Overcoming Price Objections (Part I)
Last week, FEI sales leader Zoot taught young salesman Ganymede how asking thoughtful, probing questions is an important part of selling. This week, Zoot introduces his apprentice to another powerful selling skill: the ability to handle price objections effectively. Remember, fire = print.
Every Wednesday after work, Zoot and Ganymede exercise at Olympians Gym. Health-conscious Ganymede focuses on cardio, while vain Zoot prefers to sculpt his shoulders, chest and arms. This week, After Ganymede finished a half-hour session on the Gladiator Combat Simulator, Zoot asked him for a spot on the bench press.
Ganymede stood behind his friend and mentor, who was stacking weight after weight on the barbell. “I’ve been encountering a lot of pricing objections on sales calls recently,” Ganymede said.
Zoot put the last weight in place and lay on the bench. “I know it can be frustrating to hear time and again that FEI’s doing everything fine, but we’re just too expensive. But the last thing we should do is slash our prices just to keep every torch- and match-making machine running. Our torch and match prices are arrived at carefully, and cutting prices suggests that they’re artificially inflated to begin with.
“Plus, discounting is a slippery slope. If we reduce our price once to please a customer, they’ll know they can influence our pricing and will behave as such. And if we return prices to their original levels, price shoppers will just go somewhere else.”
Zoot removed the barbell from the uprights and lowered it to his chest. “Think of pricing pressure as this barbell. We could give in to this pressure and let it crush us. Or...” [Zoot lifted the barbell high above his head] “we could counter it with our own strength!”
Ganymede didn’t look like he was following the metaphor, so Zoot elaborated. “The best way to handle price objections is to shift the focus from price to the other things we do well.”