Written by Thomas Norris
Price objections are a common problem for salespeople, but they don’t have to be. With the right approach, salespeople can use references to overcome price objections and close more deals.
In a competitive market, buyers are often looking for the best value for their money. As a salesperson, it’s your job to demonstrate that your product or service is worth the asking price. But how can you do that?
One way is to use references. A reference is a statement or result from another customer that reinforces the value of your product or service. This could be a testimonial, a case study, or a comparison to a competitor’s offering.
Using references to overcome price objections isn’t just about making a sales pitch. It’s about helping buyers understand the value of what you’re offering. Here are a few tips for using references to overcome price objections:
1. Understand the Objection
Before you can use references to overcome price objections, you need to understand why the buyer is objecting. Is it because they think your product is too expensive? Is it because they think it’s not worth the money? Or is it because they don’t think they can afford it?
By understanding the buyer’s objection, you can tailor your response to address it directly.
2. Focus on Value
When using references to overcome price objections, your focus should be on value. What value does your product or service bring to the buyer? How does it help them solve a particular problem or reach a particular goal?
You should also explain how your product or service is better than the competition, or how it offers more features or benefits.
3. Provide Evidence
The best way to demonstrate value is through evidence. This could be anything from a customer testimonial to a case study that shows how your product or service has helped another customer.
The more evidence you can provide, the better. This will help the buyer understand the value of your product or service and why it’s worth the asking price.
4. Address the Competition
Price objections are often a result of comparison shopping. If the buyer is comparing your product or service to a competitor’s, you need to be able to explain why yours is better.
You can do this by using references to highlight the features or benefits of your product or service that the competitor doesn’t offer.
5. Don’t Discount
When using references to overcome price objections, it’s important to avoid discounting. Discounting can devalue your product or service and make it appear less desirable.
Instead, focus on demonstrating the value of your product or service and explaining why it’s worth the asking price.
Using references to overcome price objections can be an effective way to close more deals and increase sales. By understanding the buyer’s objection, focusing on value, providing evidence, addressing the competition, and avoiding discounting, you can demonstrate the worth of your product or service and help buyers make an informed decision.