Objections can occur at any point in the sales call.  You could get an objection immediately when you first meet the prospect, during your approach, during the presentation and during your close.

1. What are objections?

     A communication that there is a problem/concern that must be resolved.

2. Are objections good or bad?

     Although it would be nice if prospects understood and agreed with everything you say, it is not very likely.  An objection is a hurdle that you have to get over.  In a     sense, you should look at an objection as an opportunity to deal with what ever the problem is.  A prospect that sits there and doesn't voice concerns or ask             questions is going to be much more difficult to convince to buy than the customer who raises some issues during the presentation.

 
    From a communications perspective objections are feedback that allows you a chance to respond.

        Raising objections takes:

       Interest-shows some level of interest, or else why would take the time to raise the objection.

      Commitment- in many cases it shows a certain level of commitment on the part of the prospect.  The prospect is saying I would buy but....

      Understanding- It takes a certain level of understanding to raise the objection.  The prospect is paying attention, they just have a concern that you need to deal                                     with.
 
 
 

3. Three Categories

     You can get any number of different kinds of concerns or questions but most can be categorized in three categories, objections about the product, the company,     or about you.

         a. The Product
              Need, Quality, Price, Terms

         b. The Company
              Unknown, Reputation

         c. The Salesperson
              Confidence, Trust/most likely to be hidden
 
 

4. Identification Problems

 Objections can be explicit and to the point, or they can be hidden.  You have to ask yourself, what is really bothering this prospect?

     A. Hidden Objections- The real problem can be drawn out by asking probing questions.

     B. Your Attitude - Perhaps the biggest obstacle in dealing successfully with objections, is your attitude.  Try not to take it personally, get frustrated, or defensive.          Research shows that presentations that result in sales have over 50% more objections that presentations that do not result in sales.----Stay positive!

 
5. Common Objections
 
 A. Price

  Ask yourself what is really going on.  The price objection "your price seems kind of high or gee that's quite expensive" might mean a number of different things.

      1. You haven't sold me yet.
      2. I don't see the value.
      3. I can't afford it.

  How to respond-
       1. More info. on benefits (Benefits/Price)-Show me the value, give me more reasons to buy.

       2. Break down the cost-People can be overwhelm psychologically by big numbers, but the cost in terms they can deal with
          . E.g. buying a house $140,000 to $1000 per month.

       3. If unrealistic, In comparison to what.  What is the prospect's anchor, is it realistic, are they comparing apples to oranges.                          

       4. Present the Product as an Investment-You need to look at the total cost not just the initial price.  How about the costs of operating and other future savings.                  Explain the difference between price and cost.

        5. Building a mental bridge- from the price point in their head to the price of the product at hand.  Make sure they see the value as you trade them up.

              Note about competing on price.  Competing on price is the lazy way to sell, show them the value.  Don't give away price concessions too quickly.

 B. Buyer Disinterest or Lack of Need

      1. Could be poor prospecting
 
      2. SP hasn't found the right need, or the discrepancy needs to be increased

      3. hidden objection, like can't afford
 

 C. Buyer Indecision- Buyer's indecision is a tough call-does the customer just need a little extra nudge or do they really need time to think about it

      1. Pressure can backfire
 
      2. Think about personality types.

 
D. Competition

      1. Don't bring it up yourself 

      2. Praise and pass- they are ok but we are better
 
      3. Meet it head-on

          Remember the customer expects you to know your competitors.
          If you don't the customer has an advantage.
 
 
 

6. Validity and Timing

 Objections always have to be dealt with but how you handle them depends on validity and timing.  In some cases it is better to delay (not ignore but deal with later in the presentation).
 
 

7. Techniques

     Valid Objections

      1. Compensation - advantages offset limitations, there are always tradeoffs.

      2. Boomerang- turn the objection into the reason to buy.  Example from wholesaling, the retailer says "we have carried this older product for a long time, You                                 say, "That's exactly why you should think change

      3. Indirect Denial (yes, but)
 
          You don't have to say yes but...e.g., That's what I thought when I first saw this new product, however......

          Feel, Felt, Found.  I understand how you feel, many customer felt the same way, but found it was.....

     Invalid Objections

      1. Direct Denial-answer directly and offer proof.

     2. Demonstration-show the prospect that the objection isn't valid  e.g., I've heard this equipment is hard to operate."  Let them use the equipment so they can see         how easy it is to use.

       A special case is the trial offer.  What is holding the prospect up in perceived risk about the functional aspect of the product.  How well it will perform, how easy         it is to use, how much it can save.  Let them have a free trial period to prove it to themselves.  A side benefit is that the prospect takes psychological ownership         of the product.

      3. Case history- show them how others have benefited from using the product.
 
 

     Special-

      1. Direct Comparison- some times with the competitor objection, it is effective to do a side-by-side comparison.  Note: on one sided versus two-sided                             arguments.

      2. Forestalling- Some times it is advisable to anticipate common objections and deal with them before they object. E.g., price

      3. Delay- some times it is good if you can delay the objection to later in the presentation.  I think if you bear with me a few minutes while I explain the features, I             think you will see the value.
 

Check List for Objections

 1. Anticipate and prepare for common objections.

 2. Know the real value of your product to your propsect.

 3. Understand the prospect's problems (real interests).

 4. Don't assume a fixed pie.  Invent options for mutual gain.

 5. Stay positive.