This can be a common objection from prospective customers for many businesses, and there can be several reasons:
The first thing to do is to ask them why they said that.
If they say well, XYZ company only charge £x for this, you need to ask more questions – is it a comparable product or service? What features or benefits does your product or service have that your competitor does not? Has the customer fully understood the full cost or have they just seen a headline figure and presumed that is what they would pay?
If they say that they only have £x to spend, have a conversation with them. Does your product or service include multiple features? Do they need them all? Could they add some on at a later date? What do they want the product or service to do for them?
If they say something such as “I saw this on your website and the cost is only £x”, then you have effectively created the objection! Your marketing material or website shows a headline cost – designed to entice the customer in without showing them the full price that they could pay. It is a tactic that budget airlines use all the time – and they get lots of bad publicity as a result. Car dealerships and retailers use it as well – “prices from” – which describes the basic model price but shows a picture of the deluxe model!
To avoid this objection, when you are talking to a customer who is looking to buy your product or service, you need to spend more time listening than talking – and use open ended questions to fully establish the customer needs.
Say you offer a service that has 3 elements. Take a car wash as a simple example. You can have your car washed and dried for £5 (or £7 for an SUV), add waxing for another £3 and have your tyres blacked for a further £2. Most car washes simply have a sign that says something like “Get your car washed from £5”, enticing customers in – and then look to upsell the additional services, often failing as they have set the customer expectations about price from the beginning.
It is much more powerful and effective to give the customer more information at the start. As well as helping them understand what the full price could be, it also makes it clear the full range of what you offer, making it more likely that a customer will buy more than one element of your product or service.
So, check your website and marketing material – if you use phrases such as “from £xx”, add extra information. For the car wash example it would be something like: “We wash your car for £5, and can make it look like new by adding wax and tyre black for another £5.”
If you have an accountant, they should be your first stop for business advice. If you don’t have an accountant or they can’t help, BuBul has a wide range of experts available. For more business advice why not follow BuBul on LinkedIn?