"That Sounds Pricey"

Japanese salespeople should love to hear “that sounds pricey” from buyers.  Why?  Because they know that this statement is the most common objection to arise in response to their sales presentation and they are completely ready for it.  It is one of the simplest buyer pushback answers to deal with too.  Well, simple that is, if you are trained in sales and know what you are doing.  Untrained salespeople really make a big hot mess of this one.  They want to argue the point about pricing with the buyer.  Or they want to use their force of will to bully the buyer into buying.  Or they want to use one of those American style aggressive response statements, to try and push the deal over the line.  This is all nonsense.

The only words emerging from our lips should be “Thank you.  May I ask you why you say that?”.  We could say something else like “compared to what?”, which is a pretty snappy rejoinder, but it is a bit too aggressive in this situation and doesn't really yield enough information about buyer thinking.  We could simply drop the price to be “competitive”, but that is the mark of the weak, whining, unwashed, pathetic salesperson.  We need to do better than that, unless that proffered discount is directly linked to certain purchase volume prerequisites.

When we first hear “that sounds pricey” we may feel some pressure to justify our numbers.  That is totally the wrong way of thinking.  That number of ours is there for a reason.  There is a justification for that number, based on the value it provides.  There are plenty of clients willing and happy to pay that number for the goods or services they receive in exchange.

When we sweetly ask why they say that, we now have moved the pressure for justification back to the buyer. This is called “tossing back the porcupine”.  The comment “pricey” is like a spiky porcupine being thrown to us and it is tricky to handle, without incurring lots of pain. We ask “why” thus shooting the porcupine back to the buyer and we can sit there cool calm and collected and listen to what they have to say.  This is important because we need to use our highest level of empathetic listening to comprehend what they are saying, in order to understand what is really on their mind. 

Our object in sales is to meet the buyer in the conversation they are having in their own mind. That will be a compilation of their current situation, their experiences to date, their personal situation and a million other factors which we will never be privy to. Asking them that “why” question gives us the chance to tune in to what is important for them and to alert us to factor in things which we hadn’t considered before.

I was given that price pushback for some training I was proposing to the HR team at a Japanese company.  I asked them the “why” question and then just sat there stone cold silent.  They did not reply immediately. It was one of those long uncomfortable silences for foreigners.  Fortunately, I have learned to become comfortable with silence in Japan.  After what seemed an absolute age, they explained that they are given a quarterly budget for training and my number was over that quarterly limit.

Did I rail against the inequity of having such dopey quarterly budgets or rage that they should change their entire budgeting system and get that accounting  department better geared up to suit my preferred pricing?  No. I sweetly asked, “If we could spread the payment across two quarters, would that be of any help?” and again I shut up and didn’t say one more word.  They looked at each other and I saw a light get switched on inside their heads and they said that would work.  So, it wasn’t too pricey after all.  It was too much price for that arbitrary temporal unit called a quarter of the year.

After the buyer tells us all the good reasons why our price is too high, we need to be packing heavy with our value justification for the number we have just quoted.  This is why salespeople need to be well prepared and practice for this “that sounds pricey” pushback.  Trying to wing it and produce some intellectual and articulation magic on the spot is possible. Unlikely though, especially when your brain is frozen with fear getting that infamous pushback.

Recently a multinational client wanted presentation training in Japan, after having conducted training in APAC with another provider who was based out of Hong Kong.  They were unable to deliver in Japan so the client contacted us.  I gave them my proposal and they told me my number was “pricey”.  When I sweetly asked “why”, they not so sweetly told me that the other vendor did the exact same training for a price significantly at a discount to what I was proposing.  They said that I should match this other provider, whom I had never heard of. 

I checked them out. They didn’t have a 109 year history of teaching presentation skills, a track record of 58 years in Japan, teach 90% of the Fortune 500 companies, have 200 branches in over 100 countries, teach in 35 languages, have ISO 9001 certification, require their trainers to undergo 250 hours of train-the-trainer instruction for their first license, have a trainer who had personally delivered 545 public speeches, appear in the Training Industry Top 20 training companies and on and on it went.  You get the idea. 

In the end, I suggested we do a demo session with the key decision makers, so that they could comfortably recommend us to their executives, at the price I required.  The demo blew them away, because now they could directly compare us with the other vendor.  We did the training and achieved a 9.3/10 Net Promoter Score and a Voice Of Customer score of 92.8/100, which are very high scores, thoroughly justifying the investment.  Yes, I am bragging, but the point is we have numbers we can quote back to clients in order to brag.  We do the satisfaction surveys for our professional work, so we can justify the value of our training, at the price point we nominate.

When professional salespeople hear “that sounds pricey” they remain extremely calm, because they know what to say and how to justify their pricing.  How about your sales team?  Are they like deers in the headlights when they get pushback or are they legends of value explanation to buyers?