HANDLING OBJECTIONS AND ART OF CLOSING SALES Dr. Sanjeev Prashar

“ A sale really begins when the prospect says no”!

About objections Voice opposition to buying As selling involves interchange of feeling and thinking between human beings objections are going to arise. It is necessary for the salesperson to understand what the prospect is thinking Most difficult sales where prospect is quiet and uncommunicative.

WELCOME OBJECTIONS! 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. Prospects that buy have 58% more objections.

Reasons not to put forward their objections Prospect are unclear about their nature of objections. Not able to verbalize doubts Fear of embarrassment. Fear of hurting the salesperson.

Psychological reasons Logical 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 All or part of the presentation was misunderstood Prospect is not convinced Hidden reason (stall) WHY PROSPECTS OBJECT

Preparation Prepare to answer objections before they arise. Write down objections along with the best handling base. Keep objections notebook.

Types of Objections Three common types of objections are: 1.Stoppers 2.Stalls 3.Searches

Definition Stoppers are genuine objections to all or part of the salesperson’s proposal Stalls are invalid objections (i.e., excuses) Searches are requests for more information either from the salesperson, the competition, or both

The Procedure to Follow when a Prospect Raises an Objection The Procedure to Follow when a Prospect Raises an Objection Prospect raises an objection Response to the objection Use a trial close Move into your presentation Close the sale

SALES PRESENTATION Don’t be afraid to be excited about your product. During presentations, focus on the benefits of you products. keep the cards handy to make notes as you think of them to add. keep the cards handy to make notes as you think of them to add. Let prospects talk the 90% of the time. Limit your choices during a sales presentation.

Clarifying the objection Example : Prospect : your price is too high Prospect : your price is too high salesperson: clarify the objections as: salesperson: clarify the objections as: 1. List price, discounted price, installation costs? 2. Buyer cant afford the price? 3. Price higher than competitors price? 4. What do they consider fair price? 5. Concerned about quality? 6. Is there something else?

Techniques used by salesperson ECHO TECHNIQUE or POLITE “ WHY ” ECHO TECHNIQUE or POLITE “ WHY ” Drawing out the prospect’s opinions with a Question CLOSED QUESTION Prospect response with yes or no answer

EXAMPLE Prospect : I had your goods in my store once before and they didn’t sell ! Salesperson: Didn’t sell? (ECHO) Prospect: Yes, the price was too high. Salesperson: Too high? (ECHO) Prospect: Yes, your competitors had more aggressive couponing.They ran ads in the local newspaper offering 10 cents off in each bottle.

EXAMPLE Prospect : your price is too high. Salesperson: Too high? (ECHO) Prospect: Right, your products costs two or three hundred dollars more than the compt. For basically the same thing. Salesperson: So what you are asking.Mr.prospect, is what is there in our product that justifies the higher price? (CLOSED) Prospect: Yes, that’s right.

TACTICS FOR HANDLING OBJECTIONS HEAD-ON-METHOD INDIRECT DENIAL COMPENSATION METHOD FEEL,FELT,FOUND BOOMERANG METHOD FORESTALLING

HEAD-ON Sales person directly tell customers that they are mistaken. Use this method when the objection arises out of incorrect information about the product. Example : Customer: These colors will fade when we wash them. Salesperson : You are concerned about the harshness of the hospital laundering process on the color of the garments? Customer: yes. Salesperson : No, the colors won’t fade. let me show you a uniform that’s been used for a year at Mercy Medical. Notice the almost total absence of any fading or discoloration

INDIRECT-DENIAL In this method salesperson never tells prospects directly that they are wrong. Example : Prospect: You overcharged us last time! Salesperson:Mr.prospect,I can understand you might think that. Since prices vary so much because of trade and transportation charges and promotional allowances, things get complicated. However,I can assure you that no customer in my territory with the same set of circumstances as your firm receives a better price.

COMPENSATION It is also known as “YES”,BUT method. Salesperson convince the prospects that the compensating factor present is what they really need, and counterbalances what is not. EX: Prospect: Your company doesn’t advertise enough. Salesperson: Yes, but our research indicates that in –store promotion is more critical to sales, so we have the most packaging and eye-catching displays of anyone in our field.

FEEL,FELT,FOUND EX: Prospect: You know, these uniforms of yours are pretty expensive. I really wouldn’t want to ruin my budget by spending too much. Salesperson: I can understand how you might feel that way. The fact is that many of our customers have felt the same way, but once they purchased the uniforms, they found that their laundering costs dropped dramatically and that the uniforms lasts longer, cutting the costs of frequent re purchasing.

BOOMERANG Salesperson takes prospect’s objection and turns it into reason for buying. EX Prospect: The quality of copy on your machine is not high as that of your compt. Salesperson: We engineer it that way on purpose. The overwhelming majority of copies made in business don’t need to be of a high quality. This way, each copy on our machine only costs 2 cents/S 6-7 cents of our compt.

FORESTALLING Technically, this method is not means of handling objections at all, since its main aim is to prevent (forestall) the objections from ever being raised.

STRATEGIES FOR HANDLING OBJECTIONS PRICE SITUATION 1. Break price down into small increments 2. Stress exclusive features or differences Ex : quality,delivery,service,expertise,facilities promotion, company reputation promotion, company reputation 3. Use comparison 4. Convert to a lower priced item 5. Postpone the price objection

HANDLING PROCRASTINATION Difficult to handle because they are neither a clear YES or NO. EX: I have to think over it Call me back in thirty days. Leave your card and I’ll call you back Reasons behind 1. Can’t make up their mind 2. They resist changing habits 3. Fear product will not work 4. Supplier is not servicing it properly 5. Or an element risk

HANDLING SKEPTICISM OBJECTIONS- prospect indicate their disbelief that a product can deliver a promised benefit. Strategies 1. To offer proof – Technical brochures, warranties, data from research studies,demos,testimonial letters,third party references

HANDLING INDIFFERENCE Indifferent to the salesperson’s presentation. Satisfied with their product or supplier Perceive no need for new product benefits Excellent of handling this situation is to ask directive questions that guide prospect realizing the value of promised benefits.

HANDLING BUYERS WHO NEED OTHERS APPROVAL Dealing with multiple buying influences Ex- I need to talk it over with Mr./Mrs._________,” Can provide an outline of product features and benefits, even a sample. Get permission to mail literature to additional decision makers.

HANDLING OVERSTOCKED CUSTOMER Objection mainly from retailers. WHAT SALESPERSON CAN DO??????? Checking the inventory and proving to buyers that they are not really overstocked If inventory is heavy, offer promotional assistance in the form of cooperative advt.assistance,in-store displays, couponing.

CONT…… Find out if there are slow moving competitors products that are holding up orders. Demonstrate how moving them oof shelves and allowing additional space for his or her product can improve profits. Demonstrate how moving them oof shelves and allowing additional space for his or her product can improve profits.

Thank You