Learn
Learn
Close

What is 'They Ask, You Answer'?

A revolutionary approach to driving more sales from your inbound marketing.

Learn MoreLearn More

Free Courses in IMPACT+

Dozens of sales, marketing, and content courses inside IMPACT+. Start learning now.

See all coursesSee all courses
Events
Events
Close
IMPACT+ Membership
IMPACT+ Membership
Close
Services
Services
Close

Services Overview

See how you can dramatically increase your inbound leads and sales.

Services Overview

Digital Sales and Marketing Mastery

Fast track your team’s success with IMPACT's most popular service.

Digital Sales and Marketing Mastery

Web Design

Launch a beautiful website that consistently generates leads and revenue.

Web Design

Virtual Sales Training

Equip your sales team with comprehensive training designed to help them close more deals in today's virtual-first world.

Virtual Sales Training

HubSpot Training & Implementation

Train your company to take ownership of HubSpot and get the most out of your investment.

HubSpot Training & Implementation

Case Studies

See dozens of examples of companies succeeding with Digital Sales and Marketing Mastery and They Ask, You Answer.

Case Studies
Become a Certified Coach
Become a Certified Coach
Close

Another Agency Can Do It Cheaper: Sales Objections Part 5 of 5 [+Video]

Another Agency Can Do It Cheaper: Sales Objections Part 5 of 5 [+Video] Blog Feature

November 6th, 2018 min read

This is the final installment in my series on Agency Sales Objection Handling.

Did you miss something?

Part 1 of the series was how to handle a prospect who says “send me more information,” part 2 covered the elusive “let me think about it” response, part 3 helped turn a prospect’s prior negative experience into a positive one, and part 4 explained why it’s a bad idea to give references from past clients.

In part 5, we dive into one of the biggest objections in any sale: price.

We’ve all run into a client who wants to haggle on price.

They say, something like “This proposal is pretty steep...” or “I got a cheaper quote from someone else...”

Hearing this may just be a case of an uninformed prospect who needs to be more education, or they may not be the right fit for your agency.

How can you tell the difference and how should you respond?

If price is a real issue, then, they might not be a good match for you, but sometimes price is just a cover for deeper issues.

Ask yourself, “is it really the price, or is it an underestimate of the value placed upon the solution you’re providing?”

Often times, your prospects aren’t fully educated on value, and, in turn, undervalue what you’re delivering.

For example...

Let’s say, your prospect has identified the issue is a $1 million problem or could generate $1 million in revenue for them.

Your proposal came is at $100,000 which is a 10X value -- and that’s exactly the value you should always aim for with value-based pricing.

However, if this client says, “I can get it done cheaper by another agency who came in at $10,000,” should you let them haggle you down on price?

Heck no; You know your worth!

Should you walk away and let them go with the cheaper guy? Maybe! (More on that later.)

Instead of getting bent out of shape right away, though, here are three things you can discuss with them.

How to Combat 3 Common Price Objections

1. “Cheaper does not mean equal.”

Go back to the problem or opportunity they’ve identified and review their three I’s with them. Remember (from part 3 in this series) you should ask them to define the: Issue, Impact, Importance.

Remind them of the impact your solution is going to make on their business, whether solving a problem or creating new revenue. Use their words and describe the three I’s in their own language. If it’s still a million dollar problem do they really think it can be solved for $10,000?

2. “You get what you pay for.”

Ask them why they think the other agency’s proposal came in lower.

They may identify reasons such as fewer employees, less overhead, or even less experience.

When they are the ones pointing out the reasons for the lowball estimate, it might sink in that you’re more qualified for the work.

It’s like the appliance repairman who charges $1,000 to fix your refrigerator, even though it only takes him 15 minutes. He charges $100 for the repair, but $900 for knowing how to do it quickly.

So, ask this prospect if they want it done right, or if they want it done cheaply.

3. Time is money.

If there is a large price difference between you and another competitor, it may be that they don’t fully understand the scope of the project.

Explain to the client that what might happen is they may end up managing the work a lot more than if they’d handed it off to a more experienced agency.

There is more likely to be a lot of speed bumps and handholding along the way because the other agency may not have the right systems in place in order to be efficient.

If your prospect values time over money, they will not want to go this route. If they value money over time, they may not be a good fit for you after all.

Thinking Through Your Price Tag

Bottom line: You need to help prospects logically think through supposedly more affordable proposals.

Sometimes prospects only see dollar signs and forget how to really scrutinize what they’re getting. When you initiate conversations like these, it helps them second guess their gut reaction of going with the cheapest option.

There is no such thing as a bad agency client. There are only bad prospects and bad processes.

If you have a bad agency client, it’s only because you let them in… but when you tighten up your process and weed out the bad prospects, you’ll only be working with the right clients that value your services and pay what you’re worth.

Want to learn more about digital sales and marketing?

Master digital sales and marketing when you join IMPACT+ for FREE. Gain instant access to exclusive courses and keynotes taught by Marcus Sheridan, Brian Halligan, Liz Moorehead, Ann Handley, David Cancel, Carina Duffy, Zach Basner, and more.

Sign up for free
Take a peek

Access hundreds of FREE courses and keynotes

Free Course
Digital Sales & Marketing Framework for Today’s Buyers
By: Marcus Sheridan
View Course Preview View Course Preview
Free Keynote
A New Way to Compete & Win
By: Brian Halligan
View Course Preview View Course Preview
Free Virtual Keynote
How To Genuinely Feel Confident, Be Likable, And Build Trust On Camera
By: Liz Moorehead
View Course Preview View Course Preview
Free Keynote
The Future of Marketing is Conversational​
By: David Cancel
View Course Preview View Course Preview
Free Deep Dive
HubSpot On a Budget: Getting Started with HubSpot Starter Hubs
By: Courtney Caldwell
View Course Preview View Course Preview
Free Course
Assignment Selling: Content is Your Greatest Sales Tool
By: Marcus Sheridan
View Course Preview View Course Preview
Free Keynote
The Big, Bold, Brave New World of Marketing​
By: Ann Handley
View Course Preview View Course Preview
Free Course
Investing in Incredible Digital Sales and Marketing Results
By: Chris Duprey
View Course Preview View Course Preview
Free Course
How To Show Your Content Makes Money With HubSpot Marketing and Sales Hubs
By: Liz Moorehead
View Course Preview View Course Preview
Free Virtual Keynote
The Visual Sale
By: Marcus Sheridan & Tyler Lessard
View Course Preview View Course Preview
Free Keynote
Marketing Tech: What’s Now, What’s Near and What’s Not Anytime Soon?​
By: Dharmesh Shah
View Course Preview View Course Preview
Free Course
Inbound Lead Generation & Conversion Optimization
By: Carina Duffy
View Course Preview View Course Preview
Free Virtual Keynote
Fundamentals of Videography: You Can Be a Great Videographer Too
By: Zach Basner
View Course Preview View Course Preview
Free Deep Dive
The Ultimate Customer Service Toolkit for Any Budget
By: Andriti Gulati
View Course Preview View Course Preview
Free Course
6 Topics Subject Matter Experts Need to Address
By: Kevin Phillips
View Course Preview View Course Preview
Free Keynote
Fanocracy: The Power of Making Business Personal​
By: David Meerman Scott
View Course Preview View Course Preview
Free Keynote
The Power of Pillar Content
By: Liz Moorehead
View Course Preview View Course Preview
Free Keynote
SEO for the Future
By: Franco Valentino
View Course Preview View Course Preview
Free Course
Fundamentals of Social Media Marketing
By: Stephanie Baiocchi
View Course Preview View Course Preview
Free Deep Dive
A Practical Guide To Video Graphics
By: Colton Trcic
View Course Preview View Course Preview
Free Session
How To Get Your Community To Know, Like, And Trust You With Video
By: Marki Lemons Rhyal
View Course Preview View Course Preview
Free Course
Video Sales and Marketing Strategy
By: Zach Basner
View Course Preview View Course Preview
Here Are Some Related Articles You May Find Interesting

Want to Contribute Content to impactplus.com? Click Here.

IMPACT+ Sign Up
A FREE online learning community with on-demand courses, hundreds of expert-led sessions, thousands of your peers ready to support you, and much more.
Check it out
Hundreds of courses and recorded keynotes, completely FREE
Check it out
Access hundreds of digital sales and marketing courses and recorded keynotes, completely FREE