18 Proven Strategies to Overcome Price Objections (from the Experts)
Price objections are one of the most common sales objections you’ll face. But here’s a key to remember—it’s not always about the price.
A classic sales mantra is if a prospect gives you a price objection, you simply haven't communicated enough value. But often, it's about something else altogether—and they simply use pricing as an easy way out.
Wondering how to overcome price objections? Let’s discuss the reasons why a potential customer might say your price is too high and find out what top sales professionals say to keep the deal moving forward.
Why Prospects Say the Price Is Too High
You know the value of your product, and maybe you’re not willing to budge on price. When it comes to overcoming objections about pricing, the first thing is to understand why they’re bringing this up in the first place. It might be because:
- They don't have enough money. If there is a cash-flow problem for their business, they may need a lower price in order to buy.
- They have the money, but don't want to pay your price. They want a discount and are hoping that complaining about the cost will encourage you to offer one.
- They’re not interested. They’re just too polite to say it.
- They don’t like your product or your company. They might’ve heard bad things about you from their network or from a competitor.
- The perceived value of your product is low. They just don’t see the value of the product for their company or role, or they found a similar product that has a lower price tag.
Basically, every sales objection can be hidden behind the price objection. Sometimes it’s just a smokescreen to cover another underlying issue.
It's your responsibility as a salesperson to find out what the real issue is. To solve their problem, you must first know what it is.
How do you do that?
18 Expert Strategies to Handle Price Objections and Win Back Deals
Facing a price objection? We talked to some of today’s top sales professionals and asked them how they respond when a prospect says the price is too high. Here are their best sales tips to face these rebuttals:
1. Use the Virtual Close to Determine If It’s Really about the Price
—Steli Efti, CEO of Close CRM
Steli recommends asking questions to determine if the price is really what’s holding them back. The right questions might include:
- "Are you trying to get the best possible deal?"
- "Do you have budget constraints?"
- "Is this not the right time?"
- "Are there other reasons, honestly?"
“But don't just take their answers for granted,” he says. “Read between the lines. If you have a feeling that they're not forthright and upfront, eventually, you have to call them out:
"You know what, I have a feeling there's something else. Is there something deeper than that? Do you really love the product?"
“If they insist it's about price, you can ask them:
You: "At which price would you buy?"
You: "If I could offer you this product at $1,500, would we have a deal? Would you buy it right away?"
Prospect: "Yes, I'd buy right away." (Now you know it's really the price)
OR Prospect: "Well, we'd then look into your safety features ..."
“That's what I refer to as the virtual close. You essentially simulate the process that you need to go through with the process to arrive at a buying decision. This way, you can identify any red flags and deal breakers in advance and pre-empt unforeseen surprises.
“Here's another piece of advice to heed: if you never receive the 'It's too expensive' objection from prospective customers, then it's pretty sure that your price is too low, and you should consider raising prices. In fact, for SaaS startups, I often recommend that as a baseline, you should be losing about 20 percent of prospective customers because of the pricing objection.”
2. Shift the Focus Back to Value
—Penny Sinclair, Head of Sales at Worth It Media
“Focusing on value creation, not price, must be the first lesson of every salesperson,” says Penny Sinclair. “So first, I shift the focus back to the value we create for them and how it affects their bottom line (increase revenue, reduce cost). I’ll usually quantify them in number terms, so they could contrast it to the price offered.”
3. Refocus on Problems from Previous Experiences
—Ryan Scollon, Sales & Lead Generation Specialist
“Before discussing prices with a prospect, I always go through a series of questions to find out what they need most and what experiences they have had with other agencies or consultants, ensuring to pay close attention to their answers,” says Ryan Scollon.
“If the prospect then objects to the price, I focus my comeback on their problems and previous experiences instead of the features of the service. The previous agency didn't report enough? Not happy with the quality of inquiries? That's why the price is the price. This approach always works for me, and prospects tend to quickly move on from negotiating the price.”
Using discovery calls in this way can help you identify areas you can add value later on in the sales process.
4. Be Confident in Your Pricing
—Jon Morgan, Founder at Venture Smarter
“It's important to show confidence in our pricing and the value that our solution provides. This can help convey that we stand behind our pricing and believe that it is fair and competitive in the market.”
5. Let Them Elaborate
—Kris Lippi, Real Estate Broker, CEO at ISoldMyHouse
Want to get your prospects talking about what’s really going on behind their pricing objection? Kris recommends an unorthodox approach: Say nothing at all.
“Handle resistance with a brief silence. This pushes them to elaborate on their reasons for objecting to the price.
“Once they've explained what's on their mind, leverage their reasons to emphasize the value of your business. Respond with the sales question, 'How are you currently dealing with the issue that our offer is specifically designed to solve?' This way, their focus is taken away from the premium of your product or service and more on the issues they're facing. This creates an urgency for them to purchase your offer. This also allows you to communicate the merits of what you're selling through the paradigm of their current situation, pushing them to believe that it will cost them more, in the long run, to pass up on your offer.”
6. Target the Exact Objection by Asking Questions
—Matthew Roberts, COO and co-founder of My Choice Financial, an independent insurance aggregator service
“Insurance products can be absolutely expensive, and it’s fairly normal for clients to say that a policy is too expensive,” says Matthew. “When this happens, whether you’re in the insurance industry or not, it can mean that you have more selling to do.
“When this happens to me, what I do is ask questions. This clarifies if I need to sell more or if I need to stop.
“The first question I ask is why they think it’s too expensive. This helps me see if there’s an information gap that needs to be addressed. From there, depending on their answer, I can easily break down exactly why this is the appropriate price for them.
“For instance, I had a conversation where the prospect thought it was too expensive because they knew someone who got the product for a much lower price. I told them about the average insurance price in their area and explained the different personal factors that made this estimated price the way it is. I had a great conversation with the person, and I was able to make them see the value of the product and eventually get them what they needed. That being said, it’s highly important that you ask questions to target their exact objection because, most of the time, it’s a knee-jerk reaction when they don’t understand something.”
7. Understand If It’s about Price or Features
—Will Yang, Head of Growth & Customer Success at Instrumentl
When selling SaaS products, a price objection may be less about the price of the plan, and more about the features that are included.
“When they say 'it's too expensive', there are a few ways to respond,” says Will. “First, you can ask them to clarify their reason for saying that—is it because you're too high-priced? Or is it because you think your product has too many features? Once you know the cause of their concern, you can tailor your response accordingly.
“For example, if they say 'it's too expensive' because of the price, then maybe try explaining why your prices are higher than others and how that impacts the value of your service or product. But if they say 'it's too expensive' because they think a certain feature should be included in your pricing plan, then explain that while this particular feature isn’t included in some plans (and hence the price is lower), it would be available as an add-on at an additional cost if desired by the client.”
8. Use It as an Opportunity to Show Empathy
—Sam Tabak, Board Member at Rabbi Meir Baal Haness Charities
“A price objection isn't necessarily a bad thing for sales professionals,” says Sam. “You can use this situation to show empathy and gather more information about the prospect's concerns. Not only does it show that you care about their financial condition, but it also allows you to understand them better and assess how you can help.
“Listen to your prospect's perspective and proactively ask them how you can make their experience better. That way, it will be easier for you to tailor your sales approach and offer creative solutions that meet the prospect’s needs despite financial constraints. This also increases your likelihood of closing the sale and establishing a long-term relationship with your customer.”
9. Provide Proof
—Jonathan Elster, CEO of EcomHalo
Proof of your product’s value can make a huge difference for prospects who are stalling on price.
“If you have reviews, testimonials, or case studies from previous customers,” suggests Jonathan, “This could help sway the decision and convince your customers that it is worth their investment.”
A free trial is another way to provide proof. “Once the customer sees your product in action and has the chance to use it, they will see the value it brings to them. If you can't offer a free trial, then try a demo.”
10. Understand Whether the Issue Is Cash Flow or Budget
—Grant Polachek, Head of Marketing and Operations at Squadhelp
“What always works for me is responding with a question of whether it's a cash flow or budget issue. Negotiating effectively depends on why the customer thinks your pricing is expensive. The price is most likely out of their budget if they ask for a discount. On the other hand, if they ask for alternative payment terms, the problem comes from their cash flow.
“You can also determine whether the sale will proceed with these issues rather than not moving at all. Once you identify the reason, you can walk them through what works for you and the customer and sell successfully.”
11. Ask Why to See If They’ve Thought It Out
—Logan Mallory, VP at Motivosity
“My go-to response for the ‘it’s too expensive!’ price objection is to ask why. I’ve found that many times it’s a knee-jerk reaction rather than one that’s been fully thought out. Asking the prospect why they feel it’s too expensive both makes them stop to think about their reason and provides me with valuable information to help create my counter reply.
“Once I know what their main objection is, I reframe the conversation to point out what not using our product could end up costing them, and doubling down on the value it creates, both financially and in terms of the business in general.”
12. Offer Alternatives, but Don’t Compromise on Quality
—Garrett Smith, Head of Local SEO for GMB Gorilla
“I immediately offer the client alternative options that better fit their budget. From my experience, clients are less prone to object to the price when they have other options to choose from. It makes them feel more in control of the decision-making. These options can come in the form of a couple of smaller packages or payment plans.
“Whatever you do, don’t compromise on quality, even in the face of price objections. Compromising quality to adjust to a lower price can negatively impact people's perception of your brand. You could lose credibility as a reputable service provider and put off potential clients in the future.”
13. Tell Them They Deserve It
—Robert Johnson, Senior Director of Merchandising at Coast Appliances
“Salespeople have a minute to win it. When a prospect argues about the price being ‘too expensive,’ the normal reaction is to contest it. A good salesperson will never do that. Instead, you acknowledge and straightforwardly agree with the prospect to instantly earn trust in the first 10 seconds.
“Here’s my best tip for a prospect who says, 'it’s too expensive.' With years of sales experience, I have learned that 'mutual agreement' closes a deal quickly. My response would be, 'Yes, because you deserve it!'. This ‘you nailed it’ response prevents rejecting the prospect’s statement to reduce reluctance while providing a good reason to buy the product.”
14. Shift Toward Long-Term Value
—Adriel Hampton, Sales Enablement and Marketing Lead at Accurate Append
"When faced with a prospect concerned about price, we like to empathize with their concern and shift the focus towards the long-term value and the quality of our products. We typically highlight the importance of accurate, reliable data for decision-making and business growth, and follow up with success stories from satisfied clients. From there, we offer a personalized demonstration to showcase the potential ROI and prepare to negotiate pricing options, payment plans, or added value. Our approach builds trust, demonstrates a commitment to client success, and creates a productive conversation focused on their needs and goals rather than just price."
15. Offer a Customized Payment Plan
—Allan Stolc, Founder and CEO of Bankly
“Offer a payment plan to prospects who find your product or service expensive. Break down the cost into smaller, more manageable payments to make it more affordable and accessible to many customers. This helps effectively overcome objections based on upfront costs and allows prospects to consider the purchase based on their ability to pay over time.
“Propose a flexible and customized payment plan that meets the prospect's unique financial situation. Doing so shows your commitment to helping customers achieve their goals and finding a viable solution that works for them. It also gives you a competitive edge over other sales professionals who cannot offer this option, making it easier to seal the deal.”
16. Follow up & Be Flexible
—Jonathan Elster, CEO of EcomHalo
“Don't expect a result immediately. Sometimes it can take time for the customer to appreciate what you are bringing to them. If they are sitting on the fence, then follow up in a few days to see if they have thought further about it.
“Try to be flexible. Leave yourself a little wiggle room. You may be able to offer a small discount, or alternatively, could it be bundled with another product or service to bring even greater value? A compromise is better than nothing at all for both of you. Maybe they can't afford the top-of-the-range model, but is there an alternative that is within their budget?”
17. Ask How Much It Would Cost Not to Buy
—Steli Efti, CEO of Close CRM
“When they buy your product, they'll have to pay the price you agree upon. But not making a buying decision also has a price.
“Postponing to adopt a better solution comes with a cost. Let's take the case of our sales CRM—if we can demonstrate to a prospect that adopting our sales platform would help them generate $15k more in revenue per month than their sales team is generating with their current solution, every month where they stay on their old solution is essentially costing them $15k.”
18. Offer a Money-Back Guarantee
—Riva Jeane May Caburog, PR/Media Coordinator of Nadrich & Cohen Accident Injury Lawyers
“Part of your sales strategy should be offering a money-back guarantee to avoid price objections and for the customer's peace of mind. This alleviates concerns about the quality of your products, especially if the cost is considerably expensive for customers. Promising a refund for their hard-earned money also means that you are confident with the product you sell, which builds credibility and trust.
“A money-back guarantee reduces the perceived risk of the purchase. This encourages prospects to push with the transaction despite their hesitation to make a significant financial commitment. It also reassures them that they will not be stuck with a product that fails to meet their unique needs.”
Build Value, Ask Questions—Overcome Price Objections
Sometimes your product might come with a high price tag. Encourage your prospect to not just look at the sticker price, but instead ask them to focus on the value your solution can provide for them.
Show your prospects the bigger picture—the money they invest into buying your solution will eventually generate a much bigger return (and that it would almost be foolish not to buy).
As you build up the value of your product, provide proof that it’s worth the money, and offer flexible alternatives that help them reach their goals, you’ll not only overcome price objections—you’ll develop loyal customers who appreciate both you and your product.
Want to learn more about negotiating? Get the book straight from Close CEO, Steli Efti, all about improving your negotiation skills: