A prospect calls a sales rep at a consulting firm. As the prospect listens to her sales pitch, he keeps pushing back that the price is higher than most. What should the rep do?
Agree that her company’s services are expensive but promise that they’ll solve his problems
Ask him to hold and check with her supervisor if she can offer a discount
Ask him what price he would consider fair and reasonable
Ask him to set aside price for now to see if the services are a good fit
Point out that if he did his research, he knows that her company’s services are better than those of competitors
The Correct Answer and Explanation is :
The correct answer is:
Ask him to set aside price for now to see if the services are a good fit.
Explanation:
When handling price objections, the primary goal is to refocus the conversation on the value the product or service offers. The prospect may perceive the price as high because they haven’t yet fully understood how the service addresses their specific needs or delivers superior value. By asking the prospect to set aside price for now and evaluate the service’s fit, the sales rep can:
- Reframe the Discussion: Shifting the conversation from cost to value allows the rep to highlight the unique benefits, features, and results that justify the price. For consulting firms, this could include expertise, proven results, tailored solutions, or long-term ROI.
- Build Trust and Credibility: Pushing back aggressively on pricing, offering discounts, or making value claims without proof can undermine trust. Instead, focusing on the prospect’s needs and demonstrating how the service solves their problems helps establish credibility.
- Qualify the Prospect: If the service genuinely isn’t a good fit, discussing the value first helps determine that without immediately resorting to price negotiation.
Why Not the Other Options?
- Agreeing and promising results: While honesty is good, agreeing the service is expensive may reinforce the objection. Promising results without substantiating the value can sound unconvincing.
- Offering a discount: This devalues the service and may create unrealistic expectations or erode margins.
- Asking for a “fair price”: This tactic hands control to the prospect and shifts the focus away from demonstrating value.
- Pointing out competitors’ quality: This can come across as dismissive or aggressive and might alienate the prospect.
By focusing on the fit first, the rep leads the prospect toward understanding and valuing the service, which can make the price objection less relevant.