Let us look at two of the most challenging objections and how to overcome these:
1. “Why Should I Buy From You?”
2. “Give Me the Lowest Price or I’ll Spend My Money Elsewhere.”
Think about the two objections above. If you can answer the first effectively, you will never need to deal with the second.
To begin with, we suggest an approach where you are not just providing a listing of your products, price and contact information. Rather, you are helping your target market understand why it is that your product can help them and why the best place to buy that product is from your establishment.
It is important to recognize the need for consumers to feel good about their purchases. They need to feel like they’ve made the right decision and have received excellent value for their money.
Why do people deal with price as the single most important issue when buying most products? Could it be because they don’t know enough about the products in order to comprehend the true value of their products?
It is absolutely crucial for you to bring out that true value of your product, service or business so that your prospects understand what they are buying. If you fail to do that then you fail to be able to charge adequately for your value.
Let’s use lawyers as an example.
Mary is looking for a lawyer to handle her divorce. She speaks to two different lawyers and asks them what they would charge her. She asks this because she really doesn’t understand what the issues are, from a legal perspective or what is involved and so can only relate to that ‘cost of service’ perspective.
The first lawyer responds that he charges $250 an hour and would be happy to handle her divorce, and asks when she would like to book the first meeting.
The second lawyer responds by first asking a couple of questions about Mary’s situation. He then describes to Mary that his practice is a little different from most family law practices, especially around divorce proceedings. Their goal is always to reach the most amicable and fair settlement for both parties. In so doing, they have found that over 70 percent of their clients have been able to achieve a good ongoing relationship with their ex. They generally move past the divorce and on with their lives more quickly, on an average, than the norm. (And they have testimonials and survey data to prove it)
This positive approach has made it easier on both their clients and their ex-spouses, but especially so for any children who are involved. This lawyer explains that they have developed several special approaches in helping achieve this goal. Also, due to this positive approach, they are able to finalize divorce proceedings 25 percent faster than then norm. Finally, he shares that his rates are $300/hr.
Who do you think will be chosen? My bet is that most reasonable people will choose the second lawyer. He helped educate Mary on the special value that the firm offers and what the benefits of those services are. Clearly the fact that the firm’s rates are 20 percent higher can be offset by the shorter billing times and the added ‘quality of life’ value realized by the clients.
If lawyer number two had not taken the time to educate this woman and left it up to a comparison of hourly rates, they likely would have lost the opportunity. This law firm presents this same educational information on their website, in their promotional materials and in any public speaking engagements that they do. All of these venues provide opportunities to educate their target market on the unique value of the firm.
How do you educate your prospects on your unique value? Do you know what your unique value is and is it strong enough to offset price comparisons?
Reprinted from Capital Region Business Journal, Madison, Wisconsin, August 2006 issue.
Brad Sugars founded the brand Action International in 1993 when he realized there was a disconnect between business advice and implementation. The answer was Action! Brad Sugars created a business coaching company so that business owners throughout the world can realize their goals in business. Today the company is known as ActionCOACH. To learn more about business, visit Brad Sugars Review blog!