298 How to Respond to the Too Early "What's it cost?" Question - The Art of Sales with Art Sobczak

Summary3 min read

Episode Summary: "How to Respond to the Too Early 'What's it cost?' Question"

In Episode 298 of "The Art of Sales with Art Sobczak," released on August 22, 2024, host Art Sobczak delves into the common challenge sales professionals face: responding to early-stage price inquiries from potential clients. Art provides actionable strategies to navigate these conversations effectively, ensuring that the focus remains on value rather than just cost.

Handling Early Price Questions

Timestamp [00:24]
Art introduces the episode by addressing a frequent scenario where prospects inquire about pricing before a salesperson has the opportunity to establish value or understand the client's needs. Recognizing the potential pitfalls of discussing price too soon, Art emphasizes the importance of guiding the conversation towards understanding the client's objectives first.

A Personal Story Illustrating Effective Response

Timestamp [00:24] - [06:57]
Art shares a personal anecdote involving a telemarketing call he received about his daughter's softball career. Despite initially perceiving the call as a typical solicitation, he found himself engaged when the caller presented a genuine value proposition without immediately diving into pricing.

Key Quote:
Art: "It's like anything else. You can invest a little or you can invest more. It really depends on what you want." [03:15]
This response effectively shifted the focus from cost to the client's desires and needs, allowing for a more meaningful dialogue about value.

Art recounts how the caller asked insightful questions and presented services tailored to his daughter's athletic potential, avoiding a hard sell on pricing. This approach not only piqued his interest but also demonstrated the effectiveness of delaying price discussions until after establishing value.

Strategies for Responding to Early Price Inquiries

Art outlines several techniques to manage early-stage price questions gracefully:

Deferring with Context:
- Example Response:
  "It depends on several variables depending upon what you're really looking for. So let's talk about that now." [02:45]
  This encourages the prospect to elaborate on their needs, allowing the salesperson to tailor the pricing discussion accordingly.
Providing a Range Without Commitment:
- Example Response:
  "It could range from several thousand dollars or it could be several dollars. Let's look at your situation and see where you would fall." [04:30]
  By offering a broad range, the salesperson acknowledges the prospect's concern without pinning down a specific figure prematurely.
Encouraging Discussion on Needs:
- Example Response:
  "It could be as low as $10 or it could be as high as $10,000. You'd probably be somewhere in between. Let's look at your situation and what you're really looking for." [05:00]
  This response validates the prospect's interest in pricing while steering the conversation towards understanding their unique requirements.

Practical Assignment for Listeners

Art challenges listeners to "think of the situations where you get the early 'what's the price?' question." He advises them to "write out your own responses, edit them, tweak them, recite them, and practice them" until they can handle such inquiries smoothly. The goal is to "get them talking about what they really want," thereby allowing the salesperson to position their value proposition more effectively than the quoted price.

Closing the Loop: Reflecting on the Personal Story

Timestamp [06:57] - [07:57]
Art revisits his earlier story about his daughter’s athletic career, sharing the bittersweet outcome of her final high school game and her decision not to pursue college athletics despite having the potential. This narrative serves to underline the importance of creating meaningful connections and focusing on value, rather than just transactional interactions centered around price.

Quote of the Day

Timestamp [07:02]
Art concludes the episode with an insightful quote from Thomas Watson Sr., founder of IBM:

"If you want to increase your success rate, double your failure rate."

Art interprets this by encouraging sales professionals to embrace taking more actions, thereby increasing their chances of success, rather than fearing failure.

Key Takeaways

Delay Price Discussions: Avoid mentioning cost early in the conversation to focus on understanding the client's needs and establishing value.
Use Flexible Responses: Employ responses that provide a pricing range or depend on the client's specific situation to keep the conversation open and client-centered.
Prepare and Practice: Develop and rehearse tailored responses to handle early price inquiries confidently and effectively.
Focus on Value: Shift the discussion from price to the value and solutions you offer, enhancing the client's perception of worth over cost.

By implementing these strategies, sales professionals can foster more meaningful dialogues, better understand client needs, and ultimately enhance their ability to close deals by emphasizing value over price.

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Transcript4 lines

[00:03]
A
You are listening to the Art of Sales. Everyone sells every day and this is your source for conversational real world sales and prospecting methods that you are comfortable using and that get results you'll help people buy instead of pushing them into being sold. Here's your host Art subcheck.
[00:24]
B
I had a question from a client on how to handle the early price question. You know that question you get before you've had a chance to ask questions or establish value. So I was looking up some of the past training and tips and suggestions that I had written and spoken about this over the years and I came across a situation that I had forgotten about. So let me tell you the story. My daughter was a very good fast pitch softball pitcher. She had played club travel ball at a high level since sixth grade and made the varsity as a freshman in high school. She had a really good season her freshman year, finished among the top varsity pitchers in the state in the state's largest high school division, and also received a few city and state postseason honors as a freshman. Now, a couple weeks after the season, I got what I initially thought was a typical telemarketing call, solicitation. And as this guy started talking, for some reason I paid attention to what he was saying. And it turns out he was with a sports marketing firm that represents high school athletes that they have evaluated to have some college potential and they present them, market them to universities. So when I heard that, I recall laughing and saying to him, she's just a freshman. And he replied, oh, we don't even talk to seniors. The earlier we can work with someone, the better. Now, at the time, I didn't even know such a thing existed, but it made sense and I was intrigued. And of course, as a parent of an athlete, every parent thinks that, oh, my kid's going to go to college. And by the way, this was 20 years ago. I'm sure today these services are probably trying to get parents to hire them when the kids are in preschool. Anyway, this guy's pretty good. So as a smart salesperson, he didn't talk about price at all. He asked me questions and explained their services and credentials pretty well. And finally I said to him, okay, so I imagine you don't do this for free. How much? And in a nonchalant way he said, well, you know, it's like anything else. You can invest a little or you can invest more. It really depends on what you want. And then we got into a conversation without talking about the price of his services until much later. So that is the basis for Today's episode, you using something similar. When you get that early what does it cost question. And again, what this guy said was brilliant. I'll repeat it for you. It's like anything else. You can invest a little or you can invest more. It really depends on what you want. That is a great way to get their mind off of just the price of something and instead shift it to what they want. And then also helping them realize that the price will be dependent on that. Let me give you a couple of other examples. I would suggest you write these down. So again, in response to the way too early what's your price or what does it cost Question, you could say it depends on several variables depending upon what you're really looking for. So let's talk about that now. I'm sure there are some people out there listening who are saying, yeah, but there are some people, they just want the price. Okay, well, we can still satisfy them while not committing to a single price and then scaring them and then blowing them out of the water with it. And we do that with this. Well, it could range. It could be several thousand dollars or it could be several dollars. Let's look at your situation and see where you would fall. So again, what we're doing here is saying it could range from. And then you could say several dollars or several thousand, or you could say it could be as low as $10 or it could be as high as 10,000. You'd probably be somewhere in between. Let's look at your situation and what you're really looking for. So here's your assignment. Think of the situations where you get the early what's the price Question. You don't want to give the price just yet since they will view it through whatever preconceived lens they have in their mind. And that likely isn't one that shows the full value that they could get. So then, using these examples and the framework, write out your own responses. Edit them, tweak them, recite them, practice them, get smooth with it. So the next time you get that question, you're going to be able to get them talking about what they really want. So then you can position the value of what you provide as much higher than the price you ultimately quote. Oh, by the way, since I opened up the loop, I should close it here. My daughter went on to have a great high school and club ball career. Won many awards. Unfortunately, her team lost her last game in high school, the state championship game, her final season or senior season. And she also decided early in her senior season that she did not want to continue and play in college, although she could have played at the Division 1 level. And as many parents of athletes will agree, those were some great memories that we'll always cherish. All right, hey, you know what time it is?
[06:58]
A
The Art of the sales this Quote of the day.
[07:02]
B
That's right, it's time for the quote of the day. Today's quote comes from Thomas Watson Sr. Who was the founder of IBM. And Thomas said, if you want to increase your success rate, double your failure rate. And the only problem I have with that is, is that I don't like to call what happens to you failure. Right. But it is an indication that if you want to get more success, we should be out there trying more. Right? Hey, as I mentioned a couple episodes ago, I just had my website revise and that just that fact alone should actually mean nothing to you. Of course. But what might mean something is that there are lots of valuable resources there that could help you prospect and sell more, do it more effectively without rejection. And I've got several free downloads right there on the homepage. I've got links to all of the past podcast episodes all in one place. You can access my blog there with hundreds of valuable tips. You can get on the priority list to be one of the first to be notified of my upcoming brand new unique coaching and training program for sales professionals which is going to be launched by year end. So that site is smart calling.com smartcalling.com hey, thank you so much for investing your valuable sales time with me today. Until next time, go out and make it your best sales day ever. I'm our subject.