How do you handle sales objections related to price?
Theme: Sales Techniques Role: Sales Executive Function: Sales
Interview Question for Sales Executive: See sample answers, motivations & red flags for this common interview question. About Sales Executive: Focuses on generating new leads and closing sales deals. 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 Sales Techniques with the key points that need to be covered in an effective response. Customize this to your own experience with concrete examples and evidence
- Understanding the objection: I start by actively listening to the customer's concerns and asking clarifying questions to fully understand their objection related to price
- Highlighting value: I emphasize the unique value proposition of our product or service, focusing on the benefits it offers and how it outweighs the price
- Comparing alternatives: I compare our offering to competitors' products or services, highlighting the advantages and additional features we provide at a similar or lower price
- Offering flexible options: I present flexible pricing options, such as discounts, bundles, or payment plans, to address the customer's budget constraints and make our solution more affordable
- Addressing concerns: I address any specific concerns the customer may have about the price, such as return on investment, long-term savings, or potential cost reductions
- Providing social proof: I share success stories, testimonials, or case studies from satisfied customers who initially had price objections but found our product or service to be worth the investment
- Negotiating & compromising: I am open to negotiation and willing to find a middle ground that satisfies both the customer's budget and our company's profitability
- Following up: I always follow up with the customer after addressing their price objections to ensure their concerns were adequately resolved and to maintain a positive relationship
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 on price
- Problem-solving skills: Evaluating problem-solving approach to overcome objections
- Sales acumen: Understanding knowledge and expertise in sales techniques
- Customer focus: Determining ability to address customer concerns and provide value
Potential Minefields
How to avoid some common minefields when answering this question in order to not raise any red flags
- Lack of confidence: If the candidate appears unsure or lacks confidence in their ability to handle sales objections related to price, it may raise concerns about their overall sales skills and effectiveness
- Inflexibility: If the candidate demonstrates an inflexible approach to handling price objections and does not show willingness to negotiate or find alternative solutions, it may indicate a lack of adaptability and customer-centric mindset
- Lack of product knowledge: If the candidate is unable to effectively communicate the value and benefits of the product/service in relation to its price, it may suggest a lack of understanding or knowledge about the offering
- Aggressiveness: If the candidate responds to price objections with aggression or pushiness, it may indicate a lack of empathy and the potential to create a negative customer experience
- Inability to handle objections: If the candidate struggles to provide specific strategies or examples of how they have successfully handled price objections in the past, it may raise doubts about their ability to overcome challenges and close deals