You just had a wonderful exploratory conversation with a prospective client. You did a brilliant job of listening and identifying a key operational challenge the company is facing—one they didn’t even know existed. Your solution could help them save thousands of dollars, and they’re chomping on the bit to hear your ideas explained in full detail.
Three days later, you meet up for an official presentation. As you sit down with them, they mention how impressed they were with your projected cost-saving ideas, and reiterate how eager they are to receive sound advice and potential solutions from you. Then, unexpectedly, seemingly out of nowhere, before you’ve even presented your first recommended action step, they hit you with this statement: “We just don’t think we can afford you.”
This has happened to all of us at one point or another—it’s called Assumed Price Objection—when a prospective customer preemptively decides the product or service they’re hearing about is too expensive before you’ve even given them an actual fee schedule. Most salespeople have a knee-jerk response to this: They jump in and present less-expensive 2nd choice options, or even worse—they’ll present their 1st choice option at a lower price.
Here’s a perspective you’ve probably never considered about lowering your rates when faced with Assumed Price Objection: You may very well be CHEATING the prospect.
People look to you to be honest, and expect you to operate with a high degree of integrity. It’s your job to give the client your best recommendations—period. After all, you are the expert at what you do. You were only a few seconds away from offering your 1st recommendation—the perfect-fit product or service for their situation; the financial results might even surpass what they were initially seeking. Even still, you are winding up to lead with second-best options simply because they cost less, and in doing so, you’re joining your prospects in assuming they can’t afford the best option you’ve got to offer. How is this cheating? You’ve unintentionally, but most assuredly, recommended a subpar service and/or product. Not only did you rob them of the opportunity to optimize their results—you denied them the basic right to make a choice for themselves!
Are you cheating yourself?
Obviously, you left some money on the table, but there are more far-reaching repercussions to consider. If this client had implemented your #1 option and had attained amazing results, they might have become your new customer evangelist—spreading the word about your services far and wide. But because you recommended your 2nd tier options, the results are likely to be modest, and the client who was previously excited about you is no longer all that impressed. You’d presented them with an extraordinary opportunity, and they ended up with something merely ordinary. This sort of thing does not inspire client loyalty, much less spark customer evangelism. At best, they might pass your name along to a random associate somewhere down the line. Adequate = Ordinary = Boring = Whatever.
Here’s another undesirable scenario: Imagine presenting your 1st choice option, and lowering your price to insure they’ll sign on. While you might end up with a raving fan, you’ve killed your margins and set a self-sabotaging precedent for future pricing with this company. They’ll return to you again and again, expecting your discounted price—and even more detrimental to your business, that’s the word they’ll be spreading about you and your service: “You can get it for a steal.”
The biggest tip I can give you:
Stick to your guns, be honest and lead with your best recommendation (even if it’s the most expensive) and then…SHUT UP! Let them decide for themselves if they can afford it…or not. Don’t attempt to influence them in any way—their answer may very well surprise you!
On the off chance a potential client has a strong objection to your price schedule, there are some things you can do. Payment plans are always a welcomed option. You can also suggest removing a few features (which allows you to lower the end price). If it seems clear your #1 recommendation isn’t going to fly, you can defer to your 2nd and 3rd options, but be sure to clarify—in no uncertain terms—that they will not be getting the same results with these less-optimal choices.
In the world of sales, if you want to be respected and perceived as an expert in your field, you simply cannot assume the prospect can’t afford you. Of course, you will occasionally be faced with price-sensitive prospects—and if you’d like to learn some tried-and true strategies for navigating those tricky waters of negotiation, check out the audio version of our Disruptor Series here.
