I was recently asked how to best respond to the “how much does this cost” question.
Here’s the formula and an example:
- State how you’re going to help your prospect kick more ass (achieve their desired outcome).
- Frame the investment into 3 buckets. Notice I’m using the word investment, not price. Investment suggests that you make a return on your money. Price doesn’t.
- Ask what the prospect thinks.
“Increasing the amount of deals you’re closing by 15% requires an investment that typically fits into one of three buckets . . . $100,000, $150,000 and $200,000 . . John can you see yourself falling in that range?”
Negative Responses (red flags)
- “We’re just researching.”
- “We’re just looking.”
- “Everything is on hold right now.”
- “We’re going through some leadership changes.”
- “We only have $500.”
- “It depends.”
- “I don’t know.”
- “We typically spend $50,000 on things like this.”
- “I’d need to involve Betty.”
- “It’s not up to me.”
Pro tip: sales is about leadership. So deliver your response confidently, concisely, and with authority. No “um’s.” Practice the phraseology. Seriously, call me right now and let’s role play using your customer’s desired outcome statement. My mobile number is 954.695.0844.
Everything that happens after this is an objection.
To learn how to diffuse objections, sign up for my free diffusing objections course.