How do I respond when someone says my price is too high?

Ask what they're comparing it to. Their answer tells you everything. If they're comparing to a cheaper alternative, you can differentiate. If they're comparing to doing nothing, you have a value problem.

Should I lower my price if they say it's too expensive?

Not as a first move. First, understand why it feels expensive. Then address the root cause. If you discount before diagnosing, you'll probably give margin away unnecessarily.

Is 'it's too expensive' ever a real objection?

Sometimes genuinely they can't afford it. But usually it's about perceived value relative to cost, not the absolute number. A $100,000 solution feels cheap if it solves a $1,000,000 problem. Same solution feels expensive if the problem seems smaller.

Handling 'Your Price Is Too High' (It's Not Really About the Number)

"That's too expensive."

I've heard it thousands of times. And almost never is it actually about the number. It's about something else entirely. Until you figure out what, you're just guessing at how to respond.

The Three Real Meanings

Meaning 1: "I don't see the value"

The price isn't inherently too high. It's too high relative to the perceived benefit.

A $10,000 solution to a $10,000 problem feels expensive. The same solution to a $100,000 problem feels like a bargain.

When value perception is the issue, discounting doesn't help. If they don't see the value at $10,000, they won't see it at $8,000 either. You haven't changed the value equation. You've just reduced your margin.

The fix is to return to discovery. Help them see the problem more fully. Quantify the impact. Make the pain vivid.

"When you say too expensive, I want to understand what you're comparing it to. What's the cost of not solving this problem?"

Meaning 2: "I'm comparing you to something cheaper"

They've seen an alternative. Maybe a competitor. Maybe an internal build. Maybe doing nothing.

In their mind, they have a reference price, and you're above it.

Your response depends on understanding that comparison.

"Out of curiosity, what are you comparing this to? I want to make sure we're looking at apples to apples."

Once you know the comparison:

If it's a competitor: differentiate on value, not price
If it's internal build: highlight hidden costs they're not counting
If it's doing nothing: return to problem quantification

Meaning 3: "I'm negotiating because that's what buyers do"

Some price objections are just negotiation tactics. They have budget. They see value. They're testing whether your price is firm.

This is especially common with procurement professionals who are measured on discounts they extract.

The right response here is confidence:

"I understand you want the best deal. Let me share how we approach pricing. [Explain your methodology.] We've built this to be fair from the start, not inflated expecting negotiation."

Then hold your ground. If they have budget and see value, they'll move forward.

Diagnosing Which One You Have

The key question: "When you say it's too expensive, what are you comparing it to?"

Their answer reveals the situation:

"I just think that's a lot of money" = value perception problem
"Company X offered something similar for less" = competitive comparison
"Our budget is only X" = either real constraint or negotiation
"We could probably build this ourselves" = build vs. buy calculation

Until you know, you're guessing.

Specific Responses

Value Perception Problems

"I hear that. Let me make sure I understand the full picture. Earlier you mentioned the problem was costing roughly X per month. If we solve that, the investment pays for itself in Y weeks. Does that math work, or are there factors I'm missing?"

Return to the problem. Make sure they fully feel the cost of the status quo.

Competitive Comparisons

"Thanks for sharing. Can you help me understand what that includes? I want to make sure we're comparing equivalent solutions."

Then differentiate. Not on features but on outcomes. What do you deliver that they don't?

Negotiation Tactics

"I appreciate you being direct. Our pricing reflects the value we deliver. I'm not in a position to discount arbitrarily, but if there are specific concerns about value or scope, I'm happy to discuss those."

Firm but not arrogant. Leave room for conversation without capitulating.

When to Consider Discounting

Discounting makes sense when:

You get something in return (longer term, case study rights, prepayment)
The scope genuinely reduces
There's a strategic reason (flagship logo, market entry)
You've fully diagnosed and value perception is genuinely the issue

Discounting doesn't make sense when:

You haven't diagnosed the root cause
You're just trying to close faster
They haven't agreed on value yet
It's purely a negotiation tactic

Every discount without reason trains the customer to expect discounts. It also signals that your original price was inflated.

Reframing the Conversation

Sometimes the best response to "too expensive" is to step back entirely:

"It sounds like the investment doesn't feel right relative to what you're getting. Maybe we should revisit whether this is actually the right solution for your situation. Walk me through what you're trying to accomplish again."

This takes the pressure off. It signals confidence. And it often leads to a more honest conversation about what's really going on.

Price Is a Conversation

The first response to a price objection is always curiosity, not defense.

"Tell me more about that."

"What specifically feels off about the investment?"

"What would need to be true for this to feel like the right price?"

These questions get you information. Information lets you respond specifically rather than generically.

The reps who struggle with price objections treat them as attacks to defend. The reps who succeed treat them as conversations to explore.

For related approaches, see the psychology of pricing conversations and handling budget objections.