Sales Objections: Your Price is Too High

"Your price is too high" might be the most dreaded phrase in sales conversations, but rarely is it just about the price. This objection often masks deeper concerns about perceived value, urgency, or alignment with needs.

When prospects say your price is too high, they're actually communicating:

• "I don't see enough value in what you're offering"

• "I can't justify this investment to my stakeholders"

• "I don't have enough trust in the outcomes"

• "I'm comparing you to alternatives that seem similar but cost less"

Successful professionals don't take price objections at face value. They recognize these objections as conversation starters rather than conclusions, using them to engage prospects more deeply and uncover true concerns.

Decoding What "Your Price Is Too High" Really Means

Prospect theory suggests that people make decisions based on potential losses and gains rather than final outcomes.Loss aversion plays a significant role in how people respond to pricing. The pain of losing is about twice as powerful as the pleasure of gaining.

Value Misalignment: They Don't See the ROI

This objection often means, "I don't see how this investment will pay off." In B2B environments, purchases must be justified by tangible returns.

Sales training clients may struggle to connect your premium program to increased revenue. HR professionals considering development programs might not see how the investment translates to improved retention or productivity.

Lack of perceived value is one of the primary reasons for price objections. A prospect who says "it's not in our budget" may genuinely be constrained financially. Alternatively, they could simply be testing to see if you can justify the cost.

Budget Authority Issues: "I Can't Approve This"

Sometimes the price objection masks an authority problem. Your contact may see the value but lacks the power to approve the expenditure.

Sales managers might need executive approval for purchases above a certain threshold. HR training budgets might require cross-departmental approval.

The prospect might actually mean "I can't personally authorize this spend" or "I don't know how to get this approved."

Timing and Cash Flow Concerns

For many organizations, especially small to mid-sized businesses, the objection might relate to cash flow timing rather than total cost.

A sales director might value your solution but worry about funding it in the current quarter. In these cases, "Your price is too high" actually means "I can't manage this payment structure right now."

The Psychology Behind Price Perception

How Anchoring Affects Price Expectations

Anchoring bias is a phenomenon where people rely heavily on the first piece of information they receive when making decisions. This principle significantly impacts how prospects evaluate your pricing.

You can leverage this principle through:

• Presenting your premium package first to make other options seem more affordable

• Comparing your pricing to more expensive alternatives in the market

• Establishing the potential ROI as an anchor rather than focusing on immediate cost

Instead of saying, "Our leadership program costs $2,500," try "Our leadership program, which delivers an average 20% increase in team productivity, is an investment of $2,500."

The Framing Effect: Expense vs. Investment

How you frame your offerings dramatically impacts how prospects perceive their value. The framing effect shows that people respond differently to identical information based on how it's presented.

When you frame your training as an expense, prospects naturally look for ways to minimize costs. When framed as an investment with expected returns, the conversation shifts to potential value.

Powerful framing techniques include:

• Presenting costs in smaller units (e.g., "Less than $83 per month" rather than "$1,000 per year")

• Highlighting what prospects might lose by not investing (tapping into loss aversion)

• Bundling valuable components together, such as AI roleplay based training, rather than itemizing costs

Industry-Specific Response Strategies: Sales Leaders

As a sales leader, addressing price objections effectively is crucial for maintaining healthy pipelines and closing deals. The key is shifting the conversation from cost to value.

Translating Training to Revenue Impact

Sales leaders need concrete metrics that connect training investments to revenue outcomes. Additionally, optimizing sales compensation plans can significantly impact team motivation and performance. When faced with price objections, focus on:

• Pipeline acceleration: "Our training program has helped companies reduce their average sales cycle by 24%, allowing you to recognize revenue faster and increase annual deal volume."

• Deal size improvements: "After implementing our negotiation training, ABC Software saw a 15% increase in average deal size within just one quarter."

• ROI calculation: "If your average deal size is $50,000 and this training helps your team close just two additional deals per quarter, you'll see a 400% return on your investment within the first year."

Remember to frame the cost as an investment rather than an expense. This shifts the psychological perception from loss to potential gain.

Competitive Advantage Framework

Sales leaders constantly seek edges over competitors. Position your training solution as a competitive differentiator:

• Highlight exclusive methodologies: "Our proprietary sales framework is used by 7 of the top 10 SaaS companies in your industry."

• Emphasize time-to-value: "While other programs take months to show results, our approach delivers measurable improvements within the first 30 days."

• Connect to strategic initiatives: "Your team mentioned increasing market share in the enterprise segment is a key goal this year. Our enterprise sales training has helped similar companies increase their enterprise win rates by 22%."

Sample Responses That Work

For "We don't have the budget right now":

"I understand budget constraints can be challenging. Many of our clients initially felt the same way. What they found was that by reallocating a small portion of their existing sales enablement budget, they were able to generate a 3X return through improved close rates. Would it be helpful to see how other companies in your industry have funded similar initiatives?"

For "This is more expensive than alternatives we're considering":

"You're right to compare options carefully. What we've found is that while our initial investment is higher, our clients achieve proficiency 40% faster than with other programs. This means your team starts applying these skills and closing more deals sooner, which significantly improves your overall return. Would a side-by-side comparison of time-to-proficiency and resulting revenue impact be valuable?"

Industry-Specific Response Strategies: HR & L&D Professionals

HR and L&D professionals encounter specific challenges when securing budget for training initiatives. Price objections in this arena frequently conceal deeper concerns about proving ROI and connecting training investments to measurable business outcomes.

Linking Training to Retention Metrics

Connect your training investments directly to employee retention—a metric every executive understands in financial terms.

Frame your training proposal in terms of retention savings using this formula:

• Average cost of replacing an employee (typically 6-9 months of their average salary)

• Multiplied by your current turnover rate

• Compared to projected turnover reduction after implementing the training

Innovative training approaches focused on career development and building a positive team culture cansignificantly increase employee engagement and satisfaction.

Calculating the Hidden Costs of Skill Gaps

Quantify the invisible costs of not investing in training by calculating the current expense of skill gaps:

• Lost productivity from underqualified employees

• Increased error rates and quality control issues

• Expenses related to outsourcing work that could be handled in-house

• Opportunity costs from delayed projects or initiatives

When presenting to finance stakeholders, use concrete examples specific to your organization. If your employees lack digital skills, calculate the cost of outsourcing this work compared to upskilling your existing team.

The Price Objection Response Framework

When a prospect says, "Your price is too high," they're rarely communicating their true concern. The following framework combines psychological principles with proven strategies to uncover the real issue and demonstrate value.

Diagnostic Questions to Uncover Real Objections

• The Silent Pause Technique: Pause for 3-5 seconds after hearing "your price is too high." This often prompts elaboration on their concerns.

• Comparison Clarity Questions:

  • "I understand price is a concern. Could you help me understand what you're comparing our solution to?"

  • "When you say 'too high,' are you referring to a competitor's offering or your internal budget constraints?"

• Value Gap Identifiers:

  • "Which specific aspects of our solution don't seem to justify the investment?"

  • "What would make this investment more valuable to you and your organization?"

• Budget Exploration:

  • "Is this a matter of total budget availability, or is it about the timing of the investment?"

  • "What ROI would you need to see to justify this investment to your stakeholders?"

Value Justification Toolkit

Once you've identified the real objection, use these tools to demonstrate value effectively:

• ROI Calculator: Create a customized calculation showing the financial impact of your solution. Include metrics like productivity improvements and reduced time-to-proficiency.

• Value Reframing: Break down the cost over time or compare it to the cost of inaction.

• Differentiation Matrix: Create a side-by-side comparison of your solution versus alternatives, focusing on unique value drivers.

• Case Study Arsenal: Build a library of relevant success stories that demonstrate concrete outcomes.

• Social Proof Strategy: Share testimonials and references from similar companies or industries.

Follow-Up Strategies That Build Value Over Time

If you can't overcome the price objection immediately, implement these follow-up approaches:

• Value Drip Campaign: Create a sequence of communications focused on different aspects of value.

• Pilot Program Approach: Suggest a limited implementation that allows the prospect to experience value before committing to the full investment.

• Alternative Configuration: Offer a modified solution that meets their budget while maintaining core value.

• Value-Added Incentives: Add valuable components that enhance the offering while maintaining your price point.

• Decision-Maker Expansion: Identify additional stakeholders who might better understand the value proposition.

Transforming the Price Conversation

The most effective price objection responses avoid defending your price. Instead, they focus on enhancing perceived value.

When sales enablement leaders master these strategies, they do more than close individual deals. They establish themselves as partners invested in their clients' success. The key is understanding that "your price is too high" is rarely about the number itself.

For sales enablement leaders facing tough negotiations, the skills to reframe price conversations represent a competitive advantage. Training your team on these approaches helps you navigate price objections successfully. It strengthens client relationships and builds long-term trust.

The psychological principles we've discussed provide powerful tools for reshaping how prospects perceive the value of your offering. Emphasizing long-term ROI rather than upfront costs helps customers see beyond the price tag. This approach allows them to recognize the true worth of your solution.

Are you a sales rep or sales leader looking for some practice? Try out our objection handler below to sharpen your skills and turn objections into opportunities.