The “How Much Is It?” Question
How to Handle the Prospects “How Much Is It?” Sales Question
“What should I do when a prospect asks the “HOW MUCH IS IT?” question? No matter how I answer, they never buy.”
The “How Much Is It” question can be a dangerous one for salespeople to handle because there are different scenarios that this question can come up with, and each one needs to be responded to a little differently in order to have greater success.
One Popular “How Much Is It?” Scenario:
You are making a cold call to a prospect that has already been contacted numerous times by your firm in the past. After your opening value statement (what you say after “Hello, my name is…”) the prospect cuts you off and asks: “How much is it?”
Now old school sales philosophy will say:
“This is a buying signal. Jump on it!”
But I totally disagree with that line of thinking. I know from first-hand experience that when the “how much is it” question comes up right out of the gate, if I give a price, any price, I’m almost certain to hear “Can’t afford it (click)” followed by a dial tone.
So How Should I Respond?
In tough sales situations, sometimes it’s better to list out the things that you DO know, in order to help you respond to a situation that you don’t know how to handle. Bear with me while I make my point.
Here’s what I DO KNOW from my perspective at this point in the sales call:
- I’m not sure if a need for our solution even exists yet. (They may not need what it is that I have to offer)
- I have not confirmed this prospect’s role in the decision-making process. (he/she may not even be authorized to say “no”, let alone “yes”)
So knowing that I don’t know these two important details yet, I can quickly realize that getting into a pricing discussion will be nothing more than a shot in the dark. And I don’t like those odds.
A simple response like this has been very successful for me:
If you get a “Yes, sure, go ahead” response, great. Go to your next step in the selling process.
BUT WHAT IF I GET A “NO” AND THEY ASK ABOUT THE PRICE AGAIN?
Here are a few choices that have helped me in that scenario:
OPTION 1: Ask, “Do you know enough about our product/service that if the price is right, you would be ready to buy/register/order right now?”
If the answer is YES, then you have a buying signal, and you can move forward.
If the answer is NO, then you need to gain permission to ask them a few questions to identify a problem and qualify them for their role in the decision-making process.
OPTION 2: Say, “Depending on a few factors, pricing will be anywhere from (now give a low and a high), but I would need to ask you a few quick questions first in order to get a more accurate number. Would that be ok?”
OPTION 3: If you know the price they would have to pay, give it and follow it with a hint at an incentive “The price is $_____ HOWEVER, should you decide this is something you truly want, we would do everything possible not to let price stand in the way of us earning your business. I need to ask you a few quick questions to ensure our offer would be a good fit. Would that be ok?”
Now, this doesn’t automatically mean I will cut the price. We can address that once we get to the negotiating phase. Right now, we are just trying to get past the opener phase. Once we legitimately get to the negotiation phase, there are other ways to offer an incentive without cutting the price.
The Other is “How much Is It?” Scenario
The other scenario you might hear the prospect ask, “how much is it?” is during or at the end of your presentation. This could be a buying signal. Here’s how to find out.
Prospect (in middle/after presentation):
“How much is it?”
“Let me get that for you – quick question – other than price, is there anything else stopping us from moving forward now?”
If the prospect says, “no, if we can agree on the price, we are ready to move forward,” or something to that effect, you have a buying signal, and it’s time to close the deal.
You can also ask the question this way:
“Let me get that for you – quick question – if we can agree on pricing, can we move forward now?”
If your prospect says “yes,” you have a true buying signal, and it’s time to close.
– Michael Pedone – Founder of SalesBuzz.com