Overcoming Price Objection
Even the best sales professionals have trouble overcoming this common objection. You have done the follow up required and built the rapport with the prospect. You have put produced a sales presentation explaining the value in your solution. The prospect has been receptive and agreed with your points. The prospect agrees that it adds value and then you feel like your ready to close the deal. "Since we both agree the solution is a great fit for your company, when would you like to take delivery"
Then they respond with: It sounds like a good opportunity but how much does it cost?
When you tell the prospect the cost it changes the mood trajectory of the sales process. Understanding a customers expectations on cost can be a determining factor on closing the deal. When you look at Total Cost Vs Monthly Payment it can be perceived much differently
Customers Perspective: Total Cost of Purchase VS Monthly Payment
Offering Financing and Leasing allows Customers think in terms of affordable monthly payments. By analyzing the monthly payment the customer can much easier look at a cost benefit analysis of the purchase.
It is much easier to put things in perspective for a customer when you offer financing. When people are basing their buying decisions on the total out of pocket it does not put things into perspective.
Understanding the customers expectations is crucial in a situation like this. Understand what their alternative is to acquiring the piece of equipment.
- Why do they need the equipment? Upgrade, Expansion, Replacement.
- What are their alternatives if they do not acquire the equipment? Outsource what the equipment would have done or rent the piece of equipment.
- What costs do they incur by not acquiring the equipment - Maintenance costs, Lost revenue from production, outsourcing costs. etc.
Another Important Note is that Financing would take pressure of existing credit.
By choosing to finance as opposed to purchasing the equipment outright they will take pressure off cash and existing credit lines. This can give the customer more breathing room and confidence that they will be better equipped for any emergency situations. On a more positive note they will be better equip to seize any quick opportunities.
With the right presentation you can use leasing as a sales tool to close more business, close business quicker and up-sell products.