Module 5: Objection Handling & Negotiation

Learn to handle any objection with confidence and negotiate deals that work for both sides.

Module Progress0 of 4 tasks completed

Module Tasks

Document common objections

List every objection you've heard and categorize them by type (price, timing, competition, etc.).

2 hoursCRM notesCall recordingsObjection library

Develop response frameworks

Create tested responses for your top 10 objections using the frameworks in this module.

3 hoursObjection handling frameworksResponse playbook

Build your pricing conversation strategy

Develop your approach to pricing discussions including anchoring, packaging, and negotiation boundaries.

2 hoursPricing frameworkCompetitor analysisPricing playbook

Role-play objection scenarios

Practice handling objections with co-founders or advisors until responses feel natural.

2 hoursRole-play partnerRecording softwarePractice recordings

LAER Framework

A proven framework for handling any objection systematically.

LListen

Let them fully express the objection. Don't interrupt or get defensive.

"I hear you. Tell me more about your concerns with the pricing."

AAcknowledge

Validate their concern. Show you understand why they feel that way.

"That makes total sense. Budget is always a consideration, especially this time of year."

EExplore

Ask questions to understand the real issue behind the objection.

"Help me understand - is it the absolute amount, or more about timing with your budget cycle?"

RRespond

Address the specific concern with a tailored response.

"Got it. Many of our customers started with our smaller plan and expanded once they saw the ROI..."

Common Objections & Responses

Price Objections

Objection: "It's too expensive"

Response: "I understand budget is a concern. Let me ask - too expensive compared to what? The cost of the problem you're solving, or compared to alternatives you're evaluating?"

Insight: Often reveals they haven't calculated cost of inaction

Objection: "We don't have budget"

Response: "I hear you. Is this a 'no budget ever' situation, or 'not in this quarter's budget'? And if this solved [problem] effectively, would finding budget be possible?"

Insight: Distinguishes between real constraint and negotiation tactic

Objection: "Can you do better on price?"

Response: "I want to make this work. Help me understand - if we got to the right price, are you ready to move forward? And what specifically would 'right' look like for you?"

Insight: Confirms this is the real blocker before negotiating

Timing Objections

Objection: "We're not ready yet"

Response: "Totally understand. What would need to be true for you to be ready? Is there something specific you're waiting for?"

Insight: Reveals real blockers or lack of urgency

Objection: "Call me back in 6 months"

Response: "Happy to. Before I go - what's happening in 6 months that would change things? I want to make sure I reach out at exactly the right time."

Insight: Often there's no real trigger - just a polite no

Objection: "We're too busy right now"

Response: "I get it - everyone's stretched thin. Quick question: is [problem] going to be any less painful in 3 months? What's the cost of waiting?"

Insight: Highlights cost of inaction

Competition Objections

Objection: "We're talking to [Competitor]"

Response: "Great - they're a solid company. What's drawing you to them? I want to make sure you have the full picture to make the best decision for your team."

Insight: Learn competitive intelligence

Objection: "We already use [Competitor]"

Response: "How's that working for you? What made you take this call today - is there something not quite working with your current solution?"

Insight: They took your call for a reason

Objection: "[Competitor] is cheaper"

Response: "They might be. The question is whether cheaper solves your actual problem. Tell me more about what's most important to you beyond price."

Insight: Refocus on value, not features

Authority Objections

Objection: "I need to talk to my boss"

Response: "Of course. What do you think their main concerns will be? And would it be helpful if I joined that conversation to answer questions directly?"

Insight: Get invited to the decision maker meeting

Objection: "It's not my decision alone"

Response: "Totally understand. Who else is involved? What's most important to each of them? I want to help you make a strong internal case."

Insight: Map the buying committee

Objection: "Let me think about it"

Response: "Absolutely. What specifically do you need to think through? I want to make sure you have all the info you need."

Insight: Uncover the real concern

Product Objections

Objection: "You're missing [feature]"

Response: "That's helpful feedback. Tell me more about why that's important? How would you use it?"

Insight: Often it's a nice-to-have, not a must-have

Objection: "It seems too simple/complex"

Response: "Interesting. What specifically feels [too simple/complex]? Help me understand what you're looking for."

Insight: Reveals misunderstanding or misalignment

Objection: "We could build this ourselves"

Response: "You absolutely could. The question is: should you? What's your team's time worth, and is this the highest-value thing they could build?"

Insight: Opportunity cost argument

Pricing Conversation Tactics

Anchor High

Start with your highest-priced option. Even if they choose lower, you've set expectations.

"Our enterprise plan at $X gives you everything. Most companies your size start with our growth plan at $Y, which includes..."

Show ROI

Frame price against the value or cost of the problem, not against your costs.

"At $500/month, if we save your team just 10 hours/week, that's a 10x return on a $50/hour employee cost."

Offer Options

Give 3 options to anchor expectations and let them self-select.

"We have three plans: $X, $Y, and $Z. Most companies your size go with the middle option..."

Time-Box Discounts

If you discount, make it time-bound to create urgency.

"I can do 20% off if we can close this by end of month - that's when our quarter ends."

Trade, Don't Cave

If they want a lower price, ask for something in return.

"I might be able to do that price with an annual commitment vs. monthly. Would that work?"

Negotiation Principles

Never negotiate against yourself

When they ask for a discount, ask them what they have in mind first. Never make the first move.

Warning: Saying 'I could do 10% off' when they would have asked for 5% costs you money.

Understand their constraints

Their objection might be a real constraint (budget cap) or a negotiation tactic. Ask questions to find out.

Warning: Discounting for someone who would have paid full price destroys margin.

Know your walkaway point

Before any negotiation, decide the minimum terms you'll accept. Be willing to walk away.

Warning: Bad deals are worse than no deals - they cost time, resources, and set bad precedents.

Create value before claiming it

Expand the pie before dividing it. Find creative solutions beyond just price.

Warning: Price-only negotiations are zero-sum. Look for payment terms, scope, timeline, etc.

Key Takeaways

1.Objections are requests for more information - not rejection. Stay curious.
2.Use LAER: Listen, Acknowledge, Explore, Respond. Never get defensive.
3.Price objections often hide other concerns - dig deeper before discounting.
4.Know your walkaway point before negotiating. Bad deals cost more than no deals.
5.Trade, don't cave. If they want something, ask for something in return.

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