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The Easy Way to Overcome Price Objections

If certain products are seemingly getting rejected by customers only due to price then perhaps now is the time to reconsider how you offer these products to the customers.

I’m a big believer in the majority of customers we interact with in this industry will not be put off by a price as long as there is appropriate value, benefits and justification behind it.

Of course, there are customers who seek only the best products and so cost isn’t a factor and conversely there are people who will demand only the cheapest product and will not budge.

But these generally are only very minor market segments so if you’re suspecting price alone is the reason for rejection then it’s worth investigating o see if there’s evidence behind this and if your sales process needs to be adjusted.

Typically a large ticket item such as a hot water system is something where a customer may show hesitation in ordering, so let’s look into this and an alternative way in communicating benefits to a customer.

Your technician has inspected the customer’s system and given the age and lack of warranty on it, it’s fine to offer the customer the option of short-term work to repair it, however their best solution would be a new model.

If you’re selling a tank by brand name then I’d advise against this and instead sell by warranty, given it’s going to be this quality assurance that’s most beneficial for them.

Let’s say the ideal system for the customer costs $3,500 and comes with a ten year warranty, yet the customer is understandably unsure about investing this amount.

An alternative way to communicate this to the customer is by explaining how the system is guaranteed to run for at least a decade, which works out to less than $1 per day for a reliable tank that’s going to provide lasting quality for the customer plus their family.

You can also offer to perform a complimentary inspection of the tank in 12 months’ time to ensure the system is running smoothly.

If necessary you can also provide a conditional added warranty, such as offering to extend the warranty by two years if the customer purchases the tank and agrees to an additional inspection at a later time.

You can then compare this to the short-term option, which may be delaying and adding to the inevitable cost of a new system regardless.

The system is providing peace of mind to the customer knowing once it’s done, it’s good for ten years and they won’t be needing to worry about costly system breakdowns.

Keep looking at your process and ensure you’re communicating product benefits appropriately to customers, and you’ll find price rejections will become less of a factor in your business.

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