How to Handle "It Costs Too Much"

The world's most common objection to buying is, of course, "it costs too much." (Sound familiar?) Since you're going to run into that objection thousands of times during your career, here's how to make sure that it's nothing more than a tiny speed-bump on your road to sales success.

• Rule #1: Pre-empt the inevitable. If your product's pricing truly is out of line with the competition, preempt the objection with a line, early in your initial conversation like: "Some people say that our product costs a little too much, but..." Sales uber-guru Brian Tracy points out that admitting the negatives of your offering, as well as the positives, enhances your credibility and positions you in the role of an advisor rather than a salesperson. And that's a good thing.
• Rule #2: Don't focus on it. When sales reps hear an objection, their natural tendency is to jump in and handle the objection, in order to nip it in the bud. However, an objection isn't "real" until the customer has brought it up twice, according to Tom Hopkins, author How to Master the Art of Selling. Listen to the objection without interrupting, acknowledge it, and then shelve it. Example: "I hear you. The best products are often more expensive. Have you thought about..." If you continue to build value in the customer's eye, cost may not be an issue later in the sales cycle.
• Rule #3: Use the objection to learn more. If "it costs too much" rears its head more than once, you've got a problem. Your best move is to ask for more information or a clarification. This request encourages the customer to provide you with valuable information that you'll need in order to adjust the cost/value equation. Example: "I understand that cost is always an issue. How would you handle this problem or opportunity if you didn't have our product?" Then listen carefully to the answer.
• Rule #4: Raise the value relative to the cost. Most of the time "it costs too much" means "you haven't yet convinced me that the value that your offering provides is worth the money that we'll be spending." In this case, the customer is either doing on-the-fly ROI calculations or has a competitor's product in mind. Either case, you've got to do more selling in order to raise the value of your offering, in the customer's opinion. For example, if "it costs too much" pops up because your competitor's offerings are cheaper, find something that their offering won't do, and turn it into a must-have.
• Rule #5: If there's no budget, they're not a prospect. Sometimes "it costs too much" is a face-saving way for the customer to admit that they simply don't have the money to spend on your offering. The customer may be completely convinced that what you're selling is the greatest thing since the advent of cliches about sliced bread. But if the money ain't there, it ain't there. So probe to find out if the prospect is a real prospect. If not, convert the sales call as a networking interview.