Price, Value, and Perception: How to Win Over Customers and Clients

Hello and welcome to the show. Today's episode is going to be a noisy 1 because it's a full house, you know, kids are home and it's a weekend. And the topic we're going to look at today is how to deal with price objections in the beauty and skin care space, dealing with price objections in beauty and skin care sales. And the reason why we're looking at this today is because of another podcast listener comment. We're going to call her Neca the Pretty Serpent.

Of course, that's not her real name. So Neca the Pretty Serpent is based off based in Inugu. She's a podcast listener, been chatting on WhatsApp a bit. She's a member of a WhatsApp community of other beauty and skin care sales professionals. And the folks in the group had some questions around how to deal with price objections in that space. You know, you're trying to sell your lipstick or to try and sell your bleaching cream or your hair cream or your, or your normal Vaseline cream or your sunblock kind of cream, You know, stuff that people sell,

you know, cream that's supposed to deal with stretch marks from pregnancy and all these sorts of things. So you're trying to sell it and then people say things like you're too expensive or they shout at you. They say 65K for what or you know they say you want to build house or they say 100K in this economy, you know those sorts of things. So that's what we're going to look at what how to deal with today. Now if you'd love to connect then hit me up.

The phone number is 08064662140. The country code is lost 234 for those of you who are not Nigerian and then connect with me on socials as well. The place where I spend most of my time is on LinkedIn, the name to look for establishment IED. Now before we start going into how to tackle the objections, First off we need to define what an objection is in the 1st place because there are a couple of people who are listening to the show who are newbies and who don't understand, you know WTF

an objection is. So an objection is just any reason that people give, the potential customer gives the person on the other side any reason that they give for not taking the next step or for not continuing with the relationship. So like with the examples that I gave, for instance, if the person says you're too expensive and because of that they seem to hem, they seem to hawk, and it's like they're not really feeling the whole thing.

Again, that's an objection. If the person says 65K for what, but the person goes ahead and pays, then that 65 K is not really an objection. The person was just doting a concern. Let me just put it that way. But if somebody says 65K for what and it looks as if things are slowing down or the person is ghosting you, things like that, then that's an objection. So whenever people say all these price related things and it looks like that's the reason why they are not taking the next step, why they're not continuing with the business relationship,

then that is an objection. Now, this is not the first objection episode that I've made over here on the podcast. So once you're done listening to this episode, if you're a newbie, just go to YouTube because all the podcast episodes are there over 1000 podcast episodes. Oh, by the way, I'd like to thank all of you guys that have been with me from the beginning because we have hit 1000 episodes. So thank you very much guys for keeping me company over the last.

I can't remember how long it's been, but I know it's since before COVID became a thing. So since before COVID. For those of you who've been following, supporting, liking, sharing, commenting, reaching out, doing business with me, I'd love to thank you guys for supporting me for 1000 episodes, or rather as at today, 1001 episodes because I think this particular one when I loaded up should be 1002. So thank you very much for the support.

I really appreciate you guys for keeping me company along the way and I'm looking forward to another, you know, thousand or however many episodes that we still have left together. And I'll do my best to keep providing value to you guys over here to help you grow your businesses. Remember to keep liking and sharing with other people who might also find value from these podcast episodes as well. So where was I? Where was I?

OK, I lost my train of thought. OK, well, we're talking about objections, how to deal with objections. And we had defined what an objection was. Yes, I think that's where I was. Now the like I said, I have dealt with a number of double objections in the number of podcast episodes before. So when you're done listening to this one, if this is your first time listening to the show, then go over to YouTube because you have over 1000 podcast episodes there, 1000, I want to be precise.

Then just hit in the search button, just hit right Tavishima and then write objections. And every single podcast episode that I've made that deals with handling price objections or just do Tavishima price, do Tavishima price objections, Tavishima objections in any number of combinations like that. And you should get all the episodes that I've done dealing with this sort of topic, but the general approach is always the same.

First off, we want to agree or empathize with people because we want them to know that what they're saying actually makes sense. They're not being total idiots. Also, because I mean, let's face it, if you're the high-priced option, it's like you, you can't sweep it under the wrong, the wrong, you know, if you're a high-priced option, you're a high-priced option. It's not something you can run away with. So just by the bullet, agree,

empathize, then we need to ask some questions. And the reason why we need to ask some questions is because sometimes people have unrealistic price expectations. In that case, we need to educate them so that they know what's up, especially when it comes to, you know, all this feminine stuff. Because like someone like me, now I can look at let's say hair, for instance, and I'll say like, why should this one cost, you know, 300K?

And by the time they explain to me, OK, this one is genuine human hair gotten from the heads of somebody in Bangladesh, but then this other one is darling yaki. And Darling Yaki can be manufactured by refining Petro chemicals that can be done, you know, cheaply in Port Harcourt. You know, then, you know, even even if I can't see the difference, at least from a business perspective, I can understand why one is more expensive than the other.

Because for the other one, you actually have to go to Bangladesh and shave somebody's head and then knit it together into a skull cap and then sell as human hair. While the other one, all you have to just travel down to pH and then buy from the suppliers who are making Darling Yaki because they're refining Petro chemical products. Now by the way, I'm not in the feminine beauty space, so I do not know how these things are made.

This was me just freestyling. So if you're involved in this industry, then please connect with me. Like I said, give my phone number earlier. The number is 08064662140. So connect with me, let me know. It'll be nice to let us know what are the factors that affect the quality and the price of these sorts of things. So just educate me so I can also educate other members of the community. Apart from that, if you're able to educate other members of the community and you guys start thinking in terms of what the value proposition is, then it will make it a whole lot easier to start educating people once you start asking them some questions.

So remember, first of all, agree and then empathize. Next, ask a couple of questions because we want to be sure that people have realistic price expectations in the 1st place and that they have a firm grasp of price versus value because, you know, it depends. And then we also want to make sure that people are comparing us accurately because sometimes somebody comes and says that for what? You're too expensive, but meanwhile the person is comparing you to something, but you know, on the face of it looks like you're equal.

But by the time you ask questions, you realize like there's no comparison whatsoever. This is something that I see EBO traders do very well, like people in the builders market in Abuja here off of a Gudu junction. It's something that they do very well. You can go and you can try to price roofing sheets, for instance. And the person tells you that it's, let me just guess, I can't remember the actual price because it's been a long time since I went to builders market.

So the person can tell you that maybe it's 200K per square meter or something. And then the other person says like how now, OK, Chuku said he'll give me at 85 K per square meter, you know, But by the time he asks a couple of questions, by the time the trader asks you a couple of questions, say 85, that's a good price now, then, then take it now. But in fact, but before you go self, that 85 per square meter, is it is he from China, he's getting it or is he from Switzerland?

Personnel asked China, Switzerland, what's the difference? Now the EBO trader, EBO trader, now start educating the person. Nah, that is a difference. Now that the one from China is made with something, something coating. The one from Switzerland is made with something coating because of the way that our sunshine is. It actually is better if you get that one from Switzerland because at least that one because of the way that we made it is made.

We are able to give you 100 years guarantee. But that one that is based in China and this kind of coating, we don't expect nothing to last long. Worst case scenario will give you like five years guarantee, the person like five years guarantee. So you see that's how the EBO traders, that's how they use this thing very well. They ask you a couple of questions because on the face of it, you're trying to make a very simple comparison.

Like you, you're saying 200K per square meter. These other persons say 85K per square meter. Well, by the time they ask some questions and they educate you, like look, the reason why this guy is saying 85K per per square meter is because he's selling the China version. And in fact, if you're OK with the China version, come and buy it. I have the China version in my shop. In fact, instead of giving it to you at 85, I'll give it to you at 84500.

You know, something like that. But they go into this whole education process like, oh, which one? Are you sure? Is this or this the reason why it is like this is like this is because of that. And this is how it affects the price. This is how it affects quality. This is how it affects warranty. So this is something that our EBO brothers in these sorts of industries, you know, in the building space, they use this technique very well.

And it's something that those of you in the beauty and skin care space can do as well. I agree and empathize. Then ask them a couple of questions. You even want to know. Was the understanding of price? Was the understanding of value? Is the comparison accurate? And another reason why I should ask is because sometimes the reason why people are shouting is just because they don't have all the cash right now. So for some people, payment terms actually will solve the problem.

Some people will shout like 65K and you might think, OK, they need a discount and then you start running into discount. But actually they would be fine if you just offer payment terms. OK, you know what 65K is it that is too expensive. I mean, you don't have 65K now this is no honestly, I don't have 65K with me now. When I came here, I was thinking that 35K will settle it and then you can do payment times like OK, so if you drop 35K now, when can you bring the remaining 30K?

And then you have you have that conversation. Although for me, I'm not a fan of, you know, when it's physical products, but anyway, you know, when it comes to feminine products, you know, the, the, the conventions are different. So they're used to doing business like that. And you know, these partial kinds of credit, like, OK, you bought clothes and you bought clothes worth 400K, but right now you only have, you know, 320

K. So you transfer 320 now and then when you get next month's salary, you now pay 80 and then stuff like that. But if you must do that, just remember to keep your records and know that you have to be chasing people to get your money. But generally, this is the general approach #1 agree and empathize #2 ask some questions. You need to gain some clarity here. Are their price expectations correct? What is their sense of price versus value?

Are they making an accurate comparison? And then is it amount of payment terms and cash flow? So one week that I have done this in the past, when somebody says you're too expensive, I say, you know, I just agree. I say, yeah, yeah, we're expensive, but expensive compared to. And then I leave it hanging because I'm trying to get a sense of what actually I'm being compared to. Or back in my wedding photography days, whenever somebody came at me with a ridiculous figure, I'll just laugh and say, OK, it's obvious I'm the first vendor you're talking to, right?

And then just keep quiet and then hear what the person has to say. Because for the people who now say yes, actually you're the first person I'm talking to, I would now go ahead and educate them. OK? Look, based on what pertains in Abuja for wedding photography, there are like two or three classes of wedding photographers from from you know, 100K to so you can expect to get certain kinds of people. If I pull up your Instagram, so you know, you see this guy, you see this guy, these are your 100

to 150 K kind of guys. And this is what you can expect to get from them. And then from this class, you know, 300 to so this is what you can expect. And in fact, this is where I fall in. So look at my Instagram handle. Let's pull up a few others. You know, you see, this is the class, this is what you can expect. And then there's those other people who charge, you know, like 700K and above and this and this is exactly these.

And these are the kind of things that you can expect. So you don't have to do business with me, but just go ahead and talk to some other people and you'll find that what I've given you is an accurately of the land. You can expect to do from 1:50 to 2:50. You can expect to talk some people from 3:50 to 607 hundred and you can expect to talk to some people from 700 and above. And this is what you'll expect. So why don't you just go talk to a couple more people and then let's talk about this again in another 2-3 days.

So that's how I used to use the education thing back when I was still in wedding photography. You know, I just laugh it off and say, look, it's obvious I'm the first vendor that you're talking to. And typically that will be the case because it was not uncommon for someone to maybe her older sister got married, you know, like 3 or 4 years ago. And so she's using the price of three or four years ago to now judge the vendors that she's talking with today.

So those sorts of things happen. So expensive compared to, or am I the first vendor You're talking to all those sorts of things, but you just have to ask a couple of questions. Now for the technique that our IBO brothers use who are in the building space. By the way, I'm not trying to stereotype IBO boys here. I'm just talking about IBO brothers and sisters who are in a particular industry, you know, the, the building industry because back when Monzi was still working on her house and some relatives were building some stuff back then, instead of buying things in Macudi, the scope was that you could get higher quality materials in Abuja.

So I was spending a lot of time in the builders market then buying, helping relatives buy stuff. And that's when I got to see some of these things in action, you know, because of my own interest in sales and business development. I'm just there and I'm listening and I'm watching and I can pick out the the techniques that these people are that these people are who are using. So somebody says back to now, beauty and skin care person says 65K for what?

Indistinible economy, you know, you just agree and possess my sister now. So we say I'm Oh yes, you know, nowadays these things are very, very, these things are very, very expensive. But then you ask a couple of questions because you're trying to figure out who are they comparing you to? So you can ask, OK, have you found this thing cheaper? And then they say, yes, no, I saw it now I'm not coming from chemical shop. And this one that you're saying 65 Cami was selling it at 45.

Then you can now start asking more questions and do the education thing. You say, OK, so the one that Cami was selling, is it organic or something, something and personal ask is not all the same which one is organic or inorganic? Now you go into the educational thing. If it is organic, we're using natural tomato and purple to derive our vitamin A Something something, it is not industrial something something because if you use the China industrial something, the way the thing will burn your skin when you enter into the sun, the way your skin will do, your skin will do like this.

Your skin will do like that. But if you're using the organic one that is made from natural purple and natural tomato, the thing will just bring out your real color, you know, blah, blah, blah, blah, blah. You know, all that education jazz. So you can now have that kind of conversation and now opens up the person's eyes to oh, OK, this one that I'm looking at for the 5K and the one that, sorry, 65K and the one that kept me is selling 45 K.

Even though the bottle looks similar and the on the face of it, the, the name seems to be the same, but there actually is a difference. Then you go about doing the education. So sometimes the education is going to be around quality. Yeah, around quality. Organic or inorganic education could be around meals that's around them size. Because for those of us who are uneducated, they actually is a difference. Because like for me, since I'm not really a perfume person, my wife is a perfume person, you look at 1 bottle, you look at another bottle and they say well this one is 150 K, the other one is 80 K.

You know, for me as a layman, I just say let's carry the one that is 80 K. Now that's the way I would look at it. But then my wife would now say no, no, no, no, no. Actually, now one is 100 and something is 165 meals, but this sort of one that is 80 K actually is only 86 mills. So if you do the conversion and everything, you will now see that this one that is 86 mills that they're selling for 80K actually is more expensive, you know, blah, blah, blah.

Because for some of us who are novices, you just go there, you see a bottle and you know, the bottles look like it's the same size. Because after all the difference for those of us who are untrained, the difference between 120 mills and 105 mills doesn't look like a big thing. The bottle does look like it's the same, but for people who know what's up or people who have been educated, the actually is a difference. We can have that conversation about quality, about meals, you know, how many meals is it?

Let's see what else. OK. And then also the conversation around brand premium. That's also an honest conversation to have. But yeah, my sister in this economy. But you know, that's just the way that we see it. This one that I'm selling to you now is authentic. Mary Kay. Something, something something, something something the one that Kami is selling to you is ABBA made, Nigeria made Makodi made Cameroonian made something something, something whatever.

And unfortunately by the time this Mary Kay lands at custom, this is the docking price. So if this one is the docking price, how much you want me to put on top, that is going to be my profit. In fact, my sister, this price that I'm giving yourself is a giveaway price because this one I'm only making 10K on top. You know, help me open market. You know that all those, you don't have all those things that people say so you can have those honest conversations about brand premium because it's something that I have been exposed to recently.

We had to buy some when the kids are going back to school, you know, buy school bag, buy these, buy that. So those are some of those conversations that we've been having. That's for parents who it matters to those sorts of things. Although for me, when it came to the shoes, like I couldn't be bothered, like UK shoes, Niger shoes, you know, I don't give a hoot, just give me shoes. This one looks like it'll work, so let me have it.

But yes, you can have those conversations as well. So let's see, have I covered everything? You know what, this is just a general approach you take. Basically somebody says you're too expensive, you start raising money things. I agree and empathize. Let them know that. Excuse me, that they're being reasonable and that they're trying to get value for money, but ask them some questions. You want to be sure that they're comparing you accurately to another thing.

In fact, this is one reason why we should ask questions about the accurate comparison because we're actually doing it to protect our customers. Some of you just think, and this is too expensive, chemi selling it at 20 K cheaper. They don't want to buy from chemi. No, if you know the value of what it is that you're selling, and if you know that you have a superior product, you can't force this lady to buy from you. But at the very least, you owe it to her to educate her so that when she's buying it, she's buying it with a very clear eye and that she knows the risks.

That if you buy the real deal, you can continue with your life as normal, or you can enter us on you can jump, boss. You can do whatever. You'd be fine. But if you buy those cheap knockoffs that would destroy the epidemics of your skin, you won't be able to stand in the sun for more than 10 minutes because if you stay in the sun, your skin will just be red or you will just start looking green or whatever. So you owe it up to them.

You owe it up to your customers to protect them and to make sure that they are well informed. If they have listened to your whole story and they say, you know what, let me just go and buy that 45 K-1 and you've done, you've done your best. But if they listen to you and they buy the good stuff from you, even if they don't buy the good stuff from you, let's say they go and buy from someplace else, at least you have done something to give genuine value to people who come by your store.

So we actually owe it up to our customers to make sure that the comparisons that they're comparing us to other people want to be sure that it's it's, it's the same, it's the same comparison. The level of quality, the level of durability, whether it's warranty or whether it's whatever. We need to make sure that it's an exact comparison, but that's just a general approach. So agree and empathize. And that's a couple of questions.

What is their sense of price? What is their sense of value? Are they comparing us to other people accurately? Why is this just a moment? Is this just something of payment terms? So, OK, 65, OK, but you came here with 35, so you now start talking about payment terms instead of dropping the discount. In fact, some of you might ask from an accounting point of view and it would depend on a case by case basis, you know, which is better to actually discount and then collect a lump sum now or to take flexible payment terms and then give credit and collect money later?

OK, something I should research, but it's going to be on a case by case basis and it would depend on the industry which one is better to just collect big money. Now let's say you discount and you collect 98% of money now instead of this system, 100% of the price. But then they pay 50% now and then they owe you the other one and they paid maybe after two months or something. And the interesting conversation. Yeah, I'll talk to some accounting professionals about that and hear what their opinion is.

But that's just a general approach. So that is all for today. If you would love to sky rocket your business, then call me. Let's have a no cost business audit where we can discover actionable strategies to deal with your business problems. The number is 08064662140. Again, the country code is +234. For those of you who are not Nigerian and also reach out to me on socials, I'm on LinkedIn. My name is Tavishima Aidi. Thanks for your time and attention.

I'll catch you guys at the next episode.