Handling objections, and especially price objections, is an area of sales that people often find tricky. One of the main reasons for getting lots of price objections is caused by not taking the time to filter out unlikely prospects. In sales, this part of the sales process is known as “qualifying”. It’s about sorting the wheat from the chaff.
Getting prospects to reveal their precise budget can be quite tricky – especially when they do not know you very well. A second best is to use a technique which allows you to qualify them as a suitable prospect without requiring them to reveal exactly what their budget is.
Instead of asking for their actual budget you present them with a range of prices and check that it falls within the two extremes.
For example, I worked with a web development company that specialised in sophisticated websites and the typical price was £12,000 and the minimum price was £5,000. The owner was incredibly frustrated at the time his team wasted on prospects who had unrealistic expectations of the cost of developing a sophisticated website. We managed to get much less price objections by asking this question early in the sales process:
Before we go any further I just need to ask…..our typical projects range from £5,000 to £20,000 – Is that going to be an issue?”
The number of prospects they dealt with did reduce quite dramatically but they managed to increase their sales as they were now spending more time with people who were a good prospect rather than wasting time with people who were unlikely to ever buy.
When using this approach, make sure you give the minimum and maximum rather than telling them the typical price. Otherwise you will lose prospects who will be happy to pay more than they had anticipated once you have taken them through the sales process.