“We really like your offering, but it’s too expensive.”
Too expensive compared to what?
‘Expensive’ is a relative term. When someone flags a product or service as ‘expensive’ they are likely to be drawing any of the four comparisons.
First, the comparison of the price of the offering to the perception of the value it delivers. This is often the most important comparison of all. If the buyer has a low perception of value for your offering, they’ll always find the price to be too much. “It’s a lot of $ for just X, Y and Z.”
Second, is the comparison with similar offerings in the market. Do they deliver the same value at a lower price? How much research has the buyer done? What’s special about you that others don’t or can’t offer?
The third is the comparison to their own budget. Yes, Tesla is a great car, unlike anything else in the market. But it doesn’t fit in everyone’s budget.
Fourth is the comparison to do nothing. They can pay a monthly subscription for your accounting software, or they can continue using Excel to record expenses at no extra cost.
Knowing which of the above comparisons is making the buyer consider you ‘expensive’, can help you achieve a positive outcome.
Anything that offers significant value and is close enough to the budget is rarely expensive. The trick is to ask the right questions.