Wow! Your Price is so expensive
Well John, our price is really comfortable already...In fact if you look at other you company.....
No
No
No
This is not how you respond when your customer say your price is so expensive
The first thing what we need to take note is we do not want to argue with the prospect
Because arguing with the prospect is a lose lose battle
If we lose the argument, we lose the sales
If we win the argument we still lose the sales
Because now our client will feel embarassed, feeling hurt and he feel is self image and ego is threaten by you
So they will be more determined to walk away and never speak to us again
Now what exactly does the client means when they say that your price is so expensive
It usually it means three things
1) They haven't see the value of your offer so they feel it doesn't worth that price
2) They see the value but the price doesn't fit their budget
So here is how we response
Stanley: Your price is so expensive
Closer: Stanley, I agree, our price is not the cheapest, in fact they are plenty of people who are cheapest than us
just curious, have you had a chance to speak with other graphic design firm?
Stanley: Yes I do!
Closer: I see, if that is the case Stanley, can I get some advise from you?
Stanley: Yeah sure
Closer: Usually when somebody say our price is expensive, it usually means two things,
the 1st one is they think we are overpriced, the 2nd one is they believe that we worth that price, but it just doesn't fit their budget. May I know which one are you referring to?
Stanley: Yeah, I just feel that your firm is being over priced
Closer: Oh I see, may I know how did you come conclusion that we are overpriced?
Stanley: Well I speak to a few of other design firm. They only charge RM 200 - RM 250 for 10 images post. But your firm is charging RM 550 for 10 images post. Isn't your price being outrageous
Closer: I see and correct me if I am wrong, I suppose you have seen the design they make, and they are making quite a beautiful design post as well is that right?
Stanley: Yeah they do
Closer: Great! If that is the case, what is stopping you from going with them?
Stanley: Well, we want to more survey 1st to find the best graphic design firm for our project
Closer: I see, so let me re-cap, for this project, your goal is to hit RM 10000 with the Facebook ads and you are allocating Rm 3,000 for your marketing budget is that right?
Stanley: That is right!
Closer: And how would it cost your business if you accidentally hire the wrong design firm
Stanley: Well, our cost per purchase definitely will go up
Closer: I see and I can understand from your point of view, because let's suppose your cost of purchase increase RM 10. If you can get 50 customer per month. That is RM 500 you are paying extra and that is 6000 loss in one year right?
Stanley: Yeah
Closer: Wow Rm 6000 per month. And that is why you have to choose carefully and you cannot select the wrong graphic design firm. Is that right?
Stanley: Yes!
Closer: Ok let's make sure you are choosing the right firm. Beside a great design skill, what other things do you feel that a design firm need to do in order for your campaign is successful
Stanley: Well, they definitely need to understand our target market
Closer: Oh great, anything else
Stanley: Well they definitely need to know how to get attention of people on Facebook
Closer, yep definitely anything else?
Stanley: I think that is all
Closer: Got it, Stanley if let's say today if I can get my team to call all your previous customer, to understand what is the common trigger that makes them to buy and we design your post based on that common trigger. Do you feel it can dramatically improve your result on your campaign
Stanley: Of course definitely
Closer: Also if let's say after we design, we design a few more extra post and then we do a survey on the market to see which post actually catch their attention more. Do you feel if we do this, it can dramatically improve your result on your campaign
Stanley: ya, of course
Closer: And if let's say I can help, are you comfortable to invest RM 900 in your business for us to help you
Stanley: Ermm..... I may need to think about it....
Closer: Stanley, it sounds like RM 900 is overly exceed your budget is that right?
Stanley: Yeah originally I only allocated RM 200 to RM 300 for design. But now is RM 900
Closer: Yep I understand, Stanley, and I just want to let you know that you don't have to do this if you are not comfortable to. But if let's say, you don't this, we don't call your customer to understand their common trigger point and we just make a design based our opinion of what will trigger the customer
Do you feel that there is a chance that we may lose some customer because the image fail to capture their attention?
Stanley: Yes
Closer: And let's be conservative here, let's say we lose 1 customer per month because they think our image post is irrelevant to him, how much revenue does the company lost for that 1 customer
Stanley: Oh it is RM 250
Closer: And if we just lose 1 customer each month, how much would that be in 12 months?
Stanley: That would be RM 3000
Closer: Wow, Rm 3000.... and if you were have additional RM 3000 in your company bank account....how much do you feel you can expand your business
Stanley: Yeah, we can definitely scale more faster with additional RM 3000
Closer: Yep, that is right, and in your opinion, do you feel it will be a wise business decision to invest RM 600 more to potentailly generate extra RM 3000 for your company. I am not saying confirm we could but potentially!
Stanley: Hmm.....I guess you are right....
Closer: Wait a secs, I want to make sure this is really the right business decision, is that really a right business decision
Stanley: Yeah of course, it is right..
Closer: And may I know why do you feel it is right?
Stanley: Ya because as you mention, if I were to save RM 600 but in cost me RM 3000 in the long run, that would be not a wise decision, because I can see right now if I try to save RM 600 in cost me RM 3000 in the long run.
Closer: Excellent choice, Stanley! How are you feeling right now?
Stanley: I feel like I have found the right designer!
Closer: If that is the case, shall we discuss how we should move forward
Stanley: Yeah sure, go ahead
And boom there you go, that is how you handle the price too expensive objection
Originally the client say it is too expensive because he is comparing on the price of other design firm...
But we are doing here is we give the buyer something new to compare
Now he is comparing shall I save Rm 600 and lost RM 3000, or invest RM 600 more and produce RM 3000 more revenue
With that, he sees the value and price is not an issue anymore
So my question to you is this,
Some of you, wow that is crazy, I am not sure even sure whether if I can do this
And I agree, to be able to handle the objection like this
It takes training,
But what if we can give you a free training where we can train you on how you can close like this
Would that help you to increase your sales?
If yes! Click the link in the description to learn more
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