Thursday, November 5, 2009

Handling the Price Objection

Inexperienced sales people are easily thrown by the 'price objection'. If a prospect says 'the price is too high' they crumble and offer a cheaper rate, often at the expense of profitability. There's usually no margin to give away.

I'm working with an insurance broker now. The company he signed me up with is giving horrible service. My broker has responded with "I don't think I can get you a cheaper price." He's not listening. I didn't say I was looking for a cheaper price. I'm looking for service. With the horrible service I'm receiving, the rate actually feels quite expensive.

Many sales reps do this. They offer cheap prices, prices they believe are cheap, and never find out what their prospect values.

If you understand what your prospect values and provide service to meet those values, you'll never have to offer the cheapest price and you'll build a profitable company.

No comments:

Post a Comment