Every salesperson has encountered the inevitable question: “How much will this cost?” It is one of the most common yet challenging moments in a sales conversation. The way this question is handled can significantly impact the trust between a prospect and a salesperson. Many assume that the question is purely about price comparison or looking for the cheapest option, but that is rarely the case. Understanding how to navigate this question effectively is a crucial part of objection handling in sales.
Understanding the prospect’s intent
A prospect asking about price does not necessarily mean they are only looking for the lowest cost. They may simply want to determine whether your product or service fits their budget before investing more time in the discussion. Others may be comparison shoppers trying to evaluate different options, or they may want to understand the value they will receive for the cost. The mistake many salespeople make is assuming they know why the prospect is asking. Without understanding the real motivation behind the question, it is easy to respond ineffectively. Instead of assuming, take the opportunity to clarify their intent by engaging in a conversation about their needs and expectations.
The common reaction and why it fails
When caught off guard by the pricing question, even the most confident salespeople can stumble. Some respond too quickly with a straightforward price, which can lead to immediate discount pressure. Others try to avoid answering altogether, fearing that mentioning a price too early will scare the prospect away. Both approaches can be counterproductive. Avoiding the question outright can create distrust. Prospects expect transparency, and when they feel like they are not getting a clear answer, they may become sceptical. On the other hand, providing a price without any context can lead to premature price objections before the value has been established.
How to handle the pricing question with confidence
The key to successful objection handling in sales is to answer pricing questions directly while maintaining control of the conversation. The best way to do this is with confidence and a neutral tone – just as you would when stating the time of day: “Our price is X. Is that in alignment with your budget?” This approach keeps the conversation open and encourages the prospect to reveal whether the price works for them. If they say yes, great! If they say no, this opens the door to a discussion about their budget and whether there is flexibility.
Guiding the conversation beyond price
When a prospect indicates that the price is too high, it is important to understand their budget constraints and whether a solution can still be found. Some additional questions to ask include:
- What do you expect something like this to cost?
- We have various options depending on your needs. May I ask a few more questions to understand what will work best for you?
By redirecting the conversation to their needs, you can shift the focus away from just the price and towards the value your solution provides.
Timing the pricing discussion
Many sales professionals struggle with when to introduce pricing. If price comes up before there has been a chance to establish value, it can create an uphill battle. The ideal time to discuss price is after you have uncovered the prospect’s key pain points and demonstrated how your solution addresses them. Research suggests that the best times to introduce price are either early in the conversation (to qualify a lead quickly) or after about 65% of the discussion has taken place – when value has been established. However, every sales situation is different, and adapting to the prospect’s cues is essential.
Building value before discussing price
One of the best ways to minimise pricing objections is to ensure that the value is clearly communicated before the cost is mentioned. When a prospect fully understands the benefits of your product or service, price becomes less of an issue.
To build value effectively:
- Highlight the specific problems your solution solves.
- Demonstrate tangible benefits that align with the prospect’s needs.
- Use case studies or real-world examples to highlight the impact of your offering.
By doing this, pricing becomes a reflection of value rather than a simple cost comparison.
Overcoming price objections effectively
Even when handled well, price objections can still arise. A strong approach to objection handling in sales is to acknowledge the concern and refocus on value. If a prospect objects to the price, consider responses such as:
- I understand budget is important. Let’s explore how we can structure a solution that aligns with your needs.
- If cost weren’t a factor, do you believe this solution would be the right fit for you?
- Let’s break this down – what specific concerns do you have about the pricing?
These responses help uncover the real objection and keep the conversation moving forward productively.
Handling the pricing question effectively is a critical skill in objection handling in sales. Rather than fearing the “How much does it cost?” question, embrace it as an opportunity to qualify leads, understand needs and demonstrate why your solution is worth the investment. If you or your team are looking for expert guidance on handling objections and closing deals more effectively, we can help. Contact us at SalesGuru to learn how our proven sales strategies can turn the dreaded cost question into a confident discussion.
