WTP News and Info - Overcoming the "Price is Too High" Objection

Is there anyone in business who hasn’t struggled with the “your price is too high” objection? Yet there is an effective way to counter it.
 
On its surface, price is an indisputable fact. “Price” is the black-and-white number the customer is going to pay.
 
That’s why it’s such an easy out for a client talking to a vendor. It also protects the client with their superiors were they ever to be questioned about why they chose a certain vendor... ”Look, their price was lower.”
 
“Value” however, exists only in the end-user’s mind. It’s subjective.
 
For example, to a third-world farmer who has never touched a computer, a software package has zero value.
 
For our practical purposes, a price objection is a sign that the client is not aware of all the value they are getting in a product. That is where Positioning comes into play.
 
Positioning is the act of pointing out every last piece of value. Then you can attach and justify an appropriate price.
 
The Truth Behind the Objection
 
When a price objection surfaces, dig deeper. There are almost always other reasons for the price discrepancy that relate to value.
 
Some examples of value that you might have to point out:
 

  • Here’s a simple one. If your client will let you, compare the specs. There could be discrepancies in paper, inks or finishing that account for the difference in price. A comparison determines if you’re on a level playing field.
  • Do you deliver faster than the low-priced competitor?
  • Does your delivery include up-to-the minute tracking services?
  • Do you offer or include storage and fulfillment services that competitors do not?
  • Do you have a quality control system not used by your competitor? For example, we use a strict G7 methodology to ensure a perfect, consistent appearance on all jobs.
  • Do you have dedicated customer service reps that work one-on-one with clients? Your competitors might not include that sort of value.
  • Do you make the purchasing process easy for clients? For example, we make it easy for clients to order online, by phone or by email.

 
These are all ways to add significant value.
 
Adding value doesn’t’ mean you have to add cost, either. Some of the things I mentioned don’t cost any extra, but they still add value.
 
Think of every way that you currently add value. Then brainstorm ways to add even more value.
 
Better positioning—the act of educating your clients about your unique value—will reduce price objections.