Step 9. Handling Sales Objections

When your team gets objections, tell them not to run! These are really requests to, “Tell me more. You haven’t convinced me yet.” Objections are a prospect’s way of: · Looking for more information · Trying to get a better price · Trying to get better terms · Trying to get clarification on a point · Stalling · Negotiating · Being difficult · Doing due diligence Some of the more common objections for any industry include: · We already have a product like yours · We don’t have any money · It’s too costly to implement · We can build our own · We have an in-house developed system · It's too expensive · The pricing doesn’t fit the way we do business · You’re not an approved vendor · I don’t have time to look at it · It’s my boss’s decision · Just send me the information · I’ve never heard of your company · I don’t have any requirements for your product · I don’t have the resources available to work on this · We used your company before, and it did not work out · We don’t use 3rd party products · We just bought a similar product · We’re not adding vendors right now · We’re happy with what we have There are several ways to handle objections, but I typically take a 3-step approach: 1. Acknowledge 2. Cushion 3. Question Here's an example: Prospect: "Your price is too high." Seller: "Sounds like money is an issue." You acknowledge what they're saying. Stay silent for a moment. Prospect: "Yeah, everyone's keeping an eye on the budget." Seller: "Sure. Companies need to make a profit. "Sounds like money is an issue." You cushion so they don't feel uncomfortable. Seller Questions: "How does what we discussed (or showed you) fit with your requirements?" "How is determined what's necessary for your company to purchase a product like ours?" "What does that process look like?" "Would you be interested in hearing how companies very similar to yours found a way to purchase, great ROI and have the cost factor go away?" The key is to come prepared with good questions, and have your prospect tell you why they can or cannot buy. Remember: Sell like you want to be sold to. Use the five-step method in the video: Pause and label the concern Clarify with one tight question Tie back to the stated pain and value Offer one proof point or option Test for agreement and set a next step Frequently Asked Questions (FAQs) Why is my sales team getting hit with so many objections in the first place? Objections are a natural part of the selling process and typically stem from one of three things: the prospect is looking for more information, they are testing your expertise to see if you know what you’re talking about, or there is a lack of trust. Understanding this motivation is the first step toward handling them effectively. How can we address a price objection without immediately discounting? Instead of jumping to a lower price, use the "acknowledge, cushion, and question" process. Acknowledge that price is important to their decision-making and stay quiet to let them respond. Then, cushion it by validating their need for good value and use questioning to dig deeper into what they consider a "fair price" or how much is "too high." What is the most critical part of the objection-handling process? The questioning phase is the most important part of the three-step process (Acknowledge, Cushion, Question). This is where you uncover the real heart of the matter and find out exactly what is keeping the prospect from moving ahead with the deal. How can we handle prospects who aren't the final decision-makers without insulting them? To avoid isolating or insulting the person you are speaking with, use open-ended questions like, "Who in addition to yourself will be making the buying decision?" This identifies the full decision-making unit while still respecting the individual's role in the process. How do we build trust when a prospect is giving us excuses or blowing us off? Don't dodge the question. Instead, make the prospect feel comfortable by acknowledging their concerns and not making them feel stupid. By asking prepared, insightful questions, you demonstrate your value and build trust to the point where they see the worth in both the product and your expertise.