3.3The price objection & defending your margin
The essentials in 30 seconds
- Dig first: “too expensive versus what?” — half of “too expensive” are misunderstandings.
- Defend on value: total cost, value per day, slicing (lower the scope, not the price).
- Move = counterpart (signature, term, volume, payment); else an owned no + reduced alternative.
Running mini-case — Younes defends his €5k without discounting
The customer compares with a €3.5k competitor with no support. Younes digs (“versus your budget or this offer?”), prices the total cost (breakdowns, lost days) and brings it back to the day: “€5k, support included, about €13 a day for the team”. He only concedes €4.7k against a Thursday signature and 30-day payment. The margin is defended, the value explained.
Sequel of cases 3.1-3.2 — Younes moves from handling to defending the margin.
1. Never discount upfront: dig
“Too expensive versus what?” (competitor? budget? habit?): half of “too expensive” are misunderstandings (scope, options, decider). Discounting without digging confesses it was overpriced — and invites re-asking.
Don't justify before the objection nor align by reflex: comparing a “bare” price without looking at content makes no sense.
2. Defend, then counterpart or no
Total cost (cheaper competitor + support + breakdowns = pricier), value per day (“€3 a day per rep”), slicing (phases, options: lower the scope, not the price). If you move: counterpart (signature, term, volume, payment).
After defending: silence (let it weigh). If truly stuck: owned no (“at that price, I can't guarantee X”) + reduced alternative. Discount once and you discount forever.
🔎 Concrete example — €5k defended without discounting
Younes digs, defends, then trades.
“Too expensive.” → “Versus what: budget or competitor?”
→ competitor at €3.5k (no support) → priced total cost
→ “€5k = €13/day/team, support included”
→ “If I do €4.7k, do you sign Thursday, 30-day payment?” yesReading: dug, defended, conceded against signature.
Lesson: a discount with no counterpart always gets re-asked.
Section vocabulary
- Price objection
- The “too expensive” objection, the most frequent; to handle by strengthening value, not by yielding.
Simple example: The “too expensive” opposed to Younes's €5k.
What it is not: an objective verdict imposing a discount.
Reflex: translate “expensive” into “versus what?”.
- Margin defence
- Preserving your price and profitability without yielding by reflex to discount requests.
Simple example: Younes holds €5k then moves only against signature.
What it is not: cutting 15% at the first remark.
Reflex: no new number before digging.
- Perceived value
- What the customer reckons they get for their money; often at stake when “too expensive”.
Simple example: The included support and the breakdown days avoided.
What it is not: the mere face amount of the offer.
Reflex: restate the price as a per-day benefit.
- Cost of the unsolved problem
- What it costs the customer to do nothing; a powerful argument to justify the price.
Simple example: The 2 breakdown days a year priced at the customer.
What it is not: a vague promise with no number.
Reflex: price inaction before pricing any discount.
- Concession for counterpart
- The principle of granting a discount only against a customer commitment (volume, term, payment…).
Simple example: €4.7k against a Thursday signature and 30-day payment.
What it is not: a free move that will get re-asked.
Reflex: every concession phrased as “if I… will you…?”.
In practice — Answer the price objection and defend your margin
- Don't yield at the first “it's expensive”: reflex discounting devalues the offer and destroys the margin.
- First understand what “it's expensive” means (vs competitor, vs budget, vs perceived value).
- Strengthen value: concrete benefits, priced ROI, cost of the unsolved problem, price relativisation.
- If negotiating, never grant a concession without a counterpart (volume, term, fast payment, testimonial).
Ready-to-say script — defend without discounting (1 min)
“Versus what do you find it expensive: your budget or the €3.5k offer? At equal scope, with support and avoided breakdowns, we are at about €13 a day for the team. If I make an effort at €4.7k, can you sign Thursday with 30-day payment?”
Say after digging; then silence — let the customer weigh.
Copy-paste template — price defence sheet
“EXPENSIVE” VS WHAT (budget / competitor / habit): _______________
PRICED TOTAL COST (support, breakdowns, delays): _______________
VALUE PER DAY / PER USE: _______________
POSSIBLE REDUCED SCOPE: _______________
MOVE VS COUNTERPART (signature, timeline): _______________SMB / freelancer
Show a per-day or per-use price: small daily amounts defend better than the total.
SME Algiers
Younes gets paid in local instalments: tie every move to payment (deposit, 30 days) to secure the margin.
Services
Slice into phases (start + extension): lower the scope rather than the daily rate.
Facing the cheapest bidder
Don't disparage the competitor: factually compare content and total cost over time.
✓ Best practices
- Dig before any new number.
- Lower the scope, not the price.
- Require a counterpart for every move.
✗ Common pitfalls
- Reflex discount at the first “expensive”.
- Justifying before even the objection.
- Discounting with no counterpart.
Key takeaways
- Don't yield at the first “it's expensive”: it devalues the offer, destroys the margin and teaches negotiating.
- Understand what “it's expensive” really means; often, insufficiently perceived value.
- Answer by strengthening value (benefits, ROI, cost of inaction, relativisation), not by cutting the price.
- Every concession for a counterpart; the seller's confidence in their price is decisive.
48h challenge — apply tomorrow
Prepare your price defence sheet (total cost + value per day) for your standard offer, and use it at the next “it's expensive”.
- I can cite 3 defences (total cost, day value, scope).
- I can dig “versus what?”.
- I refused 1 free discount (or planned the counterpart).
Frequently asked questions
Why not simply cut the price when the customer finds it expensive?
Because it devalues the offer, destroys the margin and teaches re-asking — while “expensive” often means poorly perceived value. Strengthen value (benefits, ROI, cost of inaction) and, if there is a discount, always for a counterpart.
How to concretely answer “your competitor is cheaper”?
Don't align by reflex: dig the real content, compare total value and overall cost, stay factual without disparaging, and come back to the need. The value-for-money ratio, not the face price, makes the difference.
Customer: “the competitor is at €3.5k”. Younes's answer?