In last week’s article I promised you an article on price objections. As I started to write my article I realized that without an understanding of why customers give salespeople price objections the actual techniques to handling them would not make sense. Next week we will go into the actual techniques. The broad statement that the customer gives price objections because they want a better deal is certainly true. Here is why customers object to price in furniture and mattress stores in more detail.
Stall- Very often it is not an objection at all, it is a stall. The customer is trying to slow down the process. They want to buy but they do not want to buy at this moment. In next week’s article we will explore the techniques for handling stalls before we explore the techniques for handling objections.
Culture- Some cultures encourage negotiation. The children are raised to negotiate. The price objection here is simply the beginning of negotiations in their mind.
Confusion- The customer becomes confused and thinks that your better quality item is the same as another stores lower quality item. This happens often in our industry because there are so many look-a-like items that perform very differently because of quality differences.
Another Store- Once in a while the customer finds the same exact item for less. When this happens they are usually offered less service also. Now the customer will tell you how much they like you and that they prefer to do business with you if you will match the competitor’s lower price with your full complement of better services. Your services include your store’s reputation, credit programs, and inventory. Sometimes when customers make this assertion it is true and sometimes it is false. We will deal with both scenarios in next week’s article.
Value- Failure of the retail salesperson to establish value and to communicate product differentiation to the customer can lead to price objections. The customer was not taught how to make a value judgment. They do not understand the good, better, best story in your store. In many stores the customer can do comparison shopping in the store.
Cannot Afford- Sometimes the customer simply cannot afford the item they really need and want. The price objection is an attempt to buy a better quality item at a budget price.
Advertising- Our advertising conditions people to feel they can negotiate. Boastful claims by competitors such as “We Will Beat Any Store’s Price!” often create the price objection. The advertising of a price guarantee while more subtle still has the same net effect on the customer.
There are two main drivers behind all these reasons:
Desire for Gain- Mrs. Jones wants to buy the best quality at the lowest price so she can get the best value. She needs to feel that she has won.
Fear of Loss- Mrs. Jones is fearful to find out after her purchase that her friend or relative bought the same thing for less. She does not want egg on her face for not making a good decision. Zig Zigler’s words, “The fear of loss is greater than the desire for gain” could not be any truer than in retail furniture and mattress sales.
Wishing You Success!
Pete