Cost is a sticking point for almost all customers and a common reason why deals of all kinds fail. But don't get discouraged.
So you've developed a great rapport with a potential customer. She's happy with the risk management solutions you've proposed. A sale seems imminent. Then you get to the price. Suddenly, your relationship-building efforts dissolve into a negotiation that might seem more about dollars than sense.
Don't get discouraged. Cost is a sticking point for almost all customers and a common reason why deals of all kinds fail. But before you let price jeopardize your next sale, arm yourself with strategies to help customers understand that the bottom line shouldn't always be the last word when they're considering your proposals. Consider these four simple approaches:
Listening to the specifics of the potential customer's objections is the first step in figuring out a strategy to overcome them. Two areas to which you should pay the closest attention are specifics about why the prospective customer is resisting your price and how he determined the competition's prices. This will help you empathize with potential clients. It also allows you to introduce considerations besides price, such as the value of the peace of mind that comes from a stress-free claims process, the risk management resources your agency can offer, etc.
2. Do the Math for Customers
Prospective customers may not realize how producers and underwriters arrive at the price for a specific policy. That's why it's vital for you to explain it fully with concrete examples and — even more importantly — offer ways to potentially reduce costs down the road. Assure the potential customer you've personally checked for all potential discounts, keeping the fight for the sale alive while providing additional value and insight.
See also: Answer to a Better Customer Experience?
3. Justify the Price
Lots of sales pros will tell you to never apologize for price. It's sound advice. Your message should be that the price matches the value of what you're offering and that you assume the potential buyer will agree.
For example, you can tout the benefits of your claims department and how the producer and adjusting teams will support the customer at every step of the process; give a specific example of a time when a current or past client benefited from your agency's superior value and service; or emphasize that an insurance policy is a key part of protecting and preserving life's most important purchases.
4. Stand Your Ground (or Walk Away)
Everyone's idea of negotiation is a little different. In some cases, the right approach to a potential client balking at a price you've quoted is to stand your ground once you've demonstrated you believe in the value of your coverage and service. It just might be the tactic that gets the customer ready to buy.
See also: Payoff From Great Customer Experience?
Other times, a potential buyer will force you to really stand behind the value of your products... by giving up the sale. Some buyers have a maximum they're willing or able to spend, while others will go with the cheapest option no matter how many different ways you spell out why that might be a bad idea. One of the key elements of being a successful seller is knowing when to give up on a prospect and move on to more lucrative opportunities.
Have you had success with potential customers who are only focused on price? Share your solutions in the comments section below.