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Monday, April 8, 2024

That's Too Expensive" is NOT a Dead-End: Battle-Tested Objection Handling for B2B

Every B2B salesperson has heard it – the dreaded "your price is too high" objection.  It can feel like a brick wall, but in reality, it's often an opening masked as a dismissal.   By digging deeper and reframing the conversation around value,  you can keep the deal alive and ultimately close the sale.

Read our blog post on writing an email 

Step 1 - Why "Too Expensive" Is Rarely Just About Price

It's tempting to counter with a discount or immediately start justifying the cost. Resist!  Price objections are often code for:

  • I Don't See the Value: They don't grasp how your solution will save them money, boost their productivity, or solve a major pain point.

  • This Isn't a Priority: The problem exists, but their internal budget or sense of urgency doesn't justify the expense... yet.

  • They're Testing You: Some buyers use this to see if you immediately cave, indicating room to negotiate later.

Step 2 - Questions to Ask (Not Statements to Make)

Instead of arguing, use "too expensive" as a starting point for a deeper discussion.  Try these questions:

  • "Compared to What?": Is it against a competitor, their current solution (even if it's clunky), or simply doing nothing? This tells you their reference point.

  • "Help Me Understand...": Then follow with "...what an ideal solution is worth to you," or "...what budget constraints you're working with."

  • "If Price Weren't an Issue...": This removes cost, forcing them to focus on the value they expect to receive.

Step 3 - Reframe the Conversation

Your aim is to shift from price to the ROI your solution provides. Here's how:

  • Speak Their Language: If they obsess over time saved, don't pitch them abstract "features." Quantify how your product frees up their team (hours per week = money saved).

  • Case Studies: Get Specific: "We helped Company X achieve a 25% sales gain" is more powerful than vague claims. Even better if the example is a similar business they recognize.

  • The Cost of Inaction: Sometimes it's not about your price, but the risk of staying with the status quo. Can you quantify missed opportunities, lost revenue, etc.?

Step 4 - Advanced Tactics (Use Carefully)

These are powerful, but can backfire if used without building some rapport first:

  • The Anchor Effect: Start with a slightly higher-priced option, making your "real" offer seem reasonable by comparison. This requires finesse to avoid looking manipulative.

  • "What If?": Break down the investment over time. Is the objection to a $5000 outlay, or does "$500 per month" suddenly sound more manageable?

  • Urgency (Sparingly): Limited-time discounts can work, but overuse makes you seem desperate, not valuable.

Example: Putting it into Practice

Software company sells a tool automating client onboarding.  Prospect hesitates at the price. Instead of dropping the price, the sales rep asks:

  • "Currently, how much time does your team spend onboarding each client?"

  • "What are the pain points with your existing process?"

  • "Have you considered the cost of employee churn due to tedious tasks like this?"

This uncovers potential hidden costs and gets the buyer thinking about the solution's value, not just the price line item.

Important Reminders

  • Know Your Worth: If your price is truly fair, be confident. Constantly caving to this objection erodes your brand value.

  • "No" is OK: Sometimes, it's a bad fit. Better to walk away than acquire a client destined to churn due to unrealistic expectations.

  • Track Your Outcomes: Which questions helped the most? What reframing techniques worked best? Adapt your future conversations based on your successful closes.

Read our blog post on How to write a professional email offering services

The Bottom Line

"That's too expensive" is an invitation to prove your value, not a deal-breaker.  By asking the right questions, focusing on ROI, and demonstrating that you understand their needs, you'll transform this common objection into a closed deal.

Need Help Handling Objections?   Let's tailor a training program for your sales team, equipping them with the tools to confidently address cost concerns and highlight the true value of your solution.

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