Responding to Responding to ObjectionsObjections

Chapter 11Chapter 11

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Important Questions Important Questions AnsweredAnswered

► When do buyers object?When do buyers object?

► What objections can be expected?What objections can be expected?

► How should salespeople prepare to How should salespeople prepare to respond to objections?respond to objections?

► Which methods and techniques are Which methods and techniques are effective when responding to objections?effective when responding to objections?

► How do you deal with tough customers?How do you deal with tough customers?

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ObjectionObjection

► An objection is anything the prospect An objection is anything the prospect says or does that is an obstacle to says or does that is an obstacle to smooth closing. smooth closing.

► Objection is a concern or a question Objection is a concern or a question raised by the buyer.raised by the buyer.

► Opposition or resistance to information Opposition or resistance to information or the salesperson’s request is an or the salesperson’s request is an objectionobjection

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WELCOME WELCOME OBJECTIONS OBJECTIONS

► Learn to Accept Objections as a Learn to Accept Objections as a Challenge Which, When Handled Challenge Which, When Handled Correctly, Will benefit you and Your Correctly, Will benefit you and Your Prospect. Prospect.

► If You Fear Objections. You Will Fumble If You Fear Objections. You Will Fumble Your Response Often Causing You to Fail. Your Response Often Causing You to Fail.

► Prospects that buy have 58% more Prospects that buy have 58% more objections objections

► Learn to overcome objectionsLearn to overcome objections

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WHY PROSPECTS OBJECT

Psychologicalreasons

•Dislike decision making •Prefer old habits •Reluctance to give up something old for something new •Unpleasant past associations with you or your company •Resistance to domination •Perceived threat to self image

                                                    

              

LogicalReasons

•All or part of the presentation was misunderstood •Prospect is not convinced •Hidden reason (stall)

                                                    

              

Question: WHEN DO PROSPECTS OBJECT?

                                                    

              Answer:

Any Time During Your Sales Call - From introduction to close.

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What Does a Prospect What Does a Prospect Mean by an Objection?Mean by an Objection?

Is the prospect’s response a...Is the prospect’s response a...

Condition?Condition? Hopeless objection?

Hopeless objection?

Request for moreinformation?Request for moreinformation? True objection?True objection?

Minor?Minor?Major?Major?

Psychological?Psychological?Practical?Practical? Practical?Practical? Psychological?Psychological?

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Examples of ObjectionsExamples of Objections

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Basic Points to Consider in Basic Points to Consider in Meeting ObjectionsMeeting Objections

► Understand objectionsUnderstand objections Request for informationRequest for information A condition (negotiation can overcome A condition (negotiation can overcome

a condition)a condition) Major or minor objectionMajor or minor objection Practical or psychological objectionPractical or psychological objection

►A real objection is tangibleA real objection is tangible►The salesperson must uncover hidden The salesperson must uncover hidden objectives and eliminate themobjectives and eliminate them

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When Do Buyers Raise When Do Buyers Raise ObjectionsObjectionsProspect may object any time during sales call.

Always be ready to handle a prospect’s

objections. Problems could also be raised during Problems could also be raised during

formal sessionsformal sessions

►Setting up an initial appointmentSetting up an initial appointment

►The presentationThe presentation

►AttemptingAttempting

►After the saleAfter the sale

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Setting up an initial Setting up an initial appointmentappointment

Prospects may object to setting the Prospects may object to setting the appointment times or dates that appointment times or dates that salespeople request to introduce the salespeople request to introduce the product. This type of objection happens product. This type of objection happens especially when products, services, or especially when products, services, or concepts are unfamiliar to the buyer. concepts are unfamiliar to the buyer.

No, I don't need to see you. No, I don't need to see you.

I've not heard much about what you're I've not heard much about what you're sell ing, so it must not be too good. sell ing, so it must not be too good.

The same types of objections can also The same types of objections can also occur during the approach.occur during the approach.

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The presentationThe presentation

Buyers can offer objections during the Buyers can offer objections during the approach to the presentation. They may approach to the presentation. They may not like or believe the salesperson's not like or believe the salesperson's attention getting opening statement. attention getting opening statement. They may not wish to engage in small They may not wish to engage in small talk or may not agree with statements talk or may not agree with statements made by the seller attempting to build made by the seller attempting to build rapport. Buyers may object to the rapport. Buyers may object to the salesperson's stated goals for the salesperson's stated goals for the meeting. Objections often come up to meeting. Objections often come up to points made in the presentation. Buyers points made in the presentation. Buyers sometimes let the salesperson deliver sometimes let the salesperson deliver the entire presentation without the entire presentation without showing any reaction. Judging the showing any reaction. Judging the effectiveness of the presentation is effectiveness of the presentation is difficult in such circumstances.difficult in such circumstances.

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AttemptingAttempting Objections may be voiced when the Objections may be voiced when the

salesperson attempts to obtain salesperson attempts to obtain commitment. Skill in uncovering and commitment. Skill in uncovering and responding to objections is very responding to objections is very important at this stage of the sales call. important at this stage of the sales call. Also, knowing the objections that are Also, knowing the objections that are likely to occur helps the salesperson likely to occur helps the salesperson prepare supporting documentation prepare supporting documentation (letters of reference, copies of studies, (letters of reference, copies of studies, etc.). Salespeople who hear a large etc.). Salespeople who hear a large number of objections at this point in number of objections at this point in the sales call probably need to further the sales call probably need to further develop their skills. An excessive develop their skills. An excessive number of objections may indicate a number of objections may indicate a poor job at needs identification and the poor job at needs identification and the omission of significant selling points in omission of significant selling points in the presentation. the presentation.

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After the saleAfter the sale

Even buyers who have agreed to Even buyers who have agreed to purchase the product or service can purchase the product or service can still raise objections. The objection may still raise objections. The objection may include the quality of the product or include the quality of the product or service, the customer service service, the customer service department's lack of friendliness, or department's lack of friendliness, or the credit department's refusal to grant the credit department's refusal to grant the terms the salesperson promised. To the terms the salesperson promised. To develop long-term relationships and develop long-term relationships and partnerships with buyers, salespeople partnerships with buyers, salespeople must care fully respond to these must care fully respond to these objections objections

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Common ObjectionsCommon Objections

Types of Objections:Types of Objections:

1.1. Related to NeedsRelated to Needs

2.2. Related to the ProductsRelated to the Products

3.3. Related to the SourceRelated to the Source

4.4. Related to the PriceRelated to the Price

5.5. Related to the TimeRelated to the Time

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Related to NeedsRelated to Needs

► I DO NOT NEED THE PRODUCT I DO NOT NEED THE PRODUCT OR SERVICEOR SERVICE

► WE NEVER DONE IT THAT WAY WE NEVER DONE IT THAT WAY BEFOREBEFORE

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I DO NOT NEED THE I DO NOT NEED THE PRODUCT OR SERVICEPRODUCT OR SERVICE

A prospect may validly state that the A prospect may validly state that the company has no need for what the company has no need for what the salesper son is selling. Salespeople may salesper son is selling. Salespeople may encounter objections such as "My encounter objections such as "My business is different" or "1 have no use business is different" or "1 have no use for your service." These objections, when for your service." These objections, when made by an accurately qualified buyer, made by an accurately qualified buyer, show that the buyer is not convinced that show that the buyer is not convinced that a need exists. This problem could have a need exists. This problem could have been prevented with better implication been prevented with better implication and need payoff questions. If the and need payoff questions. If the salesperson cannot establish a need in salesperson cannot establish a need in the buyer's mind, that buyer can logically the buyer's mind, that buyer can logically be expected to object.be expected to object.

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WE NEVER DONE IT THAT WE NEVER DONE IT THAT WAY BEFOREWAY BEFORE

Most human beings are creatures of Most human beings are creatures of habit. Once they develop a routine or habit. Once they develop a routine or establish a custom, they tend to resist establish a custom, they tend to resist change. Fear or ignorance may be the change. Fear or ignorance may be the basis for not wanting to try anything basis for not wanting to try anything new or different. The buyer's natural new or different. The buyer's natural tendency to resist buying a new product tendency to resist buying a new product or changing from a satisfactory brand or changing from a satisfactory brand to a new one can be found behind many to a new one can be found behind many objections.objections.

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Related to the ProductsRelated to the Products

► I DON'T LIKE THE PRODUCT OR I DON'T LIKE THE PRODUCT OR SERVICE FEATURESSERVICE FEATURES

► I DON'T UNDERSTANDI DON'T UNDERSTAND► I NEED MORE INFORMATIONI NEED MORE INFORMATION

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I DON'T LIKE THE I DON'T LIKE THE PRODUCT OR SERVICE PRODUCT OR SERVICE

FEATURESFEATURES Often the product or service has Often the product or service has

features that do not satisfy the buyer. features that do not satisfy the buyer. At other times the prospect will request At other times the prospect will request features currently not available. features currently not available.

► I don't like the design.I don't like the design.► It doesn't taste good to me!It doesn't taste good to me!► I wish you included free maintenance.I wish you included free maintenance.► I was looking for a lighter shade of red.I was looking for a lighter shade of red.► I can't get my machines repaired I can't get my machines repaired

quickly by your service technicians.quickly by your service technicians.► It took a month for us to receive our It took a month for us to receive our

last order.last order.

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I DON'T UNDERSTANDI DON'T UNDERSTAND Sometimes objections arise because Sometimes objections arise because

customers do not understand the customers do not understand the salesperson's presentation. Because salesperson's presentation. Because these objections may never be these objections may never be verbalized, the seller must carefully verbalized, the seller must carefully observe the buyer's nonverbal cues. observe the buyer's nonverbal cues. Misunderstandings frequently occur Misunderstandings frequently occur with customers who are unfamiliar with with customers who are unfamiliar with technical terms, unaware of the unique technical terms, unaware of the unique capabilities of a product, or uncertain capabilities of a product, or uncertain about benefits arising from services about benefits arising from services provided with the product, such as provided with the product, such as warranties. Unfortunately, buyers often warranties. Unfortunately, buyers often will not admit that they do not will not admit that they do not understand something.understand something.

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I NEED MORE I NEED MORE INFORMATIONINFORMATION Some buyers offer objections in an Some buyers offer objections in an

attempt to get more information. They attempt to get more information. They may have already decided that they want may have already decided that they want the product or service but wish to fortify the product or service but wish to fortify themselves with logical reasons they can themselves with logical reasons they can use to justify the purchase to others. use to justify the purchase to others. Also, the salesperson may not have Also, the salesperson may not have provided enough credible proof about a provided enough credible proof about a particular benefit. Conflict may also exist particular benefit. Conflict may also exist in the buyer's mind. One conflict could in the buyer's mind. One conflict could be a struggle taking place between the be a struggle taking place between the dictates of emotion and reason. Or the dictates of emotion and reason. Or the buyer may be concerned about the risk, buyer may be concerned about the risk, and the seller hasn't sufficiently sold and the seller hasn't sufficiently sold value. The buyer may be trying to decide value. The buyer may be trying to decide between two competitive products or between two competitive products or between buying and not buying between buying and not buying

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Related to the SourceRelated to the Source

► I DON'T LIKE YOUR COMPANYI DON'T LIKE YOUR COMPANY► I DON'T LIKE YOUI DON'T LIKE YOU

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I DON'T LIKE YOUR I DON'T LIKE YOUR COMPANYCOMPANY

Most buyers, especially industrial buyers, Most buyers, especially industrial buyers, are interested in the sales are interested in the sales representative's company because the representative's company because the buyer is put at risk if the seller's firm is buyer is put at risk if the seller's firm is not financially sound, cannot continually not financially sound, cannot continually produce the product, and so forth. These produce the product, and so forth. These buyers need to be satisfied with the buyers need to be satisfied with the selling company's financial standing, selling company's financial standing, personnel, and business policies. But personnel, and business policies. But unvoiced questions about the sales rep's unvoiced questions about the sales rep's company may affect their decisions and company may affect their decisions and the long term partnerships the sales rep the long term partnerships the sales rep is trying to establish.is trying to establish.

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I DON'T LIKE YOUI DON'T LIKE YOU

Sometimes a salesperson's personality Sometimes a salesperson's personality clashes with a prospect's. Effective clashes with a prospect's. Effective salespeople know that they must do salespeople know that they must do everything possible to adjust their everything possible to adjust their manner to please the prospect. At times, manner to please the prospect. At times, however, doing business with some however, doing business with some people appears impossible. Prospects people appears impossible. Prospects may object to a presentation or an may object to a presentation or an appointment because they have taken a appointment because they have taken a dislike to the salesperson or because dislike to the salesperson or because they feel they cannot trust the sales they feel they cannot trust the sales person. person.

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Related to the PriceRelated to the Price

► I HAVE NO MONEYI HAVE NO MONEY► THE VALUE DOES NOT EXCEED THE VALUE DOES NOT EXCEED

THE COSTTHE COST►

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I HAVE NO MONEYI HAVE NO MONEY

Companies that lack the resources to Companies that lack the resources to buy the product may have been buy the product may have been classified as prospects. The ability to classified as prospects. The ability to pay is an important factor in lead pay is an important factor in lead qualification. An incomplete or poor qualification. An incomplete or poor job of qualifying may cause this job of qualifying may cause this objection to arise. When leads say they objection to arise. When leads say they cannot afford a product, they may have cannot afford a product, they may have a valid objection. If so, the salesperson a valid objection. If so, the salesperson should not waste time; new prospects should not waste time; new prospects should be contacted. should be contacted.

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THE VALUE DOES NOT THE VALUE DOES NOT EXCEED THE COSTEXCEED THE COST

Most buyers must sacrifice something to Most buyers must sacrifice something to buy a product (called opportunity buy a product (called opportunity costs). The money spent for the product costs). The money spent for the product is not available for other things. Buyers is not available for other things. Buyers usually object until they are sure that usually object until they are sure that the value of the product or service the value of the product or service being acquired more than offsets the being acquired more than offsets the sacrifice. sacrifice.

► I can't afford it.I can't afford it.► I can't afford to spend that much right I can't afford to spend that much right

now.now.► I never accept the first price quoted by I never accept the first price quoted by

a salesperson.a salesperson.► I was looking for a cheaper model.I was looking for a cheaper model.► I don't care to invest that much; I'll use I don't care to invest that much; I'll use

it only a short while. it only a short while. ► I can beat your price on these items I can beat your price on these items

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Related to the TimeRelated to the Time

► I'M JUST NOT INTERESTED I'M JUST NOT INTERESTED TODAYTODAY

► I NEED TIME TO THINK ABOUT I NEED TIME TO THINK ABOUT ITIT

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I'M JUST NOT INTERESTED I'M JUST NOT INTERESTED TODAYTODAY

Some prospects voice objections simply Some prospects voice objections simply to dismiss the salesperson. The to dismiss the salesperson. The prospect may not have enough time to prospect may not have enough time to devote to the interview, may not be devote to the interview, may not be interested in the particular product or interested in the particular product or service, may not be in the mood to service, may not be in the mood to listen, or may have decided because of listen, or may have decided because of some unhappy experiences not to face some unhappy experiences not to face further unpleasant interviews. These further unpleasant interviews. These objections occur when salespeople objections occur when salespeople make a cold canvass or try to make an make a cold canvass or try to make an appointment. Particularly aggressive, appointment. Particularly aggressive, rude or impolite salespeople can expect rude or impolite salespeople can expect prospects to use numerous excuses to prospects to use numerous excuses to keep from listening to a presentation.keep from listening to a presentation.

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I NEED TIME TO THINK I NEED TIME TO THINK ABOUT ITABOUT IT

Buyers often object to making a decision Buyers often object to making a decision "now." Many, in fact, believe that post "now." Many, in fact, believe that post poning an action is an effective way to poning an action is an effective way to say no say no

► I haven't made up my mind.I haven't made up my mind.► I want to think it over.I want to think it over.► I'm not ready to buy.I'm not ready to buy.► I don't want to commit myself.I don't want to commit myself.► I think I'll wait awhile.I think I'll wait awhile.► I want to look around.I want to look around.► I'm waiting until my inventory goes I'm waiting until my inventory goes

down.down.► Just leave me your literature. I'll study Just leave me your literature. I'll study

it and then let you know what we decide.it and then let you know what we decide.

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OTHER OBJECTIONSOTHER OBJECTIONS ► I'm satisfied with the company we use now.I'm satisfied with the company we use now.► We have a reciprocity agreement with your We have a reciprocity agreement with your

competitor.competitor.► We are all stocked up.We are all stocked up.► We have no room for your line.We have no room for your line.► There is no demand for your product.There is no demand for your product.► You'll have to see Mr. X.You'll have to see Mr. X.► .My brother-in-law is in the business..My brother-in-law is in the business.► Your competitor just came out with a brand-new Your competitor just came out with a brand-new

product that seems superior to yours.product that seems superior to yours.► I've heard complaints from my friends who use I've heard complaints from my friends who use

your product.your product.► I prefer to do business with Islamic-owned firms.I prefer to do business with Islamic-owned firms.

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Invalid ObjectionsInvalid Objections Hidden objection Hidden objection ► Prospect who asks trivial, unimportant Prospect who asks trivial, unimportant

questions questions ► Prospect conceals feelings beneath a veil of Prospect conceals feelings beneath a veil of

silence. silence. ► The salesperson must ask questions and The salesperson must ask questions and

carefully listen in order to smoke out the carefully listen in order to smoke out the prospect's real objection. prospect's real objection.

Stall "Put Off"Stall "Put Off"

► "I'll think it over..."` "I'll think it over..."` ► "I'll be ready to buy on your next visit" "I'll be ready to buy on your next visit"

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TYPES OF OBJECTIONSStopper Objection - no solution can be found

NoNeed

•This is widely used because it gets rid of the salesperson. •It is tricky because it also includes a hidden objection and/or a stall.

NoMoney

•Encompasses several forms of economic excuses •It is simple for the buyer to say.

When buyer asks for the price

Say that it is risky to discuss the product's price until it can be compared to the product's benefits.

----OR----

Quote the price and go right on selling.

Once you convey the benefits, price becomes a secondary factor which usually can be dealt with successfully.

ThePrice / Value

Formula.

•Used to determine if a prospect is or is not convinced the price is too high. •Price/value = cost

Cost comparison of what is received to money paid.

Value what the prospect sees the product doing for them.

NoAuthority

•Usually a stall •Screen for decision making authority early

•You must determine if the statement is truth or it is a smoke screen designed to get rid of you. •One of the toughest stalls to overcome arises when selling a new consumer product.

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Classify the Objection

Six BasicCategories

of Objections

1.Product objection 2.Objection to the salesperson 3.Objection to the your company 4.Don't want to make a decision 5.Service objection 6.Price objection

OtherClassifications

•Major or minor objection. •Practical or psychological objection. •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!

The prospectmust agree

that

•They need your product or service •Your product is the solution to my problem •You are the person from whom I should buy •Your company is the one to deal with •The time to buy is now •The price and terms are fair

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Traits and Behaviors of Traits and Behaviors of Successful SalespeopleSuccessful Salespeople

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Preparing To RespondPreparing To Respond

► Develop a positive attitudeDevelop a positive attitude

► Commit to always tell the truthCommit to always tell the truth

► Anticipate objectionsAnticipate objections

► Relax and listen – do not interruptRelax and listen – do not interrupt

► Forestall known concernsForestall known concerns

► Evaluate objectionsEvaluate objections

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Develop a positive attitudeDevelop a positive attitude To respond to objections effectively, To respond to objections effectively,

nothing can substitute for having a nothing can substitute for having a positive attitude. Proper attitude is shown positive attitude. Proper attitude is shown by answering sincerely, refraining from by answering sincerely, refraining from arguing or contradicting, and welcoming arguing or contradicting, and welcoming even inviting objections. Objections even inviting objections. Objections should be expected and never taken should be expected and never taken personally. The temptation to prove the personally. The temptation to prove the prospect wrong, to say "I told you so" or prospect wrong, to say "I told you so" or "I'm right and you're wrong," is always "I'm right and you're wrong," is always strong. This kind of attitude invites strong. This kind of attitude invites debate, encouraging perhaps even forcing debate, encouraging perhaps even forcing the prospect to defend a position the prospect to defend a position regardless of its merits. Egos get involved regardless of its merits. Egos get involved when prospects find their positions when prospects find their positions bluntly challenged. bluntly challenged.

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Commit to always tell the Commit to always tell the truthtruth

In dealing with prospects and customers, In dealing with prospects and customers, truthfulness is an absolute necessity for truthfulness is an absolute necessity for dignity, confidence, and continued dignity, confidence, and continued relations. Lying and deception are not a relations. Lying and deception are not a part of a successful long term part of a successful long term relationship. Over time it will be hard to relationship. Over time it will be hard to remember which lie you told to which remember which lie you told to which customer. Salespeople should avoid even customer. Salespeople should avoid even white lies and half truths when they white lies and half truths when they answer objections. One way to avoid lies answer objections. One way to avoid lies is to spend more time gaining knowledge is to spend more time gaining knowledge about their products and the products of about their products and the products of their competitors. their competitors.

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Anticipate objectionsAnticipate objections Salespeople must know that at some Salespeople must know that at some

time, objections will be made to almost time, objections will be made to almost everything concerning their products, everything concerning their products, their companies, or themselves. their companies, or themselves. Common sense dictates that they Common sense dictates that they prepare answers to objections that are prepare answers to objections that are certain to be raised because few certain to be raised because few salespeople can answer objections salespeople can answer objections effectively. When salespeople know an effectively. When salespeople know an objection will be raised, they should objection will be raised, they should have good answers ready. The ability to have good answers ready. The ability to respond readily to objections helps to respond readily to objections helps to build confidence. Unanticipated or build confidence. Unanticipated or unanswerable objections can easily unanswerable objections can easily cause embarrassment and lost sales.cause embarrassment and lost sales.

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Relax and listen – do not Relax and listen – do not interruptinterrupt

When responding to an objection, listen When responding to an objection, listen first and then answer the objection. first and then answer the objection. Allow the prospect to state a position Allow the prospect to state a position completely. Do not interrupt with an completely. Do not interrupt with an answer, even if the objection to be stated answer, even if the objection to be stated is already apparent to you. Listen as is already apparent to you. Listen as though you have never heard that though you have never heard that objection before. Using humor may help objection before. Using humor may help defuse the nervousness that both buyer defuse the nervousness that both buyer and seller are feeling during this part of and seller are feeling during this part of the process.the process.

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Forestall known concernsForestall known concerns Good salespeople, after a period of Good salespeople, after a period of

experience and training, know that experience and training, know that certain features of their products or certain features of their products or services are likely to be misunderstood, services are likely to be misunderstood, or are materially different from or are materially different from competitors' products. The salesperson competitors' products. The salesperson may have products with limited features, may have products with limited features, may have to quote a price that seems may have to quote a price that seems high, may be unable to offer cash high, may be unable to offer cash discounts, may have no service discounts, may have no service representatives in the immediate area, or representatives in the immediate area, or may represent a new company in the field. may represent a new company in the field. In these situations, salespeople often In these situations, salespeople often forestall the objection? To forestall is to forestall the objection? To forestall is to prevent by doing something ahead of prevent by doing something ahead of time. In selling, this means salespeople time. In selling, this means salespeople raise objections before buyers have a raise objections before buyers have a chance to raise them. chance to raise them.

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Evaluate objectionsEvaluate objections

Objections may be classified as Objections may be classified as unsatisfied needs (i.e., real objections) unsatisfied needs (i.e., real objections) or excuses. Excuses are concerns or excuses. Excuses are concerns expressed by the buyer that mask the expressed by the buyer that mask the buyer's true objections. Thus, the buyer's true objections. Thus, the comment "I can't afford it now" would comment "I can't afford it now" would simply be an excuse if the buyer simply be an excuse if the buyer honestly could afford it now but did not honestly could afford it now but did not want to buy for some other reason. want to buy for some other reason. Salespeople need to develop skill in Salespeople need to develop skill in evaluating objections. No exact formula evaluating objections. No exact formula has been devised to separate excuses has been devised to separate excuses from real objections. Sometimes it is from real objections. Sometimes it is best to follow up with a questionbest to follow up with a question

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Strategies for Deciding when to Answer Objections

Anticipateand

Forestall Objections

•incorporate objections and the answers in the presentation •You should be certain that the objection will arise •Prevents a confrontation and communicates objectivity

Postponethe

Answer

•Gives you time to present more benefits •Allows you to maintain control •Gives you time to think about the response •Acknowledge the objection •Employ empathy •Promise to get back to the question •Write it down

Answer Immediately

Postponement ofobjections

may result in:

•The prospect not listening. •The prospect feeling that you are hiding something. •The appearance that you also feel it's a problem. •The appearance that you're not able to answer because you do not know the answer. •The appearance that you are not interested in the prospects opinion. •The appearance that you are not sympathetic

Do NotAnswer

an Excuse•Serious objection will be repeated •Not answering suggests that the excuse is not truly relevant

DisagreeWithout

BeingDisagreeable

•Selling should be win-win •Don't try to show up the prospect •Challenge ideas without offending

Remove blame by prefacing answer. "I have not made myself clear......"

Make a concession before taking exception: "You raise an excellent point….."

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Effective Response Effective Response MethodsMethods

► Listen carefullyListen carefully

► Repeat prospect’s objectionsRepeat prospect’s objections

► Acknowledge the apparent soundness of Acknowledge the apparent soundness of the prospect’s opinionthe prospect’s opinion

► Evaluate the objectionsEvaluate the objections

► Decide on the method(s) to respondDecide on the method(s) to respond

► Get a commitment from the prospectGet a commitment from the prospect

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A Negotiating Strategy for Handling Buyers’ Concerns(A Six-Step Process)

Listen Carefully Hear the Prospect Out

ConfirmYour Understanding

of theObjection

•Validate the Problem •Clarify and Classify •Use confirmation questions •Ask if there is anything else •Try to distinguish between genuine objections and excuses

Acknowledge theirPoint of View

•I understand how you feel •That is a logical question •Restate or rephrase in your own words •Use words such as, “I understand how you feel” •Prepare the prospect for your answer

•Select a specifictechnique •Base your decision on:

•The prospect's behavioral style •Phase of the interview •The prospect's mood •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 •Continue the Presentation If You do Not Succeed

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Product comparison:

•compare advantages and disadvantages •When the prospect is mentally comparing the present product or a competing product with your product, you may make a complete comparison of the two

case history or testimonial

•Describe the experience of a customer whose situation is similar to that of the prospect

Demonstration•One of the most convincing ways to overcome buyer resistance and specific objections. •Sometimes a second demonstration is needed to overcome buyer skepticism.

Guarantees or warranty

•Removes resistance by reassuring that the purchase will not result in a loss. •Guarantees must

•be meaningful •provide for recourse on the part of the customer

cost 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

Answers Based on Concrete Answers Based on Concrete EvidenceEvidence

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Flow-Chart Approach for Flow-Chart Approach for Handling ObjectionsHandling Objections

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Common Methods Of Common Methods Of RespondingRespondingProbe first (using probing method) to be sure you Probe first (using probing method) to be sure you

understand the objection and to make sure the understand the objection and to make sure the buyer is really concerned about itbuyer is really concerned about it

If the buyer makes a statement thatis factually not true, use

If the buyer raises a valid concernor offers a valid opinion, use

Direct denialIndirect denial

CompensationFeel-felt-foundBoomerangPass-upPostpone

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Common Methods Of Common Methods Of RespondingResponding

Direct Denial Indirect Denial Compensation Method Feel-Felt-Found Method Boomerang Method Pass-up Method Postpone Method

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Direct DenialDirect Denial At times salespeople face objections At times salespeople face objections

based on incomplete or inaccurate based on incomplete or inaccurate information by the buyer. They should information by the buyer. They should respond by providing information or respond by providing information or correcting facts. When using direct correcting facts. When using direct denial, the salesperson makes a denial, the salesperson makes a relatively strong statement to indicate relatively strong statement to indicate the error the prospect has made. No one the error the prospect has made. No one likes to be told that he or she is wrong, likes to be told that he or she is wrong, so the direct denial must be used with so the direct denial must be used with caution. It is appropriate only when the caution. It is appropriate only when the objection is inaccurate and potentially objection is inaccurate and potentially devastating to the presentation. The devastating to the presentation. The salesperson must also possess facts to salesperson must also possess facts to back up such a denial. The direct denial back up such a denial. The direct denial should never be used if the prospect is should never be used if the prospect is merely stating an opinion or if the merely stating an opinion or if the objection is true. objection is true.

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Indirect DenialIndirect Denial In the indirect denial method, the In the indirect denial method, the

salesperson denies the objection but salesperson denies the objection but attempts to soften the response. The attempts to soften the response. The salesperson takes the edge off the salesperson takes the edge off the response by agreeing with the prospect response by agreeing with the prospect that the objection is an important one. that the objection is an important one. Prospects expect salespeople to Prospects expect salespeople to disagree; instead, a salesperson who disagree; instead, a salesperson who recognizes the sincerity of the objection recognizes the sincerity of the objection will carefully respect the prospect's will carefully respect the prospect's view. This approach avoids a direct view. This approach avoids a direct contradiction and confrontation. To contradiction and confrontation. To begin an answer, a salesperson would begin an answer, a salesperson would do well to agree with the prospect, but do well to agree with the prospect, but only to the extent that the agreement only to the extent that the agreement does not weaken the validity of the does not weaken the validity of the salesperson's later denial. salesperson's later denial.

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Compensation MethodCompensation Method

Every product has some advantages and Every product has some advantages and some disadvantages compared to some disadvantages compared to competing products. Also, an absolutely competing products. Also, an absolutely perfect product or service has never perfect product or service has never been developed; the firm always has to been developed; the firm always has to make cost benefit decisions about what make cost benefit decisions about what features to include. Buyers note these features to include. Buyers note these trade-offs and often object because the trade-offs and often object because the salesperson's product is less than salesperson's product is less than perfect. The wise salesperson will admit perfect. The wise salesperson will admit that such objections are valid and then that such objections are valid and then proceed to show any compensating proceed to show any compensating advantages. This approach is called the advantages. This approach is called the compensation method of responding to compensation method of responding to objections. objections.

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Feel-Felt-Found MethodFeel-Felt-Found Method

When buyers' objections reflect their own When buyers' objections reflect their own attitudes or opinions, the salesperson can attitudes or opinions, the salesperson can show how others held similar views before show how others held similar views before trying the product or service. In this trying the product or service. In this method, called the feel-felt-found method, called the feel-felt-found method, the salesperson goes on to relate method, the salesperson goes on to relate that others actually found their initial that others actually found their initial opinions to be unfounded after they tried opinions to be unfounded after they tried the product. The sequence of the feel-felt-the product. The sequence of the feel-felt-found method is important, as is the found method is important, as is the person or persons identified in each person or persons identified in each stage. The sequence should be as follows: stage. The sequence should be as follows: I can see how I can see how you feel. you feel. . . . . others felt others felt the the same way. . . yet same way. . . yet they found. they found. . . . . Inexperienced sales people often mix up Inexperienced sales people often mix up the order or the parties identified the order or the parties identified

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Boomerang MethodBoomerang Method When using the boomerang method of When using the boomerang method of

responding to objections, the responding to objections, the salesperson turns the objection into a salesperson turns the objection into a reason for acting now. This method can reason for acting now. This method can be used in many situations. The be used in many situations. The boomerang method requires care. It boomerang method requires care. It can appear very pushy. It sounds like a can appear very pushy. It sounds like a high pressure sales tactic. This method high pressure sales tactic. This method does have useful applications, however. does have useful applications, however. Often the product or service is actually Often the product or service is actually designed to save the buyer substantial designed to save the buyer substantial amounts of time or money. If the buyer amounts of time or money. If the buyer objects to spending either the time to objects to spending either the time to listen or the money, the boomerang listen or the money, the boomerang method may be a powerful tool to help method may be a powerful tool to help the buyer see the benefit of investing the buyer see the benefit of investing these resources these resources

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Pass-up MethodPass-up Method At times the buyer voices opinions or At times the buyer voices opinions or

concerns more to vent frustration than concerns more to vent frustration than anything else. When this occurs, the best anything else. When this occurs, the best strategy may be to use the pass-up strategy may be to use the pass-up method: Simply let the buyer talk, method: Simply let the buyer talk, acknowledge that you heard the concern, acknowledge that you heard the concern, pause, and then move on to another pause, and then move on to another topic. Sometimes the salesperson can topic. Sometimes the salesperson can use the pass-up method by simply use the pass-up method by simply agreeing with the prospect and then agreeing with the prospect and then moving on, which suggests to the buyer moving on, which suggests to the buyer that the con cern really should not be that the con cern really should not be much of an issue. The pass-up method much of an issue. The pass-up method should not be used if the objection raised should not be used if the objection raised is factuallyis factually

false.false.

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Postpone MethodPostpone Method

In the early part of a sales interview, the In the early part of a sales interview, the prospect may raise objections that the prospect may raise objections that the salesperson would prefer to answer later salesperson would prefer to answer later in the presentation, after discovering the in the presentation, after discovering the prospect's needs. Using the postpone prospect's needs. Using the postpone method, the salesperson would ask method, the salesperson would ask permission to answer the question at a permission to answer the question at a later time. Some objections are best later time. Some objections are best answered when they occur; others can be answered when they occur; others can be responded to most effectively by responded to most effectively by delaying the answer. if the buyer is delaying the answer. if the buyer is convinced that he or she deserves the convinced that he or she deserves the answer right now? Then the salesperson answer right now? Then the salesperson should answer the objection now. should answer the objection now.

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Classic Objection Handling Techniques

FeelFelt

FoundLet a Third

Party Answer.

•Answer it by referring to a third party and using that experience as your "proof or testimony". •If the source is reliable or reputable this can be especially successful with the expert or skeptical prospect.

I understand how you feel

Your friend, Hugh Jass, felt the same way

Here is what he found.

Compensationor

Counterbalance

•Admit the objection is valid •Describe some counterbalancing benefit

Ask "Why?" •Answer with a question •Rephrase the objection

DirectDenial

•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. •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, don't be offensive.

IndirectDenial

•Acknowledge that the prospect is at least partially correct. •It initially appears as agreement with the customer's objection but moves into denial of the fundamental issue. •If done in a natural, conversational way the salesperson will not offend the prospect. •Rephrase or have the prospect rephrase •Blame yourself •Give the facts that answer the objection

Boomerangturn the

objection into a benefit

•Prospect: "I don't like the size" •Seller: "The size is exactly the reason you should buy it!"

                                    

                        

Trial offer •A trial offer lets prospect try product without obligation to buy. •Popular with customers because they can get fully acquainted with a product without making a major commitment.

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Using the methodsUsing the methods Salespeople often combine methods Salespeople often combine methods

when answering an objection. For when answering an objection. For example, a price objection may initially example, a price objection may initially be postponed and then be discussed be postponed and then be discussed later, using the compensation method. later, using the compensation method. At other times several methods can be At other times several methods can be used in one answer. Before moving on used in one answer. Before moving on with the presentation, the salesperson with the presentation, the salesperson needs to make sure that the buyer needs to make sure that the buyer agrees that all objections have been agrees that all objections have been completely answered.. completely answered..

► Did I answer your question?Did I answer your question?► Does that make sense?Does that make sense?► Do you see why that issue is not as Do you see why that issue is not as

important as you originally thought?important as you originally thought?► I hope I haven't confused you.I hope I haven't confused you.► Do you have any more questions Do you have any more questions

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The Price The Price ObjectionObjection

Sales managers continually hear from Sales managers continually hear from salespeople that price is the most frequently salespeople that price is the most frequently mentioned obstacle to obtaining mentioned obstacle to obtaining commitment. Price is still an issue even commitment. Price is still an issue even between partnering firms. One leading firm between partnering firms. One leading firm in its industry has estimated that only 3 in its industry has estimated that only 3 percent of its orders are sold at list price; percent of its orders are sold at list price; the rest are price discounted the rest are price discounted

► Use Up-to-date InformationUse Up-to-date Information

► Establish The ValueEstablish The Value

► Use Common Communication Tools Use Common Communication Tools EffectivelyEffectively

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Use Up-to-date InformationUse Up-to-date Information

Successful salespeople make sure they have the most current pricing information available to them. They know not only their prices, but competitors' prices as well. Firms are helping salespeople in this regard.

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Establish The ValueEstablish The Value The product's value must be established The product's value must be established

before the salesperson spends time before the salesperson spends time discussing price. The value expected discussing price. The value expected determines the price a prospect is willing determines the price a prospect is willing to pay. Unless the salesperson can build to pay. Unless the salesperson can build value to a point at which it is greater than value to a point at which it is greater than the price asked, a sale will not occur. As a the price asked, a sale will not occur. As a rule, value cannot be established during rule, value cannot be established during the early stages of the presentation. Price the early stages of the presentation. Price objections are best handled with a two objections are best handled with a two step approach. First, the salesper son step approach. First, the salesper son should try to look at the objection from should try to look at the objection from the customer's viewpoint, asking the customer's viewpoint, asking questions to clarify the customer's questions to clarify the customer's perspective, the next step is to sell value perspective, the next step is to sell value and quality rather than price. and quality rather than price.

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Use Common Use Common Communication Tools Communication Tools

EffectivelyEffectively Just telling customers about quality Just telling customers about quality

and value is not enough. Intangible and value is not enough. Intangible features can also provide value that features can also provide value that offsets price. Some of these features offsets price. Some of these features are are

► ServicesServices► Company ReputationCompany Reputation► The SalespersonThe Salesperson

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ServicesServices

Good service in the form of faster Good service in the form of faster deliveries, technical advice, and field deliveries, technical advice, and field assistance is but one of the many assistance is but one of the many intangibles that can spell value, intangibles that can spell value, savings, and profits to a customer. savings, and profits to a customer.

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Company ReputationCompany Reputation

For a customer tempted to buy on For a customer tempted to buy on price alone, salespeople can price alone, salespeople can emphasize the importance of having a emphasize the importance of having a thoroughly reliable source of supply: thoroughly reliable source of supply: the salesperson's company. It has the salesperson's company. It has been demonstrated time and again been demonstrated time and again that quality is measured by the that quality is measured by the reputation of the company behind it.reputation of the company behind it.

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The SalespersonThe Salesperson

Customers value sales representatives Customers value sales representatives who go out of their way to help with who go out of their way to help with problems and promotions salespeople problems and promotions salespeople who keep their Word and follow who keep their Word and follow through when they start something. through when they start something.

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Effective Strategies for Coping with Price Objections

The meaning of a price objection

•The prospect places insufficient value on the product •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 which they 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"

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Six fundamental price perspectives:

Price versuscompetition

•Discover the differences between the competitor's proposal and your proposal. •The price is lower because

•the product or service is less robust. •A time related "special offer."

Price versusapproved budget

•Was it a budget, or an expectation •Was it  based on old or unreliable data?

Price versusbuyer expectations

•Was the prospect told about a less expensive solution provided to a friend? •Explore the friend's solution. •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 versusa process alternative 

•Your price is being compared to 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 a percentage of the

product price (for continuing services)

•Maintenance or support costs can be greater than the original cost. •20 years ago hardware and software was more expensive than support. •Today hadware and software costs are low. Labor for support is high. •Support may be more comprehensive than in the past. •Understand and communicate these changes to the prospect

Price versus"do-it-yourself"

•Denies the cost of labor of the participant •Denies the cost of extended time to implement. •Example: lawn care.

•Everyone can cut grass cheaper than hiring a service •Few enjoy spending time on this chore. •"Do it yourself" places less value on your time

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When Dealing with Price Resistance

DO

•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 product's exclusive features •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

DON'T

•Apologize for the price. •Make price the focal point of your sales presentation. •Become demanding, •Become defensive •Become hostile

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Five Question Sequence Method of Overcoming Objections

Q1

"There must be some good reason why you're hesitating. Do you mind if I ask what it is?"

Q2

"In addition to that, is there any other reason for not going ahead?"

Q3

"Just supposing, M. Buyer, you could... then you'd want to go ahead?"

Q4

"Then there must be some other reason. May I ask what it is?"

Q5

"What would it take to convince you?"

This series of questions keeps the conversation going and gets the real objections out in the open which helps increase your sales.

YES Ask what it is and Go To Q2

NO   Go To Q3

YES Go forward to discuss this

NO Go To Q4

Answer GO TO Q2

No Answer GO TO Q5

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Dealing with Tough Dealing with Tough CustomersCustomers

Salespeople give up when faced with Salespeople give up when faced with tough customers, rather than work with tough customers, rather than work with them to mutual benefit. Instead, sellers them to mutual benefit. Instead, sellers need to maintain the positive attitude need to maintain the positive attitude discussed earlier, even with rude, hard-discussed earlier, even with rude, hard-to-get-along-with prospects. It's not easy, to-get-along-with prospects. It's not easy, and it's not fun. Sellers need to realize and it's not fun. Sellers need to realize that we all have bad days. Maybe the that we all have bad days. Maybe the buyer is just having one. If the buyer buyer is just having one. If the buyer continues to be unreasonably rude, you continues to be unreasonably rude, you might want to kindly call attention to the might want to kindly call attention to the fact. After all, to develop a long term win-fact. After all, to develop a long term win-win relationship and partnership you win relationship and partnership you both need to be on the same footing. The both need to be on the same footing. The buyer's culture often dictates the way he buyer's culture often dictates the way he or she will respond to a seller. or she will respond to a seller.

End of Chapter End of Chapter 1111

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