Handling Price Objections in Sales!
•Download as PPT, PDF•
1 like•117 views
This slide deck explores using FAB statements to help people deal with buying objections based on price. This can be used for a Sales Team or in a Retail setting to help employees build their confidence.
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Handling Price Objections in Sales!
Similar to Handling Price Objections in Sales! (20)
More from Apropos Productions Ltd.
More from Apropos Productions Ltd. (10)
Recently uploaded
Recently uploaded (8)
Handling Price Objections in Sales!
- 2. Topics 1. Use alternate trading ‘currencies’: Use FAB statements 2. Negotiate using a WEB: Want Expect Better 3. Be confident and assertive to agree a Win = Win outcome.
- 3. 4 types of Objections Objections can be generally classified into four types: 1. Price/Risk Unit Price, competitor cost, budget, cashflow & Return On Invest 2. Quality of Service Tailored customer centric service 3. Trust/Relationship You and/or the products are unknown 4. Stall Wait for something better or a better time (seasonal)
- 4. PRICE
- 5. PRICE What do they get for the price? Chat
- 6. QUALITY
- 7. QUALITY What do they get in terms of quality? Other currencie$? Service, Billing, Speed of delivery Volume, Marketing Chat
- 9. ROI: RETURN ON INVESTMENT What do they get in terms of their investment? Other currencie$? Profit Margin Customer Loyalty Access to products: updates Chat
- 11. TRUST EQUATION Source: David Maister, the Trusted Advisor
- 12. TRUST & RELATIONSHIP The customer might be concerned with the legitimacy or credibility of you or your company. This indicates that a good relationship has not been established between the salesperson and the client.
- 13. STALL
- 14. STALL Customers sometimes attempt to stall their decision. The closer the sale is to closing, the more pressure the customer feels, and if there is any remaining conflict or anxiety (and/or no sense of urgency) they may try to stall.
- 15. Then SELL FEATURES & BENEFITS with a FAB STATEMENT!
- 16. FAB STATEMENTS Features (Tell) Easy to identify • These are facts or characteristics about your business, products, and services. Advantages (Create Need) What the features do. • Factual but are NOT always connected to an immediate need Benefits (Sell) Why someone should value the advantage! • It connects the facts about your product to a solution for your client.
- 17. “Our small MP3 music players have a 1T of storage. This keeps all of your music in one place. This means that you can have the entire catalogue of music for your whole family at your fingertips anywhere in the world. Anything you want to listen to at anytime or place. At the gym, at the beach or even on your next holiday! A FAB PRODUCT STATEMENT
- 19. OBJECTIONS: REFRAME 1. Question to understand: Why is price a concern? 2. Minimise by reframing: Closed questions 3. Compare risks & benefits 4. Question acceptance * Notice any panic
- 20. REFRAMING 1. Question to understand the customer’s reasoning and determine his emotional state: “Why do you feel the price is too high?” 2. Minimise by reframing the objection using closed questions to get him back on track: “So you are saying you’re concerned about ROI. Are you looking at the impact on your overall costs?” 3. Compare risks and benefits previously agreed to or provide evidence or missing information using a FAB statement: “We’re offering a custom solution that will help you better meet your customer’s needs and eliminate downtime, which will have a tremendous positive impact on your bottom line.” 4. Question his acceptance using closed questions: “Do you feel that this custom solution will help your relationship with your customers? Will that be of value to your company?”
- 21. SALES 101 REVIEW
- 22. CLOSING THE SALE • Direct question close • Assumptive close • Minor point close • Alternative close • The ‘shut up’ principle
- 23. Closing examples DIRECT QUESTION • Ask the customer a closed question to establish commitment to purchase. “Shall I go ahead and raise an order?” ASSUMPTIVE • Confidence is high, and the assumption is made that the customer will buy. • Use a leading question or statement. “I could get one round to you tomorrow assuming I’ve got the right colour in stock.” MINOR POINT • This time gain confirmation by asking about a minor point. When would you like delivery? I take it you’d want the lockable version? Shall we deliver it to the usual address?
- 24. Examples Alternative close: • The customer seems ready to buy, and confirmation is gained by offering alternatives to choose from. “Would you be needing one cabinet or two?” “Would you want the open type or the lockable?” “We can arrange delivery for tomorrow or Friday, which would you prefer?” The ‘shut up’ principle: • When the closing question has been asked, remain silent. • Talking distracts the customer from making a decision. • It may sound as if you’re justifying the sale. .
- 25. CLOSING THE SALE: EXAMPLES Direct question close “Shall I go ahead and raise an order?” Assumptive close “I could get one to you tomorrow assuming I’ve got the right colour in stock.” Minor point close “When would you like delivery?” Alternative close “Would you like one unit or two?”
- 26. PANIC
- 27. LOOK FOR PANIC Buyer panic can be a positive sign that the process is moving forward. Once the customer is convinced of the value you are offering and has agreed that it is worth the risk, you have successfully handled the objection and can move toward a purchasing decision.
- 28. NEGOTIATION
- 29. Negotiation Negotiation is the art of bargaining. It takes place between two equals and is aimed at reaching a mutually acceptable agreement on the full terms and conditions of deal.
- 30. Key Elements
- 31. Negotiation begins with… Desire to sell Desire to buy “In life you don’t get what you deserve, you get what you negotiate”
- 32. CREATE YOUR WEB TOP LINE = WANT TO GET MIDDLE LINE = EXPECT TO GET BOTTOM LINE = BETTER GET Chat
- 33. STRATEGIES (use 1 or 2) Rationalising: using logic and facts Asserting: challenge diplomatically Negotiating: compromises and concessions Inspiring: encouraging with shared mission and purpose Bridging: connecting with others (superiors or colleagues) Withdrawing: allowing the person to explore options
- 34. The Reality Continuum Totally Disagree Disagree Neutral Agree Totally Agree
- 35. Topics 1. Use alternate trading ‘currencies’: Use FAB statements 2. Negotiate using a WEB: Want Expect Better 3. Be confident and assertive to agree a Win = Win outcome.
Editor's Notes
- FAB Statements FAB stands for Features, Advantages, and Benefits. A FAB Statement is explaining the feature, what it does (the advantage), and how that benefits the prospective client.
- Price, cost, budget, or ROI concerns all fall into this category. Price objections are often really about risk. If the sales representative has justified the cost by building value during the interaction, the customer will be less worried.
- If the customer is concerned about the quality of your products or services – e.g., they express doubts about product quality, the training of your personnel, speed or responsiveness of service, or compatibility – these are examples of quality of service concerns.
- If the customer is concerned about the quality of your products or services – e.g., they express doubts about product quality, the training of your personnel, speed or responsiveness of service, or compatibility – these are examples of quality of service concerns.
- The customer might be concerned with the legitimacy or credibility of you or your company. (This indicates that a good relationship has not been established between the salesperson and the client.)
- Customers sometimes attempt to stall their decision. The closer the sale is to closing, the more pressure the customer feels, and if there is any remaining conflict or anxiety (or no sense of urgency) they may try to stall.
- Features are one of the easier things to identify. These are facts or characteristics about your business, products, and services. For example, a “1 inch insulation layer” on a sleeping bag is the feature. Advantages are what the features do. These need to to be factual, and aren’t connected to a prospects need… Yet. For example, “helps retain body heat on cold nights” (sticking with our sleeping bag example). Benefits answer why someone should value the advantage. It connects the facts about your product to a solution for your client. For example, “when you’re camping, you’ll have a nice warm sleep at night so that when you wake up you’ll be well rested and ready for a day of fun activities.”
- “Our sleeping bags have a 1 inch layer of insulation on them. This helps to retain body heat on cold nights. You’ll be warm all night. Which means that you’ll get a great sleep and be well rested for a day of fun activities (that you’ll fully enjoy!).”
- Handling Objections If you have anticipated and prepared for the four types of objections, you won’t panic when an objection comes up. Remember that the customer is behaving quite normally for anyone about to take a risk and make a purchase. The customer is uncertain about making a change, and needs reassurance. The best course of action is to direct their focus back to the larger context in which the purchase is being made. Recapitulating the clear and logical reasons to buy will help stabilize the customer’s emotions. Your response to an objection should be an attempt to reframe the objection so that the customer understands the bigger picture. Bring up benefits to your clients that outweigh any deficits, or provide countering evidence or missing information. Reframing has four parts: 1. Question to understand the customer’s reasoning and determine his emotional state: “Why do you feel the price is too high?” 2. Minimize by reframing the objection using closed questions to get him back on track: “So you are saying you’re concerned about ROI. Are you looking at the impact on your overall costs?” 3. Compare risks and benefits previously agreed to, or provide evidence or missing information using a FAB statement: “We’re offering a custom solution that will help you better meet your customer’s needs and eliminate downtime, which will have a tremendous positive impact on your bottom line.” 4. Question his acceptance using closed questions: “Do you feel that this custom solution will help your relationship with your customers? Will that be of value to your company?” Buyer panic is actually a positive sign that the process is moving forward. Once the customer is convinced of the value you are offering and has agreed that it is worth the risk, you have successfully handled the objection and can move toward a purchasing decision.
- Reframing has four parts: 1. Question to understand the customer’s reasoning and determine his emotional state: “Why do you feel the price is too high?” 2. Minimize by reframing the objection using closed questions to get him back on track: “So you are saying you’re concerned about ROI. Are you looking at the impact on your overall costs?” 3. Compare risks and benefits previously agreed to or provide evidence or missing information using a FAB statement: “We’re offering a custom solution that will help you better meet your customer’s needs and eliminate downtime, which will have a tremendous positive impact on your bottom line.” 4. Question his acceptance using closed questions: “Do you feel that this custom solution will help your relationship with your customers? Will that be of value to your company?” Buyer panic is actually a positive sign that the process is moving forward. Once the customer is convinced of the value you are offering and has agreed that it is worth the risk, you have successfully handled the objection and can move toward a purchasing decision. Buyer panic is actually a positive sign that the process is moving forward. Once the customer is convinced of the value you are offering and has agreed that it is worth the risk, you have successfully handled the objection and can move toward a purchasing decision.
- Buyer panic is actually a positive sign that the process is moving forward. Once the customer is convinced of the value you are offering and has agreed that it is worth the risk, you have successfully handled the objection and can move toward a purchasing decision.
- Reframing has four parts: 1. Question to understand the customer’s reasoning and determine his emotional state: “Why do you feel the price is too high?” 2. Minimize by reframing the objection using closed questions to get him back on track: “So you are saying you’re concerned about ROI. Are you looking at the impact on your overall costs?” 3. Compare risks and benefits previously agreed to, or provide evidence or missing information using a FAB statement: “We’re offering a custom solution that will help you better meet your customer’s needs and eliminate downtime, which will have a tremendous positive impact on your bottom line.” 4. Question his acceptance using closed questions: “Do you feel that this custom solution will help your relationship with your customers? Will that be of value to your company?” Buyer panic is actually a positive sign that the process is moving forward. Once the customer is convinced of the value you are offering and has agreed that it is worth the risk, you have successfully handled the objection and can move toward a purchasing decision.
- Direct question close: Ask the customer a closed question to establish commitment to purchase. “Shall I go ahead and raise an order?” Assumptive close: Confidence is high, and the assumption is made that the customer will buy. Use a leading question or statement. “I could get one round to you tomorrow assuming I’ve got the right colour in stock.” Minor point close: This time gain confirmation by asking about a minor point. “When would you like delivery? “I take it you’d want the lockable version?” “Shall we deliver it to the usual address?” Alternative close: The customer seems ready to buy, and confirmation is gained by offering alternatives to choose from. “Would you be needing one cabinet or two?” “Would you want the open type or the lockable?” “We can arrange delivery for tomorrow or Friday, which would you prefer?” The ‘shut up’ principle: When the closing question has been asked, remain silent. talk distracts the customer’s attention from a decision it sounds as if we’re justifying the sale it makes the customer feel pressurised don’t talk yourself out of a sale.
- Direct question close: Ask the customer a closed question to establish commitment to purchase. “Shall I go ahead and raise an order?” Assumptive close: Confidence is high, and the assumption is made that the customer will buy. Use a leading question or statement. “I could get one round to you tomorrow assuming I’ve got the right colour in stock.” Minor point close: This time gain confirmation by asking about a minor point. “When would you like delivery? “I take it you’d want the lockable version?” “Shall we deliver it to the usual address?” Alternative close: The customer seems ready to buy, and confirmation is gained by offering alternatives to choose from. “Would you be needing one cabinet or two?” “Would you want the open type or the lockable?” “We can arrange delivery for tomorrow or Friday, which would you prefer?” The ‘shut up’ principle: When the closing question has been asked, remain silent. talk distracts the customer’s attention from a decision it sounds as if we’re justifying the sale it makes the customer feel pressurised don’t talk yourself out of a sale.
- Buyer panic is actually a positive sign that the process is moving forward. Once the customer is convinced of the value you are offering and has agreed that it is worth the risk, you have successfully handled the objection and can move toward a purchasing decision.
- Full Terms and Conditions Negotiation is never just about one thing. In commercial negotiations, price often dominates the conversation, however, both buyer and seller must look to other terms and conditions. A lower price may offer little comfort if a delivery date is not guaranteed or if the quality is not appropriate.The same applies innon commercial negotiations; the successful negotiator is the one who is able to satisfy the widest number of needs
- fessional Sales and Procurement staff will negotiate the terms and conditions relating to the supply of goods or services, including price, delivery, quality, follow up, guarantees and many more. Managers negotiate with their staff, peers and boss over how projects will be delivered, how staff will be remunerated, how disputes will be resolved etc. Individuals negotiate with their employers, their banks, their peers (buying houses cars or agreeing roles and responsibilities etc) The ability to negotiate is an essential life skill; “In life you don’t get what you deserve, you get what you negotiate
- TAn unprepared negotiator is an unsuccessful negotiator. It is vital that you enter into a negotiation fully aware of what you want to achieve and how you expect to achieve it. Know what you want to, would like to and need to achieve. If you set yourself a series of targets, then it is far more likely that you will keep control of proceedings, stay calm and confident and finish with an acceptable outcome. Begin every negotiation by preparing a detailed W.E.B.
- FAB Statements FAB stands for Features, Advantages, and Benefits. A FAB Statement is explaining the feature, what it does (the advantage), and how that benefits the prospective client.