How to Respond to Price Resistance - The Daviston Group

How to Respond to Price Resistance

Yesterday in an HVAC Plumbing class we got into a big discussion about defending our price, and I said something that puzzled just about everyone. It goes totally against what everybody else teaches, but to me it’s truth that matters.

Do not sell, convince, or build value when you encounter resistance to price. ALWAYS fall back and do not push back. It is not time to give them the talking points because you have to remove the resistance first.

Here are a few facts regarding communication. You might want to write this down.

Insight does not work with people who are unmotivated to change. If you would pick your tools up and start walking out the door (be kind, not arrogant) you would have better results than trying to convince them otherwise. They don’t want you to leave. I promise.

Communication does not depend on the right words or some NLP, hocus pocus wordsmith. It depends on the emotional context in which it is being heard. If my words are pursuing you, you’re are not likely to here my message. Words are heard when the listener is moving towards you and when they are open to hearing them. Words used to overpower the other person only make matters worse.

Communication is an emotional process and we are all just emoting around. Eloquence of speech, well chosen words, insight, logic and on and on… will not work with people who are unmotivated to change and you cannot overcome their resistance by trying harder.

Be dead honest with people and speak to them in a loving manner. Don’t be rude, arrogant or prideful, but don”t be afraid either. Know who you are and what you do. You cannot be all things to all people.

What’s the bottom line?

Don’t be afraid to stand your ground and be willing to leave. You provide a good service not a cheap service. People who do business with you know that you are more expensive but they like it because they don’t have to worry and get value from what they spend. That’s the kind of person you serve the best. “If you’re looking for cheap maybe we are not the right company for you.” Do not be afraid to say this.

We told this to a person last week who said our prices were outrageous. He said it was a ripoff how much we charge. I was there. I heard him. When we suggested he go somewhere else he changed his tune and talked about how much he wanted us to do the job. We did not defend our price. We went totally the other direction and tried to convince him to use a one man operation, but he would not go there. Basically he started selling us and telling us how much he really wanted us to do the work. It was amazing.

Lesson learned?

Opening up a space for accepting “NO” allows more room for “YES.” Do you have the faith for that one? It takes faith and courage to make these choices.