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Too expensive? Do this…

Do your downline and your customers say your product is too expensive?

So – do you need to lower the price?

Here’s what Seth Godin tells his readers who complain about that. (Apparently, sales people everywhere have the same problem.)

“It’s not true,” he writes.

“You need to increase your value. If people don’t want to pay, it’s because you’re not delivering enough value for the money you’re charging.”

I’ve heard many people say NM products are overpriced to pay the reps. But for ANY product, regardless of price, there’s someone who thinks it’s overpriced or too expensive.

Overpriced is in the eyes of the beholder. If value is added, people will pay. I know I do. For some things I pay MORE, even if the quality is the same, if other value accompanies it that I want.

What value can you add to your products that will make the “It’s too expensive?” never enter a prospective customer’s mind again?

I have a suggestion, something I’m doing now, which I’ll throw in the pot after I hear from some of you!

About the author

Kim Klaver

17 Comments

  • that’s so true – as soon as you start competing on price you’re bound to lose, because there’s always going to be some fool that is willing to be go bancrupt just to get that customer…

  • You are so right that “Overpriced is in the eyes of the beholder.”

    For someone with a lot a money, price isn’t an issue. It’s the people who do not have a lot of money (or focus on the lack thereof) that question the price, and probably do not see the value beyond the price.

    Personally, I believe that lowering the price for someone who questions it, allows them to get what you’re offering at THEIR price and not YOURS. Because I used to be the desperate one who did that, I often felt cheated afterward because I caved in. Thankfully, I don’t do that anymore.

    The price IS what it IS!

    And if someone decides to buy from me, then I provide additional value that benefits them above their purchase (like giving away my knowledge without charging them for it).

    Net Marketing For Newbies ~ A Johnson Enterprise

  • I use Bob Proctor’s Law of Relativity. Before we even get to price I mention a more expensive way to achieve the same result. By the time I explain the product, price is never an issue. The hardest thing is getting my downline to do use the same technique! Some of them always seem to have price issues. For me they virtually never come up unless a person is on disability and literally doesn’t have money or even a credit card. In that case I have them enter our monthly draw for free product and sometimes donate a product if I think it will be life-altering for them.

    Sharon Hoehner
    http://www.sharethecause.com/detoxqueen

  • There is no such thing as ‘too expensive’… The right sales person could sell ice cubes to an eskimo if the sales person believed that the ice cubes were the best in the world and could show the eskimo how they were colder, cleaner and lasted longer…

    You have to believe in your product that you are selling, if you, as the sales person, think the products are too expensive then your customers will read your energy and you will get that reaction.

    BUT, if someone says ‘it’s too expensive’ and you are prepared to explain why the product is better, and how it can benefit someone, and that they are getting more bang for the buck then the ‘cheaper one’

    I network with many marketers on many forums and have heard time and time again “I can’t sell, people say my product is too expensive”. When I ask for an example of the conversation I hear…

    “Would you be interested in brand X product?”

    > “Let me see a catalog..” flip, flip, flip “EEK this is too expensive!” Hands back catalog…

    Sales person says “ohhh, sorry to bother you….”

    However re-do the above scenario and put some confidence into that sales person who smiles while the catalog is extented being handed back, refrains from taking it and says “what brand of product x are you using now?”…followed by “and how much are you paying?”… followed by “and how many are in a box/how long does it last (etc)?”

    You see most of us in network marketing DO have products a bit more costly, but these products also last longer, are cleaner, are safer, are healthier, are better for the environment (etc..etc.. based on the specific company or industry)

    The KEY to selling a ‘high end’ product is CONFIDENCE, BELIEF in the product AND like Seth Godin says ‘increase value’ which is basically being able to explain to the consumer how the product is better, faster, cleaner, healthier, lasts longer, is more efficient, etc.. (based on the product) As well as YOU being part of the value package AND the customer being ‘your most valued customer’ feeling special working with you…

    Alethea Anderson
    http://www.aletheaanderson.con

  • i often demonstrate the value of the product before speaking of price. another way is i say to the customer (if the product may seem expensive): “you know, this is NOT for everyone…”

  • I have never had anyone tell me that my product is too expensive. I think it’s because I believe that it is worth the price ($45 retail for a 30 ounce bottle of juice). I paid retail for my product for six months before I joined the company. When I’m talking about my product and it comes to price, I state the price with confidence. I think my prospects sense that and never give me any objection over the price.

    I also don’t believe that NM companies have high priced products because of what they pay the reps. Think of all the people who have to get paid in traditional businesses. The employees at the store, the warehouses, the delivery companies and the advertising agencies all have to get paid. NM companies cut out a lot of those people and pay the sales reps. I believe that NM products are more expensive because the companies put more quality into those products than what you would find in a department store.

    If you think your products or services are too high priced, then you probably will get the price objection. Worse yet, you’ll buy into the price objection and you won’t be able to sell your product or service. If you think your products or services are too high priced, you may be better off looking for some other product or service to offer your prospects.

  • It is true, if your product is too expensive and the quanity is small it will not sell no matter how much of a marketing wiz you are. People want value for the buck. Many top products would sell much better if the cost and required purchase cost was less.

  • Let’s put things in to perspective, instead of saying ‘here is solution A’ find out if they have problem A and if they would like a solution for it. Find a want and fill it. People are more likely to purchase what they want and not what they need. (How do your shoe and makeup investments compare to your personal development investments?) If you find your prices are too expensive you are right. So you shouldn’t be buying them and you shouldn’t be selling them. You cannot reach your potential if you are lacking in belief. Word of mouth marketing is about recommending and promoting things you like, use and believe in. If you are just after a check then you are just another sales person.

    Alethea, I disagree with the ‘too expensive’ and the selling of ice cubes but I might be missing the message you are trying to get across. Selling ‘high end’ products to the right clientele will get you the sell vs. manipulating the wrong clients. People buy Taco Bell because it is fast and relatively cheap and no matter how much better, healthier, tastier, etc a meal from Whole Foods is you’re not going to change most people’s decisions.

    Many Blessings
    Dean

  • When your focus is on recruiting, that is less of a problem. You are concentrating on people, with a success consciousness, that have less of a problem with price.

    You want to stay away from people who live from paycheck to paycheck. You want people who d subscribe to the theory that you get what you pay for.

  • I was actually keeping an eye open for higher quality vitamins when I came across my company. I always questioned why some vitamins cost $6.oo for a 3 month supply while you could find a one month supply for 5 to 6 times that at a nutrition shop. There was only one answer in my mind…quality. But I didn’t want to just have better quality. I wanted the best quality possible, because my health is worth it. So I kept looking. After all, I only have one body and it’s gotta last me a while… Paying a higher price was never an issue for me. I knew what I was paying for. There’s gotta be other people like me out there don’t you think?

  • The key is what you feel about the product. A client who thinks your product is expensive senses that from you. If you value your product and have no issues about the cost for you personally, then you’ll probably not get the “too expensive” objection.

  • Thanks for your comments, all.

    Some considerations.

    1. “Highest quality” is subjective. A highest quality supplement for Lulu might be organic ingredients, where for Minna, it’s that the product is pharmaceutical grade.

    Organic ingredient lovers will do better finding other organic ingredient lovers, they’re better matches. Same for the pharma grade products. There are people for each. And they’re different, like men’s and women’s shoes are different.

    Different. The ‘better’ is in the eye of the beholder, and therefore better depends on what their values are – organic versus pharmaceutical grade, for example.

    2. What people pay for often has nothing to do with the quality or value of the thing they’re buying.

    Consider the $2,500/plate dinners political candidates have. Are the dinners actually worth $2,500?

    Most people who pay don’t even ask WHAT is for dinner. Nor are they all rich, by any means.

    It’s meeting the candidate…THAT is where the value is. Not the quality of the dinner.

    3. Adding value can take many different forms. Insisting that yours is the best, or highest quality, without defining that to a T, doesn’t work, as you’ve all discovered. It’s finding people with similar values, and showing THEM your product. Like showing your tennis racquets to tennis players, not to golf players.

    4. Some things I’ve done to add value and find people who share my values:

    Write white papers on say, “Are Your Vitamins Safe?” where we focus on studies showing some startling side effects of synthetic vitamins. You can see the paper on the sides of this blog.

    That helps reach out to people who don’t trust the over-the-counter vitamins, and offers information without selling anything at all. It’s educating those who are open to this point of view.

    A percent of the folks who read the paper buy the product. Not a big percent, but a steady percent.

    I am making videos of the product designer teaching a university university nutrition program, so people can learn about nutrition from someone who lives it 24/7. Whether they ever buy her product or not, they can learn about how to get more real foods into their lives without spending their entire paycheck. So again, education for people who care about their health, no charge.

    Offering information without charging or selling is, in today’s market place, one of the most effective ways to add value I know of.

    I bought a $3,000 marketing program because of the information I was given, without charge first, that demonstrated to me I’d like it. So I bought it. NOT silly testimonials. Too many of those are staged and not genuine. I mean a couple hours’ worth of audio/video and online print information that was useful to me, whether I bought the guy’s program or not.

    Some people can’t write very well, or make videos. Perhaps you are an environmentalist, and you’re marketing earth friendly cleaners. So you might tell why you’re an environmentalist in the first place, and Google some information about the advantages of having that perspective. Take some time and put a few things together in a document of your own, for your own website or blog. Giving the sources.

    That way people know that you 1)know about environmental stuff 2)might trust your judgment because you’re a member of the choir, so to speak, rather than just looking to make a quick buck.

    In order to sell products that are higher priced than what someone can get at WalMart, you need to find people who share those values. And you should have them yourself, so in case you get into a conversations with someone, you can hold up your end of it because you are living those values (not because you can spout of some science phrases you just learned yourself, you know?)

    Hope that helps a bit. Maybe I’ll do a class on this topic.

    What kinds of things are you doing to add value?

  • Dean,

    You are right, as I re-read that I did not mean that in that manner that it may be interpreted!

    No one should be mis-led or ‘convinced’ to buy a product, simply educated. You are 100% correct, nothing should be sold to someone who does not want or need it.

    I do believe that educating a customer on the value of a product can help them decide, but education should never be to ‘sway’ them, only to help them make an educated decision based on the information and/or product presentation.

    Alethea Anderson

  • With this common objection I LOVE to use one of Zig Ziglar’s “Price-Cost” closes. I ask: “Is it price that you’re concerned about, or is it cost”? Of course they always give me a real puzzled look and ask: “What’s the difference”? Then I get to share that difference by using Mr. Ziglar’s Schwinn bicycle shop story (from his Secrets Of Closing The Sale series) and they get the point-and 9 times out of 10they go ahead and order! Thanks everybody for your feedback! Diane in NYC.

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