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Cost Objection

Aloha Everyone,

I am currently trying to sell an anti-corrosion coating that has historically outperformed a majority of the current options.

The key benefits to my product line over the competition:
  • Ease of Application
  • Non-Toxic
  • Easy Maintenance

Now I have a customer that is happy with the performance of the product. He wants to use the product on the home, but says that he cannot justify the expense.

How do I build a value statement to show that spending on the product now will decrease the maintenance cost over the lifetime of the structure.

Please assist. - by B2BHawaii
Aloha Everyone,

I am currently trying to sell an anti-corrosion coating that has historically outperformed a majority of the current options.

The key benefits to my product line over the competition:
  • Ease of Application
  • Non-Toxic
  • Easy Maintenance
Now I have a customer that is happy with the performance of the product. He wants to use the product on the home, but says that he cannot justify the expense.

How do I build a value statement to show that spending on the product now will decrease the maintenance cost over the lifetime of the structure.

Please assist.
I need more information but basically its a matter of assessing the cost if it is not used. This is the added benefit.

Also, how is it used? - by John Voris
Price vs Cost..................what is price? What is cost? Anyone care to chime in? - by hudsonvalley
Price vs Cost..................what is price? What is cost? Anyone care to chime in?
PRICE refers to what the buyer exchanges (gives up) in the transaction itself.

COST refers to the expenditures incurred for the attainment of the product or services, including those above and beyond the transaction price.

In this case, John is correct in suggesting that the "cost" of NOT using the product or service is the one we want to assess.

As an example, an initial outlay (price) of (X) dollars could save a buyers (10X) dollars in costs over (Y) years.

When it comes to "justifying" a price, the benefit of savings should be included. B2BHawaii mentioned benefits over the competition but failed to address the benefit of savings. It is the latter that transcends the customer's objection.

If a prospect is hung up on shape, don't focus on color. - by Gary A Boye
Thank you for the replies, I have been trying to wrap my head around this solution and I feel somewhat overwhelmed.

The problem I see is that the customer is looking to the initial price of the product without being able to justify the total value of the product. Using an anti-corrosion system was not considered in the original plans and budget.

Here is a quote of the reply:
"I've done some testing with the material I have and the results have been good. For me the biggest obstacle is the cost. We just priced out using it on a home addition and the material worked out to 4K. For me all I can justify is using the product in the critical exterior areas. If you have any suggestions on how to deal with this issue please let me know."

So although the customer, feels the product works well, he cannot see the value. The value is a subjective amount that will depend on a lot of other factors(i.e. environmental, construction timelines, etc.). - by B2BHawaii
The problem I see is that the customer is looking to the initial price of the product without being able to justify the total value of the product.
People tend to "justify" after acting on a decision--not before.

Value, with regard to its subjective nature, is often described as "perceived." But, actually, it's assigned. People do what they WANT; they buy what they WANT. If a buyer WANTS your anti-corrosion system, your job as a salesperson is then to partner with them in assessing value to the point where they can assign (mentally slot)that value, and subsequently justify the purchase.

Your feeling of "overwhelmed" is merely that--a feeling. It has little to do with the tasks set before you, once you understand what they are.

Back to the difference between cost and price: People rarely ignore price, but often ignore cost. In other words, they don't engage the process of determining what the real costs are, and, what the real costs of NOT buying are.

However, it has to begin with want. If want is not there, you are probably wasting your time. - by Gary A Boye
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