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What are the steps to overcoming price objections? What myths about money should you be aware of when selling?
Overcoming price objections starts with establishing whether the customer lacks sufficient money or is simply uninterested in the product. The next step is to convince the customer about the value of the product and why it is worth twice the asking price. Misleading money myths like “people don’t like to spend” or that “money is always in short supply” can discourage you from pressing on to convince the customer.
Read on to learn more about the steps to overcoming price objections.
Price Objections in Sales
Once you’ve built a relationship with the customer and have her interested in a product, you’ll undoubtedly have to address money. In this chapter, we’ll look at some myths about money, overcoming price objections, and the phenomenon of “second money” (it’s easier to get people to spend more once they’ve already bought something).
Mythbusting Money
There are two myths associated with money that you need to be aware of when selling:
Myth #1: There’s a shortage. This is untrue—if we averaged all the money on the planet, everyone would have a net worth of $1 billion. If you don’t have your billion, it’s because you have the wrong attitude. Additionally, if there ever was a shortage of money, the government could print more.
Myth #2: People don’t like to spend. In fact, people do like to spend money because it lets them show off. U.S. culture is about consumerism and competition, and Americans like to buy things with an audience. The more people spend, the more fun they have, and the more they’ll like what they bought.
Overcoming Price Objections
Now that we’ve cleared up two myths about money, let’s tackle one that’s more specific to sales: the myth that the major reason customers won’t buy things is price. In reality, price is never anyone’s number-one concern—in fact, it’s never even among their top reasons. The real reason people don’t buy something is that they aren’t confident that the product is what they need or want.
- Example #1: If price were the only motivator, no one would buy Starbucks coffee when they could make coffee cheaper at home.
- Example #2: Most things aren’t actually necessary, so if people were really concerned about money, they wouldn’t buy products at all.
In fact, sometimes lowering prices hurts sales—when the price is low, people think the product is worthless.
- For example, one of Cardone’s salesmen thought he would be able to sell more tickets to one of Cardone’s seminars if the ticket prices were cheaper. Cardone let him lower the price on the condition that he wasn’t allowed to do his usual sales pitch (when you charge a low price, you can’t afford the usual in-person sales presentations). Attendance was abysmal—the low price made everyone think that Cardone wouldn’t be there in person and would just be attending via a video chat.
Therefore, to start overcoming price objections, you need to find out what your customer needs or wants and then show them how the product (or another part of your value proposition) will satisfy them. When people are confident and love or need something, they’ll find the money.
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- How your happiness and even survival depend on your selling ability
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