Picture this: You’ve received an inquiry from a new client. You get them on the phone and have an amazing conversation together; they’ve shared their challenges with you and in turn, you’ve laid out all the benefits and value of working together. You KNOW you can help this client and you’re excited for the potential to work with them. Then they asked the dreaded question: “How much do you charge for your services?” After talking through your pricing you hear… crickets. Hesitation hangs in the air. The sale that you thought you nailed is dangling by a thread.
There’s no doubt that pricing conversations can be hard, not to mention they play roulette on your confidence and emotions. With each hesitation and rejection, we lose more and more confidence in ourselves and our abilities. But here’s the thing you need to know. Clients are going to have pricing objections and it’s a normal part of running a small business. It’s how you handle the conversation after they share their objections that make all the difference in closing a sale. So, the next time you hear a hesitation or objection, think of it as an opportunity instead of a dead-end. To help, here are some effective ways of how to respond to clients with pricing objections.
- Offer them a way out: When you hear an objection, acknowledge your client’s concern and offer them a way out. This will show the confidence you have in your pricing. For example, if you say “I’m sorry to hear that you feel that the price is too high. Should we end the conversation here?” Most potential clients will respond with “no” and will want to continue the conversation.
- Dig Deeper: Ask the client for more information to understand their objective. For example: “Could you tell me more?” Or, “What makes you say that?” This shows that you’re open to listening, and it places the responsibility of handling the objection in the client’s hands. It’s their objection. Help them navigate it.
- Pause and listen: Rather than respond immediately to a price objection, allow for a moment of quiet. This provides time for your client to think through their objection and process their concerns.
- Repeat and validate what you heard: When you repeat back what you’ve heard it makes the client feel heard and validated. It also helps them work through the solution to their objection. Psychologists use this strategy to repeat back words to help their patients work through a problem and it works well for clients with pricing objections.
- Show the value: Help your client focus on the transformation rather than the expense. Emphasize the value your product or service provides and how it solves their problem or helps them achieve their goal. By focusing on the benefits and return on investment, you can help them see that the price is justified.
- Help them see the big picture: Spending money as a small business owner can be a big decision, but it helps when you put the cost in context with the bigger picture. Begin with a question like, “Is cost the only factor in your purchase decision, or are there other considerations.” This helps to refocus the conversation on value vs. price.
- Partner and Collaborate: Sometimes the objection is not just about price, sometimes it can be a question of how to make it happen. Talking through a client’s concerns and partnering with them on the solution can help put a prospective client’s mind at ease while building trust and confidence in your services.
- Offer Alternatives: If your client is concerned about the cost, provide alternative options. This could include different pricing tiers or packages to cater to various budgets and needs. Having choices can make the decision-making process more flexible.
- Follow up: If the client needs time to consider, follow up in a timely manner. Demonstrating your continued interest in their business can help maintain a positive relationship and potentially lead to a future deal.
Remember, responding to pricing objections is a normal part of the sales process when you’re a small business owner. It’s important to listen, understand your clients, address their concerns, and demonstrate the value of your offering. By understanding how to respond to clients with pricing objectives, you can turn objections into opportunities to strengthen your client relationships and boost your business.
Need more help with pricing? Check out this article on our top 5 pricing mistakes.