They don’t see the value.
This is usually a result when we explain or demonstrate exactly how the customer will benefit from using our product or service.
They have a preconceived idea of the cost or price.
Many people have a preconceived idea of how much a particular product or service will cost. Because of that, the value of the product or service doesn’t exceed the price to pay.
It is more than they budgeted.
Many people allot a specific amount of money for a given purchase or service, and if your solution exceeds that budget, a prospect’s first reaction might be, “Wow, you’re expensive!” This doesn’t mean that they won’t move forward with the decision. It simply means that they need to adjust their mental budget.
They are comparing your product to another brand or competitor.
In today’s world, it is common to find multiple versions of the same product or service. Electronics are an excellent example. Two brands of televisions may look identical however, there are usually a few defining features on each that makes them different.
A competitor is selling the same or similar product for less.
Predatory pricing occurs in virtually every industry and many costumers use this fact to negotiate better price. However, just because a competitor is selling a similar product does not mean your customer is comparing apples to apples.
It is a negotiating tactic.
I know from personal experience that simply uttering the words, “Wow! That’s expensive!” can cause the seller to immediately offer a discount. Resist that knee-jerk reaction.
They can’t afford it.
There are times when someone simply can’t afford your product or service and their natural response is to say, “That’s expensive.”
It’s an excuse.
In certain situations a prospect will state these words just as an excuse to end the sales conversation and walk away without making a buying decision.