Last post I, Chris Cardell of Cardell Media, shared with you how to overcome the price objection. And this month I want to continue in a similar vein, and give you some tips on how to overcome the objectionsthat come up next.
You see, after they’ve complained about the price, usually they’ll add something like “…and I can get exactly the same thing just down the road for less!”
Now, when this happens the knee-jerk reaction is to panic and drop the price to matchwhatever it is your prospect claims they can get it for down the road.
But hold on a minute. Disconnect the emotional response and think about this logically: ifyour prospect can get exactly the same thing just down the road for less money andprice is important to them… then why are they still talking to you?
Truth is, they’re not telling you the truth. We actually give this a polite name: “negotiatingthe price”, but it comes down to fibs they’re telling you!
There are 3 choices:
They can’t get it for less at all (because they’ve sold out, won’t sell it to them or they’renot able to buy it from them for other reasons).
They can get something at the lower price, but it’s not exactly the same. Often it’s theproduct or service that’s somehow different, and at others it’s the quality of your delivery,your guarantee or some other aspect of how you do business that’s making the customer want to do the business with you and not the other guy.
They’re simply spinning you a yarn to panic you into selling it cheaper.
The fact they’re still talking to you tells you they want what you’re selling and can’t getthe same thing elsewhere, because if they could, they’d be out there buying it!
What this objection is often saying, in effect, is “I want your quality at their price”.
The only solution is to stand firm and reiterate why you are more expensive, and then topolitely suggest if they can truly get the same quality, service, and experience elsewherefor less, then they’d be best advised to go there instead.
The willingness to let a customer go is an overlooked sales strategy. It’s very effectivebecause it sends a powerful message about your belief in yourself and what you have to offer.
The greatest gift you can give your business as we enter this New Economy, is positioning yourself at the higher end of the price spectrum and work and work and workon your communication with your customers so that you can justify, sustain and increasethose prices.
Guarantees are, quite simply, one of the most powerful marketing methods available – and one of the easiest ways to grow the profits of any business.
I, Chris Cardell of Cardell Media would go as far as to say that if you are selling anything through advertising, direct mail or the internet and you’re NOT using powerful guarantees, you are losing serious money.
Here are some strategies that guarantee success with guarantees.
- Extend the guarantee if you can. I know of one mail order client who was selling a product for £10 with a 30 day guarantee. He was getting 5% returns. When he changed it to a lifetime guarantee, returns slowed to a trickle because there was suddenly no pressure to make a decision within 30 days.
- Make it clear what the guarantee is. Make sure you spell out what it is in plain English. State, for instance, whether post & packing is included or not.
- Put your guarantee everywhere. Not just as a specific block of text in one place but work it into appropriate parts of the text as well, eg. “it can be 3 to 4 weeks before you really start to feel the benefits of our XYZs which is why we offer a full six month moneyback guarantee”.
- Avoid “…or your money back” in the headline. The problem with this kind of headline is that it creates a doubt that the product will not work. Would you want to buy a product with a 50% success rate? Probably not. People do not want to have their time wasted. Far better in this kind of instance to make the claims about the product and then indicate that it can be returned for a full refund if you really are unhappy with it for any reason.
- Consider turning the Guarantee into your USP. Because guarantees are so powerful, it’s worth considering making it your key selling proposition. You can do this by making the guarantee the main headline in your ad, website copy, email or direct mail.
- Don’t Fear Guarantees. Most business owners don’t tap the profit potential of guarantees because they’re scared that a huge proportion of customers will rip them off and ask for their money back. All I can tell you is that in 15 years of urging companies to use guarantees – and using them extensively myself – I’ve never seen it happen. Never.
- Don’t Hide your Guarantees. Sometimes people take the step of having a guarantee but then hide it away in the copy (for the fear reason above.) Be loud and proud with your guarantees. Use every opportunity to tell your customer that you guarantee what you sell.
As with all Marketing, you need to test Guarantees to see which type will work best for you. The key step is to get started – Today.
A huge mistake made by business owners and entrepreneurs is selling their products and services at prices much lower than the market will actually sustain. In the current economy, this is particularly noticeable and most marketing and sales efforts seem to be bringing price up as the most important thing in the buying decision.
And it’s not.
True story: a friend of mine was looking for a wooden Buddha. He walked into the shop and immediately saw what he wanted. Before he could even pick it up, the owner shouted across the shop, “You can have that for £25!”. The actual price, and one he was more than willing to pay was £45. The shop, incidentally, is now closed.
But what DO you do when someone does actually object to the price you’re asking?
The common reaction is to drop the price to ensure you get the sale.
This is a mistake, especially if it’s an unthinking knee-jerk reaction based on fear and not logic.
When someone objects to your prices, they are NOT saying “I don’t want this”. What they’re actually saying is “Show me the value in this so I feel OK about paying the price you’re asking for it.”
The first thing to do with the price objection is acknowledge it simply and clearly, without fear, without apology and without being defensive. Something like this works very well: “Yes, our prices are higher than our competitors’. I’m glad you brought this up because now I can share with you why that is…”.
And then you can give your reasons. What makes this strategy so powerful is their objecting to your prices is giving you permission to justify them.
The second thing to do is actually justify your prices (please understand me here: your giving genuine value is paramount, and my comments here are predicated on that assumption). Here’s one way you can do this: “There are three things people want from their Widgets: top quality, great service, and a low price.
And while we all want value for money, I don’t know any Widget maker who can make the best Widgets, offer the finest service and backup, and give you the lowest price. With your long term satisfaction with your widgets in mind, which of these do you NOT want: quality, service or a low price?”.
It might sound corny reading it now, but believe me… it works and it WILL make you money.
As businesses grow, a hidden menace develops.
Once a business becomes really large, the menace gets out of control and starts wreaking havoc. The name of that menace – ‘Meetings’ I used to do a great deal of business consultancy. One of the reasons I stopped was that I could not tolerate the long meetings that most clients insisted on having.
Most meetings in companies are a complete waste of time. Even when they’re not, 80% of what’s discussed is irrelevant. Meetings are a highly effective way for employees to waste time – simple as that.
Anyway, of all the nonsense discussed in most business meetings, Internet Marketing has to be the favourite time waster.
Here’s how it normally goes: Someone proposes a change to the website. So a discussion (ideally a really long one) has to follow. In that discussion everyone gives their opinion on the proposed changes.
Fred thinks it’s a good idea.
Sharon thinks it’s a good idea but there should be more blue on the page because that’s her favourite colour.
Steve thinks the website lacks graphics Julie thinks the whole website is too sales oriented and ‘pushy.’ (You can guarantee that Julie does not own this business)
Pete thinks the website isn’t the problem. The real problem is the lack of a corporate growth strategy.
Nobody else in the meeting really knows what a corporate growth strategy is (actually neither does Pete) so they all agree with him.
And so it goes on……
Now hopefully your Entrepreneurial business will never have these types of meetings – but the problem remains. People are obsessed with trying to decide if a change to a website is ‘right’ or ‘wrong’.
Please don’t fall into this trap. It is a horrible waste of your time. I promise you this: In 90% of cases, you or I or your colleagues will have absolutely no idea if a proposed website change is right or wrong. The only people who can tell you are your customers and
they will ALWAYS surprise you.
So stop trying to mind-read what your customers will like or dislike. When I suggest a new Internet Marketing approach to you, don’t waste a moment debating it – just TEST it. If it works, great. If it doesn’t work, move on and immediately test something else.
I’m serious when I tell you that many corporations have MONTHS of meetings to decide on a website change. Take advantage of their incompetence. While they’re busy talking, you get Testing. The results of continually testing new online methods (many of which we cover on the VIP Inner Circle website) will almost certainly astound you.