Price is by far one of the most common objections that sales people encounter, and there is a reason for it: Price is always an issue when you are not selling value. Not selling value means that the prospect does not have a clear idea of how a product or service benefits his or her organization on the bottom line or at the top line, and therefore does not have a compelling reason to accept the price/value relationship. Learn more below about why price is always an issue when you are not selling value, and what you can do to change the dynamic.
Value Is Not the Same as Price
Value really is not the same concept as price, although many prospects who raise price issues to sales people might not agree at first. Consider: If value is what a prospect receives for the price that is paid, does this value change according to whether the price is lower or higher? The answer is usually no, which is why in rational terms value should be divorced from price. Few prospects buy rationally; most buying decisions are based on emotion and that emotion is triggered by value. If the value is not well communicated, the emotional response is low and the sale is dependent on the price.
It's Easier to Create Value if You Target Your Sales Efforts
Though inbound marketing works to a certain extent to find prospects who will be receptive to the value that you have to offer, there are no guarantees that even the most successful inbound marketing strategy will find all of your ideal customers. This is why it is important to target your sales efforts so that you can find prospects who respond to your value propositions. Remember:
- Few products or services are general enough to benefit everyone. Focus your efforts on your core market so that you can sell using effective and meaningful value propositions.
- If you are talking to the right prospects price is less likely an objection; price issues most frequently come up when the value presented is not integral to the prospect’s business
Higher Value Commands Higher Prices
Prospects are always willing to pay more if the perceived value for what they receive is higher. Not selling value prevents the prospect from understanding the fundamentals behind how the price is set, which leads to objections based on that price. Work to understand the prospect's needs and perspectives so that you can speak to the points that are most important to him or her and use language that helps the prospect construct value in his or her mind. This approach to overcoming the issues that arise when you are not selling value is highly effective.
In addition, you can create higher value for the prospect if you focus on the value propositions that speak most to the prospect's position and his or her organization's reasons for buying. Position yourself as part of the value proposition. By building a relationship with your prospect and demonstrating knowledge and expertise, you become part of the value the prospect receives.