Overcoming Client Objections
Your MSP company needs to have strategic ability to overcome diverse client objections. There are many ways to do this, and the best is having the available information necessary to answer objections and handle tactics designed to wheedle down prices. Several strategies include:
- Anchor before the client does
- Make prospects justify themselves
- Don’t let “too high” theatrics dissuade you
- Re-bundle the un-bundlers
- Hold your ground under command
- Learn to differentiate between power plays
Anchor Before the Client Does
Your MSP company needs to bring up the price before the client. Oftentimes, they’ve got a figure in their head, and they’ll lead by telling you what they’re willing to spend. If they do this and you don’t meet their needs, they can smile, nod, and walk on. If you offer a discount, this makes you look weak and they’ll push for further concessions. Here’s what to do: know what your prospects are after and communicate your price immediately.
Make Prospects Justify Themselves
One of the most common things a client does after a price has been rendered is to complain that it’s too much for one reason or another. Ask them why. When they begin to stumble for a response, because previously they expected you to simply lower the price, then you have an excellent opportunity to numerically show you the value you’re bringing and further justify your unwillingness to budge with solid numbers.
Don’t Let “Too High” Theatrics Dissuade You
Even so, some prospects will try so hard for the discount that after they tell you a price is too high, they’ll go into theatrics trying to emphasize how unreasonable your costs are. They’ll actually try to make it seem that you’re crazy or something to that effect. But you know better. Wait for the theatrics to die down and don’t be moved.
Re-Bundle the Un-Bundlers
Sometimes, a savvy, sneaky prospect will ask for a bulk price, then divide it down and try to get less for more. For example, if you provided 5,000 end-user portals at a monthly “rental” fee through some new cloud solution, you’re likely offering the high number for cheaper than a low number. A client might try to undermine you by saying they’ve revised their estimate and only need 1,000. They’ll then try to stick on a price that’s one fifth the value of greater tier— but this doesn’t match your pricing rubric. Stick to your guns and justify it! Point out that the value per is so high that realistically, a diminishing of cost for such a high number isn’t necessary; but that you only do it for certain-sized orders.
Hold Your Ground Under Command
Sometimes, a prospect will tell you your price is high and insist that you lower it, because it isn’t justified. Again, hold your ground. This individual is, more often than not, bluffing.
Learn to Differentiate Between Power Plays
Sometimes, a prospect will throw a time-crunch at you, demanding a certain price, and telling you that after lunch “they’re off the table” because they have another MSP. Either stall for time to determine if this is true or call their bluff.
An MSP company that is strategically prepared ahead of clients has a greater propensity to convert them despite their bargaining tactics.