Handling Price Objections
Word-for-word responses for the most common pushbacks you'll hear.
Notes from Randall Harper. Thirty years working alongside owner-operators, executives and boards — companies of all types and sizes — across entertainment & media, hospitality, service based business, lifestyle businesses, financial services, retail and not-for-profit, in Australia, Asia, the United Kingdom and the United States. What follows is the thinking I keep returning to.
Most price objections are not really about price
When a customer says the quote is too high, they are usually saying one of three things — they don't yet see the value, they're comparing apples to oranges, or they cannot afford it within their current frame. Each requires a different response, and none is solved by immediately dropping the price. The owners who get this consistently right have learned to slow down and ask before they answer.
The first response, always
Before defending the price or offering a discount, say: 'That's helpful feedback. Can I ask what you were expecting, and what you've been quoted by others?' The answer to that question, almost every time, tells you which of the three real issues you are actually dealing with. Owners who skip this step end up negotiating against themselves.
Common scripts that work
- 'You're more expensive than the other quote' — 'That doesn't surprise me. Can I show you what we've included that they may not have? Sometimes the comparison is closer than it looks; sometimes there's a real difference worth understanding.'
- 'Can you do it for X?' — 'I can't do the full scope for that, but I can do this smaller version at that price, or the full version at the original. Which would suit you better?'
- 'I need to think about it' — 'Of course. What's the one thing that, if it were clearer, would help you decide?'
- 'Can you do mates' rates?' — 'I price the same for everyone — it's the only way to keep the business healthy. What I can do is be flexible on the scope or the timing, if that helps.'
When to actually move on price
Sometimes the answer is yes — a long-term customer, a quiet patch, a job that opens a new door. The discipline is to make the move deliberately, in exchange for something — a deposit, a referral, an introduction, a smaller scope — not as a reflex. A discount given for nothing trains the customer to ask again next time, and trains you to undervalue your work permanently.
The customers who only buy on price
A small subset of customers will only ever choose the cheapest option. They are not your customers. Owners who try to win their business almost always regret it — the margin is thin, the expectations are high, and the loyalty is non-existent. Letting them go to a competitor is not lost business; it is protected capacity for the customers who pay properly.
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The contents of this paper are the opinion of Clear Point Advisory only. Readers should rely on their own judgement and obtain professional advice appropriate to their circumstances.