Turn Objections Into Opportunities Don't take "no" for an answer. Here are six smart ways to counter sales objections.
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Editor's note: This article is excerpted from Stop Cold Calling Forever!from Entrepreneur Press.
If you're passionate about what you do for a living-and Ihope you are-you're going to have to make a determined effortto maintain your composure when a prospect starts launchingobjections about your product, service, or solution. It'snatural, to some degree, to take these remarks personally, butit's also essential to keep your sense of balance andperspective when you're feeling you're on the grill.
Don't shoot from the hip. Don't improvise. Don'tpain. Follow these simple rules when a prospect tells you yourspecs aren't right, your price is too high, your reputationisn't good enough, or your quality is suspect.
Rule 1: Remember, everything your prospect says has facevalue. Don't fight (internally or externally) with theindividual who passed along the objection. Don't rebut.Don't get into point-by-point struggles. Take what follows toheart when you answer any objection.
Rule 2: Compare the objection to your own history as asalesperson. Is this objection something that, historically,you have had not control over? Is it unique to this buyer? Oddsare, this objection has something in common with one you'veheard before. Ask yourself, "Have I ever sold to someone whotold me this?"
Rule 3: Analyze the objection. Is it reasonable? Wouldyou make this objection if you were in your prospect'sshoes?
Rule 4: Look at the big picture before you respond.Remember, you don't have to sell every person you come incontact with to be ahead of quota. You just have to sell the rightones.
Rule 5: Never offer judgments concerning the validity of theobjection. Instead learn how to question the objection.
See What They Say
After years and years of hearing objections, I reached thefollowing conclusions.
First, I had to totally disregard the standard "objectionhandlers" I found in sales books, such as "I understandhow you feel; others have felt that way. Blah, blah , blah."None of it worked as well as I needed it to.
Second, there were really only two general ways to address whatis at the heart of every objection. The first way I did this was byactually seeing what my prospects were saying, and the second waywas to put words in their mouths. That sounds weird ormanipulative, but it's neither. Read on.
What follows are five easy ways to see past the objection andone really cool way to introduce an objection before your prospectdoes.
Objection Strategy 1: Up the Ante
When your question the objection tactfully and politely, youcall the prospect's bid and raise her or him one. This approachis dramatic, and it's not what you'll read about in mostsales training books. But I know you'll find that it deliverssome extraordinary results if you do it-and stick with it.
Questions the objection allows you to get to the bottom ofthings in a hurry, which is what My Way is all about. After all, ifthere really is an insurmountable objection, don't you want tofind out about it as soon as possible and track down prospects whoare likelier to do business with you? Good, I thought so.
Questioning the objection involves using an "If not, thenwhat?" formula. Here's an example of how questioning theobjection works in practice:
Prospect: "Thanks for showing me the fall line, butyour wholesale price is just too high. After we apply our standardmarkup, the retail price would be too high for the clientele whoshop in our discount chain. I'll pass.
You" "Hmm. Okay, if our price were lower, lowenough for you to make margin and price it right for your outlets,would you place an order for your stores today?"
Prospect: (Surprised pause, then) "No, the problemis that the style and material really aren't what I think theyought to be."
Bingo! The price wasn't the insurmountable obstacleyou'd been led to believe. You're perfectly positioned toshow other merchandise to this buyer.
You can use this tactic with virtually any objection that couldcome your way.
Objection Strategy 2: The Price Is Right
At my seminars I'll ask the audience, "Who here isworking on a deal where they're getting beat up on price?"Consistently, 30 to 50 percent of the audience will raise theirhands. That's a ridiculously high number, wouldn't yousay?
You know what I think? I think it's a setup. Your prospectsknow that you're desperate to make the sale. And they also knowthat, all else being equal, the only meaningful negotiating pointwill be price. Try this:
Prospect: "Your price is too high." (Or:"You have a reputation of being the higher-pricedprovider.")
Top Salesperson: "Please define price."
Wow! Now your prospect is on the spot to articulate what pricemeans to him and her-and you're in a position to listen andlearn.
Don't ask a stupid question, one that will give youan answer that you don't do anything with. For example:
- "Just how much too high is our price?"
- "How much lower does my price need to be?"
- "What price are you willing to spend?"
Know exactly what your limitations are and how much room youhave to lower your price, and knock it down before anyone asks youto do it. Or better yet, keep your prices high, and sell only toprospects who appreciate the indisputable fact that you'llalways get what you pay for.
Objection Strategy 3: Take the Challenge
Lets' say for a moment that your prospect is extremely happywith whomever the current source of supply is-si happy, in fact,that he or she would never, ever consider switching. That is, untilyou show up.
Prospect: "I saw your e-mail. Thanks for the call,but I am all set. My current PR firm is taking care of all mybrand-awareness needs."
Top Salesperson: "Before you hang up, let me askyou-would you like to know what your loyalty to your current PRfirm is costing you?"
I strongly suggest you use this verbatim. It's a verypowerful way to find out if there is any shred of interest. Andit's also a direct, but appropriate, challenge to theprospect's position. This is powerful stuff.
Bottom line: If you hear anything other than a click and a dialtone, you're in. Take a look:
Prospect: "What do you mean by that?"
Top Salesperson: "The other customers we have inyour industry tell me that they're now able to_____________." (Fill in the blank with the value and benefitsof your product or service.)
This response also works well for any prospects who have aninternal source of supply that they're "totally"satisfied with. For example, if your prospect says, "My PRdepartment is taking care of all of my needs," your responsewould be the same.
Don't turn and run when you hear this objection. Thissupposed deal-breaker sends many a salesperson away, feelingrejected and questioning whether or not they should go back toschool and get another degree so they can get a "real"job. Don't you be one of them.
I promise, you will earn the respect of your prospect ifyou do use this approach to stand firm.
Be prepared. Have your response at the ready; rehearse it withyour sales manager or a peer that you respect. Get your ducks in arow. Know the real differentiators between you and your closestcompetition.
Turn Objections Into Opportunities
Objection Strategy 4: Been There, Done That, Gotthe T-Shirt
Just about every company in existence has had some problemaccount that they really messed up and, as a result, have lost.Then along comes a new, unsuspecting salesperson in theterritory-or maybe the past messed-up customer turns up on ahot-prospect list. Here's what it sounds like:
Top Salesperson: "Sorry to hear that. Let me askyou, if your company's best salesperson just heard thatobjection from one of their past customers, how would youpersonally coach them in answering it."
If you hear anything other than a click and a dial tone,you're in business. Suppose you hear something like:
As this prospect dumps on you, make sure you take notes. Whenthe person is all done and feels heard, you can say something.
The biggest insult you can give any prospect at this point is tobecome a "parrot" and say something totally lame:
This will only succeed in getting the other person to tuneout.
Be an ambassador for your organization, take the heat, dowhatever it takes to make it right, and see to it that you and whatyou're selling are engaged in a constant improvementprogram.
Objection Strategy 5: Don't Agree to"Call Me in Two Months From Never"
You sent the e-presentation, you call to follow up, andeverything's going great. Your prospect seems interestedenough, but he's preoccupied. He makes a request thatyou've heard a thousand times before:
Prospect: "I am interested in your line of cropdusters, but I've got to do some year-end budget planningfirst. Call me in three months."
(What to do? Take a look.)
Top Salesperson: "Sure. Let me ask you, though:Let's say it's three months from now. What exactly wouldyou want to see, hear, or experience during that time that wouldprovide a complete understanding of our products, services, andsolutions?"
Prospect: "Well, I'd first want to talk tosomeone who has a similar need to mine, and then I'd want totake a ride in the crop duster, and finally I'd want to have myaviation director take a look."
Top Salesperson: "I've got an idea. How aboutyou and I grab a bite to eat with one of my customers sometime inthe next month? What's your calendar look like?"
Or: "How about this? While you're crunchingnumber, I can have a conversation with your director of aviationabout..."
The key here is to offer several suggestions as to steps andactions that can easily take place during the idle time theprospect suggested.
It never ceases to amaze me how many salespeople will obedientlytake the blow-off and actually agree to give a callback in threemonths from never. Make no mistake, during that time yourcompetition will be calling on this prospect and outpositioning youin the interim.
Have an arsenal of information, tactics, activities,correspondence, newsletters, touch points, lunches, lattes, and soforth that you can offer in response to the endless blow-off. Itbeats knee-jerk acceptance of a blow-off.
Objection Strategy 6: The Best Offense is a GoodDefense
This extremely cool, highly effective, unorthodox strategy fordealing with objections comes to your courtesy of Joe Sugarman, theking of infomercials and an icon in marketing. You may notrecognize the name, but you most likely have one or more of hisproducts, such as his blue-blocker sunglasses. Here then is one ofthe best sales tactics that I've ever learned, compliments ofMr. Sugarman.
Every single product, service and solution in existence has itsfair share of flaws. So the question is, what are you as asalesperson going to do when those flaws are pointed out? Oh, sure,you could be on the defense and "handle" the problem whenit comes up, but how about turning the table? How about bringing upyour worse objection before your prospect does? How about bringingit up when you want to take about it?
Let me give you an example. Let's say you're selling thehighest-priced chemical cleaner on the market. And let's saythat the price objection always rears its ugly head at a time whenit typically isn't favorable to closing the sale thatyou've worked on so hard.
Top Salesperson (You): "Mr. Lowball, you'll findthat we're the only provider of high-quality,extended-shelf-life, and EPA-compliant chemical cleaners on themarket. And you'll also find that we're the highest-pricedsolution."
(There. You came right out and said it.)
Prospect: "Well, that's a problem. I've beenasked to reduce expenses for the balance of this year."
Smart Salesperson: "Have you completed your annualEPA inspection?"
Prospect: "No, it's due to start in the thirdquarter."
Smart Salesperson: "Shall we provide you with enoughcleaner to satisfy your needs until the end of the thirdquarter-and guarantee that you pass the inspection with flyingcolors?"
In every single case you'll gain the respect and confidenceof your prospect with this approach.
Excerpted from Stop Cold Calling Forever!from EntrepreneurPress.