As a sales executive in the fast-paced SaaS industry, you're no stranger to the dreaded pricing objection. You've spent hours crafting the perfect pitch, showcasing your product's impressive features, and building rapport with prospects—only to be met with resistance when it's time to talk numbers. We feel your pain, and that's why we've put together this comprehensive guide on how to tackle the pricing objection head-on. In this blog post, we'll provide you with proven strategies, insightful tips, and real-world examples that will empower you to confidently navigate these challenging conversations and turn hesitant prospects into loyal customers.
In the past, statistics found that counterintuitive to general belief, 34% of B2B buyers focus most on product features while only 27% are driven by price. In addition, a staggering 39% of B2B buyers focus most on the brand they are buying from. However, this changes during a bearish market - the one we’re all grappling with right now.
But even in these times, trust and value remain the two most significant purchase drivers. If you hit these, your job is half done.
And that’s precisely what we are going to talk about in this blog post. We’re here to help you build trust with prospects and communicate value during pricing discussions.
Tips to master pricing discussions during sales calls
- Establish the relevance of your product and the product-market fit
Your preparation for the pricing discussion starts during the discovery call. A compelling discovery call is all about in-depth research of your prospect’s business context, rational and emotional needs, and unearthing their purchase drivers.
With these insights at hand, you will be able to customize both your demo and your pricing discussion to demonstrate the value your prospect can get out of your product.
But you’ve got to go beyond face value during discovery calls to get the right insights. Your prospects’ non-verbal cues and your emotional intelligence are a formidable combination to help you get a holistic picture of their needs and ask the right questions. Use insights from these observations to demonstrate relevance and value for your product.
- Be confident about product pricing
When a salesperson is not confident about product pricing, it shows. From the audible drop in their tone to unsure, lengthy explanations of why their product is worth buying - there are many cues that give away the lack of confidence.
If you don’t believe in the product you are selling, there is no way your customer is going to believe in its value.
It is essential to be assertive and put forth a believable pitch. If you are unsure why your product is priced the way it is, speak to your manager. Get the data points you need to understand the pricing strategy.
Remember, your prospect will have the same questions that you do about pricing. Have them answered beforehand, and go to the pricing discussion well-prepared with all data points.
Your prospect wants to hear from you how much value your product can add to their business and life - make sure your pricing discussion delivers these key messages.
- Make sure that you really understand the product and pricing models
You must understand the product yourself when you’re talking to a customer about it, its selling points and pricing. You’ve got to have everything on your fingertips - features and value to pricing and the reasons for it.
Your in-depth knowledge of the product significantly distinguishes a good sales call from an unsuccessful one.
But you’ve got to dig deeper during a pricing discussion. Beyond product understanding, also understand and communicate pricing models. For example, what volume of purchase would include a discount. Your prospect wants to hear about the discount math - communicate it. If your product has dynamic pricing in the market, share the realistic range.
Essentially, be transparent about pricing and give your prospect just enough information to simplify their decision-making.
- Demonstrate social proof
It’s a bearish market out there, and you can’t blame your prospect for being careful with their budget. The situation becomes especially delicate if your product is one that the prospect has never invested in before.
Customer testimonials are the best tool in your arsenal to communicate value and build confidence in your pricing.
Every good sales pitch needs solid experience-based backing from previous customers. Especially during pricing discussions, social proof can give your prospects confidence because they can now see how investing in your product has helped others like themselves.
- Don’t overdo it!
You know how they say “less is more”? This phrase is your best friend during pricing discussions.
Over-explaining why your product costs what it does shows uncertainty. As a result, your prospect will start to doubt the value you bring to the table.
Your confidence plays an important role in pricing discussions - don’t make your prospect doubt it by overselling.
- Help your prospect convince other decision-makers
You’re done with your pricing discussion. But that’s hardly the end of it. Persistence pays.
The prospect you spoke to isn’t the only one you need to convince. They will have other stakeholders because nearly every organization has buying committees. In fact, according to Gartner, an average of seven decision-makers are involved in most buying decisions in a typical organization of 100-500 employees. This number jumps up significantly when economic headwinds hit.
Help your prospect convince other decision-makers. Recap the key talking points of your pricing discussion, capture questions, objections, and your responses, include social proof and outline the next steps.
With these insights captured in a crisp email, your prospect will have all the data points they need to convince other decision-makers and stakeholders to invest in your product.
Winning trust and establishing value on video calls - behavior AI can help
Money and pricing are sensitive topics. How you handle pricing discussions can make or break the deal.
But once you have built trust and established value, the actual cost will become a secondary purchase driver.
Sybill’s emotional intelligence and behavior AI capabilities help you unearth your prospects’ non-verbal concerns, disagreements, and objections so you can address them proactively. Sybill also captures call highlights, talking points, questions, and synergies. And our magic summaries do most of the heavy-lifting and bear the boredom of note-taking.
All so you never have to spend more than five minutes on your comprehensive follow-up email.
Arm yourself with deep data and emotional insights to do pricing discussions right. Sybill is here to help.