Happy Holidays! Your Price is Too High!

By: Joe Crisara

price-is-too-high

 

You know how they say that nothing is certain except for death and taxes? I’m not sure I agree with that.

Because every single year as we approach the holidays, I get a flood of phone calls and emails from salespeople and techs saying that the holiday season has caused the number of price objections they get to spike.

Now, honestly, I wonder if it’s really the customers objecting more around the holidays, or if it’s just something the salespeople and techs subconsciously expect – and therefore get.

But either way, it seems to happen every year, so it needs to be addressed.

So how about this year, we get prepared to deal with all those “price is too high” objections ahead of time?

Knocking Down the Top 5 Holiday Price Objections

Remember that professional selling is about asking and listening – not about talking and convincing. You know you’ve done an exceptional job presenting when the prospect is selling you on how much they want your deal.

Over the years, I’ve noticed that these five price objections seem to come up over and over again – especially around the holidays. Below is a “written role play” for each objection.

PRICE OBJECTION 1: They don’t want to spend this much money right before Christmas.

CUSTOMER:
“We’re going to have to wait until after the holidays to see how much money we have.”

YOU:
“I can understand that. Christmas is an expensive time of year with buying gifts and having the family over for dinner. But, can I ask you something about the holidays?”

CUSTOMER:
“Sure.”

YOU:
“My greatest fear is that you’re going to let this go until next year and then the heat will break down right on Christmas Day when you have your whole family over. What kind of Christmas do you think it will be when you have to call us, wait for us to come out, pay us double for the holiday rate, and then have us come out and do this work with your whole family at your home?”

CUSTOMER:
“Not that great.”

YOU:
“Well, what should we do?”

CUSTOMER:
“All right, let’s do it.”

 

PRICE OBJECTION 2: They want to get more prices from competitors.

CUSTOMER:
“I want to get more prices from other companies.”

YOU:
“I can appreciate that. Everybody wants to get a fair deal. Can I ask you a question?”

CUSTOMER:
“Yeah.”

YOU:
“What information were you hoping to hear about the installation from XYZ Company that I haven’t given you?”

CUSTOMER:
(Lying…All customers lie) “Well, I really like you and your company but your price is $600 higher than XYZ Company.”

YOU:
“Well, that’s great that you like our company, but what did the guy from XYZ Company say when you told him you went with them?”

CUSTOMER:
“I didn’t go with them. I really want to use your company.”

YOU:
“I’m a little confused. Our company is $600 higher but you still want to use us? Why is that?”

CUSTOMER:
“Because I know you guys stand behind your work and because I trust you. Also, you are offering me some things that the other guys haven’t even thought of.”

YOU:
“Well, what should we do?”

CUSTOMER:
“All right, let’s do it.”

 

PRICE OBJECTION 3: They ask you to lower your price.

YOU:
“Let me sum things up. You like us best but you don’t want to pay $600 more, right?”

CUSTOMER:
“Right.”

YOU:
“If you were me, what would you do?”

CUSTOMER:
“Well, I hate to ask you this, but if you could lower your price by $600, we could get this done tomorrow.”

(Remember, although dropping the price at this point is easier, you reveal your dishonesty about your pricing policies, i.e. if you could have dropped them, why didn’t you just do that in the first place.)

YOU:
“Here’s the problem. We have this price figured with a fair profit in it, but if I drop it by $600, we’re going to lose money on the job. That means I won’t have enough money to honor my warranties and service on the unit. Plus, I’ll have to cut a few corners on the installation as well. Can I ask you a question?”

CUSTOMER:
“Sure.”

YOU:
“When you say the price is $600 higher, what are you comparing it to?”

 

PRICE OBJECTION 4: They show you a lower priced proposal from your competitor

CUSTOMER:
“Here’s the proposal they gave me.”

YOU:
“Great, we can compare… Now, right here we have a ‘no questions asked’ 24-hour warranty. XYZ Company’s just says 5-year warranty. If you don’t want 24-hour coverage for the next 5 years, I could probably remove $150. Is that what you want?”

CUSTOMER:
“No. I like that you guys come out when I need you, no questions asked.”

YOU:
“Okay. Here we have a lifetime installation materials warranty. Things like the wiring, sheet metal, drain piping, drain clogs, gas piping and leaks, thermostats and everything we install around the unit are covered for life as long as you have the unit maintained yearly. XYZ Company states specifically, ‘Warranty is only good on the installed equipment, etc.’ I could probably take another $150 off if you don’t want a lifetime guarantee on materials. Is that what I should do? All of our warranties are like this. Should I keep going or have you seen enough?

CUSTOMER:
“No. I can see the difference now”

YOU:
“What should we do now?”  (STOP TALKING AT THIS POINT)

CUSTOMER:
“Let’s go ahead and schedule a date to install it.”

YOU:
“Are you sure? You sounded so convinced about talking to the other company.”

CUSTOMER:
“No. I’m sure. I don’t know what I was so worried about anyway. I knew I could trust you guys.”

 

PRICE OBJECTION 5: They got a lower price quoted over the phone

CUSTOMER:
“Well, I just called XYZ Company and they said the price for a new unit would be only ($600 cheaper than you).”

YOU:
“So they haven’t seen your house or your current setup yet – in person?”

CUSTOMER:
“No.”

YOU:
“Can I ask you a question?” (Always get permission to ask a question.)


CUSTOMER:
“Yes.”

YOU:
“When you called me and wanted a price on a new unit, what did I do at that point?”

CUSTOMER:
“You set up an appointment to give me a written proposal.”

YOU:
“If you had asked me for a price over the phone, what do you think I would have said?”

CUSTOMER:
“I did ask. Your office said they wouldn’t give prices on the phone for new equipment.”

YOU:
“Why do you think that is our policy?

CUSTOMER:
“I’m not sure. Why?”

YOU:
“The last thing I would want to do is to give you a lower price over the phone and then raise the price once I get to the job. Any price I give you over the phone will be too high or too low because I haven’t seen the size of the home, what materials are needed, or anything else. So I guess that leads me to ask one last question.”

CUSTOMER:
“Go ahead.”

YOU:
“When you hire a company to do service for you, do you want someone who would rather phone it in or a company like ours that insists on coming out at your request?”

CUSTOMER:
“Well, that’s obvious.”

YOU:
“What should we do now?”


CUSTOMER:
“Let’s go ahead and schedule a date to install it.”

A Matter of Perspective

Remember, a sale occurs at each and every call, and you get to choose who makes it.

Either the customer is selling you on the fact that you’re just like everyone else, but you charge more – or you’re selling them on the fact that you’re unique, do more premium work, and your price is worth every penny – and then some.

Don’t allow yourself to believe that people won’t spend money on their home during the holidays. They will. They just sometimes need to be reminded why deciding to say “yes” to you is the right decision for them, their home, and their family.

And while we’re on the subject of handling objections, you might as well grab your copy of our Object-O-Matic. It features 27 strategies for handling the most common objections is our industry. Use these replies and watch your close rate skyrocket! Right now, you can get an immediate download of the eBook version for just $34! Get your copy here.

object-o-matic

 

So what about you?

Do you have any other suggestions for handling these objections?

Which objections give you the most trouble?

Let’s discuss it in the comments…