“We Can Get The Same Thing For Less.”
When a prospect tells you as a salesperson that they saw something similar for a lot less money, how do you handle it? Most salespeople approach it from a traditional perspective and try to justify or defend their price or randomly take shots at trying to, what they believe in their mind, build value by rattling off a laundry list of features and/or benefits.
This is completely WRONG!
These salespeople fail to realize that their value proposition is weak and/or that the prospects don't really care what the salesperson thinks is important only what they think and feel is important. Most salespeople wrongly assume that prospects object to price to get a better deal, when in reality it could be simply because the prospect does not realize the value of your offer and are confused by the scope of work or terms, or that they have been shopping and have other quotes, some of which may seem similar or comparable to what you are offering.
A price objection is not the prospect saying “No”, but more often simply a request for more information. What information should the salesperson share? The only way to know is for the salesperson to ask a question since the price objection was a statement made by the prospect and not a question. Statements do not require and cannot be answered, so the salesperson has to ask questions to get the prospect to ask a question or share the true nature of their objection before responding with more information.
More often than not, a salesperson that responds to a price objection with “value-building information” to justify or defend their offer will actually raise more objections, alienate the prospect or talk their way out of a sale.
The prospect could be bringing this up just to give you a “heads up” or because they don't see the differences or added value between what you have to offer versus a competing offer. This does not mean they don’t want it or won’t pay for it, it means that they just don’t perceive your solution as different or the differences as valuable enough in their mind to warrant the price difference. Again, still not a “no”.
The prospect may simply be making a rhetorical statement or could even be attempting to help you since they want to buy from you, but want to make sure they are doing the right thing.
The best way deal with a price objection from a prospect like “We can get the same thing for less” is to say something along the lines of: "Well, let’s put both offers on the table so we can see why that might be.” Wait for the prospect to get their other quote(s) on the table, then say: “I see what you are saying about the price differences. Why do you think the prices are so different?"
Another more aggressive stance is to say: “I see what you mean about the difference in price. Why do you think their products and services are so cheap? They know what they are worth better than you or I, so I can’t explain why they would undervalue their products and services if they truly felt that what they have to offer is in your best interest. Can you?”
Taking a stance similar to one of those just mentioned forces the prospect to provide the reasons why they feel you are worth more. The prospect will provide their reasons, good reasons, instead of the you “winging it” and providing your reasons, which usually are not important – at least not where it counts: in the prospect’s mind, which is where it is decided if the sales takes place or not.