What are the best ways to handle price objections from customers and competitors?

If someone objects to a price, you should understand why and react in the right way. To find out what the real problem is and how to solve it, ask open-ended questions, listen carefully, and show empathy for the customer. This will ensure a satisfactory result.

Know your market; your transactional party might not! Be prepared to demonstrate that you are an expert in your market, bear the ability to factor in exogenous macro factors and have a rationale behind your pricing structure. Complete competitive analysis and benchmarking. •What are the more prevalent cost-drivers? (E.g. raw materials, overheads, interest) •Is your supply goods-based or service-based? •What is the current economic climate and projections for the short to mid term? •Where do you identify your goods or services on the spectrum of low-end to high-end? •Is it a suitable classification? The ability to be perceived as an expert and educational source adds further value to the transaction and future access to you.

Address concerns with value-based messaging, showcase unique features, offer flexible pricing options, and highlight customer success stories. #SalesTips

To effectively communicate value over features, shifting the narrative from mere product specifications to the tangible benefits a customer will experience is crucial. Instead of saying, "Our software has a 256-bit encryption," emphasize, "Your data's security is our priority, ensuring peace of mind with top-tier encryption." Similarly, rather than stating, "Our vacuum cleaner operates at 2000 watts," convey, "Experience a cleaner home faster, with powerful suction that captures even the finest dust." By reframing the conversation, you're not just listing what your product can do but illustrating how it can make a difference in the customer's life.

People who don't like the price should use testimonials and social proof to build trust and trustworthiness. Social proof shows that customers have had good experiences, while reviews show that customers have given good feedback. You can boost your confidence and reduce questions by showing how other people have dealt with similar problems. Bring out your unique selling points and competitive benefits.

Testimonials serve as powerful tools in the sales process, acting as third-party endorsements that resonate with potential customers. A startup offering a premium software solution might face price objections. The startup can address price concerns by presenting a testimonial from an industry expert praising the software's features and ROI. Similarly, a B2B company can leverage testimonials from key clients, highlighting how the product led to increased efficiency or revenue growth. Such testimonials validate the product's value and emphasize its distinct advantages over alternatives. Video testimonials can be impactful, as they offer a human connection, allowing prospects to see and hear real users vouching for the product's worth.

Offering a guarantee for B2B SaaS - especially high-touch products - can be a game-changer in alleviating price objections. Performance Guarantee: Assure clients that your software will deliver specific results within a defined period. For example, a CRM tool might guarantee a 10% increase in lead conversions within the first three months. Uptime Guarantee: If the software experiences more downtime, offer compensation, such as a month's free subscription. Money-Back Guarantee: If a client is unsatisfied within the first 30 days, offer a full refund. This shows confidence in your value proposition. Onboarding Guarantee: If a client needs help with onboarding, offer additional training or support at no extra cost.

Il faut effectivement apprendre à assumer ses prix. Pour cela, formez vous à la négociation (ce qui a été mon cas, avec succès). On vous apprendra : 1) à répondre “oui” quand on vous dit “c’est cher” puis à attendre que la personne développe, en silence, sans prononcer le moindre mot. Vous affirmez ainsi très simplement que vos prix sont justifiés. 2) à ne pas diminuer son prix sans contrepartie. Par exemple “je baisse de tant mais je supprime une présentation orale.” Ou je baisse le prix unitaire mais en augmentant les quantités achetées”. Dans le cas contraire, on peut penser que vous avez gonflé vos prix initiaux.