Law Firm Pricing and Handling Objections to Your Price
The following article is an excellent article by Dave Dee www.davedee.com for anyone in practice who sells (and we all do).
If you’ve been in practice for any amount of time, you’ve heard the objection, “it costs too much.” Here’s how to overcome this objection and prevent it from occurring.
First, you need to determine whether cost is a real objection or if it’s a condition.
A condition is something that actually prevents a prospect from buying. For example, if the case you are proposing to run you estimate will cost $100,000 and your prospect only has $20,000 , no amount of sales technique is going to change that. That is a condition.
An objection on the other hand is really a request for more information and, in most cases is an indication that you have not properly explained the value proposition to your prospect. It also might indicate that you have done a poor job of prospecting and you’re attracting the wrong type of client.
When a prospect brings up the “it costs too much objection” here are the steps you should take to overcome it and close the sale.
1. Use the “agreement frame”. You never want to argue with your prospect, instead say, “I understand how you feel, it is a large investment.”
2. Isolate. You want to determine if there are any other objections. “Mr. Prospect, other than price, is there anything that would be holding you back from agreeing to this today/”
3. Reframe. This is where you put the price into perspective. I teach many ways to do this but here is a real life example of a salesperson who used this technique on me.
I just moved into a new home and I needed a new TV to mount on the wall. The wall is pretty big so I need at least a 55 inch (“Need” is a strong word, isn’t it?!) I’m looking at LED’s and Plasmas. Plasmas are significantly less expensive and I was thinking about getting one of those until the salesman reframed me by saying:
“Yes, the plasma’s are far less expensive. Let me ask you, do you like sports?” I of course told him yes and how excited I was for the upcoming football season. He said, “Well will the LED TV, it is clear, it’s almost like you’re in the game.” And then he added, “Plus, remember you’re going to have this TV for at least five years.” Sold. He beautifully reframed my “it costs too much objection.”
I’ve given you the framework to overcome this major sales objection. All you need to do is use it.
The reference for this article is http://www.davedee.com/it-costs-too-much/