In sales, few questions induce as much anxiety as the dreaded, ‘How much will this cost?’ In the rush to provide an answer, many salespeople inadvertently open the door to discounting, potentially compromising the value of their offering. However, understanding the nuances of this question and responding strategically can be the key to building trust and establishing a solid foundation for successful sales interactions. In this Sales Management article we will breakdown how best to deal with the dreaded price question.
Unveiling the motivation behind the question
When a prospect asks about the price, it’s easy for a salesperson to assume they are solely seeking the cheapest option. However, the motivations behind this question vary. The prospect might be a comparison shopper, evaluating if the price aligns with their budget, or simply trying to gauge if further discussions are worthwhile. As a salesperson, it’s crucial to avoid making assumptions and rather delve into the prospect’s true intentions.
The pitfall of avoidance: balancing transparency and trust
There’s a common dilemma in the sales world – how to handle the ‘How much does it cost?’ question without triggering suspicion. While avoiding an immediate answer may seem like a strategic move to gather more information, it can inadvertently hinder the development of trust. Prospects expect straightforward answers, and dodging the question can disrupt the natural flow of the conversation.
The challenge intensifies when the price question arises before thorough qualification. Ideally, sales professionals should understand the prospect’s specific requirements and the value they attach to resolving the issue before discussing price. Yet, delaying the response may lead the prospect to withhold valuable information, creating a counterproductive cycle.
Crafting a confident and transparent response
Imagine someone asking you the time and you respond with confidence and clarity. Apply the same approach to the ‘What is the price?’ question. Instead of stumbling with vague responses, provide a clear answer with a follow-up that invites further discussion: “Our price is X. Is that in alignment with your budget?”
This response establishes transparency while opening the door for continued conversation. If the prospect confirms alignment, it’s a positive step forward. If not, it’s an opportunity to delve deeper into their budget constraints and assess whether there’s still a potential fit.
Strategic questioning: shaping the conversation
Beyond the direct answer, strategic questioning plays a pivotal role in navigating the price discussion. Consider incorporating the following questions to guide the conversation:
• Setting expectations: “What do you expect something like this to cost?” This question provides insight into the prospect’s preconceived notions about pricing, allowing you to address any misconceptions.
• Exploring options: “We have a number of options, and it depends on several factors. I need more information to understand if we can be a fit and, if so, what that would look like. Can I ask you a few more questions to better understand your situation and objectives?”
This approach not only allows you to gather essential information but also positions you as a partner genuinely interested in delivering value tailored to the prospect’s needs.
Balancing value and affordability: budget discussion
Understanding the prospect’s budget is a crucial component of the sales process. Rather than delaying the budget conversation until the proposal stage, integrate it seamlessly into the discussion:
• Are you responsible for establishing the budget for this?
• Do you already have a budget allocated for this, or will you need to create one?
• How much have you allocated to fix this problem?
These questions help align the prospect’s budgetary considerations with the potential value your solution brings.
Fostering trust through open communication
In sales and sales management, answering the price question is not merely about revealing a number; it’s about fostering trust through open communication. By responding with confidence, transparency and strategic questioning, sales professionals can navigate this delicate terrain, ensuring that the prospect’s needs, expectations and budget align with the value they offer. Remember, the ‘How much does it cost?’ question is an opportunity to build rapport, show expertise and lay the foundation for a mutually beneficial partnership.
Looking for more tips on sales management, from a team with decades of real-world sales experience? Get in touch with our SalesGuru team today!
