You want to have fun with salespeople? Do this. Call the call center, ask for a representative to come over, listen to the full sales pitch and then say "Your price is too high"
And then sit back and watch the fun!!!
A price objection is the most commonly heard dialogue that salespeople struggle with. Am reproducing below an excerpt from the book "Young Leaders at Every Level" that details 9 dialogues that experienced sales people can give in response to a price objection from the customer:
Customer says "Your price is too high"
- Good things are not cheap, cheap things are not good. Then explain the quality of your product. “Maybe I did not explain the value of my product well!” This assumes that a price objection is a “value” complaint, implying that the customer does not see value in the price being charged.
- “Nobody gives discounts because their products are selling too well.” Explain in detail by giving examples from within the industry of products which are heavily discounted because they are not selling. This response creates doubts about why others are giving discounts.
- “Are they so desperate?” This is in response to a specific statement by customer “Your competitor is 20% cheaper than you are”. This is similar to point 2 but is more specific towards a competitor.
- What would be more important to you - price or cost? Then elaborate on cost. Price is what a customer pays upfront to acquire the product. Cost refers to the sum total of costs incurred in using the product also referred to total cost of ownership. For eg price of a car is the acquisition price. Cost of a car includes petrol and maintenance.
- Give examples of other premium products where the customer has paid more – eg for men / women. Men show wealth by watches, mobiles, pens, cars, etc. Women show wealth through clothes, jewellery, bags etc. Sir, this watch that you are wearing is a Rolex. It is by no means a cheap watch. You have obviously invested a lot in it. Why? Because you look like someone who is prepared to pay provided he sees value. Madam, this diamond ring that you are wearing is a high value item…….”
- Reduce the excess price over life of the product. Sir this car you are buying will be used by you for 5 years. You say it is $10,000 more than the competitor. $ 10,000 over 5 years is $ 2000 per year. That’s $ 6 more per day. Is that really so significant in the long term.
- Reduce the profile of product being offered. Sir These shirts are in the range of $ 150 to $230. You could also consider these shirts which start from $ 110 onwards.
- “Actually our product is not meant for everybody….” This was the opening line of what is acknowledged to be one of the world’s most successful direct mail campaigns by a credit card company. Most direct mail campaigns get a 1% response rate; this one got 10%, that’s 10 times better. The message positioned the credit card as something meant for special people.
- “xxxx” customers cannot be wrong (give national sales data). We have 2800 customers who are using our AMC services across the country. They are also at more or less similar prices across. We understand what you are thinking, others have also felt that prices were high, but after trying out these services, they agreed it was value.
A price objection is the most commonly heard dialogue that salespeople struggle with. Am reproducing below an excerpt from the book "Young Leaders at Every Level" that details 9 dialogues that experienced sales people can give in response to a price objection from the customer:
Customer says "Your price is too high"
- Good things are not cheap, cheap things are not good. Then explain the quality of your product. “Maybe I did not explain the value of my product well!” This assumes that a price objection is a “value” complaint, implying that the customer does not see value in the price being charged.
- “Nobody gives discounts because their products are selling too well.” Explain in detail by giving examples from within the industry of products which are heavily discounted because they are not selling. This response creates doubts about why others are giving discounts.
- “Are they so desperate?” This is in response to a specific statement by customer “Your competitor is 20% cheaper than you are”. This is similar to point 2 but is more specific towards a competitor.
- What would be more important to you - price or cost? Then elaborate on cost. Price is what a customer pays upfront to acquire the product. Cost refers to the sum total of costs incurred in using the product also referred to total cost of ownership. For eg price of a car is the acquisition price. Cost of a car includes petrol and maintenance.
- Give examples of other premium products where the customer has paid more – eg for men / women. Men show wealth by watches, mobiles, pens, cars, etc. Women show wealth through clothes, jewellery, bags etc. Sir, this watch that you are wearing is a Rolex. It is by no means a cheap watch. You have obviously invested a lot in it. Why? Because you look like someone who is prepared to pay provided he sees value. Madam, this diamond ring that you are wearing is a high value item…….”
- Reduce the excess price over life of the product. Sir this car you are buying will be used by you for 5 years. You say it is $10,000 more than the competitor. $ 10,000 over 5 years is $ 2000 per year. That’s $ 6 more per day. Is that really so significant in the long term.
- Reduce the profile of product being offered. Sir These shirts are in the range of $ 150 to $230. You could also consider these shirts which start from $ 110 onwards.
- “Actually our product is not meant for everybody….” This was the opening line of what is acknowledged to be one of the world’s most successful direct mail campaigns by a credit card company. Most direct mail campaigns get a 1% response rate; this one got 10%, that’s 10 times better. The message positioned the credit card as something meant for special people.
- “xxxx” customers cannot be wrong (give national sales data). We have 2800 customers who are using our AMC services across the country. They are also at more or less similar prices across. We understand what you are thinking, others have also felt that prices were high, but after trying out these services, they agreed it was value.
Good reading and effective tips. Thanks.
ReplyDelete