The Best Response to a Price Objection
By Tom Reilly, author of Crush Price Objections
Money is always a better conversation to have with customers than price. Price is a product feature like the height, weight, color, packaging option, lead time, etc. Money is a broader topic. Money is more about the total financial impact you have on the customer’s business.
How many ways can your solution provide a positive financial impact on the customer? Price affects one thing—the product. Money is every way you affect their business. That is why it is a better conversation to have with customers. You affect money (i.e. their bottom line) with your product, your company, and you.
When customers raise price objections, reframe the conversation as a discussion about money. You can say to the customer, “Mr. Customer, the fact that you have raised money (notice I did not say price) as your primary concern is a positive thing. It tells me that you will be open to all the ways our company will help you drive money to the bottom line. Is that true?” (Who can say no to that question?) Follow with this statement, “Let me share with you all the ways that our solution helps you grow your bottom line.” Then, explain how your solution has a positive financial impact on their business.
Price is a top-line issue. It affects the acquisition cost. Money is a bottom-line issue because it affects the total profitability of your customer’s business. Money is always a better conversation to have with customers.