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7 Price Objections and What’s Behind Them

 Money and budget issues are tricky, and they are almost never what they first appear.

When buyers say some version of "Money is going to be a problem," they often mean something else. Below are 7 common price objections we hear and what buyers are really thinking when they say them.

Decoding the 7 Types of Price Objections
  1. Honest pushback: "That's a lot. Can we do it for less?"

    What they're thinking: "I just want you to cut the price—I always ask this, and have succeeded in getting price cuts fairly often."

  2. Bluffing: "I don’t have the money—we’ll need to do it for less."

    What they're thinking: "I have the money, but I want to see how low I can get you."

  3. Value challenge: "It costs too much. Money is going to be a problem."

    What they're thinking: "I don't see why we need to spend that much. It doesn't seem worth it."

  4. Competitor pressure: "Your bid isn't as competitive as the others that I've received."

    What they're thinking:

    1. It's true, and they're looking to understand why.
    2. It's true, and they're looking to use it against you as a bargaining chip.
    3. It's not true, and they're just saying it.
  5. Budget: "Money's a problem because it's not in my budget."

    What they're thinking:

    1. It's true, and they'd like to see what they can work out.
    2. It's true, and they're looking to use it against you as a bargaining chip.
    3. It's not true, and they're just saying it.
  6. Reversing direction on you: "Too much money. Call me back if you think there's something you can do."

    What they're thinking:

    1. They're bluffing: "They'll call me back. I'll get them lower."
    2. They're not bluffing: "I hope they can lower the price so I can actually buy it."
  7. Money issue masks non-money problems: Money is going to be a problem.

    What they're thinking: "I have multiple issues holding me back, but I'll just say money is the problem right now."

Previously, we've shared some guidelines for dealing with money objections. You'll be most successful, however, when you find out why the buyer raised questions of price in the first place. Ask why. Ask what's behind the objection. Ask what their reasoning is for why they want you to lower the price.

While the reality is you might not be able to find out why, you certainly don't have a chance unless you dig in and try.

So the next time you get pushback on price, don't take it on its face. Dig in and find out what the buyer is really thinking.

Additional Reading
How to Maximize Prices and Improve Margins

With increased product and service commoditization, sellers in almost every industry complain about price pressure and shrinking margins.

At the same time, there are some sellers and sales organizations who are consistently winning sales against lower-priced competitors and growing their margins.

4 Steps to Overcoming Sales Objections

The word "no" can be a tough pill to swallow.

In selling, when you're trying to meet a quota, squeeze in an extra deal before the end of the quarter, or get your bonus, the word "no" is too often interpreted as a sign to run for the hills when, in fact, it should be the exact opposite.

7 Ways to Deal with Price Objections

In my Twitter activities I came across an excellent post about price objections on Tom Searcy's Hunting Big Sales blog, Price is No Object.

In this post Tom writes, "A lot of the time, however, price is not the only issue and it's merely being used as a smoke screen."