Any price is expensive. No matter how much you price your products or services, there will always people who find them expensive. To me, the main reason why clients find services expensive is due to lack of trust. If you are familiar with handling objections, you may figure out already that although most clients raise objections like under budget or expensive, their main reason is actually something else (if you ask enough questions to find out). And the most fundamentally reason that I have discovered, is trust.
The following are some tips that I myself has found useful practicing them in day to day business.
I don’t think trust can be built instantly. Trust can only be established after sales. However, there are things that can help us to appear reliable to your clients before they make a deal with you. One of the effective ways is via word of mouth. Most people believe in what their friends or Business Associates say. Hence, getting your current client base to spread the words for you is a quick way to establish reliability for your company.
One important thing to note is that you may not want your friends to spread your services because of the price that you offer. Price competition is tiring and non-rewarding in long-term. Hence, you need to position in the way that how are you different from your competitors.
I believe that no matter what we sell, there are always gaps that we can fill. The only concern is the demand and how niche you place yourself. Bigger IT companies do everything from Web Development to Internet Marketing and they can offer price that most companies can’t compete. While some businesses niche themselves to only specialize in Internet Optimization with a higher premium but guaranteed results. What will you choose when you need to optimize your websites for the Search Engines?
I strongly believe that price is not the key deciding factor people buy (especially for repeat buyers who are switching service providers). If you can differentiate yourself from your competitors, not only you can charge a reasonable price, you can also turn your competitors into partners. Sounds great, isn’t it?
The main reason why people find your services expensive
Here is the key to this post – You should always try and find out what is the real objection of your clients. There are three reasons why your client tell you that your price is expensive:
1. They just want to have a discount from you indirectly.
2. They are making uneducated comparison between your competitors and you.
3. They do not know what they want or do not want.
The only way to find out is simply ask them first: “Thank you for your feedback. May I know why you find my price expensive?”. This simple question will start revealing the main reason behind the objection. Do not simply just tell them that your price is not expensive and went on and on and on…
This simple technique has cause an increase in my closing ever since I learnt it from my close business associate from SalesPartners. You can also approach them if you want to achieve a higher conversion rate when talking to your prospects.
Now, is your price expensive?