What to do when people says “You’re Too Expensive” (Price Objection)
One of the highlights in all negotiations is the budget, so getting a response from our client telling us “this is too expensive” (price Objection) can be stressful.
There is where we ask ourselves, how can we object his impression that we are being “too expensive”?
It’s understandable that there are doubts when money is involved, after all, it’s their capital that is being invested in us and the work for which we are being hired.
That is why I present you 3 reasons to object your client in case of incredibility regarding the amount you are requesting.
1. Higher cost upfront means lower risks
You must know this answer is accompanied by a detailed explanation of what you are going to do, and this is not about telling lies or showing everything bigger than it is.
This is just about making clear differences between buying a product/service that is already done, to develop from scratch the whole concept the client is presenting.
For this article we will take the example of a client requesting the creation of a new app, in this case, we would talk about the difference between paying a developer $50/h vs. $150/h, as the latter knows the market more deeply, and is more likely to have created similar apps in the past, and also, knows what elements can be taken from there and which should be built along the way.
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2. They have never developed a product/service like that before, so they do not know what it costs
This is not about frightening them or making us use the little knowledge they may have in the matter in our favor, it is objectively a matter of making them see the whole process of creation.
Give them a real image of what they need for the result to be successful.
Returning to the previous example, you would explain the whole process of creating the app, from the differences in designs on iOS and Android platforms, through the complexity of making it stable and similar on one side as the other, making it possible to enlarge before the eyes of the client a project that, in his opinion, should be more economical to achieve.
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3. Too many features
This reason is accompanied by a fundamental question to the customer, and this is “why you chose each feature?” Many times, beyond creating something innovative, they have too many ideas in mind, which in the end (while they may sound attractive) they may not be profitable, or simply do not apply to what they want to achieve.
There is when you have to make them feel the viability of each one and how to apply them (or not) will make the difference in the project.
When applying it in our scenario of developing an app, we would ask what is the business value for this feature that they want to add?
In addition, we would point out how not each of the ideas presented for the App would be effective once completed, and how preferable is to make an honest list of the top priorities.
A business closing process shouldn’t be a headache for the offerer. Everything is about the response’s nature and even persuasion.
So, when there is a price objection, you will know in advance the successfully answers you can give to your client, achieving your main purpose.
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