The Water Purifier Demo: When a Price Objection Is Not Really About Price
Ramesh is a territory sales officer for JalShuddhi water purifiers in Cuttack district. He manages 12 dealers and also makes direct home demonstrations. At a demonstration in a middle-class locality, Mr Patra tests his borewell water and sees high iron content. His wife wants an RO purifier because the children have had stomach infections. Ramesh demonstrates the JalShuddhi model priced at Rs 18,500. Mr Patra immediately says, "A local brand costs Rs 9,000; this is double. Maintenance will also be costly. I will think about it." Ramesh has a competitor comparison sheet, a demo kit showing filter stages, authority to offer up to a 5% discount without approval, and a promotional budget that can cover one free service costing the company about Rs 400. Dealer margin is 12% and is not affected by any direct discount Ramesh gives. Mr Patra also asks for a three-day trial at home before paying. Ramesh has a monthly target of 18 units and has closed 11 so far with eight days left.
1. Identify the different objections in Mr Patra's remarks and explain what Ramesh should establish before he answers the price objection.
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The remarks contain at least four objections, not one. The explicit objection is price (Rs 18,500 versus Rs 9,000). There is a product/performance objection implied by the comparison with a local brand, an after-sales/service objection about maintenance cost, and a risk objection expressed as "I will think about it" and the request for a trial.
Before answering price, Ramesh should isolate the objection. He can ask: "If the price and maintenance were equal, would you choose this unit today?" If the answer is yes, price is the real barrier; if not, the real barrier is trust or performance. He should also confirm who decides, what budget was planned, whether the local brand quote included installation and filter replacement, and what the family's actual monthly usage will be.
Only then should he reframe the comparison as total cost over five years: purchase price plus installation, filter replacements, service visits and electricity. A Rs 9,000 unit with frequent filter changes may not be cheaper. He should not argue that the local brand is bad; he should ask for the competitor's written maintenance schedule. The purpose of probing is to separate a genuine affordability problem from a value-perception problem, because each needs a different response.
2. Ramesh wants to close the sale today. Evaluate three possible concessions: a Rs 1,500 discount, one free first service costing Rs 400, or a three-day home trial. Recommend one with calculations and policy reasoning.
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A 5% discount on Rs 18,500 is Rs 925. A Rs 1,500 discount is 8.1% of price and exceeds Ramesh's authority, so it would require a manager's approval and would break the price discipline the dealer network depends on. It also trains the customer to expect discounts and may leak into dealer pricing. The margin effect matters: Rs 1,500 is about 8% of the sale, while the company's promotional service cost of Rs 400 is only about 2.2% of the sale.
The free first service is the better concession because it protects the list price, addresses the maintenance objection directly, and costs less than a fourth of the discount. Ramesh should present it as a maintenance-value offer, not as a price cut: "The price stays the same, but the first service and a filter check are on us." He should also show the five-year maintenance comparison so the concession reinforces value rather than substitutes for it.
A three-day trial is risky. Installation, hygiene, removal and possible damage create cost and dispute risk, and it delays the decision without guaranteeing a close. If a trial is unavoidable, it should be a written seven-day money-back arrangement with installation charges and return conditions specified, not an informal three-day loan. Recommendation: offer the free service plus a written performance assurance, hold the price, and ask for the order today.
3. If Mr Patra says, "I will discuss with my wife and call you," what stage of the selling process is this, and what should Ramesh do next?
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This is the close stage, specifically an attempted close that has produced a postponement rather than a refusal. It may also reveal that Ramesh demonstrated to the wrong person or did not confirm the decision process earlier. The reply should not be treated as a rejection, but it should not be accepted passively either.
Ramesh should first confirm that the wife is a real decision influencer and not a polite excuse. He can say, "Of course. Since madam raised the RO point, would it help if I showed her the filter stages and the maintenance comparison for ten minutes on Saturday?" This tests the objection and, if accepted, brings the real decision maker into the process. Second, he should fix a specific follow-up time and channel rather than leaving it open. Third, he should send a one-page written summary: water test result, price, free-service offer, installation time and warranty. Fourth, he should record the follow-up date in his planner and not call repeatedly before that date.
If the wife confirms the need but the couple still postpones, Ramesh should look for a hidden objection such as cash flow or landlord permission. The correct next step is a scheduled joint demonstration, not a discount. The sale is still open, but the follow-up must be specific and time-bound.