How to Handle "Your Price is Too High" in India (Scripts & The LAPSE Model)

Losing deals because potential customers in India tell you "Your price is too high"? This common challenge can be frustrating for any salesperson, small business owner, or freelancer. Learning to effectively handle price objection is a critical skill that can transform your sales success, turning hesitant prospects into satisfied customers. It's not just about lowering your rates; it's about understanding the underlying concerns and communicating value.

Why 'Your Price is Too High' Isn't About Money

When a customer states that your price is too high, it's rarely a simple declaration about the numerical cost. Often, it's a symptom of deeper issues. It could signify a perceived value gap, meaning the customer doesn't yet see enough benefit to justify the investment. Perhaps there's a misconception about what your product or service offers, or they might be comparing it unfairly to a cheaper, less comprehensive alternative. Sometimes, it can indeed be a genuine budget constraint, but even then, understanding the 'why' allows for a more constructive conversation.

Before you can effectively respond, you need to uncover the real reason behind the objection. Is the customer truly unable to afford it, or do they simply not understand the value they're getting? Without this insight, any response you give is likely to miss the mark, leaving you struggling to close the deal. The goal is to move beyond the sticker price and address the core concern, whether it's about value, features, or budget alignment.

Introducing the LAPSE Model for Objection Handling

To systematically address and overcome price objections, we can use the LAPSE model. This structured approach helps you navigate customer concerns with empathy and strategic questioning, moving you closer to a successful outcome. The LAPSE model stands for:

• L - Listen: Pay full attention to the customer's objection. Don't interrupt or get defensive. Let them express their concern completely. This shows respect and helps you grasp the full scope of their issue.
• A - Acknowledge: Validate the customer's feeling. Show them you understand their perspective, even if you don't agree with the premise of their objection. As sales experts advise, "When the customer says your product is expensive, Listen first... don't get defensive. Acknowledge... 'Mr. customer, I definitely understand...'" This builds rapport and reduces tension.
• P - Probe: Ask open-ended questions to uncover the true reason behind the objection. This is where you get to the root of the problem. For instance, after acknowledging, you might "Probe... 'Can you please tell me with which brand or model are you comparing it with?'" This question helps you understand their frame of reference.
• S - Respond: Once you've listened, acknowledged, and probed, you're equipped to provide a targeted response. This response should directly address the customer's underlying concern, reframe the value, or offer a suitable solution.
• E - Close (the objection): After responding, confirm that you've addressed their concern. Ask a closing question to ensure they feel satisfied with your explanation and are ready to move forward. This could be as simple as, "Does that make more sense?" or "Are there any other concerns about the price?"

Mastering this framework can significantly improve your ability to prepare for and handle sales calls, ensuring you're always ready for common objections.

To learn more about advanced sales techniques and how to apply them effectively in the Indian market, consider enrolling in the full sales workshop course at Juno School.

Ready-to-Use Scripts Using the LAPSE Model to Handle Price Objections

Here are three practical scripts demonstrating how to apply the LAPSE model in different scenarios commonly faced by salespeople in India:

Scenario 1: Customer Comparing to a Cheaper Competitor

Customer: "Your price is quite high. I found a similar service from [Competitor Name] for much less."

• L - Listen: (Allow the customer to finish without interruption.)
• A - Acknowledge: "I understand completely that you're looking for the best value for your investment, and it's natural to compare options. Many of our clients initially consider [Competitor Name] as well."
• P - Probe: "Could you tell me a bit more about what you liked about [Competitor Name]'s offering? What specific features or benefits were important to you in their proposal?"
• S - Respond: "Thank you for sharing that. While [Competitor Name] offers a lower initial price, our solution includes [mention unique benefit 1, e.g., dedicated 24/7 support, advanced analytics, customisation options] and [unique benefit 2, e.g., a proven track record of X% ROI for similar businesses]. These elements are crucial for [customer's specific goal, e.g., ensuring seamless operations, achieving faster growth, future-proofing your business] and ultimately lead to a much higher return on your investment over time."
• E - Close: "Does understanding these differences help clarify why our pricing reflects the comprehensive value and long-term results we deliver?"

Scenario 2: Customer Perceives Lack of Features for the Price

Customer: "For this price, I expected more features. It feels a bit basic."

• L - Listen: (Let them elaborate on what features they expected.)
• A - Acknowledge: "I appreciate you bringing that up. It's important that you feel confident about the functionality you're getting for your investment."
• P - Probe: "Could you share which specific features you were hoping to see? Knowing that will help me explain how our solution addresses your needs, perhaps in a different way, or if we have an alternative that fits better."
• S - Respond: "Thank you for clarifying. While our core package focuses on [mention core strength, e.g., ease of use, robust reliability, specific key outcomes], which is often what our clients value most for [customer's primary pain point], we do offer [mention a feature they might have overlooked or an add-on that fits, e.g., advanced reporting in an optional module, integration capabilities that solve X problem]. Our design philosophy prioritises [explain why certain features might be absent or streamlined, e.g., simplicity, efficiency, avoiding bloat] to ensure you only pay for what truly matters for your business goals."
• E - Close: "Does that provide a clearer picture of how our solution's current features are designed to deliver maximum impact for your specific requirements?"

Scenario 3: General "It's Too Expensive" Without Specifics

Customer: "That's just too expensive for us right now."

• L - Listen: (Observe body language, tone, and allow for any further elaboration.)
• A - Acknowledge: "I completely understand that price is a significant factor in any business decision, and I appreciate your honesty."
• P - Probe: "To help me understand better, could you tell me what specifically makes you feel it's too expensive? Is it the overall budget, or are you comparing it to something else, or perhaps you're unsure about the return on investment?"
• S - Respond: "Thank you for that insight. Many of our clients initially feel this way, but once they see the long-term benefits, they view it as a strategic investment. For example, our solution typically helps businesses like yours achieve [specific quantifiable result, e.g., a 20% reduction in operational costs, a 15% increase in lead generation] within the first six months. When you consider the potential savings and growth, the initial cost often pays for itself rapidly."
• E - Close: "Given these potential benefits, do you see how this could be an investment that yields significant returns for your business?"

How to Probe: Finding the Real Comparison

One of the most powerful steps in the LAPSE model is 'Probe'. In India, customers often compare products or services based purely on price, without considering the underlying value or specifications. As observed in sales workshops, "For a customer, a Samsung S series could be comparable with a later size phone... because of the price. So what the customer is comparing may not be an actual comparison or an apple-to-apple comparison." This highlights the critical need to understand their reference point.

To ensure you're addressing an "apple-to-apple" comparison, ask targeted questions:

• "What alternatives have you considered, and what did you find appealing about them?"
• "When you say 'too expensive,' what are you comparing our offering to specifically?"
• "What are the key features or outcomes you're looking for in a solution, and how did the other options you explored meet those?"
• "Are you comparing based on the initial upfront cost, or are you also considering the long-term operational costs, support, and potential ROI?"

These questions, similar to those used in the SPIN selling framework, help you uncover whether the customer is comparing a premium solution with a basic one, or a comprehensive service with a fragmented offering. Once you know their comparison point, you can effectively highlight your unique selling propositions and justify your pricing.

Shifting from Price to Value

The ultimate goal when you handle price objection is to shift the conversation from cost to value. When customers focus solely on price, they see an expense. When they understand the value, they see an investment. As sales experts explain, "The moment you talk of the benefit, how will it add value to me... I see it as an investment. Remember the case I discussed, my friend buying a TV, he was ready to invest 20,000 more... because he sees it as an investment."

Here are techniques to reframe the conversation:

• Focus on Outcomes, Not Features: Instead of listing features, explain what those features enable the customer to achieve. How will it save them time, increase revenue, reduce risk, or improve efficiency?
• Quantify Benefits: Whenever possible, use numbers. "This solution will save you approximately 10 hours a week," or "Our service typically increases customer retention by 15%." This makes the value tangible.
• Highlight Long-Term ROI: Explain how the initial investment will pay for itself over time. Discuss ongoing support, upgrades, and the longevity of your product or service compared to cheaper alternatives that might require frequent replacements or additional costs.
• Share Success Stories: Referencing how similar businesses in India have benefited from your offering can be very persuasive. "A client in [similar industry] initially had the same concern, but after implementing our solution, they saw a 25% boost in their sales within three months."
• Address Risk Mitigation: Position your higher price as an investment in quality, reliability, and peace of mind. A cheaper option might come with hidden costs, downtime, or subpar results, which ultimately cost more.

By consistently translating features into benefits and benefits into quantifiable value and investment, you can help customers see beyond the initial price tag. This approach, similar to the FAB technique, empowers you to justify your pricing and secure more deals.