How to prevent and overcome price objections

prevent and overcome price objections blog

Every Australian trade service business will, at some point, face the unavoidable statement: ‘Your price is too high’. Most customers are prone to feeling a knee-jerk reluctance when hearing the final price. Rather than argue, however, demonstrating your service value, credibility, and ability to build a memorable, trustworthy relationship will more than likely win them over. 

To prevent and address the dreaded price objection, here are some useful strategies you can implement:    

Make a connection

Statistics show that during the awareness stage of buying a service, 19% of clients want to build a connection with the person selling to them. The number leaps to a whopping 60% among those in the consideration stage.

Connecting with potential clients is thus a crucial step in the sales process, helping launch good first impressions and build a foundation of trust. If you’re doing business on the phone, ensure the call starts off in a friendly, helpful, and professional manner. Listen to your prospect’s concerns and inquiries and make them feel valued. If you’re selling your services in person, be sure to dress appropriately, arrive on time, and greet the person with a smile and a handshake. Small friendly gestures go a long way in helping establish a likeable first impression, adding to the value of your business.

Demonstrate credibility

Painting a trusted, reputable image of your business can help justify your final price among customers. Be sure to demonstrate why your service stands out in the industry, and why your trades business is worth relying on.

Much like presenting a resume at a job interview, it’s a good idea to share any testimonials of your workers’ craftsmanship, completed projects, awards, sponsorships, or certificates your business may have with your customer. Sharing any videos or images of your company’s past projects, headquarters, colleagues, and workers, if available, can offer a look into the culture and personality of your business. These function as evidence of your business’s credibility, and help customers determine whether you’re a good fit.

Illustrate value

Offer your clients a thorough walkthrough of all the benefits your service has to offer. Authenticity is key here, and an overly exaggerated or performative presentation will likely raise suspicions. Instead, stay honest in breaking down your services, including the different processes involved in an undertaking a construction, plumbing, or HVAC project. 

Mindset also plays a critical role in this process, if you don’t believe in what you’re selling, chances are the customer won’t either. Confidence will help you navigate the inevitable negotiations, objections, and inquiries. If you know you’re the expert and have faith in your services, you’ll be better equipped to convince customers of the value you’re offering.

Navigate any cost comparisons

Customers are often prone to comparing current prices to those of previous years. Dealing with this usually involves taking these cost comparisons into perspective. Demonstrate the natural tendency for services to grow in costs over time using historical data early on in the project. This reduces the likelihood of ‘sticker shock’ upon revealing your final price, especially if your labour and material costs increased over a year-long project.  

Cost comparisons are often a result of having little knowledge about the actual labour, materials, and equipment provided by your business. Taking the time to explain your estimates line by line using pre-established price books with the customer helps justify the costs. 

Additionally, some may even compare your costs to that of competitors, typically claiming they’ve received lower bids. In these cases, you’ll need to demonstrate your value by highlighting how your procedures and estimated time of completion vary from competitors’. If possible, bring material samples that you and your competitor will likely use, so clients know why they’re paying a higher price for your services. Essentially, comparing the benefits of your services over other companies’ reassures clients they’re paying for top quality.

Ask and listen

To effectively convince customers, you’ll need to learn as much as you can about what they’re looking for. This involves asking questions about their business and financial needs, listening to any questions or concerns, and providing solutions best tailored to their situation.

Asking questions is also critical to dealing with objections as they occur. Try to find out why they’re objecting. Perhaps a competitor has a ‘better’ price or they’re looking to negotiate for lower. In some cases, they may just be unable to afford it, though they believe it’s a fair price otherwise. Narrowing questions can determine what your customers truly need, helping you arrive at their final objection. Here, you can then provide a better deal, alternative financial options, or offer a final, stronger justification for why your business remains their best choice.  

For a trade business, managing multiple projects, clients, and workers while enhancing revenue can often be a challenge. With WorkBuddy, however, you’re offered the digital tools you need to keep your service on top of its game. As a leading job management software in the trade industry, WorkBuddy provides users with an intuitive, easy-to-use platform for tracking operations, creating custom workflows, and seamless invoicing. Streamline each part of your business, from managing new jobs to the billing process. Request a demo with us today to learn more.

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