s take a step back and make sure we’re on the same page about your needs.”
Sometimes, when a prospect says no, it’s because they’re not ready to engage with the product or service you are offering. A cost objection may just be a polite way of revealing this incompatibility. So consider taking a step backward to make sure your prospect’s goals and desired solution mesh with what you provide.
“Compared to what?”
Prospects who object to your rates may just need a bit of perspective to come around. Are they comparing you to someone in your industry whose rates are lower? We all know that cheaper isn’t necessarily better; a business with rates that are significantly less is likely delivering a lesser value than you. Is your prospect comparing you to their budget? If so, tweaking the scope of your work might help secure their business. Has your prospect weighed your offering against their existing costs? A prospect who appreciates your value might be willing to trim the fat elsewhere in order to accommodate for the progress you can bring.
“Yes, it is.”
There is nothing wrong with responding to price objections with a simple acknowledgement. If you hear, “Your rate is expensive,” a suitable response can simply be, “Yes it is.” People often perceive value by cost, so a discount on your rates could convey a flimsy price structure or a lower value than you actually offer. While it can seem difficult, it’s important to stand firm.
Navigating price objections is a tough skill to learn, but it is vital for the health and success of your business. Know your value and represent your rates with authority. Confidence paired with an open ear will help assure prospective clients of your value as both an expert and a partner in their progress.
About Emily D. Tisdale, Founder & CEO
Meet the brains — and heart — behind LEAP for Women. Emily is LEAP’s guiding force, committed to supporting women entrepreneurs at every stage in their journey.
She loves LEAP because:
A resident of Indiana, Emily prides herself on being a transplanted Hoosier and enjoys watching Colts football and spending time with her husband and their two children.