Your Price Is Too High
There’s a set of people in the world that no matter what they’re buying, the price is too high for them and it doesn’t mean that they’re not getting the value from the company or the value from you. It’s the mere fact that they think that spending money is too much.
In this episode of Close It Now, Sam talks about overcoming the “Your Price is Too High” objection.
Today, let’s talk about overcoming the “Your Price Is Too High Objection”. I’d like to share with you all a story from Jason, one of the guys from our Facebook group.
He went out to a client’s house, roughly 45 days ago. The client had a 2-storey house. The second system upstairs was the one that he was quoting. They had older systems, it was down and not operational so he quoted a price. He did everything, he had the full process, he gave lots of options and the entire process was great but the client still didn’t go with any of it at the time.
The client said they didn’t use the upstairs system as much and nobody is really up there unless they have guests so they decided not do anything right now and told Jason that his price is too high.
About The Client
They’ve been consistent clients of Jason’s company for years. They’ve been on their regular maintenance plan. Jason also replaced their downstairs system in the past so it’s not like a cold market lead, they were not a fresh client because they’ve used him before. There’s lots of history here but he still kept saying, “Your price is too high”.
This client falls into the category of an ethnic client. I did a podcast recently on “Selling To The Ethnic Client”. If you haven’t listened to that one, go back and listen to it. It’s extremely powerful as I talked about what they want to hear, what they need to hear to get them to the next level, and to get them to not just buy the very cheapest basic equipment. But to actually invest in value for their home. Go back and listen to “Selling To The Ethnic Client” because it was a great episode!
The Conversation
Jason’s client kept saying your price is too high over and over again hence, nothing happened during that meeting. 45 days later, now we are midsummer, Jason goes back to the client’s home and it’s 95 degrees upstairs, so it’s so hot with the same folder and books from his first visit. The client said, “Alright!, let’s go ahead and do it, let’s just do this project”. Jason takes the order and signs the client up for what he picked. But during the entire process, the homeowner still kept on saying that the price is too high.
Now, the previous visit 45 days before that, it was the same conversation all the time, “the price is too high”. Jason did a good job every time. He’s been listening to coaching he’s been given so every time the client said that he would bring him back to the value that he was getting and reminded the client about his service, what they do, how they handle clients with situations, what their install quality is and just reminded him of the value of the service.
Let’s say the client has another quote for $3-4k less than what Jason’s quote was which people always say they have until they actually show it to you. I would take that as fiction instead of fact. When somebody says, show me, show me the quote. And if they do have one, somebody text messages you, what’s in this text here somewhere is easy to destroy so this whole time, even on Jason’s second visit, the price was still high.
Jason was concerned for the client, he wanted to make him a happy client so no matter what he said or what he did to restate the value, all the things, the entire time, no matter the sentiment he gave, the client still says that the price is too high and that it’s been so much money.
The Solution
So that was the setup and the question was what could Jason have done to get him over that hump? Well, one thing I want you to realize and think about is that everyone has that person in their life. It could be your grandma, it could be your grandpa, it could be whoever it is, a friend. It doesn’t matter what they’re buying. The price could’ve been half the price of what the system is offering. It could literally be the price of popcorn at the movies. There’s a set of people in the world that no matter what they are buying, the price is too high. It’s always too high. It doesn’t mean that you don’t feel like they’re getting a good deal, it doesn’t mean like they’re not getting the value from your company or the value from you. Just the sheer fact that they have to spend the money is too much. So that’s one of the interesting things. I mean everybody knows that for these people, it doesn’t matter what it is, the price is going to be too high every single time. You would hear them say “ I can’t believe the prices nowadays”, “Wow look at that! Have you seen those prices?”. How many times have you heard these kinds of statements” Especially when it comes to getting their systems. People buy 1.3 systems in their lifetime. The fact that he had already purchased the system for the downstairs which is for the front of the house a few years back. He knew what prices were so it shouldn’t be a surprise. The client shouldn’t be shocked considering the inflation over a couple of years. It shouldn’t be a surprise that it was going to be thousands of dollars for a new system. It’s just the ideology that they had to spend money that he didn’t want to. That is the whole point that’s the crux of the conversation so know and be relieved knowing that this is the reason why you have clients who just keep saying your price is too high. And if you remove that part of the conversation, remove that little bit of their mental state and everything — watch their actions. You can easily replace it with a happy client that will be happy to do the project. You’ll see them take action by signing the paper, writing the check, and filling out the credit application.
All of the rest would seem like just any other client at any day of the week. They will just keep saying that the price is too high and that’s OKAY. There are some people that will always say that just because they don’t want to spend the money. Some people are just cheap. It’s not like a different type of purchase where it doesn’t cost them anything. If you have a car that you’re paying a loan on and you trade it in for a new car then the old car goes away and the old numbers go away. You get a new car with a new loan but that’s the same as what you were paying before that’s not a new bill on top of your life expenses or somebody is selling solar and the person’s electric bill goes away and the new solar payment is going to be less than what their electric bill was and will not be a new bill on top of their existing expenses. For heating air a lot of times, if we are able to drop their utilities by 20%, 30%, or 40% a lot of times it doesn’t make up the bold difference of what their previous bill was going. We have to be able to let the clients understand that it’s a new bill in their life, it’s a new payment and it’s money that they probably didn’t want to spend but they have to.
Those are choices for an item they want to buy. Another example is buying a new heating or an air system. It’s something they have to do unless they want to go without air conditioning or without heat. They have to do it so it’s going to be forced into a lot of cases. They’re going to be forced to write a check for thousands, eight, nine, ten, or $12,000. They had to say yes to it and we absolutely do everything we possibly can to make them a happy client. We want to serve from our hearts with all of the service bones we have in our body. But still, at the end of the day, there will always be a group of people that are just going to say that “It’s too much” or “Your price is too high”. Keep on moving forward and have all the signs of that awesome happy client and accept those words that they’re saying and don’t worry about it because that same client that you go back to see six months later or you check in with a few months later will still be just there, the same happy client.
There will always be some people that just complain which is a type of negative person. They complain about the price of coffee at McDonald’s and say “Oh it’s too high, I can’t believe they’re charging that now”. Don’t let it get under your skin! Move forward, get the deal done, serve that client, and take care of him. Some people are studying psychology as much as I have studying the different personality types and the more you read and study that type of stuff, the more you’re going to realize that there’s a set of people that you’ll just never overcome. There’s no way to turn that client into a happy bubbly client because that is not their personality. It’s not going to change and you’re definitely not going to be the one to change it when you’re there and have them write checks to you for thousands of dollars. At the same time, you also have your most loyal clients who will send you referrals. Some of the most consistent clients even though they complain the whole time will be a great asset to your client base.
Imagine when you turn the corner and zoom out a little bit from just that one interaction, think about their social group, their peer group, their social circle…Everybody knows they’re the complainer, everyone knows they always complain about prices being too high and all that kind of thing however, when they see that person use a company they know and how extra critical that client is, they know how extra complaining about high prices that client is and they know that the client is always the one who’s able to get the best deals because these people will just ask for discounts until they can’t possibly get a discount anymore. They don’t know what to do when that client just keeps complaining so they should come from their price not understanding that it doesn’t matter what the price is, they’re just going to complain all the time.
So when their peer group and their social group see that a client makes a purchase like that with you when they see them or they ask him who did your new air conditioner furnace and they tell them which company, they are now more likely to go with you because they know how critical that person is. They would also know how extra difficult that person is to work with so if you were able to take care of that client likelihood and the chance of getting referrals from that person’s social group goes up. Taking care of that person will definitely come back in a very fantastic way because their social group knows what you know they know, what a jerk they are, they know how hard they are to work with and they have to be their friend so they know that whoever they use and work with has truly been able to take care of that person.
Their peers might even say “Wow if that company made this person happy and was able to take care of their project then they can definitely take care of mine”. Keep that in the back of your mind when you come across those types of clients who just are complaining about how your price is too high. Take care of them too, don’t just walk away, don’t just go and think “Oh well I lost that because they complained about the price” because that’s not always the case.
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