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The price is too high
Question for you folks on the “Price is too high” objection. Or the “we’re on a shoestring budget” comment. We recently had an (inbound) lead (an old colleague I used to work with) who has exactly the pain that we solve. Did the whole reality-gap and everything and I know we can solve their problems.
When we started talking about price / implementation / etc., he came back with “that’s probably too high for us.” I know that, for what we do and the value we provide, the price is exactly right (we’ve benchmarked against a lot of alternatives).
The funny thing is when I asked what budget range he had in mind he said “I actually don’t know. I’m just starting my research on this.” This is a smaller company (1M-2M annual revenue) who have never purchased an enterprise system before.
My question is – do you folks have any examples of how you handle this objection?
Also, when IS the right time to bring up price? I feel I may have brought it up too early (first conversation), but at the same time you don’t want to waste time going from one sales meeting to the next and get to a point where they say “we can’t afford this”. At least now he has as benchmark in mind when thinking of other solutions.
Couple of thoughts –
- Was this an objection or just a random comment? I.e. did it stop the conversation in it’s tracks or could you have just moved past it?
- I’m sure your pricing is probably fine (it’s too cheap if anything…). So that means that the buyer either doesn’t understand the value of the product or they don’t understand the full opportunity cost of doing things the way they are currently. That’s on you to help them understand.
- RE timing – I like to ask about their budget before I bring up the price. I also like to dive deep into the costs of carrying on as they are and I ask questions like “what’s stopping you from solving this yourself?” and “are you committed to solving this problem?”. At a certain point they’ll start asking you about the price and that’s typically the right time to start sharing it.
Thanks Will! It was more of a random comment. It didn’t stop the conversation moving forward.
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