"Is price your only concern?"
I am constantly training. I meet thousands of Technicians in flat-rate who struggle with the price objection. I am constantly telling them that THEY are bad judges of the value of their skills (the Techs), because they personally would not pay what they charge for mechanical service. This leaves them in a condition we call "consumer advocacy", or simply: sympathy for the customer's point of view on pricing. This condition leads to a lack of "confront" on the price issue.
On the flip side, those technicians (many, apparently, as I have this discussion 4-5 times in the weeks following a Sales Summit workshop) who GET IT always follow my advice for handling the price objection:
Upon hearing the price objection in whatever form it takes, it is a MISERABLY BAD idea to ask "What did you think it would cost?" Instead, acknowledge that it's more than they were expecting, by using an analogy like this: "You know, Mr. Jones, I can remember when gasoline was 75 cents a gallon. (Bread was .39 a loaf, whatever) How about you?" And watch in amazement as they begin to nod in agreement with you that this will probably cost more than they expected. You are now beginning the process of handling their objection from a position of Power, not a position of cower. "When was the last time you had plumbing (electrical, HVAC) work done?" is not a bad follow up. However, this discussion is leading us to ask the following question, from which all of your value ideas can be put on the table: "IS PRICE YOUR ONLY CONCERN?"
Almost no customers say "Yes. I am hiring the cheapest guy who shows up." Almost nobody wants to be that customer. Instead they'll likely say no. "What are your other concerns?" leads you nicely into a tidy summary of the value, service, warranties, and devices most flat-raters employ in order to heighten their customer experience.
This is obviously not the entire lesson on handling the price objection, but an excerpt from the Sales Summit Technician's Course. But if you've never been to Sales Summit, I would recommend two things: 1. Go. Those who have been there would tell you the same thing. 2. Try using this question in the field. Watch what happens. If you've got the confidence and product knowledge to defend your flat-rate price, this question will get you the proper stage on which to display it.
Happy Selling.
On the flip side, those technicians (many, apparently, as I have this discussion 4-5 times in the weeks following a Sales Summit workshop) who GET IT always follow my advice for handling the price objection:
Upon hearing the price objection in whatever form it takes, it is a MISERABLY BAD idea to ask "What did you think it would cost?" Instead, acknowledge that it's more than they were expecting, by using an analogy like this: "You know, Mr. Jones, I can remember when gasoline was 75 cents a gallon. (Bread was .39 a loaf, whatever) How about you?" And watch in amazement as they begin to nod in agreement with you that this will probably cost more than they expected. You are now beginning the process of handling their objection from a position of Power, not a position of cower. "When was the last time you had plumbing (electrical, HVAC) work done?" is not a bad follow up. However, this discussion is leading us to ask the following question, from which all of your value ideas can be put on the table: "IS PRICE YOUR ONLY CONCERN?"
Almost no customers say "Yes. I am hiring the cheapest guy who shows up." Almost nobody wants to be that customer. Instead they'll likely say no. "What are your other concerns?" leads you nicely into a tidy summary of the value, service, warranties, and devices most flat-raters employ in order to heighten their customer experience.
This is obviously not the entire lesson on handling the price objection, but an excerpt from the Sales Summit Technician's Course. But if you've never been to Sales Summit, I would recommend two things: 1. Go. Those who have been there would tell you the same thing. 2. Try using this question in the field. Watch what happens. If you've got the confidence and product knowledge to defend your flat-rate price, this question will get you the proper stage on which to display it.
Happy Selling.
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