What I Do When a Prospect Says, “You’re Too Expensive”

“You’re too expensive.”

Many founders and salespeople flinch when they hear that, and they respond one of two ways: panic or offer a discount.

But they shouldn’t.

In fact, here’s what one Y Combinator partner once told me:

After all, pricing objections aren’t a rejection. They’re an opening – an opportunity to better understand your likely buyers, clarify your value, and reinforce confidence in your product.

Here’s how I handle this objection when I face it at AiSDR.

Step #1: Uncover why they really think you’re too expensive

The biggest mistake you can make is accepting “too expensive” at face value.

Instead, I ask: “Why do you feel that way?”

It usually comes down to one of three reasons:

1. They don’t see value that justifies the price.
2. They’re comparing you to a competitor that seems “cheaper”.
3. They don’t have budget allocated.

But here’s the truth: Reason #1 is almost always the root issue. The other two are just different symptoms of the same value disconnect.

So instead of giving a discount, I get to the heart of the matter and ask open-ended questions like:

• “What value would you need to see for this price to feel right?”
• “Can I help you build a case for budget approval?”
• “Why do you think a competitor can offer the same thing for less?”
• “What were your price expectations and why?”

These questions don’t just surface objections.

They spark reflection and plant a seed of doubt that maybe they’ve underestimated your value.

Step #2: Reframe the conversation around value

Once you’ve uncovered their logic and the prospect shares their concerns, you have your opening.

Now’s the time to respond with clarity and confidence, like:

Then highlight the outcomes of your solution:

• “They were able to shorten their sales cycle by 40%.”
• “They eliminated the need for an extra SDR.”
• “They saw 1.8x ROI within the first month.”

You don’t want to just list features. You want to emphasize your value.

Your job isn’t to be cheaper. It’s to make the case for why you’re worth more.

If a prospect realizes their claim wasn’t supported by facts, you can reframe the conversation and guide them toward your value.

Social proof also helps here. If you really want to go the extra mile, you can offer to put them in touch with an active customer who was in a similar situation.

As a result, you’ve shifted from defense to offense.

Step #3: Understand the psychology of pricing

Pricing isn’t rational. It’s psychological.

No matter what we say, price is always tied to perception.

In everyday life, we justify the cost of a $100 pair of shoes if we believe they’ll last. 

The same principle applies in business. We justify a $15K software contract if we believe it will save $150K in headcount or missed revenue.

Buyers don’t actually want the cheapest solution. They want the one that feels like the best decision.

If you can show the difference between a $5K and $15K product in terms of risk reduction, time savings, and ROI, they’ll pay more.

In some cases, price can become a signal of quality.

If you’re the cheapest solution in your category, some prospects might actually doubt your credibility. So when someone says, “You’re too expensive”, what they might be saying is “I’m not sure if this is worth it yet.”

And your goal should be to help them see why it is.

If anything, I think the idea of “market price” is overrated. I’ve found that people are okay with paying more so long as they see value.

Results

When you approach the “too expensive” objection with curiosity and confidence, you shift the conversation from:

• “Can we afford this?” → “Is this worth it?”
• “How do we lower the price?” → “How do we justify the price?”
• “We’re shopping around” → “We’re comparing outcomes”

And when you invite them to talk to a customer, you’re no longer selling. You’re guiding.

So the next time you hear “too expensive,” don’t flinch.

Rather, ask a better question. Plant a seed of doubt. And make the value impossible to ignore.