"It's too expensive."
You'll hear this objection constantly. And you'll be tempted to respond with ROI calculations, value justifications, or worst of all, discounting. But here's what most sellers miss:
Price objections are rarely about price. They're about value perception, risk assessment, or leverage creation. Sometimes all three. Responding to the stated objection without understanding what's actually happening almost always makes things worse.
What Price Objections Actually Mean
The same words can signal completely different underlying concerns. Learning to distinguish them changes how you respond.
"It's not worth that much." This is a value perception problem. The buyer doesn't see enough benefit to justify the cost. No amount of discounting fixes this because you're competing against their internal assessment of impact. The response is reframing value, not reducing price.
"I'm not sure it will work." This is a risk assessment problem wearing price clothes. The buyer fears paying for something that won't deliver. They're not objecting to the amount but to the possibility of waste. The response is risk reduction: pilots, guarantees, references, implementation support.
"I want a better deal." This is a negotiation tactic. The buyer may fully intend to purchase at your price but tests whether they can do better. Procurement professionals are often evaluated on discount extraction. The response is trading value for concession rather than giving ground unilaterally.
"I don't have budget." This might be genuine constraint or convenient deflection. If genuine, creative structuring might help: phased implementation, payment terms, scope reduction. If deflection, the real objection is something else entirely, and you need to surface it.
The Value Perception Gap
When buyers say something costs too much, they're really saying the cost exceeds the value they perceive. Price objections are value objections in disguise.
You haven't connected to what matters. Buyers invest in outcomes they care about, not capabilities you're proud of. If your value proposition emphasizes features while their concerns center on efficiency, risk reduction, or career advancement, you're answering questions they didn't ask.
They don't see the full picture. Sometimes buyers underestimate impact because they haven't considered all the ways your solution helps. The visible benefit seems worth X, but the full benefit is worth 3X. Your job is helping them see the complete picture, not assuming they already see it.
The comparison is wrong. Buyers compare your price to something: the status quo, a competitor, their budget expectations, or a completely different category of spending. Understanding what they're comparing against reveals what you're actually competing with.
Reframe before you respond. "When you say it's expensive, what are you comparing it to?" or "Help me understand what value would make this price feel right" shifts from defending your price to understanding their calculation. You can only close the gap when you know where it is.
The Risk Component
Price sensitivity increases with uncertainty. When buyers aren't confident a solution will work, any price feels too high because they're pricing in failure risk.
The hidden calculation. Buyers implicitly calculate: (Probability of success × Value if successful) - Price. If they doubt success, the entire equation shifts. A $100K investment that's 50% likely to deliver $300K in value looks different than one that's 90% likely to deliver the same.
Proof reduces risk. Case studies, references, and pilots don't just demonstrate capability. They shift the probability calculation in buyers' minds. When they see evidence that this works for organizations like theirs, their risk assessment changes, and their price sensitivity decreases.
Guarantees shift risk. Performance guarantees, implementation support, and success-based pricing all move risk from buyer to seller. This risk shift can justify price in ways that pure value arguments can't. "We're willing to guarantee these outcomes" signals confidence that pure claims don't.
The pilot as risk mitigation. A paid pilot at lower cost lets buyers experience value before committing fully. This reduces perceived risk dramatically because they're making a reversible decision rather than an irreversible one. The full purchase price feels different after they've seen it work.
Negotiation Tactics in Disguise
Some price objections are simply negotiation. The buyer intends to purchase but wants better terms. Recognizing this prevents unnecessary concessions.
Procurement's job is extraction. Professional procurement teams are often measured on discount achievement. They'll raise price objections regardless of budget reality because that's how they demonstrate value. Their objection may have nothing to do with whether the organization can or will pay.
Competition creates leverage. "Competitor X is cheaper" may be true, partially true, or complete fabrication. It's often a pressure tactic. The response isn't automatic matching but exploring what they're actually comparing and whether the comparison is valid.
Timing tactics. "We might have budget next quarter" sometimes means genuine constraint but often means "I want to see if I can get a better deal by waiting." The response depends on reading which signal it actually is.
The tell: they keep engaging. Buyers who genuinely can't afford something disengage. Buyers who keep negotiating are still in the deal. If someone keeps raising price objections while simultaneously scheduling more meetings and asking detailed questions, they're negotiating, not rejecting.
Responding Without Discounting
Immediate discounting teaches buyers that your prices are negotiable and your initial quote wasn't honest. It also devalues your solution in their minds. If you'll take less, maybe it was never worth what you asked.
Explore before responding. "Help me understand where that concern is coming from" or "What would need to be different about this for the price to feel right?" generates information you need before choosing how to respond.
Add value before reducing price. If you're going to give something, give additional value rather than lower price. Extended support, additional users, enhanced service level, implementation assistance. These concessions maintain price integrity while addressing buyer concerns.
Trade concessions for commitment. "If I could address the pricing concern, what would happen next?" ensures you're not giving ground to a buyer who will just ask for more. "I can't adjust pricing without understanding the timeline for decision" makes concession contingent on progress.
Reduce scope rather than price. If budget is genuinely constrained, discuss what subset of your solution fits their budget. Phased implementation, reduced feature set, or limited user count can reach price points without training buyers that your prices are arbitrary.
Walk away when appropriate. Not every deal is worth having at any price. Buyers who extract aggressive discounts often become problem customers: demanding, unsatisfied, and negative references. Sometimes the right answer is "I understand this doesn't fit your budget, and I respect that. Let's stay in touch for when circumstances change."
The Value Conversation
The best defense against price objections is a value conversation that happens before pricing even comes up.
Establish impact first. Before discussing price, ensure the buyer understands and agrees with the value your solution delivers. "So we've agreed that this would reduce processing time by 30% and eliminate these error categories. Before we discuss investment, am I understanding the impact correctly?"
Quantify where possible. Specific numbers create reference points. "That 30% time reduction represents roughly $200K annually in your environment" frames the subsequent price conversation. Your investment becomes an obvious fraction of the return rather than an abstract expense.
Address the "do nothing" option. Every purchase competes with the status quo. "What happens if this problem continues unsolved for another year?" makes inaction feel costly. When doing nothing has a price, your price looks more reasonable by comparison.
Connect to what they're already committed to. Initiatives they've already funded, problems they've already tried to solve, strategic priorities they've already announced. When your solution advances existing commitments, the price fits into logic they've already accepted.
Price objections are rarely fatal. They're information about what the buyer doesn't yet see, believe, or trust. The seller who treats price objections as diagnostic opportunities consistently outperforms the seller who treats them as problems to overcome through discounting.