The story goes that Picasso was at a cocktail party when he was approached by an admirer who asked if would please sketch her portrait on a napkin, for which, of course, she would pay him. Politely obliging, he quickly drew her profile. When she asked how much she owed him, he said, “$500.” “$500!” exclaimed the surprised admirer, “but it took you only thirty seconds to do the sketch.” “Yes, Madam,” he replied, “But it took me thirty years to be able to do that in thirty seconds.”
Value vs Cost
I love that story because it illustrates so much about how to deal with price objections:
Know your value and be able to explain it to a buyer. Is your value in your broad
experience? Is it knowledge that only you have? Is it speed of service? Is it your record? Is it awards won for quality of product? Is it the resources you bring to a project? Is it something else? You need to know the value of your business even before your buyer does.
Don’t apologize. Assuming you are charging fees commensurate with your value, stand by your stated quote. If it is not acceptable to a buyer as is, you can sweeten a deal by adding features or re-configuring the terms. If you simply cave in to a lower price, you put into question the quality of what you are selling, your personal trustworthiness and, you set a terrible precedent for future business.
Stay calm. People raise price objections for all kinds of reasons, some legitimate (limited budgets), some not (pressure tactics), some because they aren’t sold on the value of your business. Discover the reason and then choose your response.
- Limited budgets? You can work with clients to deliver what you can within their budget; find additional budgets; educate them further to the value of what you are selling.
- Pressure tactics? Come in prepared to deal with this type of buyer. There are many ways to do that, but at the end of the day, if you know they really want what you have, and if you have sold them successfully, then you can still get your price. Best tip: be prepared to walk away from a bad deal.
- Don’t see value? Go back to educating them as to what they are getting with you and what they might be losing at a lower price or with a competitor.
Picasso and You
Confidence, good salesmanship, and patience paid off for Picasso. As a mentor of mine once said, “There is always money for a good idea.” Buyers need to see that it is a “good idea” to work with you as well.
Anne Miller
Words Matter – Make What You Say Pay!
Photo by Joanna Kosinska on Unsplash
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