The cry of the sales force is often to lower the price, offer a better rate, throw in a bonus etc etc. This is somewhat understandable, as every other client probably throws an objection about price on the table during any negotiation. (“Your competitor can do it for 5% less than you can…). This is especially true during tough economic times when companies are trying to squeeze every dollar they can.
The marketing and product folks protest these requests, because continuously lowering the price erodes margins, undercuts the company’s value proposition, and generally de-values the sales force (if the product is the cheapest on the market, why do I need a sales person to sell it?)
So if you’re a sales person frustrated with the price objections you continuously encounter, just think for a moment about all of the things you readily pay more for every day.
A personal example – I have all kinds of insurance through a full service broker. I could probably find a lower rate on my insurance if I cut out the middleman and purchased my insurance individually online from low cost, no service insurers.
But I don’t want to.
When I call my agent, they know who I am, answer my questions, and generally treat me pretty well. I think that if I ever made a claim, they’d actually be there for me – and that’s the point of insurance, right? That adds value for me. I’m paying too much for insurance, but I’m fine with it. In fact, I do it knowingly and willingly.
Think of all of the things you pay too much for:
Gilette Fusion Razor Blades – 4 Blades? Do you really need 4 blades? My Dad shaves with a 1 blade Bic.
Oil Changes at the Car Dealer – More expensive than independent garages, but who really knows what goes on at Joe’s Garage?
Tylenol - You can get generic pain killers for half the price, but when you really need your headache to go away, you reach for a Tylenol
And the list goes on...
Price is the number 1 objection you face when you are trying to make a sale. If it helps, remember that the person making the objection readily overpays for a whole bunch of things in their personal and professional life, because they have a reason to. (Trust, Effectiveness, overall value...)
They’ll overpay you as well, if you’d just give them a reason to do it.
