How To Handle Price Objections | Huffington Post

Do you find yourself justifying your prices? Are you offended when someone asks you why you’ve set your price so high?

A common dilemma we face as business owners and service providers is how to handle it when someone asks why we are so expensive. Or more expensive than others. Price objection can be sticky, but it doesn’t need to be. Believe me, as a high-end portrait photographer, I’ve been asked more than my fair share to justify my prices. So, trust me when I say I’ve given this plenty of thought and have you covered when – yes, when not if- you are confronted with having to explain your fees. And even more exciting and telling is that my solution to this very quandary was inspired by shaving creme. Yes, my shaving creme.

First of all, be thrilled not offended when you are asked to justify your price. The key is not to shut down which happens all too often when we feel challenged to explain our rates. You’ve already piqued their interest. They are interested in your service or product, and by engaging in a dialogue rather than an argument, you have the opportunity to affirm their decision to buy what you are offering. They made have already made a decision to purchase or hire you and are simply seeking affirmation.

You’ll also want to understand the difference between potential buyers that are price conscious vs. value conscious. When someone questions your rates, it’s easy to assume they are acting price conscious. Actually, nothing could be further from the truth. They are likely behaving in a value conscious manner.

Consider the examples of WalMart and Target respectively. WalMart touts “rolled-back prices” and the concept of more-for-less. It doesn’t promise quality; it assumes its buyers want savings, right down to a hundredth of a cent. Target, on the other hand, attracts value-conscious consumers. Want a high-quality product, a designer label like Isaac Mizrahi or Lily Pulitzer for an affordable price? Target is the answer. Unlike WalMart, Target says, “Come on in. You’ll find great quality for less.” Most people want to feel that they are getting more than what they paid for, but even more than that, those that are willing to pay more want to know that they are making wise decisions. Our job as entrepreneurs, business owners, and service providers is to make clients feel that they are getting more. They are getting bang for their buck. They are getting quality, and it may cost more; but in the end, the difference is worth it. They want to feel they are wiser because they are investing in value! Make the purchaser feel great about their decision.

Read complete article here:

How To Handle Price Objections.