You know how to outsell your competition but every time you’re about to close another sale you get a customer that says, “Your Price Is Too High. ” I’m going to show you how to respond to “your price is too high.”
Since most car and motorcycle dealerships already have discounted prices and small margins, it’s tough when a salesperson gets a customer that says, “your prices are too high.”
People don’t understand that we can’t just lower our prices.
I’m going to show you how to convert a customer into a buyers when they say your price is too high.
It’s really easy to handle once you find out the science behind it.
It’s important to understand why your customer says it in the first place. Many people will say that it’s because you didn’t build enough value in the product.
For this lesson, we’ll assume that we did build enough value. It just comes down to a customer saying “your price is too high.”
Keep in mind before I share these 3 techniques that everyone wants a good deal. What is a good deal? A good deal is something that they want, at a price they can afford, from a person that will take care of them after the sale as well as during the sale.
Some customers say: “your price is too high” when they can’t afford the payment. This type of customer is on a budget, which is good. It means they’ve thought about this purchase and they know what they can afford. They’re ready to buy.
If you haven’t shown them figures then they could be calculating payments in their head. But, remember, they could be computing it wrong. They probably don’t have the lenders’ latest rate sheet.
They’re not able to figure their trade value. They’re also probably not calculating loan to value. What about the term and rate? If you need a quick way to do all of this then go over to MotoMenus for a free 14-day trial. There’s a link at the bottom of this page.
Customers that are on a monthly budget are trying to be rational about the purchase but they don’t always want you to know that. The reason they may not want you to know that is because we all have egos. We’d like our egos to portray that we’re loaded. With money. We don’t finance things. We don’t need to think things through because we have so much money in the bank that we just buy.
But it’s just the opposite. 76% of American’s live paycheck to paycheck.
We can’t forget this fact because when we do forget it, many salespeople become offended, even our motorcycle dealers and car dealers get offended when a customer says to them, their prices are too high. We also shouldn’t discount our price but we should do the following.
To overcome this type of pricing objection, it’s important to say the following:
Mr & Mrs. Customer. When you say that our price is too high, is it because of the check you’re writing out or the monthly payment?
This question also allows just one answer, and for a customer that is financing helps them say to you, “the monthly payment is too high.”
Some customers say: “your price is too high” when they want to make sure that you’re offering them your best price. Since many salespeople will go to talk to a manager in order to find out if they can lower the price some more, many customers say, “your price is too high”. They say this to find out if they’re dealing with the type of salesperson that isn’t good at selling but is really good at discounting.
This type of customer could be trying to “call your bluff.” They want to get every discount that they can.
To handle this type of customer you can say the following:
Answer: Mr & Mrs. Customer. You’ve chosen one of the hottest selling items that we have. I don’t think my manager would approve this but I’ll give it a shot.
If your customer says, yes then write down their offer and take it to your manager.
But if that doesn’t work.
If your customer wants more like thousands discounted from the price then you can once again use the question: “Are you trying to get that kind of a price because of the check you’re writing out or the monthly payment?”
If the payment is too high then use one of my payment closing techniques. If they’re paying cash by writing a check then use a cash or check closing technique.