Chapter 12 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.

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.

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.

Defining Objections Welcome 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!

Psychological Reasons Why Prospects Offer Resistance: 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: 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!

Types of Objections 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 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.

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)

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!

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

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

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.

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.

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 how you feel” Prepare the prospect for your answer

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

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

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

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

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

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

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

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

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.

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

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

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!