The Biggest Reason for Price Objections

The biggest reason for price objections isn't what you think.

No, it’s not because all your clients are price sensitive. Sure, for any particular good or service there is a segment of buyers for whom price is the primary and possibly the only consideration.

The truth is that most clients are value-sensitive, not price-sensitive. Willingness to pay varies, but most clients are looking for value first.

The real reason for most price objections? We haven't had an adequate value conversation with our client.

What does an adequate value conversation look like? It's one that suspends the urge to recite your credentials, features, and process. Instead, it focuses on understanding their world first: their needs, hopes, anxieties, and the transformation they're seeking. Only then do you connect your expertise to their specific situation.

This approach consistently works. I recently received this note from a top-notch professional in her field:

I wanted to send you a quick note to thank you for your pricing wisdom. I was dealing with a pricing objection last week and I reread your chapter on objections to give myself a confidence boost. I did not lower my price for him and he accepted at the original quote.

I also realized that next time I need to make sure I'm clearly explaining the value. I assumed that a longtime businessperson would see the value of this particular service without much explanation. It turns out he didn't recognize some of the issues I was trying to help him avoid by having the proper documentation in place.

Even smart, seasoned, and longtime clients can miss the value of what we do. We simply can’t assume that they see it and identify it in their own context.

Before you assume price is the problem, check the quality of your value conversation.

_______________

I'm John, author of The Generosity Mindset, and I help expert-service professionals like consultants, coaches, and fractional executives overcome pricing fears and charge what they're worth. Need help? Let's talk.