“Your price is too high!”
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by | May 29, 2024 | Leader's Digest

Helping Your Team Battle the Dreaded Sales Objection in 4 Easy Steps

An article by McKinsey & Company recently pointed out that “Although inflation rates are down, businesses should resist the urge to ease up on pricing management.”

While I wholeheartedly agree with this statement (pricing and margin management have been high on the CEO agenda, myself included), I can’t help but think of it from the perspective of our sales reps on the front line.

In my experience, when price management is a top priority the “Your price is too high” objection is much more common.

So, what’s the first thing that your sales reps think of when a customer says, “Your price is too high?”

Do they panic? Get defensive? Or do they see it as an opportunity?

The truth is – this objection can be a goldmine of information if your reps know how to handle it.

Here are four easy steps to helping them close the deal:

The first step is to listen.

Listening is an indication of interest; it’s nonverbal encouragement. Effective listening requires silence, patience, and avoidance of interruption.  

Studies have shown that people talk approximately 150 words per minute. However, they can listen and understand up to 400-600 words per minute, which can make listening a challenge!

In our training, we say listening requires attention and intention.

Make sure your reps listen, take a genuine interest in their customer’s pricing concerns, and try to understand if from their “Odds Are” (perspective).

Next, acknowledge.

Acknowledging is not agreeing. More specifically, acknowledging is verbally or nonverbally letting customers know they have been listened to. It is here that your reps demonstrate concern and support.

Reps should avoid using the “I understand” acknowledgment. Do they really fully understand the customer?

No, not until they have explored more, and that is what they must do next.

Now, explore.

It is here that your reps identify more specifically what the true problem is. We don’t know what we don’t know.

Exploring attempts to identify specifics, assess information, and diagnose more thoroughly. It is here that reps must ask pertinent questions, trying to understand the customer and the true reason behind their pricing concerns.  

  • Tell me more about why you think the price is too high.
  • How do you come to the conclusion that the price is too high?
  • How much will it cost you to do nothing?
  • Is it a cash flow issue or a budget issue?
  • Can we explore some creative strategies for fitting into your budget?
  • What’s too expensive?
  • Is price the only thing keeping you away from committing?
  • What’s the ROI you’re looking to see?
  • You’ve made a number of efforts to cut costs; how are they going?

“Expensive” is a relative term. If reps can explore and find out what the customer is comparing your product or service to, they can more precisely differentiate value.

Finally, respond.

Responding implies thought vs. reaction—it is guiding, resolving, or recommending. It conveys the idea that your reps have a solution and creates a sense of completion.

Download our White Paper

You can effortlessly address objections, defuse anger, and build strong relationships by listening, acknowledging, exploring, and responding.

In this white paper, we explore the power of LAER when handling objections. Recognize that objections are a natural occurrence whenever someone is considering a decision, and handling them does not have to be a painful activity. In fact, when tackled with expertise, they can be invaluable opportunities to deepen and invest in the relationship. 

Listen—Acknowledge—Explore—Respond is Carew’s LAER model and isn’t just a sales tool; it’s a communication powerhouse that can enhance interactions in every aspect of life.

Whether negotiating price with a client, resolving a conflict between your team, or even having a difficult conversation with a loved one, LAER empowers you to connect on a deeper level, build trust, and achieve better outcomes.

While we teach LAER in our sales training programs, its value extends far beyond the office. It’s a framework for personal and professional growth that will continue to serve you and your reps long after the sale is closed.

Have questions? Want to learn more? Ready to build your training plan? Our team is here to help! Let’s Talk!

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