HANDLING OBJECTIONSHANDLING OBJECTIONSANDAND

ART OF CLOSING SALESART OF CLOSING SALES

Dr. Sanjeev PrasharDr. Sanjeev Prashar

““A sale really begins A sale really begins when the prospect says when the prospect says

nono”!”!

About objectionsAbout objections

Voice opposition to buyingVoice opposition to buying

As selling involves interchange of feeling As selling involves interchange of feeling and thinking between human beings and thinking between human beings objections are going to arise.objections are going to arise.

It is necessary for the salesperson to It is necessary for the salesperson to understand what the prospect is thinking understand what the prospect is thinking

Most difficult sales where prospect is quiet Most difficult sales where prospect is quiet and uncommunicative.and uncommunicative.

WELCOME OBJECTIONS!WELCOME OBJECTIONS!

Learn to Accept Objections as a Learn to Accept Objections as a Challenge Which, When Handled Challenge Which, When Handled Correctly, Will benefit you and Your Correctly, Will benefit you and Your Prospect. Prospect. If You Fear Objections You Will Fumble If You Fear Objections You Will Fumble Your Response Often Causing You to Your Response Often Causing You to Fail. Fail. Prospects that buy have 58% more Prospects that buy have 58% more objections. objections.

Reasons not to put forward their Reasons not to put forward their objectionsobjections

Prospect are unclear about their nature of Prospect are unclear about their nature of objections.objections.

Not able to verbalize doubtsNot able to verbalize doubts

Fear of embarrassment .Fear of embarrassment .

Fear of hurting the salesperson.Fear of hurting the salesperson.

PsychologicalPsychologicalreasonsreasons

LogicalLogicalReasonsReasons

Dislike decision making Dislike decision making

Prefer old habits Prefer old habits

Reluctance to give up Reluctance to give up something old for something something old for something new new

Unpleasant past associations Unpleasant past associations with you or your company with you or your company

Resistance to domination Resistance to domination

Perceived threat to self image Perceived threat to self image

All or part of the presentation All or part of the presentation was misunderstood was misunderstood

Prospect is not convinced Prospect is not convinced

Hidden reason (stall) Hidden reason (stall)

WHY PROSPECTS OBJECT

PreparationPreparation

Prepare to answer objections before they Prepare to answer objections before they arise.arise.

Write down objections along with the best Write down objections along with the best handling base.handling base.

Keep objections notebook.Keep objections notebook.

Types of ObjectionsTypes of Objections

Three common types of objections are:Three common types of objections are:1.1. StoppersStoppers

2.2. StallsStalls

3.3. SearchesSearches

DefinitionDefinition

StoppersStoppers are genuine objections to all or are genuine objections to all or part of the salesperson’s proposalpart of the salesperson’s proposal

StallsStalls are invalid objections (i.e., excuses) are invalid objections (i.e., excuses)

SearchesSearches are requests for more are requests for more information either from the salesperson, information either from the salesperson, the competition, or boththe competition, or both

The Procedure to Follow when a The Procedure to Follow when a Prospect Raises an ObjectionProspect Raises an Objection

Prospect raises an objectionProspect raises an objection

Response to the objectionResponse to the objection

Use a trial

close

Use a trial

close

Move into your presentationMove into your presentation

Close the saleClose the sale

SALES PRESENTATIONSALES PRESENTATION

Don’t be afraid to be excited about your Don’t be afraid to be excited about your product.product.

During presentations, focus on the benefits During presentations, focus on the benefits of you products.of you products.

keep the cards handy to make notes as you keep the cards handy to make notes as you think of them to add.think of them to add.

Let prospects talk the 90% of the timeLet prospects talk the 90% of the time..

Limit your choices during a sales Limit your choices during a sales presentation.presentation.

Clarifying the objectionClarifying the objection

Example :Example : Prospect : your price is too highProspect : your price is too high salesperson: clarify the objections as:salesperson: clarify the objections as:1.1. List price, discounted price, installation costs?List price, discounted price, installation costs?2.2. Buyer cant afford the price?Buyer cant afford the price?3.3. Price higher than competitors price?Price higher than competitors price?4.4. What do they consider fair price?What do they consider fair price?5.5. Concerned about quality?Concerned about quality?6.6. Is there something else?Is there something else?

Techniques used by salespersonTechniques used by salesperson

ECHO TECHNIQUE or POLITE “ WHY ”ECHO TECHNIQUE or POLITE “ WHY ”

Drawing out the prospect’s opinions with aDrawing out the prospect’s opinions with a

QuestionQuestion

CLOSED QUESTIONCLOSED QUESTION

Prospect response with Prospect response with yesyes or or nono answer answer

EXAMPLEEXAMPLEProspect : I had your goods in my store Prospect : I had your goods in my store

once before and they didn’t sell !once before and they didn’t sell !Salesperson: Didn’t sell? (ECHO)Salesperson: Didn’t sell? (ECHO)Prospect: Yes, the price was too high.Prospect: Yes, the price was too high.Salesperson: Too high? (ECHO)Salesperson: Too high? (ECHO)Prospect: Yes, your competitors had more Prospect: Yes, your competitors had more

aggressive couponing.They ran ads in the aggressive couponing.They ran ads in the local newspaper offering 10 cents off in local newspaper offering 10 cents off in each bottle.each bottle.

EXAMPLEEXAMPLE

Prospect : your price is too high.Prospect : your price is too high.

Salesperson: Too high? (ECHO)Salesperson: Too high? (ECHO)

Prospect: Right, your products costs two or three Prospect: Right, your products costs two or three hundred dollars more than the compt. For hundred dollars more than the compt. For basically the same thing.basically the same thing.

Salesperson: So what you are Salesperson: So what you are asking.Mr.prospect , is what is there in our asking.Mr.prospect , is what is there in our product that justifies the higher price? product that justifies the higher price? (CLOSED)(CLOSED)

Prospect: Yes, that’s right.Prospect: Yes, that’s right.

TACTICS FOR HANDLING TACTICS FOR HANDLING OBJECTIONSOBJECTIONS

HEAD-ON-METHODHEAD-ON-METHOD

INDIRECT DENIALINDIRECT DENIAL

COMPENSATION METHODCOMPENSATION METHOD

FEEL,FELT,FOUNDFEEL,FELT,FOUND

BOOMERANG METHODBOOMERANG METHOD

FORESTALLINGFORESTALLING

HEAD-ON HEAD-ON

Sales person directly tell customers that they are Sales person directly tell customers that they are mistaken.mistaken.Use this method when the objection arises out of Use this method when the objection arises out of incorrect information about the product.incorrect information about the product.

Example Example ::Customer: These colors will fade when we wash them.Customer: These colors will fade when we wash them.Salesperson : You are concerned about the harshness of Salesperson : You are concerned about the harshness of

the hospital laundering process on the color of the the hospital laundering process on the color of the garments?garments?

Customer: yes.Customer: yes.Salesperson : No, the colors won’t fade. let me show you a Salesperson : No, the colors won’t fade. let me show you a

uniform that’s been used for a year at Mercy Medical. uniform that’s been used for a year at Mercy Medical. Notice the almost total absence of any fading or Notice the almost total absence of any fading or discolorationdiscoloration

INDIRECT-DENIALINDIRECT-DENIAL

In this method salesperson never tells prospects In this method salesperson never tells prospects directly that they are wrong.directly that they are wrong.

Example :Example :Prospect: You overcharged us last time!Prospect: You overcharged us last time!Salesperson:Mr.prospect,I can understand you Salesperson:Mr.prospect,I can understand you

might think that. Since prices vary so much might think that. Since prices vary so much because of trade and transportation charges and because of trade and transportation charges and promotional allowances, things get complicated. promotional allowances, things get complicated. However,I can assure you that no customer in However,I can assure you that no customer in my territory with the same set of circumstances my territory with the same set of circumstances as your firm receives a better price.as your firm receives a better price.

COMPENSATIONCOMPENSATION

It is also known as “YES”,BUT methodIt is also known as “YES”,BUT method..Salesperson convince the prospects that the Salesperson convince the prospects that the compensating factor present is what they really compensating factor present is what they really need, and counterbalances what is not.need, and counterbalances what is not.

EX:EX:Prospect: Your company doesn’t advertise Prospect: Your company doesn’t advertise

enough.enough.Salesperson: Yes, but our research indicates that Salesperson: Yes, but our research indicates that

in –store promotion is more critical to sales, so in –store promotion is more critical to sales, so we have the most packaging and eye-catching we have the most packaging and eye-catching displays of anyone in our field.displays of anyone in our field.

FEEL,FELT,FOUNDFEEL,FELT,FOUND

EX:EX:Prospect: You know , these uniforms of yours are Prospect: You know , these uniforms of yours are

pretty expensive. I really wouldn’t want to ruin pretty expensive. I really wouldn’t want to ruin my budget by spending too much.my budget by spending too much.

Salesperson: I can understand how you might Salesperson: I can understand how you might feelfeel that way. The fact is that many of our customers that way. The fact is that many of our customers have have feltfelt the same way, but once they the same way, but once they purchased the uniforms, they purchased the uniforms, they foundfound that their that their laundering costs dropped dramatically and that laundering costs dropped dramatically and that the uniforms lasts longer, cutting the costs of the uniforms lasts longer, cutting the costs of frequent re purchasing.frequent re purchasing.

BOOMERANGBOOMERANG

Salesperson takes prospect’s objection and Salesperson takes prospect’s objection and turns it into reason for buying.turns it into reason for buying.

EXEXProspect: The quality of copy on your machine is Prospect: The quality of copy on your machine is

not high as that of your compt.not high as that of your compt.Salesperson: We engineer it that way on purpose. Salesperson: We engineer it that way on purpose.

The overwhelming majority of copies made in The overwhelming majority of copies made in business don’t need to be of a high quality. This business don’t need to be of a high quality. This way, each copy on our machine only costs 2 way, each copy on our machine only costs 2 cents/S 6-7 cents of our compt.cents/S 6-7 cents of our compt.

FORESTALLINGFORESTALLING

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

STRATEGIES FOR HANDLING STRATEGIES FOR HANDLING OBJECTIONSOBJECTIONS

PRICE SITUATIONPRICE SITUATION1. Break price down into small increments1. Break price down into small increments

2. Stress exclusive features or differences2. Stress exclusive features or differences

Ex : quality,delivery,service,expertise,facilitiesEx : quality,delivery,service,expertise,facilities

promotion, company reputationpromotion, company reputation

3. Use comparison3. Use comparison

4. Convert to a lower priced item4. Convert to a lower priced item

5. Postpone the price objection5. Postpone the price objection

HANDLINGHANDLINGPROCRASTINATIONPROCRASTINATION

Difficult to handle because they are neitherDifficult to handle because they are neithera clear YES or NO.a clear YES or NO.EX: I have to think over itEX: I have to think over itCall me back in thirty days.Call me back in thirty days.Leave your card and I’ll call you backLeave your card and I’ll call you back

Reasons behindReasons behind1.1. Can’t make up their mindCan’t make up their mind2.2. They resist changing habitsThey resist changing habits3.3. Fear product will not workFear product will not work4.4. Supplier is not servicing it properlySupplier is not servicing it properly5.5. Or an element riskOr an element risk

HANDLING SKEPTICISMHANDLING SKEPTICISM

OBJECTIONS- prospect indicate their OBJECTIONS- prospect indicate their disbelief that a product can deliver a disbelief that a product can deliver a promised benefit.promised benefit.

Strategies Strategies

1.1. To offer proof – To offer proof –

Technical brochures, warranties, data from Technical brochures, warranties, data from research studies,demos,testimonial research studies,demos,testimonial letters,third party referencesletters,third party references

HANDLING INDIFFERENCEHANDLING INDIFFERENCE

Indifferent to the salesperson’s Indifferent to the salesperson’s presentation.presentation.

Satisfied with their product or supplierSatisfied with their product or supplier

Perceive no need for new product benefitsPerceive no need for new product benefits

Excellent of handling this situation is to Excellent of handling this situation is to ask directive questions that guide prospect ask directive questions that guide prospect realizing the value of promised benefits.realizing the value of promised benefits.

HANDLING BUYERS WHO NEED HANDLING BUYERS WHO NEED OTHERS APPROVALOTHERS APPROVAL

Dealing with multiple buying influencesDealing with multiple buying influences

Ex- I need to talk it over with Ex- I need to talk it over with Mr./Mrs._________,”Mr./Mrs._________,”

Can provide an outline of product features Can provide an outline of product features and benefits, even a sample.and benefits, even a sample.

Get permission to mail literature to Get permission to mail literature to additional decision makers.additional decision makers.

HANDLING OVERSTOCKED HANDLING OVERSTOCKED CUSTOMERCUSTOMER

Objection mainly from retailers.Objection mainly from retailers.

WHAT SALESPERSON CAN DO???????WHAT SALESPERSON CAN DO???????Checking the inventory and proving to Checking the inventory and proving to buyers that they are not really overstockedbuyers that they are not really overstockedIf inventory is heavy, offer promotional If inventory is heavy, offer promotional assistance in the form of cooperative assistance in the form of cooperative advt.assistance,in-store displays, advt.assistance,in-store displays, couponing .couponing .

CONT……CONT……

Find out if there are slow moving Find out if there are slow moving competitors products that are holding up competitors products that are holding up orders.orders.

Demonstrate how moving them oof shelves Demonstrate how moving them oof shelves and allowing additional space for his or her and allowing additional space for his or her product can improve profits.product can improve profits.

Thank You