Price objections can be divided into three classes:

1. Those which are not meant by the customers from the point of view of value, but that the prices are higher than they can afford to pay. These customers desire a cheaper grade of products.
2. Those which are made solely for the sake of argument. Many customers think it is their duty to make many objections in the course of buying, and their most frequent objections are to price.
3. Those objections which are made with all sincerity. The customers object because they sincerely believe that the prices are too high for the products. They are sincere in their objections, and believe in what they are saying.

When an objection is made to price, you should be able to tell to which class it belongs. If the products are too expensive, you should be able to read this, and to judge what the customer is able and willing to pay.

Many salespersons can’t tell this kind of price objection, and continue with presentation to prove that the price is satisfactory from the point of view of quality. This is not the cause of the objection made, and the customer knows it. If the customer can afford to pay the higher price, in a few cases you may be successful. If this is the case, you should know it, and continue to sell with that in mind. On the other hand, if the customer can’t afford to pay the higher price, the sale is lost.

Great number of sales people are not able to distinguish between these two classes of customers, and they wonder why they are not more successful. Let me give you an example.

Recently, I was shopping for a Christmas present for my spouse in a big retail store where I witnessed a conversation among the customer and a saleswoman.

The saleswoman showed to a customer a nice dress with a higher price tag. The customer said the price was too high. The saleswoman thought that she meant that there was not a value in the dress priced higher. Arguments were used to prove that the price was not too high considering the quality of the dress.

The customer repeated that the price was too high, and added that she wished to see something less expensive.

The saleswoman even then did not understand the reason for the objection, and continued with arguments to show value. Eventually, the customer went out without buying. The saleswoman wondered why she did not make the sale.

If she had been able to read human nature, she could have told that the objection was because the price was higher than the customer could pay. This being the case, the sale under ordinary circumstances would have been made if a products of lesser value had been shown.

Next time when you hear a price objection from your prospects, try to understand to which class of this three this objection belongs and than try to handle it properly.

How to Handle Price Objections is a post from: The Science and Art of Selling by Alen Mayer

1. I’m not interested.  Create interest by telling a short anecdote of how someone else benefited her home/work/play by using your product.
2. I don’t  have enough money.  Quickly recount how using this product saves money in the long run by  improving the client’s health, saving  his time, or increasing his influence.  State dollar examples of savings gained.
3. I don’t need it.  Be alert to the needs of the customer.  Don’t try to push more on the customer than she needs.  Does she need more space, more time, better methods, or just the basics?
4.  It’s too much hassle to set it up (such as a new phone, exercise equipment). Offer to set it up for him, according to your company’s regulations.  
5. My old one is good enough.  Make sure your client has product knowledge. Teach her the new features as you promote the latest device or service.  Discount it. 
6. Another company has a better offer.  Don’t say “no” to the customer.  Provide an in-store coupon, a sample, a gas card, service, delivery, or warranty.  Give people what they want.
7. I can’t decide.  How to handle objections involves eliminating excess information.  Narrow down the decision to two or three options and focus on the best selling point of each.  Offer your personal preference, if the client asks.
8. I’ll think about it.  Don’t let the client leave without providing specific facts and figures with which he can compare.  Tell him what day and time you will personally be available to discuss it again.
9. It’s not exactly what I want. If you are going to make a sale, you must know how to handle objections like this one. If it is not in stock, order the closest approximation to your client’s need. 
10. It’s just not for me. Show proof that having your product gives your customer greater advantage, potential, and possibilities than not having it.  Be honest, but do what it takes in devising how to handle objections.  Let your client know that you will make it happen for her.

10 Ways to Handle Objections Effectively is a post from: The Science and Art of Selling by Alen Mayer

As a sale representative there are occasions when you will face opposition from a prospective client.  This article will provide you with some specific tools and guidelines to use when you are faced with the dilemma of how to handle objections.

How to Handle Objections Using Listening Skills is a post from: The Science and Art of Selling by Alen Mayer

However, there are a few time-proven methods that sales reps can use to overcome this objection. Here are a few of them:

1. Stop the objection from coming up in the first place. If the sales rep asks the right questions, shows passion, appeals to the client’s emotional hot buttons, demonstrates product knowledge and creates excitement, a lack of money will not be a deal killer. The funds will be found. Seldom is it that money stands in the way of people who really want to do something.
2. Frame the price in relative terms. This begins by researching the market and seeing what the competition is charging. If the price your competitors charge is higher, contrast your price. If their cost is lower, emphasize the unique selling proposition of your product/service and quote a higher price than your product/service sells for – then immediately let your client know that they can purchase it for a reduced price. This approach will sound like a bargain…and who can resist a bargain?
3. Drive home the cost of not buying your product/service. This means educating your client on the benefits of your product/service, and the rewards that they will reap by buying now. This begins with the sales rep having detailed product knowledge, then illustrating the savings of time and/or money that your product/service can offer your client.
4. Know your client’s deepest concerns, and explain how your product/service will solve them. Become familiar with the business and industry your client is in. What keeps them up at night? How can they gain a competitive edge? How can your offer make their life easier? Once you have answered these questions, it is then only a matter of presenting your offer as a way of solving your client’s problems and thus making their life easier if they accept your offer.
5. Remove the price from the conversation and qualify them again – “Let’s forget about the money for a second – do you see your company benefiting from this product?”

Keep these points in mind, and remember that it is all about the client – not you! If these ideas are presented correctly, many price objections will be overcome.

5 Ways to Handle Price Objection is a post from: The Science and Art of Selling by Alen Mayer

To see a fresh approach about how to handle objections during a sales presentation, smart sales professionals can take lessons from smart politicians.

You share a lot of goals with them, but they have one big drawback that most marketers never face; the politician has nothing real to give the person at the time he is seeking something quite real from them, like money, votes and support.

The politician takes a four-step approach to handling challenges.

First, listen to the objection carefully. Don’t rush to meet the objection head on. Don’t let the fact that the question interrupted your momentum and the flow of your presentation annoy you into a curt or dismissive comment. The best approach in how to handle objections always begins with the phrase, “Yes, and….”

Next, refine and narrow the question with your own questions. This uncovers the real scope of the objection, as opposed to only rhetorical challenges. It also exposes and isolates the person who is simply opposed to your presentation on general principles, as distinct from the person open to compromise and persuasion. You can restate the question, but never distort or minimize it. This is a tactic used by desperate meeting facilitators and hard-sell artists, and most people recognize it, even if only unconsciously.

There’s a point where you want to suggest a “lay all your cards on the table” approach which gives you clear targets and paints the challenger into a corner with his own words. This is key to how to handle objections, because once his points are addressed he cannot honestly bring up new ones. “Is fuel mileage your only concern with this car, or do you just not like its looks?”

By now you should be seeing a solution. Use positive phrases, such as “Yes, that is a very important question that leads to an equally important point we are making about our product…..” Most politicians have a deep supply of such stock phrases they can roll slowly off their tongues when most of their brain cells are working quietly on the final details.

Finally, frame your answer in the form of a solution for everyone. Stress what you give up, like a discount or an added feature. You’re being reasonable and more than generous, so invite the challenger to do the same. Seek confirmation that your answer is understood and accepted.

How To Handle Objections Like The Politicians Do is a post from: The Science and Art of Selling by Alen Mayer

The cry of “hard times” is heard at all times, and not just in these hard days and that is where you should refresh your knowledge of how to handle objections during your sales process.

“Times are too hard, I can’t afford to buy anything“ – how often have you heard that in the last few months?

This objection is made during the most prosperous times, as well as during periods of financial depression. Customers are confronting sales people all over the world with this before even they had a chance to show them the products, or tell them how they can benefit of them.

It is seldom, however, that the objection is made seriously. Oftentimes prospects don’t have anything else to say. They don’t mention it seriously and don’t expect you to take it seriously.

So what to do?

Pay no attention to the cry of potential new recession!

Don’t forget that you create the value through how you’re selling, not just through what you’re selling. You can create the value in each step of sales process, but the most value can be created early in the process by helping customers to define their needs (use trigger events!).

Here is the list of 10 things to do:

1. Go back to prospecting and find customers who want to buy in any market, and spend your time only with the decision maker.
2. Use open-ended questions, use clarifying questions, and remember that great questions produce great answers.
3. Make it easy for customers to say “yes”.
4. Ask for the order. Ask for the order. Again, ask for the order.
5. Use direct questions such as: “Are we ready to move on this? When can we get started? Shall I write up the order?”
6. Use active listening skills. Ask for the feedback.
7. Remember to read buying signals.
8. Don’t forget to send a thank you note.
9. If you get the sale, send them a note thanking them for their order.
10. If you don’t get the sale, send them a little note thanking them for taking time to meet with you.

It is intelligence that makes times easy, and it is the lack of intelligence that makes times hard. Go back to basics. Invest in your knowledge and sharpen your skills, that is the best way of not buying the cry of “hard times” from your customers.

Going Back To Basics – 10 Things To Do is a post from: The Science and Art of Selling by Alen Mayer

The main description of your position inside the company is to create the value, not just to show your price list. Teaching and educating customers is no longer enough, giving them information about your products or services is no longer necessary. They can get them by themselves, without ever talking to you or your company, and know more about your product and positioning on the market then you.

If they know so much about you, how can you try to sell them the same product without knowing their business situation or their needs?

Remember that customers are sophisticated; they either have or believe they can get product information more reliably on their own. Information is readily available through many different sources, 24 hours a day, 7 days a week. Internet is full of different forums, blogs, and review or research websites where they can get information about your product easily.

Customers don’t just want a specific product; most of the times they want to solve their pain point or business issues. A customer in today’s competitive sales environment does not expect to educate the sales professional about their business.  Therefore, you must already possess a solid understanding of the customer’s industry, competitors, and business direction.

Developing such a comprehensive view of the customer is a task that requires extensive researching and education to get an overall picture of the customer’s business industry. The modern sales person needs to focus on understanding the customer’s business initiatives, strategic plans, IT environment, and key customer preferences.

If you are still seeing yourself as someone who is there to educate customers, you are living in the past. The time of product-centric sales is gone. Welcome to customer-centric approach in sales.

You need to move away from the focus on presenting your products. Instead a customer-centric approach shows that you recognize and understand your customers’ needs, which is necessary if you want to survive in a 21st Century sales environment.

Your customers are tired of salespeople who come in and are unable to address real business needs, but talk about their company and the hottest feature, or unique one that nobody else has. There are many dimensions that you are selling, and price is only one of them.

If you live by price – you will die by price is a post from: The Science and Art of Selling by Alen Mayer

Action Step:

Ensure that you are able to identify the causes of various objections. This way you will be well-positioned to educate your customers when they don’t fully appreciate the product that you’re selling. A lack of understanding on the client’s part will put an end to any further negotiations regarding the sale. Clear up any misunderstandings before proceeding with your presentation.

Answer These Questions:

• Do you listen carefully to the objections made by your customers or do you simply bypass them and continue with your presentation?
• Are you easily able to identify the causes behind the various objections made by your customers?
• Are you adept at stopping to take care of your customer’s objections and clearing up any issues before continuing with the sales talk?

Sales Tip #12: Educate your customers is a post from: The Science and Art of Selling by Alen Mayer

Having discovered the need to identify objections and deal with them appropriately, it is also important to keep in mind that objections should not be handled aggressively. Why am I saying this? Because there are many different reasons for objections being presented, each one must be handled in its own way, on its own merit. You need to understand the nature of an objection if you wish to address it properly and with the right amount of care.

The nature of an objection is based on the fact that the buyer’s heart and his mind are engaged in a struggle. As we know, it’s the heart that does the buying and the mind that prevents the purchase. Therefore, when a buyer is making an objection, it’s clear that his mind is creating an obstacle for the bit of interest that has been stirred in his heart. In other words, your buyer is interested in your product or service. If he wasn’t, he would have walked away. But the fact that there is an objection means that his heart and mind are competing in a battle of wills over the validity of the purchase.

If an objection has been made in good faith, it may simply be that the prospect is interested in the products but hasn’t the means available to buy them. His common sense (mind) may be trying to prevail over his desire (heart) to make the purchase; but only because he knows that he should keep his money aside for a more essential need. This is a difficult resistance for any salesperson to overcome. However, it may well be in the prospect’s best interest to purchase your product as opposed to buying a new pair of shoes or some other essential item. It is your responsibility to demonstrate this to him, in the appropriate manner.

Again, if the prospect has objected with good intentions, it may be that he does have a strong desire to purchase your product but he thinks that it’s not a wise decision to make as there are other essentials that he needs to buy. Subconsciously, he’s wistfully hoping that his heart is right and his mind is wrong.

Let’s suppose that he thinks it’s foolish to spend money on your product when he needs a new pair of shoes; but he’d rather do without the new shoes if he could have your product without seeming foolish. All that you need to do in this case is to demonstrate to the prospect that making the purchase is a wise move and is not a foolish decision at all. The degree of opposition is in proportion to the weakness of his desire. If he has a strong desire to purchase your product, the opposition of his mind won’t be difficult to overcome and his heart will eventually win the duel.

Most failures in objection handling are due to the salesperson failing to understand the double nature of what he or she is dealing with. You will not succeed in trying to overcome an objection by using a purely mental approach. This is because when two minds are opposed it can only result in antagonism instead of the harmony that you need to acquire the sale. Similarly, meeting an objection with a purely emotive approach will also not secure the deal. A prospect’s mind also needs to be satisfied before he resolves to make a purchase. Even his heart will suspect the sincerity of your emotional appeal.

To be effective, you need to know how to proceed without causing the prospect’s heart to doubt your sincerity or antagonizing his mind to reject your approach. To do this, it will help if you can classify an objection specific to its cause. Objections may be due to one of the following six causes:

1. The buyer’s fears
2. Buyer’s unwillingness to change his buying habits
3. Objection to some feature of the product; or to the proposition itself
4. To general conditions
5. Buyer’s opinion of the salesperson
6. To a “personal” cause that the buyer presently has

The objection is merely a symptom of the ailment – it is not the disease itself. The CAUSE of the objection is the disease. If you discover the cause, you can treat the disease and alleviate the symptom of objection.

Read my previous post: Nobody likes to be sold (but everyone wants to buy!).

The Objection Handling: Mind vs. Heart is a post from: The Science and Art of Selling by Alen Mayer

Not all objections should be received as a negative blow to your sales presentation. In fact, with the exception of two very specific objections, most others can be dealt with effectively and are actually a positive sign that your client is showing some interest. In other words, if the product or service that you are offering holds no appeal to the client, they will not object and will have no desire to continue the conversation with you.

Broadly speaking, the following objections may be viewed as an honest indication that your client will not be persuaded into making a purchase:

1. Firstly, if the client does not have the means to pay for the product and there is no prospect of affordability, this financial objection can essentially put an end to your approach.
2. Secondly, if the prospective client truly has no need for the product or service you are offering, this objection may be considered conclusive to your sales presentation.

If an objection can be removed from the conversation between you and your prospect, the resistance will begin to break down as the proposition automatically becomes more attractive. From this point, a genuine requirement and desire for the product on offer is easily identified, enabling you to make your approach more effective and tailor-made to suit the client’s needs.

However, a clear distinction needs to be made between a genuine objection versus excuses and postponements. These should not be handled as if they were objections because, by doing so, you are effectively creating an obstacle. There are real instances where a client will ask for a postponement or will provide a legitimate excuse – but these are generally easily identifiable. Most other excuses are a polite effort on the prospect’s behalf to end the sales presentation and to make an exit.

By accepting the excuse you have enabled the prospect to accomplish his or her purpose. There is a natural tendency for a prospect to become defensive when they realize they are being approached by a potential sales pitch. But if you are able to courteously side-step the excuse or postponement, about 99% of the time a prospect will not pursue his excuse any further, allowing you to present your proposal without any resistance.

When a client makes an honest objection, it is in your best interest to eliminate the objection. If a client’s concerns are addressed, their confidence in your knowledge and in the value of the product will grow. In that light, if we can use such objections to our advantage then only the real obstacles need to be addressed further.

There really are only three such obstacles that could further prevent a sale:

1. The prospect lacks clear understanding of the product or service you are offering
2. The prospect’s current lack of resources available for buying
3. The prospect’s inability to make use of the product to his benefit

If a prospect doesn’t fully comprehend the proposition that you have presented (WIIFM), your efforts to continue to sell him will be fruitless. If you’re able to identify this obstacle, you need to become an educator to your client and clarify any issues surrounding the product or the proposition. Once there is an understanding, you’re able to proceed with your presentation.

If there is a lack of available funding on the prospect’s part your efforts to continue selling would be unfounded, unless you were able to assist or advise in getting the necessary funds. A pause in the sales process in order to address the financial implications is necessary, until the issue is resolved. If the funds have become available you are able to continue your presentation.

If the obstacle presents itself whereby the prospect lacks the capability of using the products to his advantage, you need to see if you can change the prospect’s circumstances and eliminate the obstacle, before being able to proceed with the sale.

But if there is genuinely no need for the product then continuing the sale is futile. The objective at this point would be to attempt a new sales approach. Failing that, any effort to sell should be abandoned and a new prospect sought for a new sales presentation.

An alternative scenario is that the client has not yet recognized his need for the product.  If you’re able to identify a need that would make your product useful to the prospect, you should point this out to him in the hope that he realizes the benefits attached to making the purchase.

In handling any objection, always try to draw out the client’s reasoning in order to gain an understanding of his situation. A skilled and well-trained salesperson will be able to gather a certain amount of information about the prospect just by communicating effectively with him.

If you start preparing your responses to the most common objections you hear, you will be able to successfully remove any obstacle that may hinder the closure of your sale.

The difference between excuse and objection is a post from: The Science and Art of Selling by Alen Mayer