7 Keys to Handling the “This Is Too Expensive” Objection

Have you ever found yourself in a situation where everything seemed promising with a prospect, but when you revealed your price, they responded with, “This is too expensive”?

Wondering how to effectively handle objections like this?

In this video, I’ll show you the 7 keys to overcoming the “this-is-too-expensive” objection. Check it out:

1. Determine how you got here.

It’s crucial not to immediately accept the notion that prospects find your offering expensive without examining your initial interactions. If you’re frequently having to handle objections on price, it’s time to re-evaluate your entire sales process. Often, when prospects label something as “too expensive,” it’s a mask for their lack of interest or failure to perceive the value. So reassess your approach to ensure you’re emphasizing enough value to justify your pricing.

2. Own your high price upfront.

In order to effectively overcome objections on price, avoid positioning yourself as the lowest-priced option in your industry. Embrace the fact that you offer premium pricing to increase your profitability. Confidence in your pricing is key; don’t engage in price negotiations or try to compete solely on cost. Make it clear that you stand at the top of your industry’s pricing hierarchy.

3. Remember that 20% must be DQed.

Here’s a powerful tip for overcoming objections based on price: Categorize your prospects into three groups: those willing to pay for value (top tier), those who require persuasion to see the value (good prospects), and those solely focused on securing the best price (bottom 20%). Swiftly disqualify the latter group, as they’re unlikely to appreciate the value proposition. Focus your efforts on prospects genuinely interested in the value you offer.

4. Slow it down.

When handling objections on price, resist the urge to launch into a defensive pitch. Instead, pause to allow both yourself and the prospect to gather your thoughts. Slowing down the conversation demonstrates attentiveness and prevents reactionary responses that may alienate the prospect.

5. Ask, “What prompts you to say that?”

Redirect the sales conversation back to the prospect by asking for clarification on their price-based objection. By prompting them to elaborate, you gain insight into their concerns and maintain control of the dialogue. Avoid immediately countering with discounts or justifications; prioritize understanding their perspective instead.

6. Dig, dig, dig.

Delve deeper into the prospect’s price-based objections to gain a comprehensive understanding of their underlying concerns. By asking probing questions and actively listening, you may uncover insights that mitigate their initial objections. Effective probing can help you overcome objections before they require direct responses.

7. Can I throw some ideas at you?

Seek permission to propose potential solutions to the prospect’s price-based objections. Approach this phase with a collaborative mindset, exploring various options together. Whether addressing payment plans, enhancing perceived value, or finding alternative solutions, this approach fosters engagement and facilitates problem-solving.

So there you have it. Now you know the seven keys to handling the “this-is-too-expensive” objection. Which of these ideas did you find most useful for overcoming objections based on price? Be sure to share your thoughts in the comments section below to join the conversation.

As always, if you found this helpful, I would be grateful if you’d please share it with someone else or many others. People can get my weekly emails and free eBook, 25 Tips to Crush Your Sales Goal by clicking here. And be sure to check out the Sales Insights Lab Accelerator.