Almost every prospect I've ever spoken to about my network marketing products asks about the price at some point in the conversation.
But that doesn't mean they're objecting. They simply need someone to explain why network marketing products cost what they do, and demonstrate the value to them.
Is Price Most Important?
I'm going to dive into this particular topic because the network marketing product price objection is one of the most common that the field hears.
So when someone asks why your network marketing products are so expensive, what you need to do is help them understand a few basic thoughts about value and price.
The very first question that we need to address is whether price is the most important thing in business. Well, to Walmart, I'd say yes, because that is their value proposition. But, I'm not sure that being the lowest priced product is always good for businesses.
If the cheapest price was the number one thing that determines if a person will buy something or not, then you would say every single person is going to have a $13,000 car, because that's the least expensive car in 2019. Then you look over and you compare it to a $500,000 car. Who in their right mind would pay $500,000 for something that will do the same thing?
It’s All About the Value We Place on the Things We Buy
Whether or not something is “too expensive” depends on two things:
- We buy things based on the value we think that item has
- We buy things based on our education or understanding of how that item is going to make our life better
For example, is there any difference between a Ferragamo bag and a knockoff bag? The Ferragamo bag is $1,000. You can get a knockoff version for $89. Some people say, “A bag is a bag,” but there might be a difference.
I know when I carry a backpack on an airplane that I have a brand that I have utter loyalty to, because the zippers don't break. So maybe in the Ferragamo bag the strap doesn’t break, and you would have to buy ten knockoff bags for every Ferragamo bag because of that.
Is there any difference between a fast food meal and a restaurant meal? Why in the world would you ever spend $15 instead of $5 for a meal? It doesn't make any sense, unless it matters to you, because obviously a meal of salmon and fresh vegetables is going to have a different effect on your body than a burger and fries from a fast food place.
But some people, because they don't have knowledge in particular areas, or don't care about that, they are going to choose the fast food burger over the salmon and vegetables.
And it's the same kind of idea with your company's network marketing products. Your contacts and potential customers will get stuck on this "your products are too expensive" objection if they don't understand what makes your product unique, or if they simply don't care about it.
Do Ingredients Play a Role in the Price of Network Marketing Products?
I've seen a lot of raw ingredients that go into products, and the answer is, YES, ingredients play a role in the price of a network marketing product, or any product on any store shelf for that matter.
For example, how about grape seed extract? You can get it for $20 a kilo and you can get it for $450 a kilo. This particular one which is $450 has 120 patents on it and 700 studies to back up their results from it.
If you happen to have read the studies on these things and health matters to you, then yeah, it really does matter.
That's what I mean when I say that some people need education on these things in order to make a better buying decision.
"Some people need education in order to make better buying decisions."Tim Sales
If there's anything that I feel that network marketing is the best at, it’s when a product needs explanation. That’s where network marketing products shine, because we're able to have a conversation with somebody and educate them and fill in that knowledge gap.
Network Marketing Products Are Expensive Compared to “What?”
If customers want to make a decision to have a better product, and see the value in your network marketing products, then we can explain it to them. These are the types people that I'm interested in as customers.
I'm not looking for the people who don't want to make that change. People who do want to make a change, however, like to know how the product is different.
So anytime somebody says to me, “Well, these network marketing products are expensive,” I normally ask, “Compared to what?” and that opens up the conversation so I can discuss it with them.
Do Commissions Increase the Price of Network Marketing Products?
One of the questions that sometimes gets asked is, “Do commissions paid to reps increase the price of a network marketing product?”
Well, the answer to that is, “Of course it does. But is it any different from other companies?” The way it works is that a network marketing company has got executives, it's got employees, a building. It does research and development, it does various different things and they have a whole pie chart as to where they allocate heir resources to. And one of those is advertising.
They pay their advertising dollars toward representatives that sell the network marketing company's products. That is where their advertising budget goes to.
But is it any different than, say LeBron James getting $90 million from Nike? Do you think that adds a little bit of money to the cost of those shoes?
How about Beyoncé? Do you think that soda costs a little bit more because they paid her $50 million in order to a drink that Pepsi?
So instead of paying celebrities, or paying for advertising on television, network marketing companies simply pay it to the person who's going to add value to the prospect or to the customer if they choose to buy a network marketing product. That's the fundamental difference between network marketing companies and any other type of business.
"Instead of paying celebrities, or paying for advertising on television, network marketing companies simply pay it to the person who's going to add value to the prospect."-Tim Sales
Help Your Customers See the Value of Your Network Marketing Products
Everybody splurges on some things and everybody is frugal on other things and it's their own value choice. What you have to do is help your customers see how your network marketing products are a fair price for the value they get out of the product.
That is why it's valuable to have somebody who is a professional in network marketing who is able to differentiate these things, and can educate customers on the value of the network marketing products they offer.