How do you handle objections related to price?
Theme: Price Objections Role: Sales Development Representative Function: Sales
Interview Question for Sales Development Representative: See sample answers, motivations & red flags for this common interview question. About Sales Development Representative: Generates and qualifies leads for the sales team. This role falls within the Sales function of a firm. See other interview questions & further information for this role here
Sample Answer
Example response for question delving into Price Objections with the key points that need to be covered in an effective response. Customize this to your own experience with concrete examples and evidence
- Acknowledge the objection: Start by acknowledging the customer's concern about the price. Show empathy and understanding towards their perspective
- Highlight value proposition: Emphasize the unique value and benefits that our product/service offers. Explain how it solves their pain points and delivers a strong return on investment
- Provide evidence: Present data, case studies, or testimonials that demonstrate the positive impact our product/service has had on other customers. Use specific examples to build credibility
- Offer alternatives: Suggest alternative pricing options or packages that may better suit the customer's budget or needs. Provide flexibility and options to accommodate their financial constraints
- Address competitors: Compare our product/service to competitors and highlight the advantages we have in terms of quality, features, or support. Show why our higher price is justified
- Negotiate or offer incentives: Explore the possibility of negotiating the price or offering additional incentives, such as discounts, extended warranties, or added services. Find a win-win solution
- Reiterate value & ROI: Summarize the value proposition and return on investment the customer can expect from our product/service. Reinforce the long-term benefits that outweigh the initial cost
- Ask open-ended questions: Engage the customer in a conversation by asking open-ended questions to understand their specific concerns or objections. Tailor your response accordingly
- Close with confidence: End the discussion with confidence, expressing your belief in the value of our product/service and the positive impact it can have on the customer's business
- Follow-up: Offer to follow up with additional information, references, or a personalized proposal to address any remaining concerns and solidify the sale
Underlying Motivations
What the Interviewer is trying to find out about you and your experiences through this question
- Negotiation skills: Assessing ability to handle objections and negotiate effectively
- Sales acumen: Evaluating understanding of pricing strategies and value proposition
- Customer focus: Determining if candidate can address customer concerns and provide solutions
- Resilience: Testing candidate's ability to handle objections without becoming defensive or discouraged
Potential Minefields
How to avoid some common minefields when answering this question in order to not raise any red flags
- Lack of empathy: Not showing understanding or empathy towards the customer's concerns about price
- Defensiveness: Becoming defensive or argumentative when addressing objections related to price
- Lack of value proposition: Failing to effectively communicate the value and benefits of the product or service to justify the price
- Inflexibility: Not being open to negotiation or offering alternative solutions to address price objections
- Lack of product knowledge: Demonstrating a lack of knowledge about the product or service, making it difficult to address price objections effectively