When To Tell Your Price And Why
Today, a consulting client (not a forum member) called and asked for help with answering objections when he stated his price. Like many of us, he has one price.
Like most, he hesitated giving his price. He gave it at the very end of his presentation. and then he would get objection after objection....about price: not being able to afford it, now's not the right time...but basically the objections were about money.
I told him "You are talking about money at the wrong time. If you talk about money at the end of the presentation, the prospect has no time to absorb the price, and accept it. In other words, it takes time to process price, evaluate worth, judge desire to buy....and so the decision gets put off".
I always mention price, if they don't already know it, before I start the meat of my presentation. And if they ask for the price at the beginning, I give it then. Never delay mentioning your price. it's just a piece of information."
Here is how I told him to mention price.....
After you ask a series of qualifying questions;
What are you using now?
How do you like it?
Have you ever had someone present this to you before? (If "Yes", what happened?)
How much did you pay before?
What has changed since you bought one last time?
Listen to every answer, and let them talk until they run out of steam. And then talk about price like this;
After we talk about this, you may decide you need a new system, you may decide you don't. But, if you decide to go with our best solution, it sells for $6,999. If you decided this was for you, would you be able to put it on a credit card, or would it be easier if you paid monthly at about $120 a month?"
That's it. You aren't asking them to buy, so there is nothing to say "No" to. They don't feel the need to give an objection, because they haven't decided not to buy yet.
And you'll be absolutely amazed at how many will say 'right now, probably the $120 a month'
And you know what you have now? The entire time of the presentation to justify the price, plenty of time for the prospect to get used to the price......
And now, all you have to do, is show that your product is worth what you are asking. Can you do that?"
Now, fellow forum members....he asked what you may be asking right now. "What if they say that's too much money?" (and some will)
I said "Then say "It's a lot of money, isn't it? It better be one heck of a system for that much money, don't you agree?' And they always say "It better be!". And now, all you have to do is show value".
And if they still balk at he price, say 'This is for our best system. Let me show you everything, and at the end, you can take off anything you like. OK?'. But don't quote a lower price. You want that $6,999 bouncing around in their head. Then, when there is a discount, or an incentive for buying now....they feel relief. How would you like to be at the end of the presentation, and they are relieved at the price?"
Yes, I really always quote my price up front. Depending on what's being sold (this is for others I teach), you may want to give a triplicate of choice for a price. But if I ask them what they paid before (for something similar) and they give me a price that's anywhere close to my real price, I just quote the price.
Anyway, this idea was hard won on the field of battle, it wasn't something I read. I hope it helps someone.
Like most, he hesitated giving his price. He gave it at the very end of his presentation. and then he would get objection after objection....about price: not being able to afford it, now's not the right time...but basically the objections were about money.
I told him "You are talking about money at the wrong time. If you talk about money at the end of the presentation, the prospect has no time to absorb the price, and accept it. In other words, it takes time to process price, evaluate worth, judge desire to buy....and so the decision gets put off".
I always mention price, if they don't already know it, before I start the meat of my presentation. And if they ask for the price at the beginning, I give it then. Never delay mentioning your price. it's just a piece of information."
Here is how I told him to mention price.....
After you ask a series of qualifying questions;
What are you using now?
How do you like it?
Have you ever had someone present this to you before? (If "Yes", what happened?)
How much did you pay before?
What has changed since you bought one last time?
Listen to every answer, and let them talk until they run out of steam. And then talk about price like this;
After we talk about this, you may decide you need a new system, you may decide you don't. But, if you decide to go with our best solution, it sells for $6,999. If you decided this was for you, would you be able to put it on a credit card, or would it be easier if you paid monthly at about $120 a month?"
That's it. You aren't asking them to buy, so there is nothing to say "No" to. They don't feel the need to give an objection, because they haven't decided not to buy yet.
And you'll be absolutely amazed at how many will say 'right now, probably the $120 a month'
And you know what you have now? The entire time of the presentation to justify the price, plenty of time for the prospect to get used to the price......
And now, all you have to do, is show that your product is worth what you are asking. Can you do that?"
Now, fellow forum members....he asked what you may be asking right now. "What if they say that's too much money?" (and some will)
I said "Then say "It's a lot of money, isn't it? It better be one heck of a system for that much money, don't you agree?' And they always say "It better be!". And now, all you have to do is show value".
And if they still balk at he price, say 'This is for our best system. Let me show you everything, and at the end, you can take off anything you like. OK?'. But don't quote a lower price. You want that $6,999 bouncing around in their head. Then, when there is a discount, or an incentive for buying now....they feel relief. How would you like to be at the end of the presentation, and they are relieved at the price?"
Yes, I really always quote my price up front. Depending on what's being sold (this is for others I teach), you may want to give a triplicate of choice for a price. But if I ask them what they paid before (for something similar) and they give me a price that's anywhere close to my real price, I just quote the price.
Anyway, this idea was hard won on the field of battle, it wasn't something I read. I hope it helps someone.
What if they're not stars? What if they are holes poked in the top of a container so we can breath?
Mike