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Overcoming It’s Too Expensive
If you had to sit down and list all of the objections you hear from customers in the order you hear them where would you put “it’s too expensive”? If you’re like most of the salespeople I talk with, it would probably be somewhere near the top of the list. It’s a common objection and one many salespeople struggle to overcome.
On today’s show discover:
- …how to understand what “it’s too expensive” really means;
- …why money is rarely the real issue when a customer says “it’s too expensive”;
- …and how top salespeople consistently overcome this common objection.
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When a customer says “it’s too expensive”,what are they saying? At first, it seems obvious but the phrase can have a double meaning.
Let’s say you walk on to a car lot to buy a car and you have $20,000 in your pocket. You run into a pleasant salesperson named Tim. He’s new, but he’s eager. After you and Tim talk in the showroom he takes you outside to see a car priced at $6000.00.
Tim doesn’t know much about the car but he’s heard it’s pretty nice and lot’s of other people seem to be buying it. After Tim shows you the car you’re not that impressed after all he hasn’t told you about any of the car’s innovative features. So you say “it’s too expensive.”
Tim assumes you must not have enough money to buy the car so he takes you to another car on the lot that’s similar but much smaller this one sells for $3000.00. Now, you’re even less impressed, it’s not what you’re looking for so you leave.
Tim assumed “it’s too expensive” meant “I don’t have enough money” . Actually, in this case, it meant I don’t think the car is worth what you’re asking. You had plenty of money in your pocket but because Tim built no value in the car it just didn’t seem worth $6000.00.
So, “it’s too expensive” means I don’t think it’s worth it, right?
Yes, but it can also mean “I don’t have enough money to buy it”. Think about the same story but instead of $20,000.00 in your pocket, you only have $3000.00 to spend. Now, It really doesn’t matter how great the $6000.00 car is you simply can’t afford it.
How Do You Know What They Mean?
If “it’s too expensive” sometimes means “I don’t see the value” and other times means “I don’t have the money” how do you know what your customer is trying to say? The best way to find out is to ask them. Successful salespeople use A.I.R.C or Agree, Isolate, Rebut and Close to find out what the customer is saying and then appropriately overcome the objection.
First you agree by saying something like:
- I understand, or I hear you…
- Then, isolate and ask your customer “is it money or value?”
Based on their answer you know how to address the concern. If it’s price look for a more affordable option, or payment plan and if it’s value, rebuild value. It’s really that simple but there’s another BIG secret I’ll let you in on …..it’s ** almost ** ALWAYs ** value.
Most of the time, when a customer says “it’s too expensive”, they’re really telling you they don’t see the value. Sure, if you’re selling a high ticket item like a car or a house there could, legitimately, be a money issue but the rest of the time chances are good they can afford it.
What they are really saying is…I have the money but I don’t think what you’re selling is worth it so I’m going to keep my money. Most people have the money they just need to see the value in giving it to you. Show them what they get out of it.
If you can show them that what they get back is worth more than the price you’re asking, you’ve got a sale! So the next time you hear “it’s too expensive” find out what the customer means and use A.I.R.C. to overcome their objection. Agree, Isolate and once you determine whether it’s price or value, Rebut and Close…..and don’t forget it’s almost always value.
Today’s One Two Punch:
Isolate and Rebuild Value || to overcome “It’s too Expensive”
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