Thoughtful Thursdays - Dealing with the "but"

Thank you for presenting your proposal earlier this week. We like what you are offering, but we just can't afford to pay that much. There is a competitive situation we must consider. Is there anything you can do about your price?

Okay star, how will you handle this common objection? Are you prepared to respond? The way this is handled may make or break the deal.

Today's thought may provide you a few ideas on how to handle this kind of objection. Let's assume that your research is sound. You have correctly identified the needs and proposed your best solution. There is not much wiggle room with price and you are not prepared to just drop price to get the order unless absolutely necessary. There may be some points that need clarification.

• Is the customer making a fair product/service comparison with the competition?
• How far apart are the prices and what is the total impact over the entire order?
• If you are the incumbent, has the customer considered all the costs of changing suppliers?
• If you are not the incumbent, have you considered the cost to your customer of changing suppliers?
• Can you make up the price gap with value added services other than price of your product/service? Examples include improvement of cash flow or inventory planning.
• Is the lifetime value of the customer significant? Are they strategically significance to the long term goals of your business?

You are looking for ways to establish value that do not directly impact your proposed price. It may not always possible. By exploring all possibilities you are likely to secure a higher percentage of your business at the prices you want.

Good selling,
Richard