How to respond when your prospect asks you “How Much?”
I have been with a company that the sales team just keep giving away quotations whenever a prospect asks for it. They don’t care if the prospect is a serious buyer or not. They give the price away even when the requirements are vague. It is almost like a team of quotation providers. A team that is hired to give out quotations and not to make sales.
So how do you respond when your prospect asks you how much? Eventually this question will come up. How you respond depends on what stage of the sales cycle that you are at. If your prospect is calling you up for the first time, and you really don’t know that much about your prospect, in terms of what they are thinking, what is their budget, what is their urgency, then maybe you should hold on to the price. If you have gone through the project scope, and have interacted with your prospect multiple times, then when they ask the question of how much. Then it’s a different story.
Here are a few ways that you can respond back to the “How Much” question
Well, it depends on what you are looking for
Tell the prospect that “It depends”. It depends on what you are looking for. Are you looking for 1 months of my time or are you looking for 1 week of my time? Are you looking for a comprehensive function or are you looking for a simple function in one area? Are you looking for an expedited delivery or not? There are many questions that you can ask to revert back the question to the prospect. If the prospect doesn’t know, then have them figure out before you give out the price. If they are able to answer all your question, and you feel that the prospect is a serious buyer, then give him the price.
What is your budget?
Instead of putting out a price, ask the prospect about his budget. After the prospect tells you his budget, you can then go ahead and tell him that it is too low or too high or just about right. Make the prospect reveal his cards first before you reveal yours.
Gather enough information before you give out the price
If you feel that you need more information to help you make a judgement, then ask about it before you give out the price. Please note that the moment that you give out the price, you have lost all control as a seller. The prospect is now in favor to tell you, yes, I will go forward with this price, or no I won’t go forward with this price. Even worst, the prospect will tell you I will think about it.
To provide a price range instead of a figure
If the prospect continues to push for the price, another strategy is to provide a price range instead of an exact figure back. “Well, the price is about 30k to 60k depending on the scope”. This way you sort of answer the prospect’s question but at the same time leaving room for price flexibility. You will still have the flexibility to manipulate on the price and not lose all control.
Just tell them the price, and ask they how they feel about it
At the end of the day, if you are comfortable with the prospect, then just give out the price. However, always follow up with the question “how do you feel about it”. For example, “The price is 35k, how do you feel about it?” The customer will tell you that they feel that it is too high or just about right. If they feel that the price is too high, then walk through with the prospect about why they feel that it is too high and remind them about your value.
Responding to the “How much?” question is an art. There is no right or wrong answer, and definitely no formula to answer it. However, I do hope that with the 5 responding strategies mentioned above, you are now more equipped to close that prospect.