Preventing the Price Objection

How many times have you heard a price objection in the last few weeks? With the economy the way it is, you've probably heard it even more than usual. Dave Kahle has some advice to help you reduce how often you hear it.

"While we can't control our customers, we can control our behavior," says Kahle. "And many times it's our behavior that prompts the customer to ask for a discount. By changing our behavior, we can impact the customer. Here are five specific strategies to help you prevent the price objection, by focusing on our behavior."

1. Look like you are worth more

Our appearance impacts the customer's subconscious view of our value. If we look like we don't value ourselves, it's natural for the customer to assume the same about our product.

I will never forget a salesperson for one of my clients who came to see me, concerned about the pressure his company was putting on him to get results. He chewed tobacco and had the yellow teeth and spots on the leather vest he wore to confirm that. A wrinkled pair of blue jeans topped a pair of dusty cowboy boots. He looked like a reject from a consignment shop. His appearance screamed "cheap."

If you look confident, competent and successful, you send the subtle message to your customer that you, and your offering, is worth a little more. You just look like you are less likely to discount your price in order to get the order. Practically speaking, that means to dress like your customer, only a little better. Project a demeanor of a successful, confident salesperson.

2. Believe in your price/value relationship

Do you believe that your offer represents a good value to the customer? If you don't, it will be difficult for you to convince the customer of it. You don't have to believe that your product is the best or that your company is the best. You just have to believe that it is a good value, giving the customer his or her money's worth. More people buy Fords than buy BMWs. It's not about being the best; it's about a good value.

This can be difficult if you, in your personal life, are a bargain shopper. If you refuse to pay the asking price for anything and won't buy it if it's not on sale, then you'll have a difficult time convincing your customer to pay the full price for what you are selling.

Your core beliefs will influence your behavior, and be communicated to the customer in a number of subtle ways.

To counteract that tendency, carefully examine the offer you are making from the customer's point of view. Do whatever it takes to convince yourself that it is a good value to the customer, worth every penny the customer will pay.

3. Don't inadvertently sow the seeds.

Sometimes we can blindly sow the seeds of discontent with our stated price by our poor choice of language. For example, when we say things like, "This is our retail price," "This is our rack rate," "This is list price," or other such terms, we immediately convey to the customer that there are other, lower prices, available.

We have inadvertently encouraged the customer to ask for a discount. The word "price" doesn't need an adjective to describe it.

We'll be back tomorrow with a few more ideas from Kahle on how you can avoid the price objection.

Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com