If there’s one thing most prospects will want to negotiate on, it’s price.
They’ll say things like “It’s too expensive”, or “we can’t afford that”, or “It’s more than we want to pay” or “we don’t have the budget”.
Note: they do not always directly ask for a price reduction. They just make a statement. So even if you have the authority to reduce your price, and may be prepared to, this is not the time to start doing so.
‘It’s too expensive’, or any of those other statements should be responded to with a question from you. You could say, “Which means?” or “So where do we go from here? or “Compared to what?”
OR, you could say ABSOLUTELY NOTHING.
If you do not respond, they will almost certainly speak first.
By using any of these responses, you’re passing the decision on what to do or say next, back to your prospect, which serves two purposes. Firstly, it makes them think they’re in control because you have given them a choice and, secondly, and more important, it means they have to make the next move and respond.
I used this strategy with a prospect just a few weeks ago when I quoted them my highest rate for an overseas conference and they responded with ‘It’s too expensive’.
When I responded with the question “So where do we go from here?”, there was quite a long pause, followed by the response “I suppose we’ll have to increase the ticket price a little then”.
Whenever you are faced with a price objection, do not automatically start thinking of reducing your price. Focus instead on the value of your product or service and the benefits it can bring to them. There are plenty of other ways the prospect can find to meet your quoted price, if indeed it was ever an issue in the first place.