Have you had anyone say this to you yet? Does it stop you in your tracks? How do you respond?
This is something small business owners are faced with countless times when they start out.
Yes, you have found your passion, that brings you joy and you have done your homework to see you have a viable business.
As part of that, you will have looked at your own value. What is your experience in this field? Who else is out there doing anything like this? How is your business different to theirs? How are you adding value to someone who buys from you or engages your services?
So if someone tells you you are too expensive, stop and ask them to clarify what they mean.
This could be two things. Either they genuinely don’t have that amount of money in their bank account. Or they haven’t grasped your value in the sales conversation.
So we need to ask them to clarify what they mean. If its the first reason (don’t have the money) you can ask them if using a staggered payment term could help or if its something they would consider next month or in the near future (and make a date to revisit).
If it’s the second (and you’ll usually know its this if they compare you to someone else) you need to go back and highlight why your experience, knowledge or product is different. As we all know you can’t compare apples with pears.
If they still don’t see your value, then maybe they aren’t your ideal customer anyway. Try to avoid discounting. The chances are that person will end up making you work harder than a client who pays without thinking.
If you feel you don’t want to lose this sale, look at either removing part of the deal to lower the price or adding something to the deal. You need to add value to them without adding cost to you. How?
If you are product based could you offer a free gift with purchase (and offload something small you’ve got stockpiled but with a perceived value) or a money off voucher for their next purchase? If you offer a service how about adding a free follow on call/email to review how they are finding your service. Or offer a free downloadable that will help them keep track of their own progress?
But this question can actually be a really valuable lesson for you. If your perceived value to them is lower than you want, where can you go back and fill an apparent gap in the sales conversation?
Look at where they first ‘met you’. Was it online? Look at how you come across online, do you show your core values in everything you do? Is your website easy to navigate? Are you upfront about your costs?
Did they meet you at a networking event? Does your business card sing value? Or is it cheap and tatty? Did they look at your Linkedin profile – is that up to date? Do you have recent, relevant recommendations on there?
If you can see some apparent gaps, what can you do that will highlight your unique perceived benefit to them? Think of the 3 most compelling factors that make you different. For me, I’d say it’s my sales experience in different sectors over 30 years. That I have won awards for both my creativity and for my collaborative approach. Finally that I see sales as a relationship building practice – I want to get to know people to see how I can help them achieve their goals over hard selling to them.
So if the ‘you’re too expensive’ objection has been floated a few times, maybe it’s time to review your sales process.
Get in touch as I’d love to help – I can be a fresh pair of eyes to look at your sales conversations and help you build a rock solid sales strategy.