Bottom Line Up Front: You think you’ve got the sale in the bag. But then your prospect hears the price and balks. What do you do? You implement this strategy. It’s simple, it’s grounded, & it’s highly effective — learn it here.
It’s the most dreaded moment in the cycle of sales. You’ve hooked a new prospect on a service you can deliver. You’ve worked hard on the pitch, on compiling the right product examples, on showcasing to them just what you’re capable of executing.
They’re excited. They’re attentive. They’re focused.
And then you start talking pricing. They become apprehensive or confused. Maybe they shut down completely. Maybe they tell you, in no equivocal terms, that they simply can’t do it. They simply can’t meet you there.
“You’re too expensive.”
“That’s out of my ballpark.”
“It’s just too much.”
Sound familiar? We’re betting, if you’re a business owner in any industry, in any region, at any time, it does. Whether you’ve been given the objection once or once a week, the burn of the underlying rationale still feels the same. They’re telling you that they don’t believe your offerings are worth the price tag you put on them.
Well? Here’s where you show them they’re wrong.
Navigating the Objection
Reagan Mackrill, the co-Founder of brand identity design business G’Day Frank, was no stranger to prospects clenching up when the topic of pricing was broached. But as a branding design expert, he knew that not all — if any — of his prospects actually understood what was on offer.
So he came up with a tactic that met his prospects where their questions were. He used simple sales equations, market insight, and the prospect’s own answers to mold a comprehensive picture of the value inherent to the deliverables.
Because for Mackrill’s customers, it wasn’t just about a logo. And for your customers, it’s not just about a few custom printed t-shirts, or hats, or water bottles.
Like we always say: it’s not the product; it’s the solution. Mackrill’s strategy for navigating the ‘too expensive’ objection embodies that sentiment — showcasing the true value and the true impact potential for what’s on offer.
Here the strategy is, in full force, so you can start deploying it for yourself.
Step 1: Ask the Right Questions — The Why
When you’re navigating the pricing objection, there should never be an annoying soliloquy or a defensive speech. What there should be is a conversation. You’re looking to persuade your prospects through education — through explaining to them why there’s more value than they perceive there to be — but in order to do that in a way that sticks, you need to make the education personal. It needs to apply to their business, and to this particular project. So, before you frame your lesson, you need to know exactly what you’re working with. How do you find out? By asking apt questions.
Here’s what you should be asking: Why do you want the X deliverable? What are you hoping it accomplishes for your business?
If they answer with “increase sales” — which they almost always will — you’re primed for Step 2. If they answer with something like “increase brand exposure,” “increase marketing opportunities,” or “foster customer/employee/donor relationships,” then you can help them out by asking them, again, why? That’ll take them right to: “To increase sales.”
Step 2: Quantify the Goal — The How
Now that it’s been established that the goal is to increase sales, here’s where you get them to narrow in on what, exactly, that means. With this one product, or this one campaign, how much of a sales increase are you looking for?
Here’s an example: if you’re pitching an athletic organization for their seasonal fundraiser, and they typically only sell t-shirts — and are used to locking in sales from 100 buyers — how many more buyers are they looking to win over if they add water bottles to the mix?
If the goal is to sell to 25% more buyers with the added product — so 125 buyers in total — that’s a clear way for them to envision the aim of the campaign. And a clear way for you to formulate your persuasive argument.
Step 3: Break Down the Value — The What
Here’s where you explain that the real value of that sales increase isn’t just what it’ll do for this campaign. Sure, a 25% boost in buyer number for this campaign isn’t anything to ignore, but it’s also not the only value your prospect will be gaining.
Because, as we all know, customers are worth more than just a single transaction. It’s much easier to get a pre-existing customer to buy again than it is to convince a new customer to buy for the first time, so enticing 25 new audience members to become customers now equates to more value — and more sales — down the line.
Plus, since the products in question are custom branded t-shirts and water bottles, every time a buyer wears or uses the item they purchased, they’ll be furthering the organization’s marketing efforts. For free. (That reduces the cost-per-impression rate and makes forking over $x for the products even more manageable.)
With all of that value now clearly attributed to a new buyer, ask your prospect, in their own terms, how much a new customer is worth to them.
If your prospect comes back with $500 — as in, each new customer is worth $500 in revenue to the organization — then the addition of water bottles will lead to an increase of $12,500 in revenue. (Remember: 25 new customers.)
Are you ready to spell it out for them?
Step 4: Rely on Simple Math — The Solution
Finally, using your prospect’s own answers, paint the precise picture of what, when it comes to pricing, they’re looking at. And keep it simple.
“Switching things up this year by adding water bottles into the mix of your seasonal fundraiser adds an extra $1,000 to the total cost, but it results in $12,500 in added revenue. Doesn’t that seem like a worthwhile investment?”
That’s it. It’s that easy to get the prospects thinking differently about the cost, and it’s that easy to get them understanding the inherent value — and impact — of the solution you’re offering.
The Wrap Up
The bottom line with this strategy is to focus on the big picture. By illustrating the impact of the deliverable beyond just the single campaign or transaction, you’re showing your prospect the true value of what they’re paying for.
In our industry, that means the value of what a custom branded piece of apparel or promotional product can do for a brand. Every time it’s worn or used, it spreads brand awareness, expands reach, and generates social proof — telling the wearer/user’s network that they support the brand.
That’s organic marketing at work — and it’s far more effective at racking up interest, starting new buying relationships, and inspiring action than any sort of paid marketing effort might be. Why? Because consumers trust their peers. And when they see a peer donning a t-shirt or drinking from a water bottle that represents a brand, they feel more inclined to trust the brand. And learn more about what it’s all about.
So, the $1,000 investment in a product order today might lead to $2,000 in sales one month from now. But what about two months from now, when those products are being worn by your prospect’s buyers, spreading news of the brand to their networks?
What about six months from now, when another campaign is up and running, and today’s new buyers are already primed and ready to buy in?
Or what about one year from now, when a callout for new sponsors is plastered across your prospect’s social channels, and today’s new buyers — feeling a strong sense of brand loyalty — feel more inclined to repost and share to help the brand out?
The point is, organic marketing does wonders for pulling new customers (or donors, or sponsors) in, increasing both the selling power of the current campaign and the organization as a whole. And that’s all attributed to the value of the solution you’re offering.
Want something to strengthen your persuasion tactic even further? Throw in the inherent value of an Online Store. If you offer prospects a custom Online Store with orders that meet a certain threshold, the selling power of the initiative — be it a fundraising campaign or an evergreen endeavor — skyrockets. Online Stores are easier to access, easier to buy from, and easier to share than any alternative selling measure, bringing about way more sales — and way more impact.
If you don’t have Online Stores in your wheelhouse yet, what are you waiting for? They’re the secret weapon that’ll help you persuade prospects, sustain customers, and stand out in 2020. Learn more here.