How to Handle the Price Objection & Getting People Past the Price
When it comes to being in any industry, there’s often a separation between the low-cost version of a product, the mid-cost, and higher cost versions. When I was in the fitness industry, we always described it as those three areas or markets. There are luxury brands that can easily get away with charging $100+ a month, then there are businesses that charge $30 biweekly. And then, you have low-cost versions, which are around $10 every two weeks.
There are always three different levels of products. And ultimately, that boils down to people’s perceptions.
It’s really important that we understand it’s up to us to explain to people what the differences are between those different levels and why they should pay a certain amount for our products.
For example, let’s say you’re looking at a beautiful diamond ring. Now, no one has told you anything about this ring. You don’t know how many carats it is, you don’t know the cut or even the color. And you don’t happen to know that it belonged to Queen Elizabeth. So what are your thoughts on that diamond? If you were to guess how much it was worth you’d probably lowball it. Right?
Now, if somebody were to sit you down and say, “This diamond is colorless, specially cut, 1.25 carats, and…it belonged to Queen Elizabeth!”
Your perception of that diamond would change a lot, wouldn’t it?
We need to be able to provide the context of a product’s value, such as the fact that our diamond ring used to belong to Queen Elizabeth, to convince people to buy it. That’s context!
How to overcome the price objection (and actually get people past the price)
If you’re getting a lot of objections right now, it’s probably not your fault. The people around you might not be your ideal customers. And you probably haven’t been able to persuade the customers you do want because you don’t know how to go about deflecting price objections.
And that’s okay. Most people struggle with price objections. That being said, the stuff I’m going to teach you comes from 16 years of sales experience and it’s been proven to work wonders.
- Choose your Mindset
There are two ways you can look at sales. You can look at selling as something that makes you anxious. Or, you can look at sales as a service. To sell your products effectively, you need to start thinking of your sales as a helpful service for your customers. After all, you’re helping them understand what it is that they truly need.
You also need to realize that the better you get at asking questions, the more you’re going to be able to help people.
Try to think about the last time you experienced phenomenal service. What did it look like? Maybe you were in a restaurant, and the server was super on top of asking you if you’d like to start off with an appetizer, or by telling you about daily specials and, by the end, you actually had a greater experience because they asked great questions.
Questions are helpful in that they can personalize and forward each customer’s experience.
- Build Rapport
That being said, you don’t want to blind your customers with all your dazzling offers and sales before you get to know them. And even though it might be a lot easier to simply badger everyone about your product, you’re not going to build much rapport. You want quality interactions over quantity. You want to show customers you care about them.
To have the best interaction it helps to figure out what you have in common. If you were looking at my profile you would know that I’m 34 weeks pregnant and that my husband is taking paternity leave. So, you might want to start off with:
“Hey, Ashley, I’ve been checking out your feed. It is so awesome that your husband has been able to retire for the year and take some time off with you. I really wish my husband was able to do that when we had our first baby. How are you adjusting to life with both of you guys home?”
By approaching me this way you’re showing me that you actually care about me, and have taken an interest in my life.
If you’re not comfortable with approaching people through DMs there are still a lot of strategies you can use to reach your audience. You can start by using your social media page to showcase your values and interests so you can build your customer’s curiosity. After you establish that, you can create a call to action post asking your customers to engage with you so you can build more rapport.
For your CTA posts, I highly recommend making a free community Facebook group where you invite people to join. What I really like about this strategy is that rather than sending 100 DMs a day you can send 3 thoughtful posts a week. And more importantly, you can have people that are already interested in what you’re selling seek you out.
- What Are Their Goals?
If you’re going to offer me a solution, you need to first understand what my goals are. I’m going to be much more willing to spend money in the areas that I think are truly going to make me happy. And it’s your job to make that connection.
To do this, you want to ask questions that reveal what your customers are working towards. Going back to our previous example, you could tell me, “I know you’re pregnant right now, how are you finding it? I saw that you liked working out before, do you still keep up with your workouts?”
And I might say, “You know, I’m getting a bit bored of doing the same exercises over and over again. I’m not really sure if I should be doing higher intensity stuff with the baby. I’m a little bit lost on what I should do.”
Asking them about their goals and needs will provide you a great base to provide solutions– which brings us to step number four.
- Provide Solutions
When you provide solutions to someone, you should explain how you can relate to their problems and goals. Then, recommend a product that helped you, or simply explain why you think one of your products could help them.
You can tell me, “You should try Beachbody on Demand. It’s like the Netflix of workouts! There are even some workouts on there that are pre and postnatal. And there’s lots of yoga booty ballet and other super fun workouts. I know you said you get bored easily. Well, this will give you a ton of variety.”
So, what I’ve done there is I’ve taken all the solutions that I’ve thought about and I’ve catered it towards their goals using my expertise of the products.
You’re not saying these are all the options. You’re saying: “This is what I think would work best for you.”
- Give Them a Closed Set of Options. Be Prepared to Persuade.
The last step is to give them a closed set of options. Give customers choices and ask them what they think they’d want to try the most.
From there, they’re either going to agree to one or stamp on the brakes and ask you about the price.
It could be any of the typical objections:
“We haven’t got time.”
“We don’t have money.”
“I don’t want to make a commitment.”
“I’ve got to ask my spouse.”
“I’m not really sure if I’m gonna like it.”
If someone gives you any one of those objections, you’re going to have to break it down to the ridiculous. Let me explain. For example, let’s say for BOD over 12 months costs $8.25/month. So when you look at that, that’s really, really darn cheap. And if you divide that by 30 days it comes out to 30 cents a day!
You want to break it down so your customers can understand how much per day it costs versus the price upfront. And if someone says, “Well, you know what, that still seems really expensive,” then you can go back to explaining that you completely understand. From there, continue to point out the benefits of each program and product, especially how you’ve seen them help you or people you know. Be sure to point out any special offers or money-back guarantees as well.
And more important than ever, remember when to back off. At some point, you need to give them some room to decide for themselves. Don’t push it.
Hopefully, that information has given you some new ideas of how to approach sales interactions. If you are not yet in the Done For You Posting Party that is coming up, definitely make sure that you jump into that here. It’s happening July 27 – 31. I’ll be giving away my Inviting Script which is a terrific and guaranteed-to-work formula for inviting others to try out coaching opportunities.
So if you would love a copy of that and an hour of training, make sure you sign up soon!