The “too expensive” objection: how to respond to price objections

What usually sits behind the price objection, four responses that put the yardstick on the table instead of defending the price, and why a discount with nothing in return is the most expensive mistake.

It also sounds like this: “The price is too high.”, “We can get that cheaper elsewhere.”, “That’s too much for us.”

When the objection comes

Comes as soon as there is a price on the table: in the meeting, after the proposal or in the negotiation. If it comes early, the price came before the value.

What’s behind it

The value isn’t clear yet.
How to tell: The person can’t say what the problem costs them today.
There is a comparison price you don’t know.
How to tell: “Too expensive” refers to something specific: another offer, the current tool, their own effort.
A negotiating reflex.
How to tell: Comes regardless of the amount, often just before the decision and without real resistance behind it.

How to respond

“Too expensive compared to what? Then I’ll understand better what you’re measuring it against.”
Puts the yardstick on the table. Without it you are negotiating against a number you don’t know.
“If the price were right, would it be a decision you’d make today?”
Separates the price from everything else. A no means the price wasn’t the real problem.
“Roughly, what does the problem cost you today, per month?”
A price is only too high in relation to something. Someone who names their own costs does the maths themselves.
“A lower price would mean a smaller scope. Which parts matter most to you?”
If you give way, give way in exchange for something. A discount with nothing in return answers the question of why the first price was too high.

What not to say

Offering a discount straight away.
Says the first price was too high, and makes the new price the starting point for the next negotiation.
“Quality has its price.”
A cliché every buyer has heard. It only convinces with their own case.
Justifying the price before you know the yardstick.
Then you are arguing against a comparison you don’t know, and usually the wrong one.

If the objection stays

If the price remains the obstacle even though the value is clear, talk about scope instead of price: a smaller start, a shorter term, fewer users. If it still doesn’t fit, it is an honest no, and better now than after three more meetings.

Frequently asked questions

What is behind the “too expensive” objection?

Usually not the number, but missing value or a comparison the customer has in mind. The question “Too expensive compared to what?” brings both onto the table.

Should I offer a discount when a customer says “too expensive”?

Not as your first reaction. If you give way, do it in exchange for something: less scope, a longer term, payment in advance. A discount with nothing in return makes the next price the starting point.

How do I prevent the price objection?

By making sure the value is established before the price. If you asked in discovery what the problem costs today, you put the price next to the customer’s own number instead of into a vacuum.

More objections

All objections at a glance, with two responses each →Objection handling techniques: from the clarifying question to pre-empting →