"You're Too Expensive" - Don't Despair, Do This Instead!
ANUJ MAHAJAN
Owner / Managing Director- Nuteq Entertainment (Video Production) | Certified Coach (ACC) | Corporate Trainer | Business Coach | Crown Director-Vestige | Co-Founder-Trendvisionz ??
Hey there! If you're like most business owners, you've probably gotten the dreaded “You’re too expensive” objection more times than you can count. I feel your pain. It stings every time, doesn't it? But before you get discouraged or even consider lowering your rates, listen up: this objection isn't necessarily a bad thing. In fact, it can present opportunities if you know how to respond the right way.
This objection is actually a common hurdle in sales, and it doesn't mean your service lacks value.
There's a gap between how you present your offering and how the client perceives its worth.
The good news? This gap can be bridged!
In this article, I'll share three mindset shifts and scripts to help you handle the “too expensive” objection like a pro. We'll explore powerful strategies to turn the "too expensive" objection into an opportunity to showcase your true value and close the deal.
So the next time someone claims you're too expensive, don't despair! Read on and be prepared to say the right thing.
Understanding the Objection
The “too expensive” objection. If you’ve been in business for a while, you’ve likely heard this from clients or prospects. Mastering the right mindset and believing in your value is key. Understanding how and why people buy will help you know what to say.
Remember: Not everyone will value what you offer.
Just because one customer says you’re too expensive doesn’t mean your offering lacks value. It may just lack value for them right now. You can say:
“What budget did you have in mind to invest in a solution?” “If I could help you with your problem, how much would that be worth to you?”
Remember: You can offer a reduced solution or added value.
Don’t compromise your value to please a customer. Stay firm on your price but offer a reduced solution for their lower budget or an added bonus at your price if they sign on. You can say:
“I wouldn’t want to compromise quality, so if your budget is ? xx, I can offer you a pared-down solution. How does that sound?” “My prices are firm, but I’d like to offer you an additional free bonus for doing business with me.”
Remember: Any objection shows the client is interested.
People buy emotionally and justify logically. Getting a logical objection means the customer is interested in your solution. Focus on their need for a solution now. You can say:
“I understand. Many clients feel that way initially, but what’s most important is finding an answer to your problem. Why don’t we discuss your needs in more depth?”
In conclusion, dealing with “too expensive” can be frustrating, but understanding the buyer's journey shows it’s not all bad. This objection means the customer isn't quite ready to buy in, but responding well can help overcome their concerns.
Reframing the Conversation: From Price to Value
When a client says you're too expensive, it can feel like a rejection of your worth and the value you provide. But their objection is often more about their perception of price versus value, not your actual offering. The key is reframing the conversation to focus on the value and solutions you can provide.
Remember: Price is subjective, value is personal
Price is simply a number, but value is personal and based on each client's unique needs, priorities, and perceptions. Focus the discussion on how you can solve their problems and achieve their goals. Ask open-ended questions to better understand what they need and why your solution would be valuable to them.
For example, say something like: "I understand price is a concern. What specific problems are you looking to solve?" Or, "What would a successful outcome look like for you?"
Discuss how your services can meet those needs and priorities.
Educate them on the ROI
Many clients focus too narrowly on upfront costs rather than the return on their investment. Gently educate them on the longer-term benefits and cost-savings your solution provides. For example, say: "I appreciate you want the best value. My services actually provide an ROI of $X over Y months by reducing costs and improving efficiencies." Provide concrete examples and data to support your claims.
Offer flexible solutions
Rather than lowering your prices, offer more flexible solutions tailored to their budget and needs. For example, suggest a scaled-down version of your full services or a trial period. Say: "I understand your concern about price. Would a 3-month trial of my core services for ?X be more palatable? We can then evaluate the ROI and impact before committing to an ongoing partnership."
With the right mindset and approach, you can reframe "you're too expensive" into an opportunity to educate clients, strengthen your relationship, and provide the solutions they truly need. Focus on value, not just price, and you'll turn more prospects into satisfied long-term clients.
Crafting Your Response: Addressing Client Concerns
The "too expensive" objection stings, but it's a chance to shine! Let's explore strategies to turn it around.
Offering Tailored Solutions:
When a client hesitates due to cost, resist the urge to discount your core offering. Instead, explore creating scaled-down service packages. This allows you to cater to their budget while still delivering significant value.
Quantifying the ROI Story:
Focus on the positive impact your services will have on the client's business. Don't just talk about features, translate them into concrete benefits.
Speak their language
Frame your value proposition in terms of the client's financial goals. For example, if you offer marketing services, quantify the potential increase in sales or cost savings you can achieve.
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Here's how you can address the "too expensive" objection when a client compares your ?12,000 digital marketing service to a competitor's ?6,000 option:
Acknowledge and Understand:
"I understand that ?12,000 seems like a significant investment compared to the ?6,000 option you mentioned. Can you tell me a bit more about what you're hoping to achieve with your digital marketing campaign?"
Shift the Focus to ROI:
"At [Your Company Name], we focus on results. While the initial investment might be higher, our goal is to generate a significant return on your investment (ROI) through increased sales or lead generation.
For example, in our previous campaign with a similar business, we helped them achieve a 20% increase in sales within 3 months. Based on your average order value, this translates to a potential revenue increase of ?[amount] which would quickly offset the initial investment."
Highlight Your Value Proposition:
"Now, the reason we can achieve these results is because our service goes beyond basic advertising. We offer a comprehensive approach that includes [list key features like targeted audience research, data-driven strategy, high-quality content creation, and performance tracking]. This ensures we reach the right audience with the right message, maximizing the impact of your campaign."
Address the Competitor:
"While the ?6,000 option might seem attractive upfront, it's important to understand the scope of their services. Often, lower-cost options focus on basic tactics that may not deliver the targeted and data-driven approach you need to achieve significant results."
Offer a Tailored Solution
"If you have a specific budget in mind, we can explore creating a customized package that focuses on your most pressing needs while still delivering measurable results."
Focus on Partnership:
"Ultimately, we want to be a partner in your success. We're confident that by investing in a data-driven and targeted approach, we can help you achieve your marketing goals and significantly grow your business."
Remember:
Additional Strategies
When a prospect says you're too expensive, don't panic. Take a breath and remember, this objection is actually a good sign. It means they see the value in what you offer, they're just not quite ready to commit at your price point. Stay confident in your offering and focus on finding a solution that works for them.
Ask open-ended questions
To uncover the real reason for the objection and determine if price is truly the issue, ask open-ended questions. For example:
"I see. What else is holding you back from moving forward with this?"
The answers may reveal other concerns you can address or opportunities to reframe the conversation around the importance of a solution, not the cost. With the right approach, you can turn "you're too expensive" into an opportunity to build trust and close the deal.
Addressing urgency:
Don't just highlight the value you bring, but also the potential cost of delay. Briefly explain how waiting to address their problem could lead to lost sales, decreased productivity, or other negative consequences.
Building trust and rapport: Throughout the conversation, use active listening techniques to understand their concerns. Share success stories and testimonials from satisfied clients to build trust and demonstrate the value you deliver. This personal connection strengthens the perception that your service is worth the investment.
Conclusion
You may feel deflated when a prospect says you're too expensive, but don't lose hope! Remember that not every client values what you offer, and this objection shows they're interested but need a better fit or more information.
Remember, confident communication, a focus on ROI, and highlighting your unique value proposition will help you convert hesitant prospects into satisfied clients.
Restate the importance of solving their problem. Offer a lower-priced option or bonus rather than compromising on quality. With the right mindset and response, you can turn "too expensive" into an opportunity to serve clients who value you. Stay confident in your worth.
The perfect customers are out there. So, the next time you hear "you're too expensive," take a deep breath and see it as a chance to shine!
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About the Author : Anuj Mahajan is a Mass Communication Specialist, ICF Certified Coach & Corporate Trainer. Motivational Speaker / NLP Lifecoach. With expertise spanning filmmaking, business coaching, motivational speaking, blog writing, and authoring, he embodies versatility and mastery across diverse fields.
Chief Operating Officer: Nuteq Entertainment Pvt Ltd ,? and Co-Founder: Trendvisionz - A Premier Digital Marketing Agency in India
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