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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

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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.

When Objections Occur

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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.

Negotiation and the Relationship Sales Cycle

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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

Defining Objections

Welcome objections!

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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:

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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:

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1. 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

2. 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

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3. The Hidden Objection Prospect will not reveal the real reason Often quite personal, so prospect feels uneasy Like the iceberg lurking below the surface

4. 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

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• 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)

Classify the Objection

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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!

Handling Objections

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1.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

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2.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

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3.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

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4.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.

4 Strategies for Deciding When to Answer Objections

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The Six-Step Process1.Listen carefully; Hear the prospect out2.Confirm your understanding of the objection– Clarify and classify the objection– Try to distinguish between genuine objections and excuses

3.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

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4.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)

5.Answer the objection - say just enough to answer it6.Attempt to close - continue the presentation if you

do not succeed

A Negotiating Strategy for Handling Buyers’ Concerns

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1.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

2. 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

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3. 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

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4. Deny the ObjectionDirect 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

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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

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5. 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

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6. 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

7. 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

Seven Specific Techniques for Handling Objections

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• 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

A Mindset for Negotiating Price Resistance

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1. 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

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2. 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

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3. 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

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4. 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!

Four Methods for Overcoming the Price Question