Jackie Zach
July 18, 2024
In this podcast episode of Tough Love for Business, hosts Jackie Zach and Mike McKay delve into effective strategies for handling price objections in sales. They emphasize the importance of not competing solely on price but rather on articulating the value that customers receive. Mike highlights that addressing objections upfront during sales conversations builds trust and sets a professional tone, allowing businesses to demonstrate the worth of their offerings early on. By openly discussing common objections like pricing, they empower sales teams to navigate concerns effectively, ensuring potential clients understand the justification behind costs and can make informed decisions based on value.
Throughout the discussion, Jackie and Mike stress the proactive approach of bringing up objections themselves, rather than waiting for clients to raise them. This approach not only fosters transparency but also positions businesses as proactive problem-solvers. By the end of the conversation, listeners are encouraged to integrate these practices into their sales processes to foster trust, manage expectations, and ultimately enhance client satisfaction and business success.
Would you like help overcoming price objections? Take advantage of a complimentary business strategy session to discover the opportunities in your business! https://actioncoachwi.com/podcast-ask-a-question-complimentary-session/
Podcast Transcript
Jackie Zach: Welcome to Tough Love for Business. I am Jackie Zach, here with my co-host, Mike McKay. Today, we are discussing objections, particularly price objections. As business owners, salespeople, and executives, we will inevitably face objections during selling activities. Today, we’re focusing on how to handle price objections.
Mike McKay: Great. What do you want to discuss about price objections?
Jackie: One thing I want to say is that whenever I talk to a business owner who feels they must compete on price, it breaks my heart a little. They don’t have to offer the lowest price; they just need to articulate the value that the customer receives for their investment. Too often, people lower their prices because they believe that’s the only way to compete, but it doesn’t have to be like that.
Mike: The first part of that is we sell how we buy. If you’re always looking for the cheapest deal, you’ll attract customers who do the same, pulling you into a price spiral. The challenge is, you can always be beaten on price. There is no value in being the lowest price. In professional sales, you should bring up objections during the conversation at your pace. This lets the buyer know you understand their concerns about price and that you’re prepared to show the value you bring. We’re teaching people to address objections right in their purpose statement. When we launched our 12-week sales training, I realized the power of bringing objections upfront. Now, we start our sales meetings by addressing the common objections. For example, with coaching, we say, “There are three objections people have. One is price, it is an investment.” We take responsibility for showing the value, which helps prospects relax.
In remodeling, for instance, we say, “The first objection is pricing. With recent inflation, material costs have increased. A project like yours will range from $150,000 to $200,000. We want you to know this upfront so you can decide if it fits your budget.”
Jackie: Bringing up objections upfront allows you to face them directly. Instead of hoping a customer won’t ask difficult questions, address two or three common objections. This shows you’re not afraid to discuss them.
Mike: The more people we train to handle objections correctly, the more feedback we get from prospects showing they appreciate it because they’re often concerned about money. They hear about how expensive things are, they have a sense of their budget, but they appreciate that we’re upfront about it. We’re the first ones to explain why cost is a common concern.
In the remodeling industry, for example, people naturally want to know the costs upfront. Our process involves showing them a range of numbers early on. We acknowledge that affordability is a key issue. Unless we can demonstrate a significant return on investment, we won’t recommend our coaching services. This guarantee sets us apart.
By addressing objections like price upfront, we start demonstrating the value immediately. We explain why our prices are set as they are and what clients can expect in return. We’ve honed this expertise over years of experience. If the cost seems prohibitive for a client, they would tell you. That’s why we’re transparent from the start.
For instance, if you plan to stay in your home long-term, the investment can pay off when you sell. However, if you’re thinking of moving soon, we might advise against certain projects. We tailor our recommendations based on what will provide the most value to you.
This approach allows for open and honest discussions throughout the sales process. It addresses the main concern that everyone has: how much will this cost me?
Jackie: Addressing objections upfront also builds trust.
Mike: Yes, it makes it okay to talk about them.
Jackie: You’re willing to talk about it.
Mike: Your competitors are not. But in reality, our clients come from diverse geographies and target markets. While we work with multiple remodeling companies, they’re all experiencing rapid growth. They’re not competing directly with each other because they operate in different areas.
When you bring up objections in your conversations, it’s about professionalism. You’re acknowledging their challenges and striving to find a solution that’s valuable enough for them to invest in. By addressing objections upfront, you have the entire conversation to handle price concerns and build your value proposition. This way, by the end of the discussion, they understand why the cost is justified and can make a clear decision based on value.
Jackie: The key is not to shy away from price objections. Have answers ready and show value as you discuss them.
Mike: Put price objections on the table upfront. This gives you the entire meeting to address concerns and build respect. If the prospect isn’t a good fit, you’ll find out early and avoid wasting time.
Jackie: Exactly, it prevents wasting time for both parties. Even if it’s not a fit now, they’ll remember the positive experience and might come back later.
Mike: That’s right.
Jackie: Join us next time when we discuss how to handle the “I need to think about it” objection. Have a great day, everyone!