If there's one thing that design trade professionals dread, it's price objections. How to overcome them - and turn price bellyachers into believers - is the focus of this month's issue of Business by Design.

THIS MONTH:
+ Price Objections Are A Good Thing
+ Find Out What Really Hurts
+ Justify Your Price
+ Compensation Concepts

PRICE OBJECTIONS ARE A GOOD THING
Designers, window fashion professionals, showroom managers, sales reps, retailers, manufacturers and other design trade professionals go about their businesses differently. But there's one thing many of them have in common: they're scared to death of price objections.

They shouldn't be. Fact is, questions about your price are buying signals. Prospects have to be at least somewhat interested in your furniture, fabrics or Frescos in order to ask what they cost.

Picture yourself sitting down to dinner at home when the phone rings. The irritating voice on the other end inquires about your long distance service, and launches into a detailed account of his company's "Friends and Family" program. Your response? You hang up the phone - without asking about the price. The basic "blowoff."

There's no such "blowoff," however, when your prospects protest your prices. That may be their way of letting you know they want to keep talking.

FIND OUT WHAT REALLY HURTS
Prospects aren't looking for the best price. They're looking for the best solution to their design problems.

That's why your priority should be to ask about their priorities -- other than price. You may hear concerns about having the work done on time, or losing control over the project, or disruptive subcontractors. Maybe they'll express worries about your delivery, contract language, guarantee policy, or follow up.

The discussion will remind your prospect about all the issues at stake other than the cost of your services.

Respond by saying something like: "If I could guarantee that I'll do my best to assure the project is done on time, that you'll retain control over it, that the subcontractors will quit before you return home each day..., might it be worth it to invest a little more in the project?"

Often, the answer is: "Yes."

Too many designers, sales reps and showroom staffers make the mistake of discussing price too soon. Announcing your price at the outset is a sure way to kill the conversation before you even get to the other priorities. Prospects will stop listening.

Of course, there's no sense in having a conversation with individuals who are unable to afford your services. That's why it's important to qualify them up front, and to gain assurances that they have the need, budget and commitment to buy the kind of design products and services that you sell.

JUSTIFY YOUR PRICE
Price negotiations are no time for original thought.

That's why you should memorize and share, at a moment's notice, a list of reasons why you're worth your design or consultation fee, margin, mark up, etc.

Fee "justifiers" can include things like your…

+ Experience
+ Design specialties and expertise
+ Awards and other recognition
+ Clients: who you've served, and how
+ Educational background

You can also justify your fee by pointing out how you save your clients time, money and headaches, how you manage the project from concept to creation, etc.

Another way to avoid price hassles: present your prospects with personal marketing materials that educate them as to your value. Examples: bio sheets, testimonial letters and a complete list of your products and services.

COMPENSATION CONCEPTS
Keep the following ideas in mind the next time you talk price with a prospect:

+ You can set and get any fee as long as you can differentiate yourself from competitors who charge less.

+ It doesn't matter what you say about your fees. What matters is what you say about yourself. How you charge for your services is less important than how you promote yourself.

+ If a prospect says you're "too expensive," all she means is that you're not a priority right now. Your mission is to educate her as to why investing in your service should be a priority.

+ If a prospect calls your rate "too high," respond by asking "What do you mean by 'too high?' Too high compared to whom? Too high compared to what?" Establish her price parameters.

+ Compare apples to apples. When you're told a competitor's bid is less than yours, make sure there's a fair comparison of all the services that both firms offer.

+ Avoid discussing your "fees," "price," or "cost." Instead, use the phrase: "The investment in my design services…" Your words can make or break the deal.

+ Share your "only." Nothing justifies higher fees more than the phrase: "I'm the only window fashion professional in this area who..."

+ When all else fails, say: "I have no problem with those competitors who charge less. They, alone, know what their products and services are worth."