Round 3 - “It’s too expensive”

 

Listen to the Podcast Here

In this episode, we delve into the nuanced meaning behind the customer phrase "it's too expensive." This seemingly straightforward objection can actually mask two distinct issues: affordability and perceived value.

The episode begins with a scenario where a salesperson, Tim, fails to recognize this distinction. He presents a $6,000 car to a customer with a $20,000 budget, only to hear "it's too expensive." Assuming affordability is the issue, Tim offers a cheaper $3,000 car, which is also rejected. This highlights a crucial point: "too expensive" doesn't always mean the customer lacks funds.

The episode explains that "it's too expensive" can signify either:

• Unaffordability: The customer genuinely cannot afford the price.
• Low Perceived Value: The customer doesn't believe the product or service justifies the cost.

The challenge for salespeople lies in discerning which meaning applies. To address this, the episode introduces the A.I.R.C. method:

• Agree: Acknowledge the customer's concern ("I understand").
• Isolate: Pinpoint the root cause by asking if it's price or value ("Is it the price, or are you unsure it's right for you?").
• Rebut: Address the concern directly. If it's price, explore options like financing or payment plans. If it's value, rebuild the perceived value proposition by highlighting features, benefits, and long-term savings.
• Close: Move towards closing the sale.

The episode emphasizes that "too expensive" often stems from perceived value rather than affordability. Examples are provided, such as a $300 dinner seeming expensive compared to $300 for car brakes, illustrating that value perception plays a crucial role.

The key takeaway is to assume "too expensive" primarily reflects a value issue and use the A.I.R.C. method to effectively address the customer's concern.

One Two Punch: Isolate and Rebuild Value to overcome "It’s Too Expensive."

If you found this blog post helpful, please share it with your fellow salespeople! Do you have any other sales challenges you'd like explored in future episodes? Let me know in the comments!