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Personal Selling: Chapter 11

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Personal Selling: Chapter 11

  1. 1. Responding to Objections Chapter 11
  2. 2. Important Questions Answered► When do buyers object?► What objections can be expected?► How should salespeople prepare to respond to objections?► Which methods and techniques are effective when responding to objections?► How do you deal with tough customers? 2
  3. 3. Objection► An objection is anything the prospect says or does that is an obstacle to smooth closing.► Objection is a concern or a question raised by the buyer.► Opposition or resistance to information or the salesperson’s request is an objection 3
  4. 4. WELCOME OBJECTIONS► Learn to Accept Objections as a Challenge Which, When Handled Correctly, Will benefit you and Your Prospect.► If You Fear Objections. You Will Fumble Your Response Often Causing You to Fail.► Prospects that buy have 58% more objections► Learn to overcome objections 4
  5. 5. WHY PROSPECTS OBJECT •Dislike decision making •Prefer old habits Psychological •Reluctance to give up something old for something new reasons •Unpleasant past associations with you or your company •Resistance to domination •Perceived threat to self image Logical •All or part of the presentation was misunderstood Reasons •Prospect is not convinced •Hidden reason (stall)Question: WHEN DO PROSPECTS OBJECT? Any Time During Your Sales Call - From introduction toAnswer: close. 5
  6. 6. What Does a Prospect Mean by an Objection? Is the prospect’s Is the prospect’s response a... response a...Request for more Request for more Hopeless Hopeless Condition? Condition? True objection? True objection?information? information? objection? objection? Major? Major? Minor? Minor? Practical? Practical? Psychological? Psychological? Practical? Practical? Psychological? Psychological? 6
  7. 7. Examples of Objections 7
  8. 8. Basic Points to Consider in Meeting Objections► Understand objections  Request for information  A condition (negotiation can overcome a condition)  Major or minor objection  Practical or psychological objection ►A real objection is tangible ►The salesperson must uncover hidden objectives and eliminate them 8
  9. 9. When Do Buyers Raise ObjectionsProspect may object any time during sales call. Always beready to handle a prospect’s objections. Problems couldalso be raised during formal sessions►Setting up an initial appointment►The presentation►Attempting►After the sale 9
  10. 10. Setting up an initial appointmentProspects may object to setting the appointment times or dates that salespeople request to introduce the product. This type of objection happens especially when products, services, or concepts are unfamiliar to the buyer. No, I dont need to see you.Ive not heard much about what youre sell­ing, so it must not be too good.The same types of objections can also occur during the approach. 10
  11. 11. The presentationBuyers can offer objections during the approach tothe presentation. They may not like or believe thesalespersons attention getting opening statement.They may not wish to engage in small talk or maynot agree with statements made by the sellerattempting to build rapport. Buyers may object to thesalespersons stated goals for the meeting.Objections often come up to points made in thepresentation. Buyers sometimes let the salespersondeliver the entire presentation without showing anyreaction. Judging the effectiveness of thepresentation is difficult in such circumstances. 11
  12. 12. AttemptingObjections may be voiced when the salespersonattempts to obtain commitment. Skill in uncoveringand responding to objections is very important at thisstage of the sales call. Also, knowing the objectionsthat are likely to occur helps the salesperson preparesupporting documentation (letters of reference,copies of studies, etc.). Salespeople who hear a largenumber of objections at this point in the sales callprobably need to further develop their skills. Anexcessive number of objections may indicate a poorjob at needs identification and the omission ofsignificant selling points in the presentation. 12
  13. 13. After the saleEven buyers who have agreed to purchase the product or service can still raise objections. The objection may include the quality of the product or service, the customer service departments lack of friendliness, or the credit departments refusal to grant the terms the salesperson promised. To develop long-term relationships and partnerships with buyers, salespeople must care­fully respond to these objections 13
  14. 14. Common ObjectionsTypes of Objections:1. Related to Needs2. Related to the Products3. Related to the Source4. Related to the Price5. Related to the Time 14
  15. 15. Related to Needs► I DO NOT NEED THE PRODUCT OR SERVICE► WE NEVER DONE IT THAT WAY BEFORE 15
  16. 16. I DO NOT NEED THE PRODUCT OR SERVICEA prospect may validly state that the company has no need for what the salesper­son is selling. Salespeople may encounter objections such as "My business is different" or "1 have no use for your service." These objections, when made by an accurately qualified buyer, show that the buyer is not convinced that a need exists. This problem could have been prevented with better implication and need payoff questions. If the salesperson cannot establish a need in the buyers mind, that buyer can logically be expected to object. 16
  17. 17. WE NEVER DONE IT THAT WAY BEFOREMost human beings are creatures of habit. Once theydevelop a routine or establish a custom, they tend toresist change. Fear or ignorance may be the basis fornot wanting to try anything new or different. Thebuyers natural tendency to resist buying a newproduct or changing from a satisfactory brand to anew one can be found behind many objections. 17
  18. 18. Related to the Products► I DONT LIKE THE PRODUCT OR SERVICE FEATURES► I DONT UNDERSTAND► I NEED MORE INFORMATION 18
  19. 19. I DONT LIKE THE PRODUCT OR SERVICE FEATURES Often the product or service has features that do not satisfy the buyer. At other times the prospect will request features currently not available.► I dont like the design.► It doesnt taste good to me!► I wish you included free maintenance.► I was looking for a lighter shade of red.► I cant get my machines repaired quickly by your service technicians.► It took a month for us to receive our last order. 19
  20. 20. I DONT UNDERSTANDSometimes objections arise because customers do not understand the salespersons presentation. Because these objections may never be verbalized, the seller must carefully observe the buyers nonverbal cues. Misunderstandings frequently occur with customers who are unfamiliar with technical terms, unaware of the unique capabilities of a product, or uncertain about benefits arising from services provided with the product, such as warranties. Unfortunately, buyers often will not admit that they do not understand something. 20
  21. 21. I NEED MORE INFORMATIONSome buyers offer objections in an attempt to getmore information. They may have already decidedthat they want the product or service but wish tofortify themselves with logical reasons they can useto justify the purchase to others. Also, thesalesperson may not have provided enough credibleproof about a particular benefit. Conflict may alsoexist in the buyers mind. One conflict could be astruggle taking place between the dictates ofemotion and reason. Or the buyer may be concernedabout the risk, and the seller hasnt sufficiently soldvalue. The buyer may be trying to decide betweentwo competitive products or between buying and notbuying 21
  22. 22. Related to the Source► I DONT LIKE YOUR COMPANY► I DONT LIKE YOU 22
  23. 23. I DONT LIKE YOUR COMPANYMost buyers, especially industrial buyers, areinterested in the sales representatives companybecause the buyer is put at risk if the sellers firm isnot financially sound, cannot continually produce theproduct, and so forth. These buyers need to besatisfied with the selling companys financialstanding, personnel, and business policies. Butunvoiced questions about the sales reps companymay affect their decisions and the long termpartnerships the sales rep is trying to establish. 23
  24. 24. I DONT LIKE YOUSometimes a salespersons personality clashes with aprospects. Effective salespeople know that theymust do everything possible to adjust their manner toplease the prospect. At times, however, doingbusiness with some people appears impossible.Prospects may object to a presentation or anappointment because they have taken a dislike to thesalesperson or because they feel they cannot trust thesales­person. 24
  25. 25. Related to the Price► I HAVE NO MONEY► THE VALUE DOES NOT EXCEED THE COST► 25
  26. 26. I HAVE NO MONEYCompanies that lack the resources to buy theproduct may have been classified as prospects. Theability to pay is an important factor in leadqualification. An incomplete or poor job ofqualifying may cause this objection to arise. Whenleads say they cannot afford a product, they mayhave a valid objection. If so, the salesperson shouldnot waste time; new prospects should becontacted. 26
  27. 27. THE VALUE DOES NOT EXCEED THE COST Most buyers must sacrifice something to buy a product (called opportunity costs). The money spent for the product is not available for other things. Buyers usually object until they are sure that the value of the product or service being acquired more than offsets the sacrifice.► I cant afford it.► I cant afford to spend that much right now.► I never accept the first price quoted by a salesperson.► I was looking for a cheaper model.► I dont care to invest that much; Ill use it only a short while.► I can beat your price on these items 27
  28. 28. Related to the Time► IM JUST NOT INTERESTED TODAY► I NEED TIME TO THINK ABOUT IT 28
  29. 29. IM JUST NOT INTERESTED TODAYSome prospects voice objections simply to dismissthe salesperson. The prospect may not have enoughtime to devote to the interview, may not be interestedin the particular product or service, may not be in themood to listen, or may have decided because of someunhappy experiences not to face further unpleasantinterviews. These objections occur when salespeoplemake a cold canvass or try to make an appointment.Particularly aggressive, rude or impolite salespeoplecan expect prospects to use numerous excuses tokeep from listening to a presentation. 29
  30. 30. I NEED TIME TO THINK ABOUT IT Buyers often object to making a decision "now." Many, in fact, believe that post­poning an action is an effective way to say no► I havent made up my mind.► I want to think it over.► Im not ready to buy.► I dont want to commit myself.► I think Ill wait awhile.► I want to look around.► Im waiting until my inventory goes down.► Just leave me your literature. Ill study it and then let you know what we decide. 30
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  32. 32. OTHER OBJECTIONS► Im satisfied with the company we use now.► We have a reciprocity agreement with your competitor.► We are all stocked up.► We have no room for your line.► There is no demand for your product.► Youll have to see Mr. X.► .My brother-in-law is in the business.► Your competitor just came out with a brand-new product that seems superior to yours.► Ive heard complaints from my friends who use your product.► I prefer to do business with Islamic-owned firms. 32
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  36. 36. Invalid ObjectionsHidden objection► Prospect who asks trivial, unimportant questions► Prospect conceals feelings beneath a veil of silence.► The salesperson must ask questions and carefully listen in order to smoke out the prospects real objection.Stall "Put Off"► "Ill think it over..."`► "Ill be ready to buy on your next visit" 36
  37. 37. TYPES OF OBJECTIONS Stopper Objection - no solution can be found No •This is widely used because it gets rid of the salesperson. Need •It is tricky because it also includes a hidden objection and/or a stall. •Encompasses several forms of economic excuses •It is simple for the buyer to say. Say that it is risky to discuss the products price until it can be compared to the products benefits. When buyer asks for the price ----OR---- No Quote the price and go right on selling. Money Once you convey the benefits, price becomes a secondary factor which usually can be dealt with successfully. •Used to determine if a prospect is or is not convinced the price The is too high. Price / Value •Price/value = cost Formula. Cost comparison of what is received to money paid. Value what the prospect sees the product doing for them. •Usually a stall •You must determine if the statement is truth or it is a smoke No •Screen for decision screen designed to get rid of you.Authority making authority •One of the 37 toughest stalls to overcome arises when selling a early new consumer product.
  38. 38. Classify the Objection 1.Product objection Six Basic 2.Objection to the salesperson Categories 3.Objection to the your company of Objections 4.Dont want to make a decision 5.Service objection 6.Price objection •Major or minor objection. Other •Practical or psychological objection. Classifications •Practical (overt). •Psychological (hidden). Some General Tips for Handling Objections•Keep the buyers attitude toward your product positive.•Let buyers know you are on their side•Help with objections.•If you get no response, give a multiple choice question to display an attitude of genuine caring.•Your goal is to help your prospect realistically examine reasons for and against buying now.•The main thing is not to be satisfied with a false objection or stall.•Bring out any or all of your main selling benefits now and keep on selling! •They need your product or service The prospect •Your product is the solution to my problem must agree •You are the person from whom I should buy that •Your company is the one to deal with •The time to buy is now 38 •The price and terms are fair
  39. 39. Traits and Behaviors of Successful Salespeople 39
  40. 40. Preparing To Respond► Develop a positive attitude► Commit to always tell the truth► Anticipate objections► Relax and listen – do not interrupt► Forestall known concerns► Evaluate objections 40
  41. 41. Develop a positive attitudeTo respond to objections effectively, nothing cansubstitute for having a positive attitude. Properattitude is shown by answering sincerely, refrainingfrom arguing or contradicting, and welcoming eveninviting objections. Objections should be expectedand never taken personally. The temptation to provethe prospect wrong, to say "I told you so" or "Imright and youre wrong," is always strong. This kindof attitude invites debate, encouraging perhaps evenforcing the prospect to defend a position regardlessof its merits. Egos get involved when prospects findtheir positions bluntly challenged. 41
  42. 42. Commit to always tell the truthIn dealing with prospects and customers, truthfulness is an absolute necessity for dignity, confidence, and continued relations. Lying and deception are not a part of a successful long term relationship. Over time it will be hard to remember which lie you told to which customer. Salespeople should avoid even white lies and half truths when they answer objections. One way to avoid lies is to spend more time gaining knowledge about their products and the products of their competitors. 42
  43. 43. Anticipate objectionsSalespeople must know that at some time, objectionswill be made to almost everything concerning theirproducts, their companies, or themselves. Commonsense dictates that they prepare answers toobjections that are certain to be raised because fewsalespeople can answer objections effectively. Whensalespeople know an objection will be raised, theyshould have good answers ready. The ability torespond readily to objections helps to buildconfidence. Unanticipated or unanswerableobjections can easily cause embarrassment and lostsales. 43
  44. 44. Relax and listen – do not interruptWhen responding to an objection, listen first andthen answer the objection. Allow the prospect tostate a position completely. Do not interrupt withan answer, even if the objection to be stated isalready apparent to you. Listen as though you havenever heard that objection before. Using humormay help defuse the nervousness that both buyerand seller are feeling during this part of theprocess. 44
  45. 45. Forestall known concernsGood salespeople, after a period of experience and training, know that certain features of their products or services are likely to be misunderstood, or are materially different from competitors products. The salesperson may have products with limited features, may have to quote a price that seems high, may be unable to offer cash discounts, may have no service representatives in the immediate area, or may represent a new company in the field. In these situations, salespeople often forestall the objection? To forestall is to prevent by doing something ahead of time. In selling, this means salespeople raise objections before buyers have a chance to raise them. 45
  46. 46. Evaluate objectionsObjections may be classified as unsatisfied needs (i.e., real objections) or excuses. Excuses are concerns expressed by the buyer that mask the buyers true objections. Thus, the comment "I cant afford it now" would simply be an excuse if the buyer honestly could afford it now but did not want to buy for some other reason. Salespeople need to develop skill in evaluating objections. No exact formula has been devised to separate excuses from real objections. Sometimes it is best to follow up with a question 46
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  49. 49. Strategies for Deciding when to Answer Objections Anticipate •incorporate objections and the answers in the presentation and •You should be certain that the objection will ariseForestall Objections •Prevents a confrontation and communicates objectivity •Gives you time to present more benefits Postpone •Allows you to maintain control •Gives you time to think about the response the •Acknowledge the objection Answer •Employ empathy •Promise to get back to the question •Write it down Answer •The prospect not listening. Immediately •The prospect feeling that you are hiding something. Postponement of •The appearance that you also feel its a problem. objections •The appearance that youre not able to answer because you do not know the answer. •The appearance that you are not interested in the prospects opinion. may result in: •The appearance that you are not sympathetic Do Not Answer •Serious objection will be repeated an Excuse •Not answering suggests that the excuse is not truly relevant Disagree •Selling should be win-win •Dont try to show up the prospect Without •Challenge ideas without offending Being Disagreeable Remove blame by prefacing answer. "I have not made myself clear......" 49 Make a concession before taking exception: "You raise an excellent point….."
  50. 50. Effective Response Methods► Listen carefully► Repeat prospect’s objections► Acknowledge the apparent soundness of the prospect’s opinion► Evaluate the objections► Decide on the method(s) to respond► Get a commitment from the prospect 50
  51. 51. A Negotiating Strategy for Handling Buyers’ Concerns (A Six-Step Process) Listen Carefully Hear the Prospect Out Confirm •Validate the Problem Your Understanding •Clarify and Classify of the •Use confirmation questions Objection •Ask if there is anything else •Try to distinguish between genuine objections and excuses •I understand how you feel Acknowledge their •That is a logical question Point of View •Restate or rephrase in your own words •Use words such as, “I understand how you feel” •Prepare the prospect for your answer •The prospects behavioral style•Select a specific •Phase of the interviewtechnique •The prospects mood•Base your decision on: •The number of times that this objection came up •The type of objection Answer the objection •Confirm with the buyer that you have answered the objection Attempt to Close 51 •Continue the Presentation If You do Not Succeed
  52. 52. Answers Based on Concrete Evidence •compare advantages and disadvantages Product •When the prospect is mentally comparing the present product or a comparison: competing product with your product, you may make a complete comparison of the two case history or •Describe the experience of a customer whose situation is similar to testimonial that of the prospect •One of the most convincing ways to overcome buyer resistance and Demonstration specific objections. •Sometimes a second demonstration is needed to overcome buyer skepticism. •Removes resistance by reassuring that the purchase will not result in Guarantees or a loss. warranty •Guarantees must •be meaningful •provide for recourse on the part of the customercost of delaying •The prospect wants to wait a while before making a final decision. •Use pencil and paper to show that delaying the purchase is expensive 52
  53. 53. Flow-Chart Approach for Handling Objections 53
  54. 54. Common Methods Of RespondingProbe first (using probing method) to be sure you understand the objectionand to make sure the buyer is really concerned about it Direct denialIf the buyer makes a statement that Indirect denialis factually not true, use Compensation Feel-felt-foundIf the buyer raises a valid concern Boomerangor offers a valid opinion, use Pass-up Postpone 54
  55. 55. Common Methods Of Responding Direct Denial Indirect Denial Compensation Method Feel-Felt-Found Method Boomerang Method Pass-up Method Postpone Method 55
  56. 56. Direct DenialAt times salespeople face objections based onincomplete or inaccurate information by the buyer.They should respond by providing information orcorrecting facts. When using direct denial, thesalesperson makes a relatively strong statement toindicate the error the prospect has made. No onelikes to be told that he or she is wrong, so the directdenial must be used with caution. It is appropriateonly when the objection is inaccurate and potentiallydevastating to the presentation. The salespersonmust also possess facts to back up such a denial. Thedirect denial should never be used if the prospect ismerely stating an opinion or if the objection is true. 56
  57. 57. Indirect DenialIn the indirect denial method, the salesperson deniesthe objection but attempts to soften the response.The salesperson takes the edge off the response byagreeing with the prospect that the objection is animportant one. Prospects expect salespeople todisagree; instead, a salesperson who recognizes thesincerity of the objection will carefully respect theprospects view. This approach avoids a directcontradiction and confrontation. To begin ananswer, a salesperson would do well to agree with theprospect, but only to the extent that the agreementdoes not weaken the validity of the salespersonslater denial. 57
  58. 58. Compensation MethodEvery product has some advantages and somedisadvantages compared to competing products.Also, an absolutely perfect product or service hasnever been developed; the firm always has to makecost benefit decisions about what features to include.Buyers note these trade-offs and often object becausethe salespersons product is less than perfect. Thewise salesperson will admit that such objections arevalid and then proceed to show any compensatingadvantages. This approach is called thecompensation method of responding to objections. 58
  59. 59. Feel-Felt-Found MethodWhen buyers objections reflect their own attitudes or opinions, the salesperson can show how others held similar views before trying the product or service. In this method, called the feel-felt-found method, the salesperson goes on to relate that others actually found their initial opinions to be unfounded after they tried the product. The sequence of the feel-felt- found method is important, as is the person or persons identified in each stage. The sequence should be as follows: I can see how you feel. . . others felt the same way. . . yet they found. . . Inexperienced sales­people often mix up the order or the parties identified 59
  60. 60. Boomerang MethodWhen using the boomerang method of responding to objections, the salesperson turns the objection into a reason for acting now. This method can be used in many situations. The boomerang method requires care. It can appear very pushy. It sounds like a high pressure sales tactic. This method does have useful applications, however. Often the product or service is actually designed to save the buyer substantial amounts of time or money. If the buyer objects to spending either the time to listen or the money, the boomerang method may be a powerful tool to help the buyer see the benefit of investing these resources 60
  61. 61. Pass-up MethodAt times the buyer voices opinions or concerns more to vent frustration than anything else. When this occurs, the best strategy may be to use the pass-up method: Simply let the buyer talk, acknowledge that you heard the concern, pause, and then move on to another topic. Sometimes the salesperson can use the pass-up method by simply agreeing with the prospect and then moving on, which suggests to the buyer that the con­cern really should not be much of an issue. The pass-up method should not be used if the objection raised is factuallyfalse. 61
  62. 62. Postpone MethodIn the early part of a sales interview, the prospect may raise objections that the salesperson would prefer to answer later in the presentation, after discovering the prospects needs. Using the postpone method, the salesperson would ask permission to answer the question at a later time. Some objections are best answered when they occur; others can be responded to most effectively by delaying the answer. if the buyer is convinced that he or she deserves the answer right now? Then the salesperson should answer the objection now. 62
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  64. 64. Classic Objection Handling Techniques Feel •Answer it by referring to a third party and using that experience as your "proof or testimony". Felt •If the source is reliable or reputable this can be especially successful with the expert or skeptical prospect. Found I understand how you feel Let a Third Your friend, Hugh Jass, felt the same way Party Answer. Here is what he found.Compensation or •Admit the objection is validCounterbalanc •Describe some counterbalancing benefit e Ask "Why?" •Answer with a question •Rephrase the objection Direct •Considered a high risk method of handling buyer resistance. Use it with care. •If the buyer resistance is not valid, there may be no other option than to refute it by providing accurate information. Denial •Example: If the quality of the product is questioned, meet the statement head on with whatever proof seems appropriate. •Be firm in stating your beliefs and be sincere, dont be offensive. •Acknowledge that the prospect is at least partially correct. Indirect •It initially appears as agreement with the customers objection but moves into denial of the fundamental issue. •If done in a natural, conversational way the salesperson will not offend the prospect. Denial •Rephrase or have the prospect rephrase •Blame yourself •Give the facts that answer the objection Boomerang turn the •Prospect: "I dont like the size"objection into a •Seller: "The size is exactly the reason you should buy it!" benefit 64
  65. 65. Using the methods Salespeople often combine methods when answering an objection. For example, a price objection may initially be postponed and then be discussed later, using the compensation method. At other times several methods can be used in one answer. Before moving on with the presentation, the salesperson needs to make sure that the buyer agrees that all objections have been completely answered..► Did I answer your question?► Does that make sense?► Do you see why that issue is not as important as you originally thought?► I hope I havent confused you.► Do you have any more questions 65
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  67. 67. The Price Objection Sales managers continually hear from salespeople that price is the most frequently mentioned obstacle to obtaining commitment. Price is still an issue even between partnering firms. One leading firm in its industry has estimated that only 3 percent of its orders are sold at list price; the rest are price discounted► Use Up-to-date Information► Establish The Value► Use Common Communication Tools Effectively 67
  68. 68. Use Up-to-date InformationSuccessful salespeople make sure they have themost current pricing information available to them.They know not only their prices, but competitorsprices as well. Firms are helping salespeople in thisregard. 68
  69. 69. Establish The ValueThe products value must be established before the salesperson spends time discussing price. The value expected determines the price a prospect is willing to pay. Unless the salesperson can build value to a point at which it is greater than the price asked, a sale will not occur. As a rule, value cannot be established during the early stages of the presentation. Price objections are best handled with a two step approach. First, the salesper­son should try to look at the objection from the customers viewpoint, asking questions to clarify the customers perspective, the next step is to sell value and quality rather than price. 69
  70. 70. Use Common Communication Tools Effectively Just telling customers about quality and value is not enough. Intangible features can also provide value that offsets price. Some of these features are► Services► Company Reputation► The Salesperson 70
  71. 71. ServicesGood service in the form of faster deliveries, technical advice, and field assistance is but one of the many intangibles that can spell value, savings, and profits to a customer. 71
  72. 72. Company ReputationFor a customer tempted to buy on price alone, salespeople can emphasize the importance of having a thoroughly reliable source of supply: the salespersons company. It has been demonstrated time and again that quality is measured by the reputation of the company behind it. 72
  73. 73. The SalespersonCustomers value sales representatives who go out of their way to help with problems and promotions salespeople who keep their Word and follow through when they start something. 73
  74. 74. Effective Strategies for Coping with Price ObjectionsThe meaning of a price •The prospect places insufficient value on the product objection •A competitive product is a better deal •The prospect just wants to bargain YOUR PRICE IS TOO HIGH YOUR PRICE IS TOO HIGH!•Learn to respond to this objection.•It is inevitable.•Buyers will object just to get a discount.•Knowledgeable buyers know that there is often a standard discount for whichthey qualify•Price objections are an opportunity to sell the value of the product or service.•The danger is to respond to the wrong price objection.•"Tell me more" or "Explain" 74
  75. 75. Six fundamental price perspectives: Price versus •Discover the differences between the competitors proposal and your proposal. •The price is lower because competition •the product or service is less robust. •A time related "special offer." Price versus •Was it a budget, or an expectation approved budget •Was it based on old or unreliable data? •Was the prospect told about a less expensive solution provided to a friend? Price versus •Explore the friends solution. buyer expectations •The buyer can then accept the other solution at a lower price •The buyer can then accept the higher price for the original solution. Price versus •Your price is being compared to a process alternative.a process alternative •Buying software may be compared to manual methods. •There are often new benefits that are simply impossible with the manual method. Price versus •Maintenance or support costs can be greater than the original cost. a percentage of the •20 years ago hardware and software was more expensive than support. product price (for •Today hadware and software costs are low. Labor for support is high. •Support may be more comprehensive than in the past. continuing services) •Understand and communicate these changes to the prospect •Denies the cost of labor of the participant Price versus •Denies the cost of extended time to implement. •Example: lawn care. "do-it-yourself" •Everyone can cut grass cheaper than hiring a service •Few enjoy spending time on this chore. 75 •"Do it yourself" places less value on your time
  76. 76. When Dealing with Price Resistance •Add value with a cluster of satisfactions. •Point out the relationship between price and quality. •Explain the difference between price and cost. •Employ the Presumption of Exclusivity •Stress your products exclusive featuresDO •Identify extras that only come from you •Sell quality, exclusivity and differential features •Sell Down •All prospects have a buying range •Show the best first and then let the prospect reduce price by removing features or lowering quality •Apologize for the price.DON •Make price the focal point of your sales presentation. T •Become demanding, •Become defensive •Become hostile 76
  77. 77. Five Question Sequence Method of Overcoming ObjectionsQ "There must be some good reason why youre hesitating.1 Do you mind if I ask what it is?" YES Ask what it is and Go To Q2Q "In addition to that, is there any other NO Go To Q32 reason for not going ahead?" YES Go forward to discuss thisQ "Just supposing, M. Buyer, you could... NO Go To Q43 then youd want to go ahead?" Answer GO TO Q2Q "Then there must be some other reason.4 May I ask what it is?" No Answer GO TO Q5Q "What would it take to convince you?"5 This series of questions keeps the conversation going and gets the real objections out in the open which helps increase your sales. 77
  78. 78. Dealing with Tough CustomersSalespeople give up when faced with tough customers, rather than work with them to mutual benefit. Instead, sellers need to maintain the positive attitude discussed earlier, even with rude, hard-to-get-along-with prospects. Its not easy, and its not fun. Sellers need to realize that we all have bad days. Maybe the buyer is just having one. If the buyer continues to be unreasonably rude, you might want to kindly call attention to the fact. After all, to develop a long term win-win relationship and partnership you both need to be on the same footing. The buyers culture often dictates the way he or she will respond to a seller. 78
  79. 79. End of Chapter 11
  80. 80. Thank you

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