"We would like to work with you, but really, you're too expensive..."

Classic. This is a universal objection: "You're too expensive".

In such cases, you have two possibilities:

1. Sticking to your guns😤
2. Finding common ground 🤔

While beginners will resist and mechanically list all the benefits, the best sales will accept to lower their price... and still win!

In this article, discover 12 ways to turn the "too expensive" objection to your advantage and get your sales process moving in the right direction!

Introduction

If there was only one negotiation rule to remember:

"When I give from one side, I must receive from the other."

The basis of sales techniques: Never give anything away for nothing!

To understand how negotiation works in your business development process, you must first understand the concept that has underpinned commerce since the dawn of time:

Value asymmetry.

Def: "The value I perceive in a product is not equal to the value my interlocutor perceives in that same product".

=> Some things cost my client almost nothing, while they are very valuable to me. Knowing how to identify this intersection is the key to making you a great negotiator.

Why do people negotiate?

Often the root of the "too expensive" objection is not what you imagine.

Let's try to break down the different specimens you may encounter:

1. The one who negotiates "out of principle

We've all had to deal with them... That client with a huge budget who still negotiates every penny! Actually, this person has simply put their ego in the equation: they want to leave the discussion thinking "I am a good negotiator" .

The solution? Let him simmer for a while before finally telling him:

"Okay, you win! I'll give you a 0.2% discount, and in return we'll sign on Friday."

By adopting this action plan, you can motivate the customer to accept the discount by giving them the feeling that you've won a negotiating victory, whereas ninni!

2. The one who negotiates to show his superiors that he can negotiate

He's the cousin of the person who negotiates on principle because he likes to steer negotiations, except that his ego is in the eyes of his superiors. In the same way, give him a cookie, but keep some cartridges in reserve. More devious, he may do this up to 3 or 4 times. Don't reveal all your cards on the 1st round.

3. The one who really has no choice

In general, it's the managers or the people in charge. They're the ones who have to scrape by every day to bring in the cash, and don't intend to throw a single penny out the window. Often, these professionals have strict budgetary constraints, and seek to maximize the value of every investment, including in tools like CRM.

Your advantage: French law is relatively flexible, so you can write a lot of things into a sales contract. Your target wants to pay less? No problem. I'll open my bundle, and here's what I can offer you in return:

1. A customer testimonial
2. Detailed feedback
3. An immediate signature
4. A longer commitment
5. An upfront payment
6. The modification of a clause
7. A reduced offer / service
8. A volume increase
9. The opening of their address book
10. A commitment for the future
11. Exclusivity
12. Communication

1. Customer testimonial

"Oc for x% reduction, and in return we want video feedback from the director on the impact of our solution within 1 month."

Customer testimonials are too often underestimated. Ask for a video format, which you will then translate into text, adding the quantified impact of your solution.

You will benefit from a strong, impactful, and infinitely reusable live proof :

• ... to incorporate into your email sequences for your prospecting.
• ... that can be used in negotiations, to justify your value or a use case.
• ... shareable on your network and your website.
• ... that you can send between your prospecting and a first meeting, to add some intensity to your deals.

"Before our meeting, I wanted to share with you the feedback from Qonto, who had the same issue as you at the time."

The icing on the cake is that these testimonials are real assists for your marketing team! Thanks to these testimonials, they will be able to attract new customers => Customers that you will sign, and from whom you will ask for new testimonials => Virtuous cycle! 🔁

Example with Qonto (725 employees - 🇫🇷) ⬇️

The testimony must be well planned so as not to create friction afterwards. Plan it contractually by agreeing beforehand on its scope, the right to use the company's image and that of the person testifying, and the broadcasting methods.

2. Detailed user feedback

"Ok for a reduction of x%, and in return we want a detailed user feedback including ..."

More advanced than the testimonial, the user feedback details the use of your solution, illustrated with before-and-after figures.

1. The initial situation: Why did you choose our solution?
2. How did you go about implementing the solution?
3. What were your first impressions?
4. Final situation: What has changed today?

This type of testimonial can tip the balance in the face of a hesitant decision-maker:

"I understand your hesitation. I suggest you take three minutes to look at the comments of the Payfit teams, who were in the same situation."

⚖️ Agree upstream on the KPIs to be measured, the expected format of the study, the size of the panel, etc., as well as the conditions of distribution.- As well as the conditions of distribution.

3. Immediate contract signature

"Okay for x% off. In that case, I expect the contract to be signed by noon on Friday."

A prospect on the verge of signing can still ruin you. The earlier your prospect signs, the more you reduce the risk in your sales cycle => "A bird in the hand is worth two in the bush". It's at this crucial moment that the sales team needs to be reactive, ensuring that the signing process is fast and efficient, and that the deal is closed.

4. Longer contract - Duration of commitment

"Ok for x% reduction, and we commit for 3 years instead of 1."

One word: loyalty. Customer loyalty is an active reality. In SaaS, as in consulting, the length of the commitment is key for companies. The longer your customer commits, the more secure your perimeter.

5. Initial payment - Deposit

"Okay for x% off, provided we receive 20% of the amount by Friday."

Useful if you need cash quickly or if your partners have long payment terms.

6. Clause modification

"Ok for an x% reduction, as long as you reduce the payment period."

Read your contracts carefully. Even if they are well drafted, certain clauses can be modified in your favour:

=> Which clauses bother you, but don't really have an impact on your customer?

⚖️ Make sure that this is legal and does not create a significant imbalance between the rights and obligations of the parties.

7. Reduce your offer/service

"Ok for x% off, but you'll have limited access to customer service."

I'm not a fan of this one, as it could lead to customer frustration. That said, it remains an interesting lever if the post-transaction efforts are significant: tedious customer follow-up? Problem-solving? Support? Lighten the already overloaded customer team's workload ;)

=> "What costs us money and isn't appreciated by the customer?"

8. Increased volume/number of users

"Agree to an x% reduction, and we commit to using 100 licenses instead of 50."

Volume-based offer. Classic and efficient.

9. Login: open address book.

"Okay, for x% off, and you guarantee me an introduction to the other department heads, your counterparts, your partners."

Your contact is bound to have contacts (like a sales manager, for example) who can be of use to you. Make sure that these introductions are qualitative and in due form.

It's a good idea to agree on the purpose, terms and duration of thematch. A presentation by a competent person will make things easier for you afterwards.

10. A commitment to the future

"Okay for x% off, and you guarantee...
... to keep me informed of all your future needs."
... that when your teams grow, you'll equip them with our solution too."

Another way to secure your perimeter, by projecting yourself into future business while supporting your prospect's potential sales force.

⚖️ Clearly define the event triggering the obligation, what the obligation consists of and for how long.

11. Exclusive

"Okay for x% off, and you guarantee us exclusivity for a period of... "

Very powerful because it closes the door on all your competitors, but therefore difficult to negotiate.

⚖️ Detailed contractual formalization is essential.

12. Communicate

"Ok for x% off, in which case you:
... allow us to communicate on your behalf on our networks. "
... communicate about us on your networks. "

Classic, works both ways, even if the ideal is for your customers to talk about you (yes, we don't neglect customer relations). More than just posting on social networks, make sure you appear where your prospects are, thanks to your customer!

The key principle: when your customer uses your solution, their partners should see you.

For example, think of Apple, which signed every message it sent with: "Sent from my iPhone" Imagine the impact of this technique on the billions of messages sent.

⚖️ Make sure you have the right to use the company name or logo for communication purposes.

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Bonus: build trust!

Granted, this isn't the '80s... But inviting your customers is an excellent way of forging strong ties, while at the same time pampering yourself. Suggest a good meal with the customer's team, a party, an event, etc., and above all a meal that has nothing to do with your professional activity - it's likely to bore you! You're in for a treat, and if it means you can sign a contract, you're in!

Conclusion

The number and nature of the levers at your disposal are left to your imagination!

1. Customer testimonial
2. Detailed user feedback
3. An immediate signature
4. A longer commitment
5. An initial payment
6. The modification of a clause
7. A reduced offer/service
8. An increase in volume
9. Open address book
10. A commitment to the future
11. Exclusivity
12. Communicate

Among all these elements, list those that correspond to your business. Discuss them with your managers to find out how much leeway you have, and use your inventiveness to identify value asymmetries: "What costs my prospects nothing and I can't get much for it?"

Nuggets just waiting to be picked up;)

Once the negotiation was over, did you reach an agreement?

You're nearing the end...

But when is the right time to close your sale?

To answer this question, we wanted to go one step further. On May 5, 2022, five of the biggest names in sales got together to discuss the best way to close a deal.

Access the replay and get advice from top sellers Sellsy, You Sign, Air Call, DreamCatcher Sales, and of course Modjo!

And don't forget that a good negotiation ends with not one, but 2 winners 😉

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Better,

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