When I talk to SME owners about sales, I often hear complaints about customers arguing over price, saying that no one appreciates the years of training and expertise they bring to the table. Many business owners feel undervalued, convinced that no one will pay a fair price for their offerings.
Here’s where I have to be a bit harsh. Yes, elephant trainers may have years of experience, but that doesn’t mean their expertise is worth a premium price unless you’re looking to ride an elephant. In other words, expertise alone doesn’t justify charging through the roof if the customer doesn’t see the value.
The problem often lies in the way businesses approach their customers. They focus inwardly on their own achievements, forgetting to step into the customers’ shoes. When a prospective customer looks at your offer, they’re not thinking about how much effort or training you’ve invested. They’re thinking about how your product or service meets their needs.
The Real Issue – Perceived Value
Price is frequently used as an excuse, but more often than not, it’s not the real issue. If a customer says your product is too expensive, it’s likely because they don’t believe they’re getting enough value for their money.
But the issue of value is complex and subjective. It’s not just about the cost, it’s about what the customer feels they’re getting in return. Here’s where many businesses get it wrong — they fail to communicate their value effectively.
The Price Objection: A Golden Opportunity
When a customer says your offering is too expensive, resist the urge to immediately offer a discount or drop the price. Instead, take a step back and ask them why they think it’s too expensive. This opens up a conversation about what’s really behind their objection.
More often than not, price is a surface-level issue. What they’re really questioning is whether they’re getting their money’s worth. If you’ve done your job properly, you should be able to clearly demonstrate the unique value your product or service provides.
Photo by Mohamed Nohassi on Unsplash
Understanding Your Unique Value Proposition
The key is to make your value greater than the price. This doesn’t mean you need to be the cheapest option in the market, it means you need to make your value stand out.
When you hear objections about price, you can counter them by explaining the unique benefits your product or service offers. Focus on the things that make you different — whether it’s superior quality, a unique feature, or exceptional customer service.
The Worst Thing You Can Do: Mention Budget
One of the biggest mistakes you can make is asking the customer about their budget early in the conversation. People rarely give truthful answers to this question. It’s all part of the negotiation game, and if you accept their budget without understanding the full picture, you’ve already undermined the value of your offer.
Instead, avoid asking for their budget upfront. Allow the conversation to evolve, and focus on showcasing the value of your product. Only when the customer sees the true worth of what you’re offering should you discuss the price.
The Psychology of Negotiation
Price objections often come down to negotiation tactics. Many customers have been conditioned to believe that negotiating a lower price is part of the process. To avoid falling into this trap, maintain confidence in your offering and its value. If a customer pushes for a discount, you can calmly explain why your price is fair and how they’re getting exceptional value.
Final Thoughts
If your customers are focused on price, it’s a sign that you haven’t communicated your value effectively. The real issue is not the price — it’s about the perceived value of what you’re offering. By focusing on what makes your product or service unique, you can shift the conversation away from price and toward the value you bring to the table.
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