"Okay fine, but how much does it cost?"
For trained salespeople, easy.
For others, this is the moment when they start to lose their footing:
"Ahh well then it depends, if you don't mind before I tell you about..."
Ouch. On a pitch, it's a yellow card.
Think of the famous American car salesman who starts all his appointments with :
"First of all, the price of this new car is $18,000. Now, let's talk about ...".
Hm. Does it seem strange to address the price directly?
In sales, the classic advice you get is:
- Prove the value of your product.
- Once this is done, give your price.
The idea behind this advice? The perceived value in the prospect's eye will be so HUGE that whatever your price, it will be the deal of the century.
And guess what, ... it works!
If your prospect doesn't bring up the subject of price, it may not concern him: Does he have a budget on hand? Does he only validate the interest?
It doesn't matter, it's good for you! Go ahead and talk about it once you have proven the importance of your solution.
However, our salesman from across the Atlantic knows what he is doing.
As you know, in serious discussions the subject of price quickly comes up. Don't wait for your prospects to feel obliged to ask you how much it costs: take the lead!
Do you think you're losing out on a possible future deal by announcing your price?
No, you're justskimming off the top of your pipe, weeding out the tourists who wouldn't have bought anyway.
What we want you to understand is that whatever solution you offer, bringing up the subject of "price" at the beginning CANNOT do you any harm.
- Addressing the price at the end works.
- Addressing the price at the beginning CANNOT fail.
Let's see why.
1. No trust, no sale
At Modjo, we analyse hundreds of sales conversations to identify recurring patterns.
Remember this statistic about being on first-name terms. The best salespeople inspire trust:
Illustration: Elon Musk, October 2002, sale of Paypal.
Now known for his extravagance, the man who wants to put deckchairs on Mars is also initially one of the founders of Paypal. In his early days, Musk played the role of the nerd perfectly, honest, pragmatic, leading many to say:
This guy is not a salesman.
"He's an engineer. A geek. "
And indirectly ⇒ "He can be trusted."
As aresult, PayPal was sold to eBay in October 2002 for $1.5 billion. At the time of the sale, Elon Musk owned 11.7% of PayPal, or $180 million.
Now imagine yourself. You are approached to subscribe to a new software package. The salesman has made a good approach. You decide to give him a chance.
During the first meeting, he presents you with all the problems that his solution will solve.
Not bad. At this point, a little light goes on in your head: "What is the price of this famous solution?"
Then the salesman continues his demo.
He continues.
The more our salesman talks, the more you wonder about the price.
Moreover, you are less and less focused on what he is saying.
You finally decide to stop it:
"How much does it cost?"
And now the wrong answer:
"So before we get to the price, I still wanted to tell you about this feature that ..."
"It's going to depend on a lot of things, I just wanted to see with you if..."
This has happened to you before. How did you react?
"Look, this guy has something to hide..."
Personally, this is how I react:
- I don't have the answer to my question, which annoys me.
- I am suspicious, and lose confidence in the person I am talking to.
But as you know: no trust, no sale.
And trust is also about transparency.
Whoever your customers are, BtoB or BtoC - Your prospects NEED to know your price.
Tip : Your prospect's attention and time are precious. Be transparent, give your price "as if nothing had happened", and move on.
2. Let your prospect project himself: 1st step towards closing
A price is always too expensive.
In any case, you will have to give your price at some point.
So if you are asked, give it. Why wait?
On the sales side, consider yourself lucky when your prospect brings up the subject of price:
He is interested. He projects himself with you.
Well, let them plan in the best conditions!
"I need to know if it will be profitable for me" ⇒ he needs your price.
"I want to know if it can fit in my budget" ⇒ he needs your price.
Take the mental load off him.
Once this is clear, they can focus on the benefits of your product.
An attempt was made to understand the extent to which the timing of the "price" objection influenced the closing rate. The figures are quite revealing:
Tip : Use this ad to anchor a high price in your prospect's mind.
Give them the maximum price they could pay, so that the price they will actually pay seems totally acceptable.
For more information, see our article on when you should talk about the price.
3. Raise the price objection at the beginning - the hidden benefits
You have two types of customers: Those for whom price is NOT an issue, and those for whom price IS an issue.
1. If price is not an issue: Go there!
"You'll see with my accounting department."
We love it.
2. Well, in reality, 95% of your prospects are like you, and price is indeed an issue.
As one journalist said at the time:
"It's a strange country, France, where negotiations always take place after the strikes have started and not before. (Françoise Giroud)
Don't wait for the customer to strike. Face reality. Of course, you are bound to get reactions such as:
"Okay, this is completely irrelevant to us."
No problem! It's noted. You have your answer, you can move on.
But in the majority of cases, either your prospect will not react specifically, or you will get a response like :
"Whoa, okay. It's a bit expensive, but let's move on."
There are several advantages to this:
- Your prospect has time to get used to the price
- The question in your client's mind: "Can I plan with this solution?" is no longer on his mind ⇒ He is now more attentive to your arguments.
- And above all, you have time to justify this price. To argue. To convince your prospect that it is the right price.
"Granted, we are more expensive than our competitors. And why do you think our customers work with us in spite of that?" 🙂
Tip : When you give your price, follow it up with what the price implies: the benefits of the offer etc.
An "isolated" price gives the impression that you are waiting for a reaction.
That's your price, it's fair. You gave it, next.
Conclusion
The aim is not to throw your price around in the first minute of your exchanges, but rather to avoid the small discomfort that tends to set in when the financial subject is broached.
Don't hide.
The earlier you address the issue of price, the more you can avoid problems later on.
Yes, you're going to eliminate leads when you've been waiting for that demo meeting for a month. That's tough. But it's a radical way to select only the right prospects.
Time is your number one resource. Don't forget it!
Finally, if your prospect finds your solution simply "too expensive", this is the time to put forward your best arguments!
- In the best case, you will have convinced him.
- In the worst case you will have more experience in negotiation ;)
Be transparent, you will gain time and the trust of your customers.
Practice, try, fail, and try again.
Best,
Cyprien - Sales Content Manager at Modjo
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