Sometimes the price objection isn’t the real objection. Many times it’s a value objection!
Let’s dive right in there.
It can be frustrating when you are unable to close the client on Solutions that you know are right for him/her.
It should be an easy YES? So why does this happen, and how do we prevent it? How do we build Value in our Solution(s) making it easy for the client to say YES?
Let’s explore these questions together. I hope that this conversation starts here, but does not end here. My hope is that it spills over onto Facebook, LinkedIn, and into your company.
The first thing that you have to understand:
Value is a Perception
Have you recently been in the market for a product or service, and had something very specific in mind? Did you have a specific investment, or an investment range, in mind?
Have you ever bought something that was a bit different than what you originally intended to buy, and did you spend more to get it?
Man I did! In 2014 I ended up buying a Toyota Tundra. I have always had a MAX amount in mind that I would be willing to pay for a truck or a car.
My cap was in the neighborhood of 30k. When I showed up to the dealership that was the target, a new truck for around 30k.
The Sales Consultant showed me 4 trucks based on our conversation about what I wanted and needed. The first truck was their top of the line option and man was it HOT! Only one problem, it was 60k. NOPE not going to happen. Moving on!
The 2nd truck was 48-50k(getting closer, I’m listening). It was Red with a “blacked out” grill and wheels. It had all that I wanted and needed, but it also had leather seats, a 4X4 package, and a moon roof. Those 3 items accounted for an additional investment of 4-6k.
In my mind there was very little value in that 4-6k because I did not want, nor did I need, leather seats in Texas. The summer months are just too HOT. I did not need the 4X4 package, I am a city boy! Toyota trucks have back windows that roll down completely. I didn’t need the moon roof.
The 3rd truck was 41-42k. This truck was “blacked out” with a black body, grill, step up’s, and wheels. Man this truck stood out. It was SEXY. It had a lift on it, but not the 4X4 package, and it had cloth seats. The back seat had more than enough room for 3 grown ups, or for 3-4 kids. The back-up camera was included, hands free communication, and navigation included. It had everything else that I wanted and needed. LOVED this truck!
Sure there was a CHEAPER option. The 4th truck was much closer to my price range, but the problem was that it was fairly plain and it did NOT meet my basic WANTS or NEEDS!
So, I bought the 42k Tundra. Yes, I bought something very different than what I initially thought I would buy. Yes, I spent MORE. Why, because my value perception was managed and changed.
This is a CRUCIAL point! My value proposition changed and so can your client’s!
Manage and Change their Perception of Value!
Value is Based on Want and NEED!
I ended up buying the truck that I really wanted, and that I needed. In the end I spent 10k more than what was budgeted based on need, and based on overall VALUE!
To build VALUE you have to develop the issue. You have to develop NEED.
- Questions- We need to get in the habit of asking more questions, versus making statements. When we make statements we OWN the concern, the need and the solution, not the client. Asking questions gets the client to verbalize the concern, and the need gets them to own the solution.
- Make them Aware- we have to first create awareness. We then have to stimulate the concern and create a desire to eliminate the concern.
- Feature vs. Benefit- your clients don’t buy “widgets”. They buy what the “widget” will do for them. “How will this help me?” Transform Features into a Feature/Benefit statement. “How will this improve my situation?” Does this provide the client: Convenience, Security, Peace of Mind, Lower Operating Cost, Safety, Reliability?
Make it Make Sense!
Sometimes we have done an exceptional job of building need and value, but when it comes time to discuss the solution(s) we confuse the client.
- Industry Jargon- Think of your average client. Is he or she a Plumbing expert? HVAC expert? Electrical expert? So why do you talk to them like they are? We use words like Float Switches, Pressure Valves, Draw, Amps, Max Load, etc. We should be discussing Ceiling and Floor protection and Operating costs. We have to use stories and analogies that turn the technical things into something that makes sense to the client. Simplify with stories and analogies.
- Packaging of Solutions- Often we confuse the client. The details of our offering and of our options run together. This leaves the client with uncertainty in regards to what they are getting, and if they really want it or need it. Be clear, be concise. When discussing specific solutions, tie those solutions back to the specific needs of the client.
- Ornaments on and Ornaments off- Yeah I know this is a Christmas analogy, but I love decorating the Christmas tree with my girls. Give the client the power to put “ornaments” on the tree, and to take “ornaments” off of the tree. This gives them control. They have a say in the price they pay. When they have control and can choose they OWN it!
Would you agree that the overall price DOES NOT MATTER if the product or service being provided does not meet the client’s wants or needs? So, let’s get off PRICE and get busy developing need by BUILDING VALUE in your solutions:
1. Managing and Changing the Value Perception
2. Develop the Want and the Need
3. Make it Make Sense
When the value of your Solution outweighs the price that you are asking the client to pay, you are setting yourself up for an easy YES!
I want to take a minute to thank everyone that responded to our recent survey. You responded, and I was listening. Based on your responses we will be covering “Building the Relationship” next…people buy from people they like and trust.
See you soon!
The Sales Caddie