When I was growing up in the late 60s and early 70s, my mom worked in a sock factory in North Carolina. On some days, she put labels on the socks identifying them as government orders to be shipped to soldiers in Vietnam. On other days, she ironed little bunny ears on the same socks – at three times the retail price – to be sold under the Playboy brand.
Mom was incredulous. Labels meant little to her. But to most people, brands indicate value.
The point here is not so much about branding, as important as it is in marketing, but to emphasize how value is subjective. It is – to large degree – determined by the customer.
There’s no such thing as intrinsic value, thus making the answer to the question, “how much is this worth?” different to each person. What one person considers a rip-off, another may view as a bargain.
So how do you overcome price objections when attempting to close a sale?
First, understand that in most cases, it’s not about price, it’s about trust. We overcome price objections because we have earned the customer’s trust. When we focus on the pain of our customers, empathize with that pain, and then demonstrate how our product or service will alleviate the pain, then price is less important.
One way to uncover the real objection is to say: On a scale of 1 to 10, with 1 being a no and 10 being yes, where are you now? When you get an answer, ask: What does it take to get to 10?
Or: I’m hearing you say that you have Pain A, Pain B and Pain C, and you have the budget for this, and my product fulfills your needs. I’m not sure that I can, but if I can get you a discount, what’s going to happen?
When we flush out the real objections, often we find that we haven’t thoroughly understood the customer’s pain and shown how our product is the solution to that pain. Price isn’t an objection when the pain of the problem exceeds the cost of the cure.
Sometimes, it isn’t. But when we show an authentic concern for the customer’s pain and see our role as one of giving rather than taking, then price becomes much less important.