When the prospect asked “how much?” do you start shaking?
The main thing that you need to know when discussing price is that you discuss it when YOU are ready.
If price is discussed early in the meeting then it will change the whole tone of the meeting. The meeting will be you trying to justify the price. The answer to this is easy – don’t discuss price at the beginning.
If you are asked, then defer the question.
“Before I can answer that I need to get a bit more information about your business”
You then find out about the business, the person, their issues, and continue to build a rapport.
Then you put forward your overall proposition based on what you have learned and gear it to the problems raised. You find a solution to the prospects problems.
Then, at the end of the meeting, if you want to, you can talk about price...
The temptation now, when you present the charges, is to over-justify them, or even apologise for them. Often we have in our heads that there will be an objection before we even hear it.
The Psychologist, Neil Rackham, found that found that skilled negotiators give fewer reasons to back up their arguments: experts averaged fewer than two reasons per argument, compared with four reasons per argument from the non-experts. “The more reasons advanced, the more a case is potentially diluted,” Rackham writes. “If a negotiator gives five reasons to back his/her case and the third reason is weak, the other party will exploit this third reason in their response.”
Presenting too many reasons can also convey a lack of confidence, making it appear that we may be uncertain of the legitimacy of our offer.
So, talking about charges, don’t over-concern yourself about justifying your position. If you state the costs firmly and simply then there is less chance that they will be queried.
So how do you answer the dreaded question? You don’t. You defer it until you are ready to discuss it.