One way to face off with a price objection when a prospect points to a competitor whom they say is offering a lower price, is to politely ask the client to define the value and benefits the competitor is offering at that price point.
This is a great way of moving off the numbers and getting the client to think about real, apples-to-apples value.
Let’s say, for example, that you are selling IT services and you ask the prospect to describe the competitor’s less expensive bundle of benefits. The prospect now needs to, in effect, sell you by recalling the competitor’s program, and when you spot an opening, you can say something like,
“So, it sounds like they are charging extra for after-hours support. We provide 24/7 support at no charge. How often do you need to talk to someone after hours? Let’s calculate that time and cost to be sure we are comparing costs on an apple-to-apple basis.”
This can be especially effective in knocking out a low-ball competitor because, as we have all experienced as buyers, buying cheap almost always costs more in the long run. But sometimes you have to help save buyers from themselves, especially during challenging times.
This technique is a reasonable way to include the buyer in the discussion and the decision rather than carrying the whole argument yourself.
Remember, a price objection is often a buy signal. The buyer is interested enough in your product/service to engage. Welcome this challenge as a natural part of the selling process.