90 seconds to $uccess Series - Your Price Is Too High
Volume 142 NO.1 January/February 2012
Furniture World Magazine
By Ray Morefield
With the current economy, many retail stores are emphasizing discounts rather than promoting quality & service.
Sales personnel frequently find that their customers suggest, "YOUR PRICE IS TOO HIGH."
How do we cope with that comment? How do we overcome that objection? What is the most successful response to the objection: "YOUR PRICE IS TOO HIGH?"
Frequently, consumers offer a price objection even though they have not made a comparative analysis, and their reference to price may be directed to their personal financial condition rather than the value of the product being considered.
An error salespeople often make is to immediately begin to answer before they know the basis for a customer’s objection.
It is important that you ask the customer the reason they made the statement, "YOUR PRICE IS TOO HIGH," before you begin to defend your price. It may well be that your price is justifiable and a good value.
Question Their Reasons
Two questions you may wish to consider to assist you in discovering why the customer offered the price objection are:
Why would you suggest that our prices are too high? Allow them to tell you why they said what they did. It may be a typical objection to encourage you to lower your price. In truth and in fact, they may not have done enough shopping to know true quality and value.
Compared to what? When a customer suggests: "YOUR PRICE IS TOO HIGH," ask the question: "Compared to what?"
Encourage the customer to explain how much they know about other brands or products that would allow them to arrive at the belief that your product is overpriced. Only then can you review features and benefits to make a comparative analysis.
Without "in-depth knowledge," the customer may not be able to understand the difference between:
- The general quality of the other furniture versus your better goods.
- The quality of competitive brands.
- The added value that your organization brings to the equation.
What About Financing?
The customer may suggest "YOUR PRICE IS TOO HIGH," and rather than referencing your price and product, they may be commenting on their personal financial condition.
If personal finances factor into the decision...
- Consider terms. Are you permitted to offer 90 days same as cash?
- Consider an "easy-pay-plan." If you extend or accept credit, discuss monthly payments.
Break down payments into the lowest common denominator.
Review The Benefits
If the customer suggests: "YOUR PRICE IS TOO HIGH" because they are comparing domestically made products with imported goods...
- If your store carries domestically made goods, promote the "Stars & Stripes." Today many consumers are favorably inclined to buy "American made" goods with "green concepts."
- Review your warranty. Plus, if you carry furniture that uses superior construction methods and materials that can be easily repaired should the necessity arise, tell your customers about that as well.
- Review construction. Compare your solid wood and quality veneers to particle board and MFD construction.
- Analyze the type of woods used. Many imported woods do not compare to American Hardwoods.
Properly reviewed, many consumers will find that your prices are more than fair.
When customers suggest: "YOUR PRICE IS TOO HIGH," make sure that you have reviewed all features and benefits before you make price the final discussion in your presentation.
Every customer offers different challenges, however, planning in advance how to respond to the most frequent objection "YOUR PRICE IS TOO HIGH" will prepare you for the objection in a manner that will significantly assist you in closing the sale & increasing profits.
Don't Give Up
Don't give in and don't give up. Do give a 100% effort. You will be richly rewarded both personally and also professionally.
Ray Morefield has been affiliated with leading corporations in the housewares, hardware and coatings industries. He has also served other industries in an advisory capacity through Common Goals, Inc. Questions or comments can be sent to him by emailing firstname.lastname@example.org.
Read other articles by Ray Morefield