You can avoid some serious diseases by receiving an inoculation. You can handle price objections in a very similar way.
The smallpox inoculation works by infecting an individual with a mild case of smallpox and the body builds up natural defenses. Using the same idea, you can inoculate prospects against serious price objections by using the concept of inoculation. This will help enormously when closing sales.
You introduce price early into the conversation in a mild way so that it sets expectations and stops the price objection from arising or at the very least, minimises its impact.
Let’s say your prices are above average because you are a lot more experienced than your competitors and you have a long track record of success. If you wait until the end of the sales process when you discuss costs it could be hard to convince them that its worth paying extra money for your experience.
If you inoculate against price at the beginning of the sales conversation then it could make things run so much smoother. How this would work is that you say something like:
‘I cannot go into detail about costs until I have asked some questions but I should just let you know that we are not the cheapest on the market – is that going to be an issue for you?’
If the answer is ‘YES’ then congratulations! You have successfully qualified out a prospect who is likely to waste your time if you take things any further.
If the answer is ‘NO’ then when you get to talking about money the fact that you are more expensive will become much less of an issue. It will not be enough to eliminate all price objections but it will make them much easier to handle.
You will also need to cover off certain things in your sales process and proposal to emphasise the extra value. For example, you could include a story about a client who was looking to save money and went elsewhere and ended up paying twice as much. Because of the inoculation, anything you include subsequently will work even better than without the inoculation.
The bottom line on this approach is that by gently setting the expectations early on in the sales process the impact of a price objection is greatly diminished and often eliminated. Unfortunately it will not eliminate the need to sell!