Your Price is Too High - How Do You Respond?

When the prospect comments your price is too high, how do you turn this into an advantage instead of allowing it to become an obstacle to the sale?

When the prospect poses this question, it can mean a number of different things:

• Possibly you haven't sold the benefits effectively to make the prospect want your product or service?
• Possibly the prospect is using this as a reason to stall for some reason?
• The prospect is saying, "Show me that it is worth all that money."

How do you work with this objection? Handle it the same way you would address any objection. Use it as a road sign....not a road block.

1. REPHRASE the statement as a question.
2. REPEAT the benefits. Stress the cost effective ones.
3. REDUCE the cost to its lowest factor

When you have the knowledge of your products/services, knowledge of your prospect's business and knowledge of your competitor's products/services, you can more easily handle the comment ... "Your price is too high." You will be better prepared to satisfy the prospects objection that the value they receive from your offerings is well worth any additional cost.

When you reduce the cost to its lowest denominator, the price will seem to shrink.

Be sure you are comparing apples and apples. Determine the complete specs on which the competitor's price is based.

Your product/service is worth your price. Just show your prospect the value from "his perspective" and you will close more sales!

 
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Are Your Products Maturing - What is Next?

Are you facing more and more competition for the products you offer? Is it getting harder to differentiate your company, your brand and your products in comparison to your competitors?

Is pricing becoming more challenging inlight of competitor pricing strategies? Are prices dropping due to competing products? Are your prospects and customers more often questioning your value proposition .. your price?

Do you have a proactive approach for product development and management? How are you positioning your products/services in your markets? Do you find you are reacting to your competition?

Do you have new products in the pipeline or are you finding your efforts are focused on current product feature additions?

Are you searching for how to creatively bundle your products? Are you considering how to bundle the products of other companies in with your products to improve your value proposition and your differentiation?

Consider your current approach to developing & implementing an effective product/service strategy. Is it working for you? Do you need to make some adjustments? Some idea generators are as follows:

1. Identify areas of improvement for current products/services to improve competitive advantage
2. Determine how your products/services have evolved and how they compare to your industry and take the appropriate actions to address the GAPS
3. Ensure you have clarity for  .... who your target customers are.  The segments that are most important to you.....the segments that have the highest potential. Identify the segments you want to ignore.
4. Ensure your product/service packages fit the way your target customers want to buy and are priced at levels they will pay and are acceptable to you. Which of your customer's problems/pain points are you trying to solve? Are there customer unmet needs you are not satisfying? What are your customers willing to pay for? What are they not willing to pay for? Where is demand increasing? Where is demand declining? What switching costs prevent customers from defecting to competitors? Can customers easily find & purchase less expensive products and services?

All products and services will journey through the 4 phases of the product/service life cycle......Introduction....Growth....Maturity....Decline. Often times companies find themselves navigating their way through these phases without a process for effectively managing product/service strategy. 

Your company's products/services ARE YOUR COMPANY. Don't wake up every day reacting to your competition. Develop your own product/service strategy so you can proactively navigate your company towards a balanced product/service portfolio that manages the path for all your products/services through their life cycle.

Get started today. The right product/service strategy processes will provide the foundation for you to make better decisions to ensure competitive advantage in your markets!

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