One of the worst feelings you can have as an entrepreneur is the pain of rejection you experience when a prospects ghosts on you after hearing how much you charge for your product or service.
Everything seems to be fine and dandy up until that point, but then suddenly things take a sharp turn for the worse and they hit the mental eject button and try to end the interaction as soon as possible.
You desperately try to hold on, thinking you’re so close to making a sale. But once you’ve hit that point, the harder you try to hold on the more they’ll fight to get away.
But it’s over. You’ve already lost them.
This experience leaves most folks confused and bewildered, as they can’t understand why the deal just blew up all the sudden. Everything was fine until they revealed the price.
So they think that must be the problem. The price is too high, right?
This kind of thinking leads to a downward spiral in pricing where you eventually cut the costs so low, you struggle to make a profit and before you know it you’re out of business.
Price objections are merely a symptom of a greater underlying problem.
The personal branding tips below will help you overcome them.
How Price Objections Happen
Here’s a story that will help explain…
I remember shortly after going into business for myself, I got my first inbound sales call from a cold lead.
How exciting! I had done a little marketing to promote myself, and here was my first customer. I was so excited and elated to present my proposal to them.
I had recently overhauled my offer and pricing structure, and spent countless hours organizing it all, creating sales and presentation materials, and making it look all professional.
I thought there was no way they could say no to me, because my offer looked so good.
What’s more, I wasn’t charging a premium. I was just above average. The price was completely fair, and even a bit of a bargain if you ask me.
The sales call started off well, and the prospect seemed excited at the idea of working with me. They were highly engaged all the way through the presentation as I went over my offer.
But once it came time to talk numbers, there attitude changed in an instant as soon as I revealed the price. Suddenly, the call fell silent…
“Hmmm… okay. Well, we didn’t plan on making any decisions today. We’re still exploring our options a bit. We’re going to have to think about it.”
These people were chomping at the bit a couple of minutes ago. Now all the sudden they’re on their heels and backing away from the sale.
And like most people, I foolishly chased after them. I basically threw up all over them with all my features and benefits and why this such a great deal.
But none of it mattered. I had lost them.
I even tried offering a discount at the very end, nearly cutting my price in half, but it was too late. I had already sunk the sale, and for the life of me I couldn’t figure out why.
I moped around for a bit, questioning my self-worth and wondering if maybe I should’ve never started my own business. Maybe it just wasn’t meant to be.
Or maybe I just wasn’t good enough. My prospects didn’t see the value in what I was offering, which meant they didn’t see the value in me.
I wasn’t worth what I was charging, even though it seemed like a fair price. And just like that, all the wind was out of my sails and I began questioning the entire thing.
Personal Brand Problems Cause Price Objections
Has this ever happened to you?
Have you ever questioned the value of your product or service after being the receiving end of a price objection?
Have you ever questioned your worth when a prospect disengages after hearing the price?
I know I have, plenty of times. It’s a terrible feeling.
And to avoid feeling that way ever again, most of us try lowering our prices.
But here’s why that’s a mistake…
In lowering our prices, all we really do is lower our feelings of self-worth. And even worse, it doesn’t fix the underlying problem.
Like I said earlier, price objections are merely a symptom of the underlying problem.
So then, what IS the problem?
Focusing on the WHAT instead of the WHO.
Here’s what I mean by that…
In today’s crowded marketplace, there are few options to distinguish your offer in the mind of consumers.
And even if you do, it won’t be long before you competition copies you.
This is often why it can feel like everyone is offering the same thing and there’s no way to differentiate yourself from your competition.
So with so many voices clamoring for attention, how can you raise yours above the static and noise?
How can you stand out in a sea of people where every offer seems the same?
If differentiating your offer is no longer the sure solution, then what it?
It’s differentiating the person offering it… by building a personal brand.
Remember that all businesses are people businesses, and we’re moving toward an economy where THE WHO who matters more than THE WHAT.
Why Understanding This is Critical to Your Success
And here’s why understanding this is so vital to your success…
Without a profound preference for products, offers and information from a particular source, customers will be of increasingly lower sustainable value.
Because when every offer is the same and the market is commoditized, the consequent result is a strong consumer focus on price.
And when there’s no discernible difference in what’s being offered, why pay more?
No one will.
Retail giants like Amazon and Wal-Mart already understand this, which is why they offer their own brands at a significant discount to pilfer customers from name brand products.
Wal-Mart offers its Great Value brand that sells just about every product you can imagine at lower prices, and Amazon is doing the same thing with AmazonBasics.
It even says it on their website: “Everyday Items, Low Prices.” Or in other words, “Everything is a commodity, and we sell it the cheapest.”
So then, if you can’t prevent your competitors from making an offer similar to yours and selling theirs for cheaper, what can you do to make consumers choose your offer instead?
You have to find a way to create a strong preference in consumers to purchase specifically from YOU.
And the best way to do that is to create trust and affinity through a strong emotional connection.
How do you do that?
By building a personal brand.
In every industry, there are people who get paid very little, and others who get paid a lot more to do the same thing.
And there’s rarely a proportional difference in their core competency or skill.
Because you could be the best chef in the world, but if no one knows who you are, you won’t be able to charge high prices like celebrity chefs such as Gordon Ramsay or Wolfgang Puck.
It’s the strength of your brand that determines what you can charge. Not the quality of what’s being sold, or even the results it gets.
Remember, it’s the WHO you’re selling, not the WHAT.
Why Understanding This is Critical to Your Success
Things all started changing for me when I started putting much more focus on promoting MYSELF rather than promoting the product or service I offered.
Once I put the proper strategies and tactics in place to build a powerful personal brand, price was no longer an issue.
Because prospects weren’t signing up for my offer, they were signing up to work with ME.
I was the value, not my offer.
And better yet, I was irreplaceable.
My competitors could copy my products and systems, but they could never copy me.
So there was zero competition. I effectively became a market of one. There was me, and there was everyone else.
Want to know how you can do the same?
I’d like to invite you to check out a FREE copy of my book, Personal Branding for Entrepreneurs.
You’ll learn how to break from the competition and stand out by building your personal brand and becoming a market of one, instead of just another face in the crowd.
In it, you’ll get the exact steps I used to go from dead-broke, destitute and penniless to having $30,000 months with some quick and easy tricks to build my personal brand online (the process is so simple, anyone can do it).
And best of all… it’s FREE. You’ve got nothing to lose.
It’s my gift to you for engaging with this post and sharing your thoughts below.