Your Price is Too High
by Ken Hall

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The single most contentious objection we hear is that of price. There are many variations of it, and often it isn’t even the real objection. Sometimes it is just a reason for not making the commitment to buy at this time. What can you to do?

The bad news is that, as long as you are in the travel industry, you are going to hear price objections. Why? Because consumers are smarter these days, they have more ways to find prices, and they think everything is negotiable. And the first law of Sales is “If you don’t ask, you don’t get,” so they know they need to ask for a rebate or a discount.

And we would be remiss if we didn’t mention that numerous agents still REBATE.

The good news is you do not have to lose sales just because of price objections. The second law of Sales is, “No one can force you to lower your price.” Customers may ask for, may even demand a lower price, but unless they hold a gun to your head, you do not have to do it. Yes, you may lose the sale if you don’t lower your price, but don’t tell anyone you had to lower the price.

So, how do we overcome price objections and still not lose sales?

First, always ask yourself what will happen if you don’t lower the price. Will you lose the booking? Are you sure? If your client really can buy the same product on the Internet for $200 less, why are they coming back and asking you to match it? If you match the price, they haven’t saved any additional money, and they have spent more time getting to the same position. So, unless they are asking you to beat the price or lower it, there are only two reasons they came back to you:

• They prefer to work with you instead of buying their vacation package on the Internet.
• Maybe they are not telling you the truth; maybe they can’t really save $200 buying it through Orbitz or Expedia, or even direct!

In other words, maybe they are lying to you just to see if you will lower your price.

When your clients ask you to lower the price, the truth is your clients want to work with you. What they are really looking for is a reason to buy from you. Give it to ‘em. In fact, give ‘em several:

• You have more experience searching for the right ingredients for their vacations.
• You know how to search for bargains they probably could never find.
• You know when to suggest changing a day here or there to get a better value.
• You know where to find the unexpected treats that will make their vacations more memorable.
• Tell them the best reason they should buy from you – and the reason they should always buy from you – is that the more you know about what they like and dislike, the better job you can do for them.

You are the travel expert -- tell your client and prospects!

Here's your action plan:

1. Make a note and post it on your computer – “I will not cheapen myself or my product just to lower the price.”
2. Always ask for written confirmation of lower prices. You have to have it to make sure your price comparison is truly accurate. (Does it have all taxes, surcharges, handling fees, etc., included?)
3. Never underestimate your value to your client. Ask your client if he or she will be happy dealing with a novice at the internet site if a problem occurs.
4. Never lower your price unless you are willing to earn less money.

Ken Hall is president of www.HomeBasedPros.com, a weekly e-letter with marketing and sales tips for the home-based travel agent. For more information and to sign up, go to www.HomeBasedPros.com.

(Credits: HomeBasedPros.com)