Crush Price Objections: Sales Tactics for Holding Your Ground and Protecting Your Profit

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Price objections are a salesperson’s number-one challenge, and during a struggling economy, price objections are especially difficult. Salespeople often stand firm trying to maintain their pricing, but at the same time, they fear the reality of possibly losing a client. So how can a salesperson sell at a profitable rate and still be able to make a living?

Tom Reilly’s new book CRUSH PRICE OBJECTIONS: Sales Tactics for Holding Your Ground and Protecting Your Profit (McGraw-Hill; February 2010) was written to help readers defend their prices and protect their margins by preparing themselves to sell in a price-sensitive environment, gaining pre-emptive selling advantage, avoiding price resistance and responding effectively when a price becomes an issue.

Published in: Business

Crush Price Objections: Sales Tactics for Holding Your Ground and Protecting Your Profit

  1. 1. McGraw-Hill Webinar by Tom Reilly Copyright 2010 Tom Reilly www.TomReillyTraining.com 1
  2. 2. Sisyphus Syndrome Price Copyright 2010 Tom Reilly www.TomReillyTraining.com 2
  3. 3. My objective in this module I want to help you win the money war  Updated information on price resistance  Pre-emptive selling advantage  Respond effectively to price resistance Copyright 2010 Tom Reilly www.TomReillyTraining.com 3
  4. 4. Your value proposition When you apply the CPO ideas, you will be able to gain a pre-emptive selling advantage and respond effectively to price resistance. Copyright 2010 Tom Reilly www.TomReillyTraining.com 4
  5. 5. Realities Of Price Objections 1. You will hear them 2. You will lose business 3. You will sell in spite of them 4. Focused on giving vs. getting—equity 5. Some are real Copyright 2010 Tom Reilly www.TomReillyTraining.com 5
  6. 6. Realities Of Price Objections 6. Whoever is better prepared 7. You are supposed to make money Copyright 2010 Tom Reilly www.TomReillyTraining.com 6
  7. 7. Realities Of Price Objections The purpose of business is to make money Adam Smith You may be selling to some non-profit organizations but your company is not a non- profit organization Copyright 2010 Tom Reilly www.TomReillyTraining.com 7
  8. 8. Realities Of Price Objections 6. Whoever is better prepared 7. You are supposed to make money 8. Salespeople create own misery 9. Volume doesn’t trump profit 10. Attitude drives behavior Copyright 2010 Tom Reilly www.TomReillyTraining.com 8
  9. 9. Pre-emptive Selling Advantage This means taking early, positive control of the sales conversation and directing the flow down the path of value, not simply price. Copyright 2010 Tom Reilly www.TomReillyTraining.com 9
  10. 10. Gaining Pre-emptive Selling Advantage 1. Stretch the time horizon 2. Enlarge the discussion 3. Sell the concept 4. Reframe and soften the price Copyright 2010 Tom Reilly www.TomReillyTraining.com 10
  11. 11. Price Shopper Characteristics Price shoppers have two vision problems 1. Myopia 2. Tunnel vision Copyright 2010 Tom Reilly www.TomReillyTraining.com 11
  12. 12. Price Shopper Myopia Price shoppers are short-term thinkers. They focus on the immediate, the acquisition price. Copyright 2010 Tom Reilly www.TomReillyTraining.com 12
  13. 13. Gaining Pre-emptive Selling Advantage 1. Stretch the time horizon  Ask questions to stretch the time horizon  Present long-term solutions Copyright 2010 Tom Reilly www.TomReillyTraining.com 13
  14. 14. Price Shopper Characteristics Price shoppers have two vision problems 1. Myopia 2. Tunnel vision Copyright 2010 Tom Reilly www.TomReillyTraining.com 14
  15. 15. Price Shopper Tunnel Vision They lock in on single buying criterion which inhibits their seeing the big picture. The Core Commodity “Naked” Product Enhanced Product Copyright 2010 Tom Reilly www.TomReillyTraining.com 15
  16. 16. Gaining Pre-emptive Selling Advantage 1. Stretch the time horizon 2. Enlarge the discussion (expand their peripheral vision) from core product to enhanced product—from commodity to enhanced product Copyright 2010 Tom Reilly www.TomReillyTraining.com 16
  17. 17. Gaining Pre-emptive Selling Advantage 1. Stretch the time horizon 2. Enlarge the discussion 3. Sell the concept Copyright 2010 Tom Reilly www.TomReillyTraining.com 17
  18. 18. Conceptual Selling Arguing a case bigger than a product Selling an idea, new technology, different way of thinking, different approach to solving a problem, a new method of serving customers Copyright 2010 Tom Reilly www.TomReillyTraining.com 18
  19. 19. Conceptual Sale Product Sale Green Recyclable product Technology Computer Inventory management Inventory program Advertising Medium Long-term view Value-added solution Total ownership cost Partnerships Copyright 2010 Tom Reilly www.TomReillyTraining.com 19
  20. 20. Gaining Pre-emptive Selling Advantage 1. Stretch the time horizon 2. Enlarge the discussion 3. Sell the concept by having better conversations with customers Copyright 2010 Tom Reilly www.TomReillyTraining.com 20
  21. 21. Better conversations with price shoppers Long term Short term Outcome Input Results Outlay ROI Spending Money, profit, value Price Total solution Naked product Enhanced product Core commodity product Partnership Supplier Copyright 2010 Tom Reilly www.TomReillyTraining.com 21
  22. 22. Gaining Pre-emptive Selling Advantage 1. Stretch the time horizon 2. Enlarge the discussion 3. Sell the concept 4. Reframe price Copyright 2010 Tom Reilly www.TomReillyTraining.com 22
  23. 23. Price Shopper Strategies Reframing and softening is acknowledging price and relegating (reordering & diminishing) it to detail status You affect money in more ways than simply by offering a cheap price Copyright 2010 Tom Reilly www.TomReillyTraining.com 23
  24. 24. Summary training point The battle over price is ultimately a battle over time, costs, and profit  Long-term vs. short-term  Transfer of costs {price sellers view the buyer’s time as being worth less than their time}  Value is more than a cheap price  Cost is bigger than price  Profit is what customers throw to the bottom line, not price Copyright 2010 Tom Reilly www.TomReillyTraining.com 24
  25. 25. Key Value Training Point The price that your customer complains about today is something he will brag about tomorrow to his customers and employees Help the buyer brag Copyright 2010 Tom Reilly www.TomReillyTraining.com 25
  26. 26. Responding to Price Objections You have done everything right and the buyer says, “Your price is still too high!” What should you do? Copyright 2010 Tom Reilly www.TomReillyTraining.com 26
  27. 27. Something to think about… Musee Rodin Paris, France
  28. 28. General Tips for Handling Price Objections 1. Anticipate but don’t create 2. Be patient 3. Do nothing 4. Set aside the objection 5. Why are you still in the game? 6. Be sure you understand the motive behind the objection Copyright 2010 Tom Reilly www.TomReillyTraining.com 28
  29. 29. Selling your value, protecting profit 1. Add value 2. Subtract value 3. Buying dissonance 4. Double-edged sword 5. Reversal 6. Trial close 7. Alternate advantage overload 8. Cast doubt Copyright 2010 Tom Reilly www.TomReillyTraining.com 29
  30. 30. Our Value Added Sign up for our complimentary monthly e-mail newsletter: www.TomReillyTraining.com Copyright 2010 Tom Reilly www.TomReillyTraining.com 30

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