Last post, we explored the timeless issue of Price vs. Value. In other words, do we reduce our price, or sell on the value we provide? And, by and large, and all (or most) things being equal, I recommend focusing on value.
When a prospect objects to the price of your product or service, it typically means that he or she feels (whether consciously or subconsciously) that the price they are being asked to pay is greater than the value they would receive. Or, not enough value above the price to overcome inertia.
In this case — and it’s up to you to determine this through asking the right questions — your job is to effectively communicate the true value.
However, there are those rare times when price is the true issue and no amount of value will overcome this. This is not due to an objection but instead to a…“condition.”
Let’s take a look at this through several examples:
1. Lack of Funds
Even though the value of your product far exceeds the price, sometimes it really is outside what they can invest/spend based on their current financial situation.
A clever example from a reader, while extreme, I believe makes the point. You have a new techno-gizmo and a great idea for a commercial you just know that, if you could air it during the Super Bowl, would bring in more than enough revenue to cover all costs and net you a humongous profit. However, with the $2.5 million price tag to air, plus production costs, there is no way you can raise the money; at least not before the slots are sold out.
Do you have a price objection? No. Whether right or wrong, you place the value at much higher than the cost. It is a condition. You literally cannot make it happen.
2. Lack of Credit
When I sold a somewhat high-ticket item early in my sales career, about 1/3 of the people who really wanted it simply didn’t have the credit to be able to qualify for a loan. The challenge was not a price objection, a value question, or a matter of priorities. They wanted it; they simply could not qualify. It was a condition.
3. Product is Not Available and Time is of the Essence (While this is not price-related, I’m including it because it’s still a condition as opposed to an objection.)
They want it and know it would help in the project they are undertaking. Unfortunately, they are under contract to begin in 10 days and you can’t possibly have it for them before 30 days. Again, there is no price objection or question of value; it’s simply a condition.
Yes, usually a price objection simply means a lack of perceived value. But, not always. The point is only that, as much as we speak of value overriding price, there are exceptions.
Have you ever come across this? And, can you think of any conditions I haven’t mentioned?