The Two Biggest Fears in Selling:

1. The Two Biggest Fearsin Selling: Making a mistake (the customer) Rejection (the salesperson)

2. What Do You Say to That? • Suppose you had just started your new job as a sales rep. During your very first sales call, your prospect informs you “I’m happy with my current supplier.” On your next sales call, the customer tells you “I’m not sure I can afford your product right now.” How would (should) you have responded to these concerns?

3. I’m Not Buying What You’re Selling • Brian is an experienced sales rep calling on Joe a prospect for the first time. Even though Joe has not said anything negative about Brian’s product or verbally raised any concerns, Brian suspects (and correctly so) that Joe has some apprehension or concerns about buying. How did Brian know this?

4. Lucky Guess or What? • Mary is a sales rep calling on Jane for the first time. During the presentation, Jane brings up a concern of hers regarding Mary’s product. Mary had anticipated this might happen and, as a result, she dealt with it professionally and effectively. How was Mary able to anticipate Jane’s objections, when they had never met before?

5. What Are Buyer Objections (Concerns) • Any possible reason for not wanting to buy • To the salesperson, they may seem silly, stupid, invalid • To the customer, as long as they are honest, objections are real, important, and need to be taken seriously • Lack of understanding (don’t see) or questions about selling points • Not motivated or convinced by selling points • Negative or indifferent reactions to selling points • Disagreement over selling points

6. Nonverbal Signs and Cues from a Customer

7. General categories of buyer concerns • Need • Product • Source or supplier • Time to decide • Price or cost

8. A professional salesperson deals with objections by . . . • Developing a proper attitude about them • Anticipating them • Knowing how to handle them

9. Developing a proper attitude about objections (concerns) - • Expect them • They are a normal part of selling (almost always happen) • Natural thing for most buyers (fearful of making a buying mistake) • Welcome them (positive aspects of objections) • Show prospect is thinking • May reveal what it will take to make the sale • May identify weaknesses in your approach (e.g. probing, presenting selling points, etc.)

10. Developing a proper attitude about objections (concerns) - • Don’t take them personally • They are concerns about your product, not criticisms of you (hopefully) • View them as making your job more interesting, challenging and rewarding • They ARE important to the customer (and hence to you) • Need to be identified/clarified (not always obvious) • Need to be overcome/addressed properly

11. Objections/concerns and general recommendations for the salesperson • Identify or uncover not-always-obvious ‘real’ objections (versus excuses), by recognizing and understanding verbal and nonverbal clues • Avoid being argumentative - arguments polarize people - seldom is anyone convinced in an argument - natural tendencies are to defend and counter attack in arguments - the salesperson always loses an argument with a customer - control your emotions no matter what customer says (remember response ability, adult ego state, etc.) - try to find points of agreement

12. Objections/concerns and general recommendations for the salesperson • Allow customer to ‘save face’ (accept they were wrong or didn’t understand) - blame yourself (i.e. “I didn’t explain that very well.”) - blame it on the situation (e.g. “this is a fairly complex matter.”) - let them know their ‘initial’ reaction is common 4. Recognize when to handle objections can vary depending on situation  In advance - anticipate it, so present counter argument first - example: present info on new equipment, warranties, maintenance/repair programs to deal with possible image problems associated with past breakdowns  At the time they arise so customer won’t: - question your credibility - think you don’t have answers - be preoccupied and distracted

13. Objections/concerns and general recommendations for the salesperson  Later if . . . - more info is needed to deal with it (e.g. price, cost) - customer gives you permission to come back to it - it appears to be an excuse (i.e. if not really an objection, it won’t come up again) • Listen, restate (clarify), handle means you . . . • don’t deal with wrong objection • Will please customer by listening and understanding • Can soften the objection somewhat (but not too much) • Can buy some time to respond • Try to be flexible • Not always just 1 solution to a problem • Customers often expect/want flexibility

14. Anticipate objections (i.e. keep track of, write down) through information obtained from: • Other customers • Fellow salespeople • Analyzing the competition

15. Specific Methods for Handling Objections • Direct denial • Indirect denial (feel felt found approach) • Boomerang or reversal • Respond with question(s) • Compensation (advtg/disadvtg, benefit/cost) • Benefit offer • Third-party testimonial

16. Direct Denial • Pointing out in an immediate, straightforward way the concern is NOT true (serious and inaccurate) • Use with care and tact; don’t be offensive, arrogant (a know it all) • Example: Concern: “I heard your product killed a guy’s beans last year.” Response: “Where did you hear that? That just isn’t true. I don’t know how that rumor got started, but I appreciate the opportunity to set the record straight.”

17. Indirect Denial • Acknowledge concern, admit some truth • Note concern is common initially before using, but not usually after using • Example: Concern: “I am a little concerned about the resale potential of this.” Response: (feel, felt, found) “I can certainly understand why you might feel that way.” “Cy Clone, the manager at your other Ames location, felt the same way before he ordered our product.” “But Cy found, after purchasing our product, that our product sold very well, even out performing some of his best other products.”

18. Boomerang or Reversal • Try to turn the concern into a selling point • Agree the prospect has a good point and show them a related good reason to do business with you.

19. Boomerang or Reversal • Example: Concern: “I prefer to buy from a locally-owned business.” Response: “I appreciate your desire to do business locally. That’s actually a reason to do business with us. While it’s true we are part of a national organization, the people you’ll be doing business with live and work here in your local community. Their salaries and tax dollars end up back in the local community. Being part of a national company gives us the ability to have top-notch technical support to back up our services and field specialists. We think we can offer you the best of both possible worlds-localized management and employees associated with a local business together with better technical assistance and support that a national company can provide.

20. “Can’t afford it right now” concern responses: • “I understand your financial situation is tight, but that is why you should buy today so you can start saving the money we talked about.” • “That is exactly why you need the product right now, because it will earn you enough profit to pay for itself and even have some money left over.” • That’s a very good concern, and because money is tight you can really benefit from our financing program that will allow you to buy now with little or no money down so you won’t need to delay receiving the benefits of our product.”

21. Respond With Question(s) • Try to clarify and soften the concern • Try to figure out what it would take to overcome the concern Example: Concern: “This model seems too big.” Response: “Sounds like you are worried about the size of this machine?” “What specifically about the size of this machine bothers you – storage, using it, or something else?” “If I could show you that using a machine of this size is no more difficult than using smaller machines, can we do business?”

22. Compensation • Acknowledge prospect has valid point (likely will appreciate your honesty) • Point out most products have +’s and –’s (builds your credibility)

23. Compensation Example: Concern: “I’m not sure that your yield ratings are the best.” Response: “I agree that our product’s yield ratings aren’t number one, but they are close.” “However, we also aren’t as expensive as those other top-yielding products.” “We feel that the money you save on price will actually offset the slightly lower yields you might obtain.”

24. Benefit Offer • Offer the prospect something (i.e. a benefit) that deals with the concern • The benefit should outweigh the concern • Offers can relate to: • Trial offers • Guarantees • Delivery • Service after the sale • Warranties • What you the salesperson will do

25. Benefit Offer • Example: Concern: “Your product sounds pretty good, but to tell you the truth, I’m quite happy with my current supplier.” Response: “I understand that. I appreciate your desire to be loyal. I would hope that if I’m able to show you the benefits of our product that you’d be loyal to me and our product too. Most customers did business somewhere else before they started using their current product. Could I get you to try a trial run of our product where you just give me part of your business? . . .

26. Third Party Testimonial • Using a third party to deal with the concern • Third parties could include: • Other current satisfied customers • Support staff • Specialists outside your company • Need to have arranged in advance for third party willingness

27. Third Party Testimonial • Example: Concern: “I’m quite concerned about the negative aspects of maintenance.” Response: “I don’t think maintenance should be a major concern. How about if I have one of our technical support specialists come out and provide you with more detailed information on our maintenance and repair records.”

28. The ‘Source or Supplier’ Objection  • Concerns about switching suppliers (i.e. happy with current product) • Desires to maintain loyalty to current supplier Common Approaches: Avoid negative comments about other company. Emphasize benefits of your product or of adding second line. Use referrals Get trial orders. Stay connected.

29. The “Don’t Need” Objection  • A typical (conditioned ?) response • Often an excuse, or cover up (e.g. lack of time) • Common initial reactions such as … “Already have something like that.” “Already buying something similar elsewhere.” “Already overstocked.” • Common approach: Ask permission to show how you can help your customer make more money (a common need/goal)

30. The ‘Product’ Objection  concerns about a product … • Being new, risky, uncertain • Being popular, having resale potential • Having a bad reputation, bad reports from others • Causing change and creating hassles Common Approach: provide ‘proof’ that these are not or should not be concerns.

31. The “Price” Concern  • Customer doesn’t have money or budget to pay that much; price too high • Need to emphasize ‘value’ (e.g. salesperson assistance, credit terms, product quality, delivery aspects, warranties) • Point out differences between initial price and long-run costs • Don’t offer concessions too soon ( weakness & sets precedent) • Do offer authorized discounts (recall best price strategies involving quantity discounts, seasonal/time of order discounts, unbundling discounts)

32. “Time” concerns  • Customer needs more time to think about it, wants to look around more, etc. • May be a stall or a concern about making a bad decision • May not see benefits of buying now • May not have authority to buy Common Approaches: Offer assurances, warranties, guarantees. Emphasize benefits of buying now (e.g. price, availability, profitability)

33. Sales Quotes: Objections • Anything that smacks of pressure causes an immediate increase in the prospect’s resistance. That’s why today’s selling techniques are more relaxed – aimed at avoiding resistance or keeping it to an absolute minimum. Experienced salespeople have found that a soft-spoken, knowledgeable, quietly confident approach produces more sales and more repeat business than fast-talking, high-pressure tactics ever did. …Low-pressure selling is based on a sincere desire to be of service… (Sales Upbeat, 2/3/94)

34. Sales Quotes: Objections • You have not converted a man because you have silenced him. (John Morley, Sales Upbeat, 3/30/95) • The joy of winning and the rewards of winning are in proportion to the difficulty of winning. One of the major difficulty factors in selling is rejection. If you never experience rejection, you will never experience or appreciate the victories. (Lloyd Allard, Personal Selling Power, 11/92)