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“You’re Not A Salesperson If You Give It Away”

November 4th, 2008

It is a misconception that customers are only concerned with the lowest price. Many salespeople and business owners think this is so. If this misconception were true, companies selling high-priced, luxury-type items would not make a profit. What use would a salesperson be if the customer purchases only the cheapest item? We wouldn’t need salespeople—just more sophisticated telephone answering machines so customers could simply place their orders.

So, as a salesperson, you must realize customers are concerned with more than price even though you often hear them ask, “how much is it” when you haven’t fully described your offering yet.

Having the question “how much is it?” appear early in the presentation is just as frustrating as such responses as “it costs too much,” “it’s more than I expected,” “I can’t afford it,” “your competition is cheaper,” or the classic, “I’ll be back.”

As with many objections, price, as a concern, is very predictable. Your prospects and customers will always want to know “how much is it?” early on. And once they know, they often complain. When you realize and accept that price resistance is a natural and predictable objection, you are on your way to the top of your profession.

The Basics of Price Resistance:

1.    It always costs too much. A price objection is an automatic response. Everybody asks how much it is and the flinches at the price. All consumers, yourself included, become intoxicated with the idea of obtaining the best value possible.  So, no matter what the cost, the initial reaction is always going to be “it’s more than we expected to pay.”

2.    Price is the common denominator. Why does price come up early in the sales presentation? Because it represents something we all have in common, and that is concern with money. We all relate to dollars and cents.

As a salesperson you must be clear: Is price their objection or yours? Often the price objection appears in the salesperson’s mind first. Rest assured; if you are uncomfortable with the price, then you won’t be able to overcome the objection in the prospect’s mind. 

Someone else is always selling something similar to your product for less. Any low level order-taker, other than a professional salesperson, can “give away” the product or service at a lower price. The sign of a super salesperson is someone who can represent the product at a higher value.

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Posted by Myers Barnes

Six-Step Method To Overcoming Objections

October 22nd, 2008

Here are the six basic steps for handling objections or addressing questions and concerns.  The system was popularized by the renown sales trainer J. Douglas Edwards.  If followed it will almost always work in your favor during the objection process.

Step 1.  Hear the objection out.
Do not interrupt, but listen entirely to the objection.  Listen attentively with empathy and understanding.  Give the prospect the opportunity to express his emotional concerns.

You have employed the Law of the Six by identifying your six top objections and you have developed and internalized bulletproof answers.  However you must not be too quick to answer.  Though you many have heard the objection one thousand times before, it is this prospects first time expressing his concerns for you.

Step 2.  Repeat the objection back to the prospect
This is a critical step!  This strategy often helps the prospect answer his own objection as he hears it repeated back to him.  State the objection out loud in a kind, non-threatening way.  When the prospect says, “it costs too much,” repeat it back as a question:  “It costs too much?”  This method has several benefits.

    • It makes your prospect feel important and understood
    • It verifies you heard the objection
    • By repeating the objection, you are in effect asking for more information.

Step 3.  Question the objection
Remember the first objections you hear may be masking a larger objection.  Ask for elaboration.  “Mr. Prospect, let me clarify my thinking or let me be sure I understand you correctly.  If it were not for (objection), then would you proceed forward today?  Is that right?”  Remain silent and let him answer.

Step 4.  Answer the objection with your pre-planned response
Once your confident that you have a whole story behind this concern, you can state your pre-planned response with confidence.

Step 5.  Confirm that the objection does not block the sale
You have answered the objection, but you now must confirm the objection is no longer a reason for the prospect not to become a buyer.

    • That answers your question then, doesn’t it Mr. Prospect?”  Or “that makes sense to you, doesn’t it?”
    • If the prospect is not satisfied with your answer, now is the time to know.  You cannot move forward and close until you are certain the issues are satisfied.  If the prospect is satisfied, move to Step 6.

Step 6. Close
It is important that you understand handling objections and closing are events that are occurring simultaneously.  You overcome the objection and then move to the close.

    • “Well then Mr. Prospect, do you have any additional questions before beginning the paperwork?”
    • Prospects answers, “No”
    • “Congratulations!  I’m excited for you.  By the way, will it be yours or your company name appearing on the agreements?”

The Final Word
The prepared salesperson should never loose a sale because of a customer’s objection.

Vince Lombardi of the Green Bay Packers was on to the most triumphant coaches in football history.

His secret to success?  Over preparation.

Most professional events are won during the last two minutes of the game.  While practicing, the Packers played five quarters, not the usual four.  During the final quarter of the game when the opposing team began to war down, the Packers exceeded the competition because they were mentally and physically prepared to go the extra mile.

You must be overly prepared to win at the objector’s game.  Objections happen during the final minutes of the selling game, so its not the time for you to wear down.  Anticipate your objections, prepared your answers, internalize and memorize your reply, and you will move to the ranks of super achiever.

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Posted by Myers Barnes

The “Law of Six”

October 17th, 2008

In sales there is a universal axiom that sales trainer Brian Tracy calls The Law of Six.  It states, “customers really have no more than six objections to owning your product or service.”

You may hear what seems like countless objects to sales during your career.  However, if you categorize the objections you will find they normally fall into six basic categories.

In my real estate business, our objections were:

  1. Price
  2. Competition
  3. Performance
  4. Finance
  5. Third Party Approval
  6. Legal and Tax Benefits

After identifying all objections we received regularly, we developed iron-clad scripted answers to them.  Thus once we armed ourselves with airtight answers to these predictable objections, which used to block the sale, my company set new sales records.  The point is you cannot wait until you are involved in the presentation and then try to make up an answer.  You must proactively prepare in advance!

Your job as a professional is to discover for yourself, or with your sales team, the six common objections you hear consistently.  Once identified, it’s a simple process of internalizing and memorizing potent responses.  Then when the predictable objections appear, you answer easily ad effortlessly and automatically move to the close.

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