Price Vs Cost - Overcoming the price objection.
You can only have Two... Quality, Price, or Speed.
Quality and Fast – Won’t be cheap.
Quality and Cheap – Won’t be fast.
Cheap and Fast – Won’t be quality.
High-quality goods delivered quickly and efficiently to customers will always come at a higher price. But what is the cost?
That’s Gonna Cost Ya!
The problem is the terms of cost and price seem to be interchangeable. They are not. A question like, “How much does it cost?” Should be changed to “What’s the price?” A slight word change works as well, “How much will it cost?” The word change implies that future charges are baked in the total price. The price of the house is what is listed on the MLS. The cost is much more than that. Utilities, taxes, furnishing, maintenance, and upkeep, etc… add to the cost of ownership. When you ask someone for favor there is a cost associated with that, there is no price on a favor. Especially when the rule of reciprocity is taken into account!
Rule of Reciprocity is a social norm of responding to a positive action with another positive action, rewarding kind actions. – Wikipedia.org
Favors cost, without paying a dime.
Winter comes into mind when buying a vehicle. I recently was inquiring about the new Ford Maverick. I could customize the truck with different features on the Ford website which is a fun experience. One of the options is to choose a front-wheel drive or all-wheel drive. The all-wheel-drive option was $3,200 more than the standard front-wheel drive option. The option gave me pause for a minute because of the price. Do I really need it? But rather the question is, “Do I want to pay the price for it?’ Then I started to think about the weather. Just because the sun is shining and there isn’t a blizzard today doesn’t mean there won’t be one. Since I will own the car for multiple winters the odds go up for more problems to occur. My mind then shifted toward the cost of not getting the option. Accidents, inclement weather, safety, and pain-in-the-ass avoidance. How much would you pay to take back an accident? Well in this case it's $3,200. The price is lower than the cost of what it really could be, so it’s worth the extra money to get the better option.
Overcoming the price objection.
The cost with associated problems will outweigh the price because it will be cheaper in the long run. Of course, this will have to present in that way. What are your potential long-term costs associated with option A or Option B?
What are you most concerned about, the price or the cost of the product? What’s the difference?
Costs are much more than money.
Wasted time.
Aggravation.
Repairs.
Future problems.
Replacements.
Downtime.
Lost opportunity cost
"Price is a one-time thing and cost is a lifetime thing." – Zig Ziglar
Equipment, products, and service evolve over time to save on cost. They get better and more efficient, but they don’t get cheaper. The reason is that products that are quick to market were cheap but not quality, resulting in the cost associated with the products or services being high.
Companies are limited to technology or knowledge at the time. For things to evolve they need to cost someone more than what the product is worth otherwise the price and the quality will stay low for a reason. Otherwise, no reason to change. For two similar products or methods to be priced differently, one will save you costs over the long run. The ones with higher-priced items have figured out a way to save cost and deliver better quality than their competition. So, their price is justified.
You can get this done for a cheaper price, but the cost is something that can’t be beaten.
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