Handling Objections

1. Handling Objections Learning Objectives: • Develop a positive attitude toward objections. • Understand why prospects have sales resistance. • Learn how to uncover hidden concerns or questions. • Know the basic strategies for overcoming sales resistance. • Become familiar with the six-step plan for dealing with sales resistance. • Learn specific techniques to overcome objections. • Discover tactics to handle price concerns. • Chapter 12

2. When Objections Occur Q: When do prospects object? A: At any time during your sales call… from your first introduction up to the time you try and close.

3. Negotiation and the Relationship Sales Cycle • Negotiation in Selling • Successful sales presentations have twice as many objections as those presentations that are unsuccessful. • The negotiation process is a situation of mutual cooperation and mutual benefit. • Objections are a normal part of almost every conversation—not just in sales. • Relationship selling is a win-win proposition. • The decision to buy should be their idea.

4. Defining Objections • An objection is anything the prospect says or does that presents an obstacle to the smooth completion of the sale • 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 Welcome objections!

5. Psychological Reasons • 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 • Why Prospects Offer Resistance:

6. Logical Reasons • All or part of the presentation was misunderstood • Prospect is not convinced • Hidden reason - does not want to reveal real reason • Your product offering does not fit the prospect’s needs • Not all sales presentations end with a sale! • Why Prospects Offer Resistance:

7. The Stall or Put-Off • Prospect is simply trying to avoid making a decision • You may not have presented a compelling reason to buy • Handling the stall is a test of your attitude • The Searcher • Often prospects just want more data. They have mentally decided they want to buy. • They just want to be convinced. So convince them! • Types of Objections

8. The Hidden Objection • Prospect will not reveal the real reason • Often quite personal, so prospect feels uneasy • Like the iceberg lurking below the surface • The Stopper • An objection for which no solution can be found • Not every prospect is a fit for what you have to offer • The prospect has a legitimate reason for not buying… so move on. • Types of Objections

9. Classify the Objection • Six basic categories of objections or sales resistance: • Product objection • Objection to the salesperson • Objection to your company • Don’t want to make a decision • Service objection • Price objection (possibly hiding real objection)

10. Handling Objections Tips for Handling Objections: • Keep the buyer’s attitude toward your product positive • Let buyers know you are on their side • Help with objections (show you really do care) • Do not get demanding, defensive, or hostile • Do not be satisfied with an excuse or stall • Bring out your arsenal of selling benefits and keep on presenting them!

11. 4 Strategies for Deciding When to Answer Objections • Anticipate and Forestall Objections • Incorporate objections and the answers directly into the presentation • You should be certain that the objection will arise • Prevents a confrontation and communicates objectivity • Objection may come up again—but it will have less impact the second time • Weave into your presentation factual answers to anticipated objections

12. 4 Strategies for Deciding When to Answer Objections • Postpone the Answer • Acknowledge the objection • Employ empathy • Gives you time to present more benefits • Allows you to maintain control • Gives you time to think about your response • Promise to get back to the question, and write it down • If prospect absolutely insists, then answer it when it comes up

13. 4 Strategies for Deciding When to Answer Objections • Answer Immediately • Allows the prospect to concentrate on the rest of the sales story • Shows the prospect your sincerity • Prevents prospects from inferring your inability to answer • Of all the objections, the price question should be answered after need, value, and benefits have been discussed.

14. 4 Strategies for Deciding When to Answer Objections • Do Not Answer an Excuse • Serious objections will be repeated • Not answering suggests that the excuse is not truly relevant (especially if it did not make sense to you) • Never try to answer an excuse • Acknowledging an excuse may create a real objection in the prospect’s mind.

15. A Negotiating Strategy for Handling Buyers’ Concerns The Six-Step Process • Listen carefully; Hear the prospect out • Confirm your understanding of the objection • Clarify and classify the objection • Try to distinguish between genuine objections and excuses • Acknowledge the prospect’s point of view • Restate or rephrase in your own words • Use words such as, “I understand howyou feel” • Prepare the prospect for your answer

16. A Negotiating Strategy for Handling Buyers’ Concerns • Select a specific technique - base your decision on: • The prospect’s social style • Phase of the interview • The prospect’s mood • The number of times the objection has been raised • The type of objection (excuse versus a genuine concern or question) • Answer the objection - say just enough to answer it • Attempt to close - continue the presentation if you do not succeed

17. Seven Specific Techniques for Handling Objections • Feel, Felt, Found • 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 • Provide new facts which allow the prospect to reevaluate your proposition • Compensation or Counterbalance Method • Admit the objection is valid • Describe some counterbalancing benefit • Relate a case history or testimonial—describe the experience of a client whose situation is similar to that of the prospect

18. Seven Specific Techniques for Handling Objections • Ask “Why?” or a Specific Question • Excellent for separating excuses from real objections • Ask questions that turn a broad general objection into a specific concern that can be answered

19. Seven Specific Techniques for Handling Objections • Deny the Objection Direct denial involves refuting the opinion or belief of a prospect • Considered a high risk method of handling buyer resistance • If buyer resistance is not valid, there may be no other option than to refute it by providing accurate information • Be firm in stating your beliefs; be sincere and don’t be defensive

20. Seven Specific Techniques for Handling Objections Indirect Denial - Sometimes prospect’s objection is valid, or at least accurate to some degree • Best approach is to acknowledge that the prospect is correct • It initially appears as agreement with the customer’s objection • If done in a natural, conversational way it will not offend the prospect • Rephrase or have the prospect rephrase • Blame yourself • Give the facts that answer the objection

21. Seven Specific Techniques for Handling Objections • The Boomerang Method • Initially agree with the concern but make a statement that turns it into a selling point • Convert the objection into a reason to buy • Works well when the prospect lacks complete information • Try the tongue-in-cheek method—an adaptation of the Boomerang Method

22. Seven Specific Techniques for Handling Objections • Curiosity Method • This method works because of your relationship-driven approach to professional selling • Prospects may be mentally comparing their present product or a competing product with yours • Demonstrate a “genuine” curiosity about their objection • After all, you have been asking questions all along • Deflection Method • Prospects sometimes purposely throw you off course • Specific social styles want to be in control • Listen to the concern, acknowledge it, but then simply move on • This method helps you stay on track with “your” presentation

23. A Mindset for Negotiating Price Resistance • Do add value with a cluster of satisfactions • Don’t apologize for the price • Don’t make price the focal point of your presentation • Do point out the relationship between price and quality • Do explain the difference between price and cost

24. Four Methods for Overcoming the Price Question • Price Breakdown • Use the lowest common denominator • Break the price down—by day, week, or month • Your job is to establish value, not price • Look at the price-cost-value comparison over time • Talk about the initial price versus the ultimate costs.

25. Four Methods for Overcoming the Price Question • Presumption of Exclusivity • Stress the special features than only your product can offer • Sell quality and uniqueness if the buyer argues price • Must be an expert about your industry and product line • Make your price seem unimportant in comparison to the value received • Draw the picture clearly and convincingly—most buyers are fair-minded

26. Four Methods for Overcoming the Price Question • Comparison Method • When prospects are mentally comparing their present product with your product, make a complete comparison of the two • A demonstration can give a convincing answer to an objection • Comparison of your product’s features, advantages, and benefits against competitors • Do a comparison of long-run costs and savings • Use your company’s reputation to build trust and justify the higher price

27. Four Methods for Overcoming the Price Question • Sell Down Method • Present the best, most expensive product or service first • The common law of business balance prohibits paying a little and getting a lot • Be patient, focus on the benefits, and let the buyer tell you what features he can live without • There is a price point below which the buyer will not want to go • All prospects have a purchasing or buying range. Find it!