We’re back with the latest instalment of Channel Corner with James Drake, tackling a question that continues to challenge partners across the industry.
“How do you handle objections around price?”
In today’s inflation-driven economy, price is almost always part of the conversation. With rising costs, increased taxes and ongoing economic pressures, customers are understandably more cautious about what they’re spending.
Our Managing Director, James Drake, shares his top tips on how to approach these objections.
Shift the conversation:
Firstly, shift the conversation from price to value. Instead of focusing purely on cost, consider what your solution actually delivers, and the value customers receive from it.
Ask yourself: does the price reflect the level of service being provided? And what does the customer gain from this investment? Reframing the conversation in this way helps the customer see beyond the figure.
Price objections often arise when customers compare services at face value. However, not all solutions or vendors offer the same level of quality or support.
Break the offering down:
The product:
When discussing the product, establish whether the comparison is like-for-like.
Are the service levels the same? Make sure the customer understands any differences in performance, availability or features.
Consider the contract length, does it align with their expectations? And is the pricing fixed, or will it be impacted by inflationary increases during the term?
The service:
Beyond the product itself, outlining the level of service included helps customers understand what they are really paying for.
Is there a fully managed service wrapped around the solution? Is hardware included, and if so, is it regularly maintained? These factors can significantly impact both cost and value.
In addition to this, it’s important to consider the support model and the Service Level Agreement (SLA). What SLAs are in place, how strong they are and how consistently they are achieved? All influence the value of a service.
There will often be times where you simply cannot meet the price the customer wants for the level of service they expect. In this case, you need to be honest and realistic with the customer, highlighting the value they will get from choosing your solution over a cheaper competitor.
Ultimately, while price will always play a role in decision-making, focusing on long-term value, reliability and service quality will help customers make informed choices that benefit their business beyond just the initial cost.
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