Industrial Challenges

The customer said it is expensive. What does this objection mean?

“Expensive” is not a diagnosis; it is the buyer’s summary of something not yet explained. It can mean a comparison with a specific competitor, a budget limit, a scope above what the application needs, or a benefit that has not been demonstrated. Before answering or conceding a discount, find out which of the four it is, using what the buyer said in the real negotiation.

Four meanings of “expensive”

Comparison
Against a specific alternative
Budget
A limit set before the quote
Scope
More than the application needs
Value
Benefit not yet demonstrated

How do I find out which alternative the buyer is comparing our price with?

Ask for the comparison, not for the price. Questions such as these bring out the reference point:

  • “which proposals are you evaluating?”;
  • “what does the other one include?”;
  • “what did you use as a reference for this item?”.

The reference may be a competitor, an earlier purchase, an internal estimate or a budget that was approved before the quote existed.

If the reference is another proposal, the next step is to check whether both include the same delivery, which is covered in comparing industrial proposals.

How do I tell a lack of budget from a poorly understood difference in value?

A budget limit is a fixed number that tends not to move when the explanation improves. A misunderstood value often does move: the buyer’s questions change, new people enter the conversation, and the discussion turns to application, risk or use. Asking “is there a ceiling for this item, and where does it come from?” separates the two without confrontation.

SignBudget limitMisunderstood value
The numberFixed, does not moveMoves as the explanation improves
The buyer’s questionsStay on priceTurn to application, risk or use
Useful responseDiscuss scope or priorityShow evidence of the difference

When it is a real budget limit, the useful response is not a discount on the same scope but a conversation about which scope fits the limit, or whether the opportunity deserves priority.

The same objection often hides something earlier in the process: a quote that never had a decision path behind it. That pattern is covered in why so many quotes never become orders.

Which questions reveal a scope larger than the customer needs?

Ask about:

  • the operating regime;
  • the required performance;
  • the expected life of the asset;
  • what happens if the item fails.

If the answers show a mild regime, a short horizon or low consequence of failure, the specification may exceed what this application asks for. Here the question is the buyer’s requirement, not the quality of the product: the same machine, component, input or service can be right for one plant and more than another needs.

Recognizing this is part of the credibility of the sales process: it tells you when to offer another configuration and when to give the opportunity a lower priority.

Example, with illustrative values: a plant asks for a quote on a sealed bearing unit for a conveyor. Our quote is R$ 4,800 per unit, rated for continuous operation in dust and washdown; the other quote is R$ 3,100 per unit, rated for dry, single-shift use. The buyer’s questions show the conveyor runs one shift, indoors, with a spare on the shelf. The gap of R$ 1,700 per unit is then not a price problem to be discounted: it is a scope the application may not need, and the useful move is to offer the lighter configuration or give the opportunity lower priority.

How do I investigate a lost proposal without leading the buyer to answer “price”?

“Was it the price?” invites a yes. Open questions work better:

  • “what decided the choice?”;
  • “what did the winning proposal include that ours did not?”;
  • “who took part in the decision?”;
  • “what would have changed your conclusion?”.

Ask them after the decision, without trying to reverse it, and record the answer in the buyer’s own words.

In RudekWydra’s reading, “we lost on price” is often the least informative entry in a sales record: it closes the question instead of opening it.

A short script to classify the objection and record it

StepReady-made lineIf the answer is…If the customer insists
1“Which proposals are you comparing ours with, and what does the other one include?”A proposal: check scope equivalence.Ask for the other proposal’s scope sheet, or offer to fill in the comparison together.
2“Is there a ceiling for this item, and where does it come from?”A fixed number: discuss scope or priority.Ask which scope fits the ceiling instead of cutting price on the same scope.
3“What does the application require in regime, performance and life?”Less than we offer: review fit.Propose a lighter configuration and say plainly which risks it leaves out.
4“Which of our differences has been shown to you with evidence?”None: the benefit was not demonstrated.Offer to send the evidence with source and conditions before any price discussion.
5“Who else will decide, and what do they need to see?”Someone new: prepare a summary for them.Ask for a short meeting or send a one-page summary your contact can forward.

Record for each negotiation: the reference, the classification (comparison, budget, scope or value), the evidence missing and who decided. After a few negotiations, the pattern shows which material to build first. For the case where engineering and purchasing disagree, see engineering approves, purchasing asks for the lowest price.

Frequently asked questions

The customer said it is expensive. What does this objection mean? +
It is a summary, not a diagnosis. It may mean a comparison with another alternative, a budget limit, a scope above the need or a benefit not yet demonstrated. The response depends on which one it is, so ask before answering.
How do I find out which alternative the buyer is comparing with? +
Ask which proposals are being evaluated and what the other one includes. The reference can also be an earlier purchase or an internal estimate, not necessarily a competitor.
How do I tell a lack of budget from a poorly understood difference? +
A budget limit tends not to move when the explanation improves; a misunderstood difference often does. Ask whether there is a ceiling for the item and where it comes from.
Which questions show that the scope is larger than the customer needs? +
Questions about operating regime, required performance, expected asset life and the consequence of failure. If the answers are mild, the specification may go beyond what that application needs.
How do I investigate a lost proposal without inducing “price” as the answer? +
Use open questions: what decided the choice, what the winning proposal included that yours did not, who took part and what would have changed the conclusion. Avoid “was it the price?”.
How should I record the objection to improve future materials? +
Record the reference used, the classification, the missing evidence, who decided and the buyer’s own words. After a few negotiations, the pattern shows which material should be built first.
Should I offer a discount as soon as the customer says it is expensive? +
No. A discount answers only a comparison on price alone, and any discount reduces the order’s contribution. Classify the objection first.
Where should the sales team start if it has never recorded objections? +
Pick the last few negotiations of one product line, apply the five-step script retroactively and fill in the record. Even incomplete, it shows where the information is missing.

Which objections are really price?

Bring a product line or priority application and examples of recent negotiations. In a free 30-minute call, we look at how the objection is being recorded and answered.