Price objections should never get in the way of completing a sale. There are many reasons why you get the opportunity to sit across from a prospect and many reasons why you might hear "NO". Price is a common objection, but only becomes a problem when:

1.  You are presenting a solution with a price tag that is not in line with the prospect's expectations. In that situation, price isn't the problem, you are! Either you aren't uncovering the relevant issues why they are shopping their insurance such as available budget, dissatisfaction with the incumbent, a claim gone bad, etc. Or if you did uncover the problem, you ignored what you discovered. 

2.  Your prospect's perception of what you are offering is inconsistent with the investment necessary. If the prospect views you as just another insurance broker, price will be the only differentiating factor. And, there will always be someone cheaper. Price is not the problem. The problem is lack of differentiation: your inability to develop a relationship where the prospect recognizes the value you bring to the table - value that he would lose by dealing with your competitor.

There will always be someone cheaper.

3.  You are trying to do business in the wrong niche. The marketplace is continuously changing. Various market segments which were once desirable may not the present the same opportunity today. In that case, your problem is not price - any price is too high to someone who doesn't truly want, need or understand your product. The problem is tunnel vision (or perhaps lack of flexibility or creativity). Take off the blinders. Broaden your horizons. Test the waters with new niches. Call on businesses that you previously avoided. Stretch outside your comfort zone. It may take some digging, but there is gold if you keep looking. 

4.  You are trying to sell what you want to sell or what you think the prospect needs and not what the prospect wants to buy. People buy what they want, not necessarily what they need. If you enter a selling situation predisposed to what you are going to sell, you will miss the opportunity to sell what the prospect is ready to buy. Maybe you got the appointment to talk about workers' compensation insurance, but they just had a terrible auto claim experience. Unless you are asking questions, you'll never uncover that pain and opportunity. Price may be the objection voiced by the prospect, but the real obstacle may be your own rigidity.

5. Your prospect perceives that you are only trying to "make a sale". You must have a genuine sincere concern for the prospect - and it must show. If you act and sound like the stereotypical insurance agent who might be a bit too eager and enthusiastic and appear to be out to make a sale at any cost, your prospect will feel like the proverbial lamb being led to the slaughter. Any price will be too high!

6. You don't focus on the big picture. If a prospect views your product as a temporary or quick fix, and not an integral part of a long-term solution, the perceived value of the return on their investment will be far less that what it is really worth. And what will the prospect be willing to pay? Far less that you are asking. If your strategy is to "get your foot in the door" with an initial sale in the hopes of securing future business, then make sure the initial sale is specifically tied to a predefined future relationship. Not only will the prospect be more willing to pay your price, but he won't be out looking for another agent while you're providing the temporary fix. Consider added services such as real risk management or work with third parties to provide rounded solutions to your client beyond simply insurance. 

Don't blame prospects for "price" objections. Instead, examine your attitudes, actions and strategies. Make sure you're not creating your own "price" roadblocks. I have been selling insurance for over 15 years and know just how hard it can be. Only you get your sales down, it's just a numbers game. If you have more prospects, you can convert more sales. If you are looking for creative ways to get in front of prospects consult with us to get your inbound on!