How do we avoid the price question on the first sales call?
Trevor Hefford
We empower the restaurant community to delight guests, do what they love, and thrive.
Most sales reps dodge the price question because the "gurus" tell us to show value first.
So, here's what goes down on the first sales call ...
Prospect asks:
"What's your price?"
Sales rep responds:
"Let's assess your needs first. Then I’ll prepare a proposal and send it to you tomorrow."
While some would say there's nothing wrong with this ...
What I'd say is...
Their prospect asked them a direct question and they avoided it.
How would you feel if you visited the BMW Dealership or Apple Store and the sales rep dodged your price question?
Not a good way to build trust is it? Especially if you have to ask them a second time.
In fact, 58% of prospects want to talk price on the first call.
Whenever my prospect asks for a price...
Even if it's in the first 10 seconds of the call...
I quickly respond ...
"The price is $10,000 to $20,000 depending on your budget and needs."
Then I begin asking discovery questions and showing value.
Don't avoid the price question. Embrace it. Give an honest range. Build trust.
If your prospect responds with ...
"$10,000 is above our budget..."
Or...
"We won't have budget until next year..."
Or...
"Your competitor is much cheaper..."
You've just learned something valuable...
Because knowing the prospect's budget is a critical part of the sales process.
Their response will determine if you begin the discovery call, postpone the conversation until they DO have budget... or mutually agree to end it.
You'd be surprised at how much time and money you'll be saving when you're straight up with them.
CEO at Self Employed Kathy Fiscus
5 年I so agree with this! Thanks for sharing.
Principal / Consultant at Adams-ITConsulting Veeam Pro Partner TrueNAS Authorized Reseller INAP Partner
5 年Always be up front with costs, explain there are variables that can increase cost (options) and that final proposal depends on recommended solution. Use averages for similar situations. Never hide from the question of costs it makes people question the value of your offering.
Director of Business Development at Okos Partners
5 年Great article! Today’s customers are more informed... the amount and way information is accessed is totally different from the past. Unless you are pioneering/selling something new to the world; most companies will have some sense of cost for your offerings. Never be a Matador dodging price. Being transparent supports your value proposition.
Client Partner, MediSpend/3x Founder/ 4 Exits/Top Voice/ $1.5B in Sales Volume
5 年Price is always a key determining factor in any successful sale. You can sell as much value as you want, price is a huge influence no matter what surveys say. You can sell any value you want for a new BMW, but if you want an M4 and you only have $50k, and that stretches it, your not getting it no matter how well the "value" is presented. Same goes for real estate, software, systems, and every product on the market. If you can't swing the bucks it just doesn't matter. Great post.
Senior Account Executive
5 年It's amazing what happens when you answer the price question directly. Often times, companies can find the money is they believe in the value. It's on the rep to ensure that you're delivering the value that justifies the price you're asking for. At the same time, if the prospect won't have the budget for a year or can't afford your product then it makes not make sense to continue conversations and you saved a ton of time, energy, and effort!?