Dear SaaStr: When a Customer Says “That’s Too Expensive”, What Do You Do Next?
When a customer says, “That’s too expensive,” it’s not necessarily a deal-breaker—it’s often just an opening to a deeper conversation. Or more often a deflection, when the real issue is they just don’t see enough value yet. It’s rarely the #1 issue in SaaS unless your product truly is very expensive.
Here’s how I’d handle it:
1. Dig Deeper. It’s Probably Not The Real Reason
Don’t just accept the objection at face value. Respond with something like, “I hear you—can you help me understand what you’re comparing it to?” or “What part of the pricing feels out of alignment with your expectations?” This helps uncover whether the issue is budget, perceived value, or something else entirely.
2. Reframe the Value
If the issue is perceived value, focus on ROI. For example, “I understand it’s an investment, but let’s look at the impact. If this saves your team 20 hours a week or increases your revenue by X%, does that change how you think about the cost?” Tie the price directly to the outcomes they care about.
3. Start Smaller. This Often Derisks Things — For The Customer.
If budget is genuinely tight, offer a smaller package or phased approach. “I get that this might feel like a big commitment upfront—would it help to start with [smaller package/limited scope] and scale up as you see results?” This keeps the door open while reducing the initial friction.
4. Highlight The Top, High Value Differentiators
If they’re comparing you to a cheaper competitor, emphasize what makes you unique. “I understand there are less expensive options, but here’s why companies like [marquee customer] choose us: [specific feature, support, reliability, etc.].” Show them why your solution is worth the premium.
5. Ask About Budget. Just Ask. It’s OK to Ask.
sometimes, “too expensive” just means it’s outside their current budget. Ask directly: “What kind of budget were you expecting for this?” This gives you a chance to adjust the scope or offer a creative solution, like extended payment terms or discounts for longer commitments.
6. Be Willing to Walk Away, But Be Kind. They May Be Back Later.
If they’re purely price-shopping and don’t see the value, it’s okay to walk away. “It sounds like we might not be the right fit right now, but if things change, we’d love to revisit this conversation.” Sometimes, walking away builds credibility and leaves the door open for them to come back later when they see the value.
7. Invite Them to a Weekly Webinar or Event With Your Existing Customers
Leverage your existing customers to help sell them. Done right, this works really well. Bringing prospects and happy customers together is magical.
8. Offer an Out in 90 Days, No Strings. And/Or Do a Paid Pilot
This doesn’t really reduce costs, but it can make it feel like it does.
The key is to stay calm, empathetic, and focused on solving their problem. Don’t make it all into some game. Too many sales reps think it’s all a game. It isn’t … for the customer.
“Too expensive” is often just a signal that they need more clarity on the value you’re delivering. Or that there’s another issue you haven’t uncovered yet.
