Latest / Sales Leadership with Fexingo: Quota Carriers, Sales Managers, and Revenue Teams / How Top Reps Turn Price Objections into Value Conversations
Transcript
- Lucas: So, Luna, we talk a lot about negotiation tactics and closing moves, but there's one moment that trips up more reps than anything else, and it's not the stall or the gatekeeper. It's when the prospect looks you in the eye and says, 'You're 30 percent more expensive than the other guy.' Luna: Oh, that's the classic. And it's so easy to go into defense mode, start explaining why you're worth it, and end up discounting just to keep the conversation alive. Lucas: Exactly. And the default move is almost always to justify the price. But top reps treat that objection as an invitation to dig deeper, because the stated price objection is rarely the real objection. It's usually a symptom of something else. Luna: Like what? Is it always about budget, or could it be that they just don't see the value yet? Lucas: Both, and often a third thing: urgency. So I think of three underlying objections that masquerade as price. First, they might genuinely not have the budget this quarter. Second, they might not believe the value is worth the premium. And third, they might not have the urgency to act now, so price becomes an easy excuse to delay. Luna: So your first job when someone says 'too expensive' is diagnosis, not defense. Lucas: Right. And the fastest way to diagnose is to ask a question like, 'If we could make the numbers work, would this be a priority for you this quarter?' If they hesitate, it's probably urgency. If they say, 'Well, we'd love to but we've already committed the budget,' then it's a budget issue. And if they say, 'It's just a lot more than we expected,' that's a perceived value gap. Luna: I like that. But I have to push back a little. A lot of reps hear 'too expensive' and think, okay, I just need to prove ROI better. But sometimes the prospect really is price-sensitive, and no amount of value framing will change that. Lucas: Sure, and that's why disqualifying early is so important, which we covered in a previous episode. But I'd argue that in most cases, price objections are a proxy for something else. Let me give you a concrete example. I was talking to a VP of sales at a mid-market software company, and they lost a deal to a competitor who was 25 percent cheaper. The rep had done a great demo, built a champion, but when the CFO asked why they were worth the premium, the rep just said, 'We have better features and support.' Luna: And that didn't land. Lucas: No. The CFO didn't care about features. He cared about the cost of downtime, implementation time, and long-term risk. The rep never asked what the cost of inaction was. Meanwhile, the cheaper competitor came in and said, 'Look, you can save 25 percent now, but we also offer a faster implementation, and we'll guarantee a 30-day go-live.' They spoke the CFO's language. Luna: So the rep who won didn't win on price. They won because they reframed the value equation. They made the 25 percent savings look small compared to the cost of a delayed go-live. Lucas: Exactly. And that's the key move: you have to get the prospect to see that the real cost is not the sticker price, it's the cost of staying with the status quo. The cheaper option might have a lower price, but if it takes twice as long to implement, the total cost of ownership is actually higher. Luna: So how do you actually do that in the moment? You can't just say 'our total cost of ownership is lower' and expect them to believe you. Lucas: Right. You have to ask questions that make them realize it themselves. So instead of defending the price, you ask something like, 'What would it cost you if this solution doesn't work perfectly out of the gate?' or 'How much revenue does your team lose for every week this project slips?' Luna: That's powerful because it gets them to put a number on the problem. And once they've said 'we lose about fifty thousand a week when we're down,' suddenly your premium doesn't look so big. Lucas: Exactly. And you don't even have to do the math out loud. You just let the silence do the work. That's another thing top reps do—they ask a question like that, and then they stop talking. They don't rush to fill the silence with a justification. Luna: Silence is so underrated. But it's uncomfortable. I think a lot of reps feel like they have to say something, anything, to keep the conversation moving. Lucas: Yeah, and that's a mistake. Silence after a price quotation or after a question like 'what's the cost of inaction?' is where the prospect does the mental math. If you jump in, you're essentially answering the question for them, and they won't own the value. Luna: So let's get practical. What does a rep say when the prospect literally says 'you're too expensive'? Is there a script that works? Lucas: I don't like scripts, but there's a pattern. First, acknowledge without conceding. Something like, 'I hear you, this is a significant investment. Can I ask how you're comparing us to the alternatives?' That opens the door for the real objection to surface. Luna: And while they answer, you're listening for which of the three it is—budget, value, or urgency. Lucas: Right. And if it's value, you can pivot to a discussion of the specific business outcomes they care about. If it's budget, you might talk about phasing the implementation or adjusting scope. If it's urgency, you want to find out what's driving the timeline. Luna: One thing I've seen work is when reps use benchmarks. Like, 'Most of our customers see payback within six months, but let's talk about what that would look like for you.' Lucas: Yes, and we talked about benchmarks in a previous episode, so I won't go deep, but the point is, you're making the value tangible and specific to them, not just throwing out a generic ROI stat. Luna: Alright, so we've covered diagnosis, reframing, silence. What's the one thing you want reps to remember if they're in this situation tomorrow? Lucas: That the price objection is not a request for a discount, it's a request for a reason to buy. If you can't articulate that reason in a way that resonates with the person you're talking to, you haven't earned the deal. And that's on you, not on the price. Luna: That's a strong note to end on. But before we wrap, I've been thinking about how often we hear from listeners who say these conversations have genuinely changed how they approach sales calls. And it makes me realize how valuable it is to have a resource like this that's independent and ad-free. Lucas: Yeah, that's something we're really proud of. And if you've found value in what we do, and you want to help keep this show free for everyone, you can support us at buy me a coffee dot com slash fexingo. It's a simple way to say thanks, and it goes a long way. Luna: And it's not about perks or anything, it's just about keeping the conversations going. We genuinely appreciate it. Lucas: So, back to the topic. One last thing I want to leave you with: the next time a prospect says 'you're too expensive,' don't hear it as a verdict. Hear it as an invitation to understand their world better. Because that's what separates the top reps. Luna: I think that's a great place to stop. Thanks for listening, everyone.