The Art of Handling ‘I Can Get a Cheaper Option’ Objections

In my years of working in sales, I’ve come to realize that if there’s one obstacle that remains consistent, it’s the ever-present price objection. Whether it’s a casual, “I think I can get this cheaper elsewhere,” or a more pointed, “Your competitor offers this for a lot less,” handling price objections has become a daily aspect of my professional life.

Imagine, you’ve spent hours, days, or even weeks nurturing a relationship with a potential client. You’ve painstakingly explained the features and benefits of your product or service, only to be met with that dreaded statement, “Why is this so expensive? I can get a cheaper option somewhere else.” It’s not just a blow to the momentum you’ve built; it’s a direct challenge to the value proposition you’re offering. And trust me, no matter how seasoned you are, it never gets easier to hear.

But this isn’t just about hurt feelings or a bruised ego. In today’s fiercely competitive market, where customers have endless information at their fingertips and countless options to choose from, mastering the art of handling price objections is not just important—it’s essential.

Why? Because every objection is an opportunity in disguise. It’s a chance to showcase the value of what you’re offering, to differentiate yourself from competitors, and to solidify that crucial relationship with your potential client. It’s about more than just defending your price point. It’s about reaffirming the worth of your product or service and, by extension, the value of the relationship you’re building with your client.

In a world where price comparison is just a click away and where brand loyalty is becoming increasingly rare, understanding how to address and overcome these price objections can be the dividing line between a successful sale and a missed opportunity. As we delve deeper into this topic, I’ll share the strategies and insights I’ve gathered over the years, techniques that have not just helped me retain clients, but also build lasting, value-based relationships.

Remember, it’s not always about being the cheapest option. It’s about being the best option. And to convince your clients of that, you need to be well-equipped to handle their price objections with grace, confidence, and strategy. Let’s dive in.

Table of Contents

Understanding the ‘Cheaper Option’ Objection

Throughout my journey in sales, I’ve often been on the receiving end of the ‘cheaper option’ objection. And over time, I’ve learned that understanding this objection is the key to effectively navigating it. Let’s break it down together.

Difference Between Price and Value

First and foremost, it’s crucial to distinguish between price and value. They might seem interchangeable, but they represent very different concepts.

Price is the actual amount a customer pays for a product or service. It’s quantitative and easily measurable. On the other hand, value refers to the perceived benefits and advantages a product or service brings to the customer. It’s qualitative, often subjective, and can vary from one individual to another.

Imagine buying a designer handbag. The price might be considerably higher than that of a generic brand. But for someone who perceives value in the designer’s craftsmanship, brand reputation, or even the status that comes with it, the higher price is justified. It’s not about the cost—it’s about what the purchase represents to them.

As salespeople, our goal isn’t just to sell a product or service. It’s to communicate its value so effectively that the price becomes a secondary concern. Remember, people don’t mind paying a premium if they believe they’re getting premium value in return.

Common Reasons Why Prospects Raise the ‘Cheaper Option’ Objection

Over the years, I’ve noticed several recurring reasons why prospects bring up the ‘cheaper option’ objection:

Budget Constraints: Sometimes, the prospect genuinely cannot afford your offering. Their budget might be limited, and they’re searching for the most cost-effective solution.
Lack of Perceived Value: If they believe that your offering is similar to a cheaper alternative, they’ll naturally question why they should pay more. This is where our earlier discussion on differentiating between price and value comes into play.
Comparative Shopping: In today’s digital age, customers can easily compare prices with a few clicks. If they’ve found a cheaper alternative elsewhere, they’ll want to know why yours costs more.
Fear of Making a Wrong Decision: No one wants to feel like they’ve been taken for a ride. By pointing out a cheaper alternative, they’re seeking reassurance that they’re making the right choice with your product or service.

Distinguishing Between Genuine Concerns and Negotiating Tactics

Now, here’s where things get interesting. Not every ‘cheaper option’ objection is a genuine concern. Some are merely negotiating tactics. So how do you tell the difference?

Consistent Focus on Price Alone: If a prospect only talks about price and shows no interest in the benefits or value of your offering, they might be using the price objection as a negotiating tool.
Immediate Concessions: When a prospect immediately asks for discounts or concessions before fully understanding your product’s benefits, it’s often a tactic to get a better deal.
Vagueness: If they’re consistently vague about the “cheaper option” they’ve found, unwilling to share details, or shifting in their explanations, they might be bluffing to test your response.

In my experience, it’s essential to approach each ‘cheaper option’ objection with an open mind. Listen actively, ask probing questions, and seek to understand the prospect’s perspective fully. Only then can you determine whether it’s a genuine concern or a tactic and respond appropriately. Remember, every objection is a bridge to a deeper understanding of your client’s needs and a step closer to sealing the deal.

Foundational Principles

Navigating the complex world of sales and specifically addressing price objections requires a deep understanding of some foundational principles. These principles have shaped my approach and have been the cornerstone of my success. Let’s delve into them.

The Psychology Behind Price Objections

At their core, objections, especially those related to price, are rooted in human psychology. Understanding this psychology is akin to having a roadmap of the prospect’s mind.

Fear of Loss: Humans innately fear loss more than they desire gain. This principle, known as loss aversion, means that potential buyers might be more worried about wasting money on a perceived expensive option than they are excited about the benefits they could gain.
Seeking Validation: When a prospect raises a price objection, often, they are looking for validation for their choice. They want to feel secure in their decision-making process and ensure they’re getting the best deal possible.
Value Perception: As previously mentioned, if a prospect doesn’t see the value in a product or service, they’ll naturally question its price. This isn’t necessarily about the actual cost; it’s about the balance between cost and perceived benefits.

The Importance of Believing in Your Product/Service Value

This is a principle I cannot stress enough. If you don’t believe in the value of what you’re offering, how can you expect your prospects to?

Personal Conviction: Your belief in your product or service will radiate in every conversation, every pitch, and every response you give. It’s this conviction that can sway uncertain prospects and reassure them of the value they’re receiving.
In-depth Knowledge: Alongside belief, you need to have an intimate understanding of what you’re selling. This means knowing the ins and outs, strengths, and even potential weaknesses. Only by understanding these can you genuinely project the utmost confidence and belief in your product or service.

Avoiding a Defensive Posture: Responding vs. Reacting

When faced with an objection, especially one centered around price, it’s all too easy to become defensive. But this is a trap I’ve learned to avoid.

Stay Calm and Collected: Remember, an objection isn’t a rejection. It’s a request for more information or a need for reassurance. By staying calm, you’re in a better position to address the concern effectively.
Responding with Empathy: Instead of instantly trying to justify the price, it’s more effective to acknowledge the prospect’s concern and empathize. Phrases like “I understand where you’re coming from…” can make the prospect feel heard and valued.
Asking Probing Questions: Instead of immediately diving into a defense, ask questions. This not only helps you gather more information about the prospect’s reservations but also gives you time to formulate a well-thought-out response.
Reaffirming Value: Once you understand the root of the objection, you can craft a response that highlights the value proposition tailored to the prospect’s specific concern.

Mastering these foundational principles has been instrumental in my sales journey. By understanding the psychology of objections, wholeheartedly believing in the value I’m offering, and ensuring I respond rather than react, I’ve been able to turn many a ‘cheaper option’ objection into a fruitful and mutually beneficial business relationship.

Preemptive Strategies

As with many challenges in sales, prevention is often more effective than cure. By implementing preemptive strategies, you can often mitigate or even prevent the ‘cheaper option’ objection altogether. Here’s how I’ve learned to integrate these strategies into my sales process.

Building Value from the Beginning

The key to sidestepping the treacherous waters of price objections often lies in setting the stage right from the outset.

Tailored Value Proposition: Instead of leading with generic benefits, tailor your pitch to emphasize how your product or service addresses the unique needs and pain points of the prospect. This personal touch can make all the difference in elevating perceived value.
Share Success Stories: Without delving into detailed case studies, you can still share anecdotes or testimonials that resonate with the prospect’s situation. Highlighting how others have benefited can create a compelling narrative of value.
Educate the Prospect: Use data, visuals, or demonstrations to make the prospect understand the features and benefits more clearly. An informed prospect is more likely to see the value.

Positioning Your Offering as a Solution to Specific Problems

Every prospect approaches a sale with a set of challenges they hope your product or service will solve.

Problem-Solution Fit: Begin the conversation by understanding the prospect’s specific challenges. Then, showcase how your offering is tailor-made to address those very problems.
Anticipate and Address: If you know common issues faced by clients in their industry or niche, proactively bring them up and discuss how your offering can provide solutions. This proactive approach can solidify your position as a trusted advisor rather than just a salesperson.
Highlight Unique Differentiators: Discuss what sets your offering apart from cheaper alternatives, especially in terms of solving the prospect’s problems. It’s not about why you’re more expensive; it’s about why you’re worth it.

Effective Questioning to Uncover Hidden Needs and Priorities

Sometimes, the most apparent problem isn’t the primary concern. Delving deeper can help in aligning your pitch better.

Open-Ended Questions: Instead of yes/no questions use queries that encourage detailed answers. For instance, “Can you describe some of the challenges you’re currently facing?”
Listen Actively: As the prospect speaks, don’t just wait for your turn to reply. Truly listen, take notes, and look for underlying issues or needs that they might not even be consciously aware of.
Follow-Up Questions: If a prospect mentions a concern, don’t just address it and move on. Dive deeper with follow-up questions to truly understand the root of the issue. “You mentioned that you’re struggling with X. Can you explain how that’s impacting your business?”

Incorporating these preemptive strategies into your sales approach can significantly reduce the instances of the ‘cheaper option’ objection. By building value from the start, positioning your product or service as the ideal solution, and truly understanding the prospect’s needs, you set the stage for a more seamless and successful sales process.

Responsive Techniques

Even with the best preemptive strategies in place, objections can and will arise. It’s how you respond to these objections that can make the difference between a lost sale and a successful conversion. Here are some tried-and-tested techniques I’ve employed over the years when faced with the ‘cheaper option’ objection.

Active Listening: Ensuring the Prospect Feels Heard

Active listening goes beyond merely hearing the words spoken by the prospect.

Non-verbal Cues: Maintain eye contact, nod your head, and use body language that shows you’re fully engaged in the conversation.
Paraphrasing: After the prospect has spoken, paraphrase their concerns to ensure you’ve understood them correctly. “So, if I understand correctly, your main concern is…”
Avoid Interruptions: Allow the prospect to fully express their thoughts before responding. This patience shows respect and builds trust.

The “Feel-Felt-Found” Technique

This classic sales technique has stood the test of time because of its efficacy.

Feel: Empathize with the prospect’s concern. “I understand how you feel about the price difference…”
Felt: Share an anecdote or example of another client who had a similar concern. “In fact, I had a client who felt the same way initially…”
Found: Describe the positive outcome or realization that the previous client came to. “However, they found that by investing a bit more upfront, they saved considerably in the long run…”

Addressing the Root Cause, Not Just the Symptom

The price objection might be a symptom of a deeper, underlying concern.

Ask Probing Questions: Dive deeper to uncover the real issue. “Apart from the price, are there any other concerns you have?”
Discuss Underlying Issues: Address these underlying concerns directly, showing that you’re invested in providing a comprehensive solution.

Shifting the Conversation from Price to ROI (Return on Investment)

Steer the conversation from immediate costs to long-term value.

Break Down Costs: Discuss the long-term savings or benefits the prospect will enjoy, which might offset the higher initial price.
Highlight Long-Term Value: Focus on how your offering can provide lasting solutions, reduce future costs, or enhance profitability in the long run.

Presenting Testimonials and Results Without Going into Case Studies

While case studies are off the table, testimonials and results still provide powerful validation.

Share Testimonials: Present genuine testimonials that echo the prospect’s concerns and show how others found value in your offering.
Highlight Tangible Results: Instead of broad statements, provide specific metrics or results past clients have achieved. “One of our clients saw a 25% increase in efficiency after implementing our solution.”

In the world of sales, responsiveness is key. Every objection, including the ‘cheaper option’ one, is an invitation to further the conversation, deepen the relationship, and reiterate the unique value you bring to the table. With these responsive techniques, you can navigate objections with grace and confidence, turning potential roadblocks into stepping stones toward a successful sale.

The Art of Re-framing

One of the most potent tools in handling objections, especially those tied to price, is the art of re-framing. Essentially, it’s about shifting the prospect’s perspective, from focusing solely on the immediate price to considering broader, often more impactful, implications. Here’s how I’ve mastered the art of re-framing to tackle the ‘cheaper option’ objection.

Introducing the Cost of Inaction or a Cheaper, Inferior Solution

Many times, prospects don’t consider the potential downside of not taking action or choosing a lesser solution.

The Hidden Costs: It’s crucial to discuss not just the direct costs but also the indirect ones. “While the upfront price might be lower elsewhere, have you considered the recurring costs of maintenance, or the potential for inefficiencies?”
Risk Factors: A cheaper solution might come with hidden risks, like poor customer support, lack of durability, or outdated technology. Highlighting these can help the prospect see beyond just the price tag.

Demonstrating the Long-term Benefits and Value Addition

The initial price is just one part of the equation. The long-term value often paints a more compelling picture.

Lifetime Value: Break down the potential long-term savings or gains. “While the initial investment might seem higher, over a span of five years, the superior efficiency and lower maintenance costs mean you’ll actually save money.”
Non-monetary Value: Not all benefits can be quantified monetarily. Discuss intangible benefits such as peace of mind, time savings, or enhanced brand reputation that your offering provides.

Sharing Stories of Other Clients Who Made a Decision Based on Value Over Price

Stories can be powerful tools of persuasion. They resonate on an emotional level and offer relatable scenarios.

A Tale of Two Choices: Share a story where a client, faced with a similar decision, chose a cheaper alternative, only to later realize the pitfalls and eventually switch to your solution.
The Value-driven Decision: Narrate an instance where a client prioritized value over price from the get-go, highlighting the long-term benefits they reaped. “One of our clients had a similar concern. However, they chose to prioritize quality and long-term value. Today, they credit that decision as one of the best they’ve made for their business.”

Re-framing isn’t about dismissing a prospect’s concerns or manipulating them. It’s about broadening their perspective and helping them see the bigger picture. When they recognize the long-term implications of their choices, they are better equipped to make decisions that serve their best interests. And in that expanded viewpoint, the immediate price often becomes a secondary concern, overshadowed by the promise of enduring value.

Handling Persistent Price Pushback

Encountering price objections is a regular part of sales, but what do you do when the pushback is persistent? This can be one of the trickiest situations to navigate, but over time, I’ve learned that with the right approach, even these can be turned into constructive dialogues or insightful learning experiences. Here’s how.

Knowing When to Offer a Concession Without Compromising Your Position

Offering a concession can be a strategic move, but it’s essential to ensure it doesn’t diminish the value of your offering or set an unwanted precedent.

Value-Added Concessions: Instead of a direct price reduction, consider offering additional services or features at the same price. This not only retains the value perception but can enhance it.
Limited-Time Offers: If you choose to provide a discount, frame it as a limited-time opportunity. This creates urgency without making the reduced price the new norm.
Volume or Long-term Commitment: Consider offering price breaks for bulk purchases or longer-term contracts. This ensures you’re getting something valuable in return – commitment.

The Importance of Setting and Understanding Your Boundaries

It’s crucial to know your worth and the value of what you’re offering.

Pre-Established Bottom Line: Before any negotiation, determine your lowest acceptable price or terms. This ensures you never agree to a deal that’s not beneficial or sustainable.
Be Transparent: If a prospect’s request goes beyond what you can offer, be honest. “I genuinely wish I could accommodate that, but given the quality and support we provide, this is the best possible price.”
Avoid Desperation: Remember, not every sale is a good sale. Being overly eager can not only hurt the current negotiation but can impact future interactions.

Identifying When It’s Best to Walk Away

Sometimes, the best decision is to part ways amicably.

Mismatched Priorities: If a prospect’s primary concern is price and they don’t see or value the unique benefits of your offering, they might not be the right fit for your product or service.
Preserve Your Brand’s Value: Consistently agreeing to lower prices or unfavorable terms can devalue your offering in the market.
Open the Door for Future Interactions: Instead of ending on a negative note, frame it positively. “I understand our current offering doesn’t align with your budget. However, please keep us in mind for future projects or needs, as I believe we could offer immense value.”

Persistent price pushback can be challenging, but it also offers a chance for introspection. Is your value proposition clear? Are you targeting the right audience? Are there market factors at play? By understanding the nuances of handling persistent objections and by continually refining your approach, you not only improve your negotiation skills but also gain deeper insights into your market and clientele.

Beyond the Objection- Building Strong Relationships

While handling objections is a vital part of sales, it’s only one component of the broader relationship-building process. The relationships you nurture can become the backbone of your business, often leading to repeat sales, referrals, and a strong reputation in the industry. Here’s how I’ve consistently built and maintained these relationships, regardless of the outcome of any individual sale.

Cultivating Trust Through Transparency and Authenticity

Trust isn’t just a word; it’s the foundation of every lasting business relationship.

Open Communication: Always be upfront about what your product or service can and cannot do. Overselling might get you a quick win, but it’ll backfire in the long run.
Admit Mistakes: Nobody’s perfect. If there’s an oversight or an error on your end, own up to it and work on a solution. This honesty often strengthens the bond of trust.
Share Personal Insights: Authenticity often comes from personal connections. Share relevant personal stories or experiences, making interactions feel genuine and less transactional.

How to Position Yourself as a Consultant, Not Just a Salesperson

Being seen as a consultant changes the dynamics of the relationship. It transforms you from someone trying to make a sale to a trusted advisor.

Lead with Value: Always start by understanding the prospect’s needs and challenges. Offer insights, recommendations, or resources even before discussing your product or service.
Continuous Learning: Stay updated with industry trends, challenges, and solutions. This ensures your advice remains relevant and valuable.
Ask Probing Questions: Instead of pushing a one-size-fits-all solution, dive deep to understand the unique nuances of the prospect’s situation. Tailor your recommendations accordingly.

Maintaining a Positive Relationship Even if the Sale Doesn’t Go Through

Not every interaction will lead to a sale, but every interaction can still be a positive one.

Part on Good Terms: If it’s evident that the sale won’t materialize, be gracious. Express genuine hope that you might work together in the future.
Provide Value Regardless: Share resources, insights, or contacts that might help them, even if it doesn’t directly benefit you. This goodwill gesture is often remembered.
Stay in Touch: Periodically check in with a helpful article, a relevant industry update, or just a friendly note. This keeps the relationship warm and active.

In my experience, the most successful salespeople aren’t those who can handle objections the best, but those who master the art of relationship-building. Sales come and go, but relationships, built on trust and genuine connections, can last a lifetime and yield dividends far beyond any single transaction.

Continuous Improvement

In the ever-evolving landscape of business, resting on one’s laurels is not an option. Every interaction, every objection, and every sale presents an opportunity to learn and improve. Here’s how I’ve approached continuous improvement in my journey, ensuring that I stay ahead of the curve and consistently offer unparalleled value to my prospects and clients.

Seeking Feedback to Refine Your Approach

Feedback, whether positive or negative, is a goldmine for improvement.

Post-Interaction Reflection: After each sales conversation, take a moment to reflect. What went well? Where did you face resistance? How can you improve?
Direct Feedback from Prospects: Don’t shy away from asking prospects or clients for feedback. Simple questions like, “What could I have done better?” or “Was there a part of our discussion that wasn’t clear?” can offer invaluable insights.
Peer Review: Occasionally, have a colleague sit in on your sales calls or review your proposals. A fresh set of eyes can often spot areas of improvement that you might have overlooked.

Staying Updated on Market Trends and Competitor Offerings

The market is dynamic, and what’s relevant today might be obsolete tomorrow.

Regular Industry Research: Dedicate time weekly or monthly to read industry publications, blogs, and news. Understand the emerging trends and challenges.
Competitor Analysis: Regularly review competitors’ offerings. Are they introducing new features? How are they positioning themselves? This helps you anticipate and prepare for objections related to competitor comparisons.
Engage in Industry Forums and Groups: Participate in industry-related forums, social media groups, or seminars. These platforms often host discussions on emerging trends, challenges, and solutions.

Investing in Training and Skill Development for Objection Handling

Formal training can provide structured learning and exposure to best practices.

Workshops and Seminars: Attend workshops or seminars focused on sales techniques, negotiation skills, and objection handling. Learning from industry experts can provide fresh perspectives.
Role-Playing: Engage in role-playing sessions with colleagues. Simulate real-life sales scenarios, especially challenging ones, to refine your objection-handling techniques.
Books and Online Courses: There’s a plethora of resources available, from classic sales books to online courses. Dedicate time to continuous learning, absorbing new strategies, and refining your approach.

The path to mastery in sales, or any profession for that matter, is paved with continuous improvement. Embracing a growth mindset, actively seeking feedback, staying updated, and investing in skill development are not just strategies but essential components of a successful sales career. As the adage goes, “The best way to predict the future is to create it,” and by committing to continuous improvement, you’re doing just that.

As we wrap up this deep dive into handling objections and building meaningful relationships, it’s essential to revisit and underscore a few fundamental truths.

Firstly, objections, as daunting as they might seem, are, in reality, golden opportunities. Every time a prospect raises an objection, they are essentially voicing an underlying concern, need, or desire. It’s an invitation for dialogue, a chance to clarify, educate, and align your offering even more closely with their requirements. Viewing objections in this light transforms them from hurdles to bridges, from problems to solutions.

Moreover, the realm of sales is neither static nor stagnant. As the market evolves, as consumer behaviors shift, and as competition intensifies, the nature and frequency of objections will change. This is where the importance of continuous learning and adaptation comes into play. Just as athletes constantly train to enhance their performance, sales professionals must also commit to sharpening their skills, refining their approaches, and staying updated.

Remember, the goal is not just to make a sale, but to forge a connection, solve a problem, and add genuine value. And in this endeavor, every objection encountered is not a setback but a step forward, a lesson learned, a relationship strengthened.

So, as you move forward in your sales journey, embrace objections with open arms. Let them be your teachers, your guides, and sometimes, even your allies. And with continuous learning as your compass, you’ll not only navigate the challenging terrains of sales but also chart new horizons of success and fulfillment.