Selling Value Over Price
Odds are that your product is not the lowest-priced offering in your industry. But don't think of this as a problem; in fact, a higher price can actually help you in your sales efforts. After all, everyone knows the saying, 'You get what you pay for.' If you can show your prospects that your product's value is greater than the price you're asking, you won't need to worry about cheaper competitors. Selling value instead of selling based on price will also get you a better caliber of customer—one less likely to dump you the second a better deal comes along.
Most sales that fail do so because of fear. Any purchase requires a change in the prospect's life, and change is scary. The bigger the change's impact will be, the more frightening it is. And cost plays a big role in a purchase's change factor. If a prospect is faced with spending a lot of money on a product it means he won't have that money around to spend on other potential purchases. Expensive purchases also evoke a fear of getting ripped off. Spending more money than a product is worth is embarrassing and can cause major problems down the line.
You can overcome these two obstacles—fear of change and fear of being cheated—by showing your prospect WHY your product costs what it does and HOW the product will be a positive change in his life and not a negative one. If you can prove these two points to a prospect's satisfaction, you shouldn't have much trouble closing the sale.
Testimonials and Reviews
Customer testimonials, scientific data, and product reviews are all great ways to prove your point. Testimonials are particularly helpful in paving your way to the close because they tell a story of someone in your prospect's situation who benefited from having your product. Case studies and published reviews also help by showing that neutral parties also approve of your product's value. For a little extra punch, you can arrange for your prospect to speak with one of your current customers, preferably someone in a similar industry or life situation as your prospect.
Obviously, you should ask a customer who will definitely have good things to say about your product!
Give a Chance to Try Before Purchase
Another way to reduce your prospect's perception of risk and give concrete proof of the product's value is to give him a chance to try the product before purchasing it. Ideally, you can offer reluctant prospects a free trial of your product for a few days or weeks. If your company or the nature of the product makes free trials difficult, see if you can get a demo model to take along on appointments. If your prospect can handle the product, use it briefly and see how it works in real life, he'll be more open to making the purchase.
Offer a Guarantee
Finally, expensive purchases will be a little less worrisome if you can offer a guarantee. Warranties and money-back offers reduce a new customer's risk. If your product is of a type that might break down, a cheap or even free maintenance plan is another option. You may also be able to offer a pseudo-trial by arranging for a billing delay for a nervous prospect. This gives him a chance to put the product through its paces before he needs to hand over his money to your company.
Demonstrating the product's value for a prospect is often enough to derail price objections entirely. However, a prospect who has already done some research may have uncovered details on your competitors' prices. If your prospect brings up a specific competitor who offers a similar product at a lower price, dig for more details. If the offered price is much lower than yours, odds are that the competitor's product lacks important features or else there are hidden costs not reflected in the published amount.