EP142 How do I handle price objections from customers

Price objections are common in business, whether you’re selling products or services. Customers may feel that a price is too high, not justified, or simply beyond their budget. Handling these objections effectively can turn hesitation into a sale while maintaining trust and value perception.

Let’s not forget that not all customers are reasonable. We calculate the minimum price for products and services on the Small Business Toolkit course. When you know your minimum price, it is easy to see that the customer is just quoting an unfairly low price…..or another supplier’s ‘50% off price’ as your starting, permanent price. 😉

1. Understand the Customer’s Concern

Before responding, you need to understand why the customer is objecting to the price.

• Ask clarifying questions like, “What about the price concerns you?” to uncover their real hesitation.
• Identify whether it’s a budget issue or a value perception issue—some customers genuinely can’t afford the price, while others need convincing.
• Acknowledge their concern so they feel heard and respected.

❌ What can go wrong?
Jumping to defend your price without understanding the objection can make customers feel dismissed. If they don’t believe you understand their concerns, they may walk away rather than reconsider the purchase.

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2. Emphasize the Value, Not Just the Price

Customers often object to price because they don’t yet see the value in your offer.

• Break down the benefits by explaining how your product solves their problem or improves their life.
• Use comparisons to highlight why your product is worth more than cheaper alternatives.
• Share testimonials or case studies that show real-world success with your product or service.

❌ What can go wrong?
If you only justify the price without linking it to real benefits, customers may still hesitate. People need to see how a product meets their specific needs, not just why it’s generally good.

3. Offer Alternatives and Flexible Options

Some customers are open to buying but need an option that fits their budget better.

• Introduce a lower-tier or smaller package that provides value at a reduced price.
• Provide financing or payment plans to spread the cost over time.
• Bundle products or services to give more value for their money.

❌ What can go wrong?
If you immediately offer a discount without first reinforcing value, customers may think your pricing is inflated or negotiable. This can lead to an expectation that prices should always be lowered.

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4. Stay Firm, But Professional

Not every sale is worth chasing, and not every customer will be convinced.

• Know your bottom line and avoid undervaluing your product.
• Politely explain why discounts aren’t always possible and highlight quality over price.
• Be willing to walk away if a customer is only looking for the cheapest deal.

❌ What can go wrong?
Backing down too easily can set a precedent where customers expect lower prices all the time. If you reduce prices without a clear reason, it can devalue your brand and hurt long-term profitability.

Conclusion

Handling price objections is about understanding customer concerns, reinforcing value, and offering options when appropriate. By staying confident in your pricing and focusing on the benefits, you can turn objections into opportunities for stronger customer relationships and increased sales.

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Other useful resources:

https://salesgrowth.com/overcome-price-objections

https://blog.hubspot.com/sales/price-objection-responses