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Your Payment Is Too High
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How to Respond When You're Told "Your Payment Is Too High"

by Linda P. Kester 


It’s important for both you and your customer to be profitable. With this in mind, why are some sales people so quick to drop their rate?

It’s the sales person’s job and responsibility to justify the difference between the rate and the alternatives available to the customer in the marketplace. That’s what reps are paid for. It’s part of the selling process and it does not have to be stressful.

When a customer says "Your rates are too high; can you do it for less?” it is tempting to respond right away with, “Let me see what I can do for you."

That’s not selling. Stop, take a deep breath and start asking questions. If you immediately drop your rate you are acting like a commodity instead of focusing on being a professional. You are there to help them solve problems.  You are a problem preventer and a solution provider, not a rate dropper. Ask him about his past experiences with financing. Engage him with open-ended questions about his current and future vehicle needs. Ask him to educate you about his business. Share stories about issues other lessees faced that you helped to solve.  

Here are some strategies and questions to keep in front of you when the rate objection is raised.

For example, if you are dealing with the lessee directly ask:
·“ Too high? “  Then wait at least eight seconds.  Research shows that the average salesperson, after asking a question, waits no more than two to three seconds before rephrasing it, answering it themselves or moving on to another topic.  Once they get talking, they come up with more ideas and gain additional clarity. So when you cut them off at two or three seconds, you lose in many ways.  If you can keep quiet a little longer, you'll uncover so much more. Even worse, when you quickly jump in, prospects think you're self-serving and only interested in selling to them.  This happens because you can't wait at least eight seconds before filling the silence.
·Sometimes a question responding to a question is the best way to open a dialogue.  Asking about and repeating the objection in a gentle and inquisitive voice may cause the customer educate you about the reason behind the resistance.
·If we could extend the term to give you a lower monthly payment would that help?
·What would you like the monthly payment to be?
·Will this equipment generate income once it is installed?

Question the objection before you resolve it. Frequently with price objections the lessee fears that he is paying too much, or he has some random upper limit about what the monthly payment should be and is determined not to exceed that. 
He is just looking for reassurance that the monthly payment is in line with the value he will receive.  

Another thing to remember is that everybody wants a deal, but they don’t necessarily expect to get everything they ask for.  They just want to know that you did something special for them.

Ask questions and hold your ground.  Be confident in your leasing services and tell them what you provide that your competitors can’t. The more you know about their needs, the stronger your selling points

If they are comparing you against a bank, use these questions:

·Do you have to have some type of compensating balance of assets involved?  If so what are those terms and for how long?
·Will they directly debit your account each month?
·Do you have to have a checking account there?
·Wouldn’t you rather keep you lines of credit available for an emergency?  What if you ever had payroll problems, wouldn’t you rather use your line for that?
·Have you discussed write off benefits with your CPA?
·Does the bank put a blanket lien on your business?

If a customer is questioning your rates by comparing them to bank rates you need to resell the benefits of leasing.  Many customers will see that they are getting more for their money dealing with you rather than a bank. If nothing else, show them your flexibility in lease structuring that banks cannot offer.

However, if they just want the very lowest rate and have decided to go with their bank you could say, “In the event that you run into problems with your bank in the future, be sure to keep me in mind.” Always plant that seed in your customer’s mind that you are the alternative to their bank. You will be presently surprised when they call you in the future. 

Remember, there is always room for differentiation. What can you provide that your competitors can’t or won’t? Learn everything you can about your prospect and use the objection as an opportunity to build rapport with your customer and close the deal.  This strategy will make your financial statements a whole lot stronger.

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