What No One Tells You About Cost Objections in Sales
What if the price objection you keep hearing isn’t really about the cost?
In this episode, the Girls of Grit dive deep into one of the most common challenges in sales—cost objections. With years of experience, they reveal an important insight: it’s rarely about the price tag but rather the perceived value.
Whether you’re selling a $50 product or a $5 million device, how do you effectively communicate the worth of what you’re offering?
They break down the secret to overcoming cost objections by explaining how value is relative and how essential it is for sales reps to identify and convey the unique benefits of their product to different stakeholders, whether it’s a doctor, a purchasing committee, or administrators.
Tune in to learn five practical tips for overcoming cost objections and how to successfully guide your clients toward understanding the true value of your product.
Episode Chapter Markers
00:00 Introduction
02:29 Understanding the Value Over Cost
03:37 The Starbucks Analogy
04:25 Revealing the Secret to Cost Objections
08:12 Five Tips for Overcoming Cost Objections
16:40 Presenting with Confidence
20:38 Selling Outcomes, Not Products
Five Tips for Cost Objections
Tip #1: Think About What's Their Why
Uncover the real issue behind objections by asking open-ended questions about their patient population or current struggles.Tip #2: Don’t Assume, Ask Questions
Explore deeper than the initial objection. Keep asking questions to reveal true concerns and identify where you can provide solutions.Tip #3: Leave Your Personal Feelings Out
Stay objective and focused on the value of your product. Avoid letting personal feelings influence your response to cost discussions.Tip #4: Present the Value
Show the impact of your product on patient outcomes and healthcare. Emphasize that they’re investing in a positive result, not just a product.Tip #5: Present with Confidence
Discuss the price confidently, knowing you’ve demonstrated your product’s value and addressed their concerns. Confidence in pricing can sway decisions.
Words of Wisdom: Standout Quotes from This Episode
“Do not let costs be the stopping point.” — Anneliese Rhodes
“Don't let your personal feelings about that price tag come into play.” — Anneliese Rhodes
“It's really important that they know they're not just buying the product but they're buying the outcome.” — Anneliese Rhodes
“Have confidence and love for what you do and the products that you sell.” — Anneliese Rhodes
“Value looks different to everybody and cost is a number, but we got to get past that because this is where the real selling begins.” — Cynthia Ficara
“Never ever throw the cost.” — Cynthia Ficara
“It’s so important to present with confidence.” — Cynthia Ficara
“Usually the more expensive the product is, the more life saving or life changing those products are.” — Cynthia Ficara
“Present the price so confidently.” — Cynthia Ficara
“Always remember to be the expert on your product.” — Cynthia Ficara
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Blog Transcript:
Note: We use AI transcription so there may be some inaccuracies
Anneliese Rhodes: How often do you hear your product is too expensive or you need to lower your pricing because your competitor's pricing is much lower than yours? “I'd love to use your product, but I need you to cut the price by more than half.”
Cynthia Ficara: All of these are common objections that we hear across the board in sales, especially in medical devices.
Anneliese Rhodes: Join us today as we uncover the secret to addressing the common objection of cost and share effective strategies for overcoming it with both professionalism and success. Hello to all of our listeners out there. Thanks so much for tuning in to another episode of Secrets of Medical Device Sales brought to you by the Girls of Grit. We are so happy to have you here.
Cynthia Ficara: Welcome, everybody. Hope you're having a great morning. Lisa, always so good to hear you and I'm excited because, you know, today is all about money, money, money, money. People get so wrapped up in cost and money, right? I mean, guaranteed in your 20-plus years of sales, you have heard that it costs too much, right?
Unpacking the True Cost of Objections
Anneliese Rhodes: Oh, absolutely. Every single thing I think I've ever sold is always too expensive or it's not that it's too expensive, but it's so costly, or why does it have to cost so much?
There are a lot of reasons behind why products cost certain amounts and why companies price things the way they do. But today we're really going to discuss something that, honestly, Cindy, I feel like if you're in any type of sales—again, it doesn't even matter what you're selling—you’re going to hear that common objection of "This is too much." It’s really important that we're talking about it today because, in medical devices, you could be selling a product for $50 or a product for $5 million or $50 million.
And that’s a lot of money, but is it worth it?
Cynthia Ficara: That brings up a really, really good point. And it’s so interesting how in medical devices there’s such a range, and it's all relative to what you're selling. I think the one thing that is common among all different companies and products is that somebody will stop you and say, “This costs too much.” But the question for all of you out there is, is it time to let it stop you? Meaning, is this where you stop the sale? They say it costs too much; is that the end?
Anneliese Rhodes: I like it. I like it a lot. And so, before we reveal a secret about this cost objection that's really important to talk about today, Cindy brought up a really good example. And I really love your example. What you and I were talking about earlier because I had a Starbucks cup in my hand—is Starbucks, right?
So they aren’t a cheap coffee company, but I swear, I think everybody in the entire universe knows what Starbucks is. And I’m not a humongous proponent of those crazy expensive coffees, but I know a lot of people out there are.
And when you go and spend six, seven, eight, nine dollars on a cup of coffee, why are you spending that much money on coffee every day? Even if you can afford it, that’s a lot of money. And it’s like, why are you doing it? I think that's a really important question to ask.
So leading up to this whole thing about cost, Cindy is going to reveal to you all today what the one secret about cost objections is. Cindy?
The Secret to Cost Objections
Cynthia Ficara: So, the secret to cost objections is this.
It is almost never about the cost in quotation marks. It's always about the value. So when somebody is saying to you, "This costs too much," what they're telling you is, "I don't see the value in it yet." That is not where you stop your sales call. This is where you have to do the work because now there's a gap between what it costs and now this is the value.
So, it's really interesting. You have a product, and it's okay. Starbucks, whether it's $5 or $500,000, somebody may think $5 is a lot of money. Now, if you're in the realm of buying something worth $500,000, then that makes $5 look less. Correct. However, is it really because the $5 value tied to Starbucks is worth a lot to somebody?
Somebody wants that extra boost. They believe that when they hold that cup, they're powerful. They get their morning caffeine rush. They just need their Starbucks to be great today.
And you know what? You find the value in going in and getting that warm cup of coffee, and that's what you want. So you pay for that. And then if somebody is buying $500,000 in equipment, it's not just "Here's $500,000." What is that equipment doing for your hospital? How does that save them? What is the value? Is it time? What is so great about the outcome of the product? They buy that the cost doesn't even matter.
So I think it's really very important to identify the value for each customer. And to understand that value is relative and that you can't let your personal feelings or hesitations about money interfere with your ability to sell effectively.
So we want to talk a little bit about how you can focus on how each product meets the unique needs of your customer and then the benefit it brings to them rather than being influenced by the numbers. Value looks different to everybody, and cost is a number, but we’ve got to get past that because this is where the real selling begins. It's what every customer needs because you are fulfilling their needs.
Anneliese Rhodes: Absolutely. I think that needs to be repeated. What you just said: Do not let costs be the stopping point.
If a customer says, “Cindy, I'm sorry, but your product costs too much,” don’t turn around and leave. Now your job begins. You're a salesperson. That's your job. Your job is to uncover the value of what that product means to your customer. What is it going to uncover? What is it going to bring to them? What is it going to provide? How are they going to feel using it, buying it, whatever it is? And again, that looks different for everyone.
For the Starbucks example, I may get a cup of coffee because I need a jolt. Somebody else may get a pumpkin spice latte with an extra froth of foam and whatever because they like the sweetness or they just feel like they need that or in some cases, it's their little brand that they want to carry around because it makes them feel good that they can afford to buy a Starbucks. I don't know, but that value looks different for everyone.
So I think what you're hitting on is really important because, again, and we talk about this a lot in other episodes, uncovering that value for that specific individual. And there are all different sorts of customers that we call on. We call on doctors. We call on nurses. We call on purchasing. Some people call on sterile processing or orthopedics.
We call on CEOs. We call on CFOs. We call on reimbursement teams. I mean, the list goes on and on. And in each of those categories, the value means something different to them.
So your job as the sales rep is to uncover that and figure it out. And then you'll get the sale. So we're going to talk about some tips today and really kind of help you guys.
We're going to give you five tips for cost objections—simple, quick, easy, fast—but something that will really make you think, “Okay, Dr. So-and-So told me that this is going to cost too much. How can I go in now and maybe reverse that?”
Understanding the ‘Why’ in Sales
Cynthia Ficara: Absolutely. So, step one, you have to think about their "why." Ultimately, you need to uncover their needs. For those of you who haven't been in sales for a long time, Sales 101 involves simple steps: uncovering their needs through active listening, acknowledging concerns, and providing value. How will your product impact them? What's the ROI in terms of the benefits of your product?
And honestly, this is a great point. We could probably include some hashtags in the show notes about Sales 101 and uncovering needs. We’ll be happy to do that. There are many resources, like Dale Carnegie and Zig Ziglar, but for our simple tips from the Girls of Grit, we're focusing on their "why."
It's crucial to understand who you are calling on. Even though your product may be used in one area, it may need to be approved by other areas as well, such as the product committee, cost control, or administration. You need to understand each of their concerns, and the process your product goes through, and know its value. Then you can move on. So, number one is to really understand their "why." If you don't know it, that’s your task today: figure out why they need your product.
Anneliese Rhodes: So, Cindy, let me ask you something. As I'm sitting here thinking about it, I'm wondering if some people might be thinking, "What do I do if I have multiple different customers I need to sell this product to?" For example, I have to address the needs of both doctors and purchasing departments. How do I uncover both of their needs and sell the product in both ways?
Cynthia Ficara: Oh, I love that. It’s so fun. Okay, so number one, in medical device sales, doctors are usually our primary focus because they are the end users. So, why do they need this? Why is it important for them? How can it help them? Simple common points might be that using this product will save time compared to the old competitor because it’s more advanced and quicker.
Once you understand the doctor’s needs and their interest in the product, even if it’s expensive, you then move on to the next area, like the product committee. Here, you’ll need to present a cost impact. For example, if using the old competitor takes an hour and a half longer, and time in an OR is billed by the minute, you can show the potential savings. Purchasing departments will want numbers and facts, while doctors will focus on outcomes and how the product will benefit their patients. It's important to know the decision factors of whomever you are calling on. What is their decision factor?
Avoiding Assumptions in Sales
Anneliese Rhodes: I love that, and it was perfectly said. All right, so now we're going to move to number two.
Number one was understanding their "why." Remember, that "why" can look different for everyone in different departments, whether it’s a physician versus a nurse.
Number two is: don’t make assumptions. We all do this sometimes. You might assume something based on what you’ve heard. For instance, you might ask a doctor, "Hey Dr. Smith, I really want you to use my product," and if he responds, "Oh, Cindy, it’s so expensive," you might think, "Well, I know you’re worried about costs because of X, Y, Z." But the truth is, he might just be mentioning the cost to push you away or he might not even care about the cost.
Don’t assume that’s really the reason. Instead, find another way to address it. Ask, "Tell me more, Dr. Smith. Tell me about your patient population or what you’re currently struggling with. Maybe I can help solve those problems." Avoid jumping to conclusions about his concerns.
Cynthia Ficara: And leave it at that.
Anneliese Rhodes: Yes, exactly. It's so easy to assume, but as sales reps, we sometimes get nervous or face resistance and think, "Oh, he must just be worried about the cost," when in reality, it might not be about that at all.
Cynthia Ficara: You’re so right. We all know the saying about making an "ass" out of "u" and "me." It’s crucial not to make assumptions about cost concerns. Instead, dig deeper if a concern was raised earlier. What is the actual amount? What’s the reason behind it? Remember, you need to bridge the gap between making him believe that your product is worth the outcome and the value he is buying.
Leaving Personal Costs Behind in Sales Conversations
Cynthia Ficara: So that kind of links into number three, which I think ties in well with the previous point. Number three is to leave your personal feelings out, especially regarding costs.
For example, is $5 a lot of money to you, or is $500,000 a lot of money? You can’t really answer that because it's all relative, as we discussed before. Don’t be afraid to think, "Oh, that’s expensive. I don’t want to buy it." If you feel that way, you might not fully believe in your product. Zig Ziglar, whom we mentioned earlier, had a quote:
“Selling is not something you do to someone; it is something you do for someone.” So don’t assume they won’t like the price tag because it’s high.
Your perception of the price is different from theirs. Don’t let your fear of the price affect your sales approach. Leave your personal feelings about cost out of your sales conversation. Remember, when you go to Target with your kids and tell them, "No, we’re not buying this today," that’s for Target, not for your sales call.
Anneliese Rhodes: That’s a great point. Your feelings do come through. We talk about this all the time—people can sense how you feel. If you’re thinking, "Oh, I sell really expensive products," others will pick up on that. So, don’t let your personal feelings about the cost influence your sales. Your company sets the price because they believe in the value of the product. You need to believe in that value too. This leads us to number four.
Emphasizing the True Value of Your Product
Anneliese Rhodes: So, we’ve talked about understanding their why and uncovering their value. We’ve discussed not making assumptions about how they feel and not letting your personal feelings about the price tag influence your approach. Now, the fourth thing is presenting the value. Let’s be honest—this is why we do what we do. We sell medical devices, some of which are life-saving or life-altering for patients, for your parents, your grandparents, your kids, for you, or your spouse. These are truly amazing technological advancements that we offer. Be proud of that. You need to really understand the value of what you're selling and present that value to your customers.
They must know they’re not just buying a product; they’re buying the outcome that your product will deliver to their patients. That’s extremely important.
Cynthia Ficara: And I think it’s so important that I just want to emphasize this again: Your customers are not buying a product. They are buying an outcome. This really drives the point home.
Confidently Presenting the Price
Anneliese Rhodes: So, number five—I think this one’s the fun part. Like Lisa summarized everything, now when it comes to presenting the value and you’ve got a doctor or purchasing person who’s excited about how your product will help solve a pain point, you’ve proposed great value. They’re excited, and it’s okay if they ask, “How much does it cost?” This is really important. Someone will ask, “How much does it cost?” Think about what we just said: Do not be afraid. Do not assume. This is where being a good salesperson and using these tips comes in. Because the number five tip is to present with confidence.
Anneliese Rhodes: So, we’ll show you how that plays out. If I said, “Hey, Lisa is selling to me, and I’m so excited about her product, but she’s a little nervous about telling me how much it costs.” If I say, “Hey, Lisa, how much does it cost?” Tell me what that sounds like when you’re hesitant, afraid, or nervous.
Anneliese Rhodes: Yeah. So I would say, “Well, Dr. Cindy, the product is... well, it’s kind of expensive, but you know, hey, it’s totally worth it. It’s going to save your patients XYZ in terms of recovery time. So it’s $50,000.” That’s not what we want to do, right? We don’t want to say that. And you also don’t want to skirt around it either.
Anneliese Rhodes: When your doctor comes to you and says, “Lisa or Cindy, what’s the cost of your product? I need you to be honest with me. I need you to tell me how much it’s going to cost because I’m going to have to go before the value analysis board and present it.” I need to know what this costs. Cindy, show us what a confident response looks and sounds like.
Cynthia Ficara: “Hey Doc, this is exciting. It’s only $50,000. I love it. Period. I love it. It’s $50,000.” And, what you did, I want to go back for a little bit here because I think this part’s really important. Lisa, that was a really good example, by the way, because you did two things. You skirted around it; you got a little hesitant, and then your voice raised, almost like you had a question. You said, “It’s $50,000.” It sounded really high and questionable.
You only want one punctuation mark at the end of presenting a price, and that is a period. It is $50,000. Period. It’s not a $50,000 question mark. It’s not $50,000 but I know that’s a lot and I know I can do this and I know you want that. Like, uh, uh, uh, uh, what is the price? $50,000. Great. Thanks. Because you’d be amazed. Sometimes, again, it’s all relative. Maybe they just signed a $25 million building contract. So $50,000 right now might feel like a drop in the bucket. Going back on everything, never assume. I think it is just so important to present with confidence.
Anneliese Rhodes: Yep, present with confidence. Know the value. First of all, uncover the value for them, figure out what their why is, and then don’t assume. Do not assume that, number one, they’re going to balk at the cost; they may not.
Don’t assume that they feel a certain way; they may not. Leave your personal feelings out of everything. Don’t be attached to the price tag. It is what it is for a reason. Move on. Present the value. Why is it costing that much? Well, there’s a lot of value behind the product you’re selling. Usually, the more expensive the product, the more life-saving or life-changing it is.
Anneliese Rhodes: And number five, like Cindy just did, present the price so confidently. It’s period, end of the story. That’s it. You say it. They ask you for it. They want an answer. You give it to them. Period. End of story. No skirting around it. No questioning it. No worrying about it. None of that. Just...
Cynthia Ficara: Period. End of story.
Cynthia Ficara: And listening to you say that, there’s one more little extension I want to add. One of the hardest things in selling is pausing. So, when you say, “$50,000,” period—remember, the only punctuation mark allowed—then stop talking. Just stop talking. Just look at them. Play the quiet game. Whoever speaks first, it’s their turn. You don’t have to say anything. You’ve delivered your message. Be quiet. It’s kind of hard, but you can do it.
And you’ll be amazed at what they come back with. I think that ties into a little bonus: Always remember to be the expert on your product, because this may be where they ask for more details. Know the IFU inside and out, understand the value, and if there is any hesitation or pushback, you can work with them from there. Take it on if they say this is great, but I need to take it to my next people. Challenge each thing, but it’s working through each step.
If you do these five tips, it's really great. And Lisa just did a great summary of it. So, I'd like to close by summarizing what is so important about today. And that is to remember the secret to the cost objection. And that is, it is not about cost. It is truly only about value. So, please remember that your customers are not buying a product. They are buying an outcome. It is our job to know how to sell an outcome. Right, Lisa?
Anneliese Rhodes: Absolutely. It's all worth it. It all has value. And these products are life-changing and life-altering. Have confidence and love for what you do and the products that you sell.
Cynthia Ficara: So if you have any hesitations, I'm going to leave a little call to action today—something a little bit different—but I want you to honestly answer this question:
What feelings do you have about the price of the product you are selling? I mean, if you're sitting in the car, like we've discussed before in the past, be honest. All of a sudden, did you just literally hold your breath? Did you just tighten up and get scared, thinking, "Oh God, it's so much"? Or were you like, "No, I feel good about this."
And if you know what the market strategy is on pricing and you know where your other customers are, if you're where you need to be, then by all means, everybody out there, feel good about it and go sell an outcome.
