Latest / Sales Leadership with Fexingo: Quota Carriers, Sales Managers, and Revenue Teams / How to Handle a Prospect Who Attacks Your Price
Transcript
- Lucas: So you're in a discovery call, things are going well, and then the prospect says: 'Your price is way too high.' Before you've even shown a proposal. What do you do? Luna: I think most reps' instinct is to either defend the price or immediately offer a discount. Both are usually the wrong move. Lucas: Exactly. That first reaction — defending or discounting — is a trap because it signals that maybe the price really is too high. You're implicitly agreeing with the objection. Luna: So what's the alternative? How do you handle that without sounding dismissive? Lucas: There's a concept I like called 'value anchoring.' It's a framing technique where you position your price in relation to something more expensive, so your offering looks reasonable by comparison. Luna: Right, like the classic menu trick where you list a $100 steak so the $40 pasta seems like a deal. Lucas: Exactly. In sales, you can do that by presenting a higher-priced option first — even if you don't expect them to buy it. It recalibrates their reference point. Luna: That feels a little manipulative, doesn't it? I mean, if the customer finds out later, it could backfire. Lucas: It can, if it's fake. But if the higher-priced option is a real tier you offer, it's not manipulation — it's just presenting your full range. Basecamp, the project management software, does this really transparently. Luna: How so? Lucas: On their pricing page, they list three plans: a basic plan at $15 a month, a business plan at $99, and then an unlimited plan at $149. The $149 plan is clearly meant for larger teams, but just seeing it makes the $99 plan feel like the smart middle ground. And they're completely upfront about what each tier includes. Luna: So the anchor isn't a decoy — it's a legitimate option. That makes sense. Lucas: Right. When a prospect attacks your price, your first move is to ask: 'Compared to what?' They might be comparing you to a stripped-down competitor, or to doing nothing. Once you know their reference point, you can re-anchor. Luna: But what if they're comparing you to a cheaper alternative that's actually good enough? How do you win then? Lucas: You don't try to win on price. Instead, you highlight the cost of switching or the hidden costs of the cheaper option. For example, a cheaper CRM might lack integrations that your team needs, costing hours of manual data entry. Luna: So you reframe the conversation from 'expensive vs cheap' to 'value vs cost'. Lucas: Exactly. And sometimes, the best response is no response. If they're just testing you, stay silent for a few seconds. It forces them to elaborate, and often they reveal the real objection. Luna: I've seen that work. Silence is uncomfortable, but it's powerful. Lucas: Absolutely. And if they still insist on a discount, you can offer a concession that costs you little but gives them a win — like extended payment terms instead of a lower price. Luna: That's a good one. Net 60 instead of net 30 can be very appealing to a CFO. Lucas: And it doesn't hurt your margins. But look, sometimes the price really is too high for what they need. In that case, the best move is to walk away or down-sell them to a lower tier. Luna: Knowing when to walk away is underrated. It preserves your credibility. Lucas: It does. And it leaves the door open for them to come back later if their budget changes. I've seen deals close six months later because the rep handled the price objection professionally. Luna: That's a good note to end on. But before we wrap, I want to say — if these conversations have helped you sharpen your sales approach, even in a small way, consider supporting the show. Lucas: Yeah, a couple of dollars a month genuinely keeps these episodes ad-free and accessible. You can find us at buy me a coffee dot com slash fexingo. Luna: It makes a real difference, and it lets us keep diving into topics like this. Lucas: Alright, back to the sales floor. So let's talk about one more tactic: the 'takeaway' close. When a prospect attacks your price, you can say, 'Maybe this isn't the right fit for you right now. Let me suggest an alternative.' That reverses the power dynamic. Luna: Because suddenly you're not chasing them. They have to convince you they're worth it. Lucas: Exactly. And it works because of the scarcity principle — people want what they can't have. But you have to mean it. If you're bluffing, they'll call you on it. Luna: I think the common thread here is preparation. If you know your value proposition cold, and you've thought about the objections ahead of time, you won't get flustered. Lucas: One hundred percent. The best defense against a price attack is a strong offense: lead with value, quantify your ROI, and have a clear pricing strategy that includes anchors. Luna: Any final thought for reps out there? Lucas: Remember: price is a feature, not the product. If they only care about price, they're not your ideal customer. Don't be afraid to let them walk.