Sales Tip – 4 Ways to Respond to Prospects’ Price Questions

Sales Tip –  4 Ways to Respond to Prospects’ Price Questions

 

Most sales people have a dislike or an aversion to discussing price with prospects.  I’m often asked by sales people and sales managers if sales people should tell a prospect the price of their product/service when asked.  (You’ll read shortly what my take is on the subject.)  Salespeople often treat prospects’ questions about price like taking off a bandage - rip it off quickly to get it over with.

When sales people have any kind of dislike or aversion about discussing price with clients, those sales people are in need of some price confidence.

Sales people can develop greater price confidence by mastering the various ways to talk about price with their prospects and clients.

There is the traditional “sandwich” model:

  • Review the benefits
  • Mention price
  • Refer to the perk they get when they buy

Sales people can talk about the price of a product relative to a daily expense:

  • Compare the price of the item you are selling to something that is a daily expense for most people (such as a coffee)
  • Calculate the number of days (or coffees) it would take to reach the cost of the item when you mention the price

There’s also the cost recovery model:

  • Work out the length of time it would take for the client to break even on their investment
  • Ask the client to project what kind of difference the product or service would make in their business
  • Mentioning price with the time to break even and the projections the client shared

Or salespeople can be direct and just simply state the price of the product/service and make it a natural part of the sales conversation.

My take:  Many of the above work.  And as any salesperson will tell you every sales conversation is different and therefore there is no blanket “right” answer.  What may work in one sales conversation, may not work in another sales conversation.

As a basic strategy (depending on a multitude of criteria, including the industry and the product/service sold), it’s often helpful for sales people to see prospects’ questions about price as a sign of interest.  When sales people see their role as helping prospects with their buying decisions, those sales people start to treat prospects’ price questions as an indicator of greater prospect engagement and evidence prospects have moved further along the spectrum of their buying decision.

Watch Peri’s interview where she talks about the spectrum of prospects’ buying decisions:  https://www.youtube.com/watch?v=F4_PmJk2HNM

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