How should a salesperson effectively deal with a price-objection?

Question

Here's the question I'm working on for my sales class: Consider that you are selling a line of toys that, because they are made overseas where labor costs are far lower, can be sold using a low-price strategy. If a buyer raises a price-based objection, what would you say to convince him that your price is appropriate?

Any help would be greatly appreciated!

Answer 1

Usually the employer (company) sets the selling price and it up to the employees to see that the items are marked correctly. If all of the particular toys are marked the same price, the customer should have no objection.  If the customer objects on the basis that it shouldn't cost as much to manufacture the toy, politely tell them "I only sell for the company, not buy, and I do not have control over the retail price". If you are courteous while giving the explanation, the customer will either buy it or walk away.  Not being in the hiearchy of the company, you don't have to defend the price, even if you think the item is overpriced yourself.

Answer 2

Great question!  This would be an opportunity to do some research.  A sales professional in this situation should know his/her competition almost as well as his/her own products.  If your product is at a slightly higher cost, highlight your products benefits in comparison to the competition.  If your product is priced significantly higher, acknowledge the buyer's concern, then explain why your product is superior, and therefore why it costs more.