Tag Archive 'Objection Handling'

Nov 19 2009

Daily Sales Tip #97

There are some things that you should try to emphasize when dealing with a pricing objection:

  1. Stress the value of ownership versus the cost of purchasing.
  2. Stress the value of the service versus the cost of the service.
  3. Stress the value of long-term benefits versus the up-front costs.
  4. Stress benefits rather than features.

———-

Subscribe to my daily sales tips and you will receive a free ebook every 30 days, plus extra discounts on my books, CD’s, webinars and seminars. If you would like to stop receiving my tips, you can unsubscribe at any time. Subscribe today by filling the form on the right-hand side. Thanks!

Another option: visit DailySalesTip.com and get your sales tip of the day!

  • Share/Bookmark

One response so far

Oct 12 2009

Podcast: If you live by price - you will die by price

Published by Alen Majer under Audio / Podcast, Sales Books

If your prospect does not see the value in your product or service, and if the only difference between you and the competitors is in pricing, you didn’t do a good job as a sales person. 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.

This is an excerpt from my new audio book Trigger Events.

If you are in sales, you need this audio book - period. When you start using techniques mentioned in this book and learn where to find trigger events and how to use them, you will be able to get to the proposal itself much faster because you will know that your prospects are already qualified for your product or service, and you will have information about their needs gathered before the meeting or presentation.

If you order today, you will save $10 on the full price of the audio book, plus the shipping cost ($6.50) is on us on every order received before October 31st!

Read more how to order your copy of the audio book: Trigger Events.

  • Share/Bookmark

No responses yet

Aug 12 2009

The Sales Process by Marshall W. Northcott

Published by Alen Majer under Guest Blogger

Today I have a guest on my blog, his name is Marshall W. Northcott and he is a master in the field of sales training, coaching and consulting, with over 20 successful years of practical work experience and a solid track record in the sales industry. He partners with progressive, growth oriented organizations in challenging and rewarding roles that allow him to leverage his skills and assets in corporate sales, sales management and/or customer service. Here is his article:

The Sales Process

In the early years of my sales career, what I discovered was missing most was what I affectionately call the finesse skills.  Closely related to those finesse skills is what is commonly referred to as The Sales Process.

If you study most activities that occur in business after a while, you will notice that a pattern emerges.  Every successful outcome is preceded by a series of steps that make it possible for you to arrive at that outcome.  Simply put it’s like preparing a recipe.  If you use and properly prepare the ingredients as instructed, cook them in the manner suggested, for the length of time outlined, you will likely enjoy the desired outcome expected.  These success steps are known as The Sales Process.  Anyone who is willing to learn and master these steps will enjoy the greatest of rewards during their career in professional selling.  However if you don’t know and/or recognize the steps and in addition you have a haphazard, random approach although you may get results, those results will likely be limited, inconsistent, unpredictable and less than what you are truly capable of.

At the core of The Sales Cycle is the thought process that will make a significant difference in your success.  Establishing winning thought patterns is essential to achieving sustainable, long term results.  This training includes psychology, personality styles, people skills, communication skills, business and time management skills.  On the outer portion of The Sales Cycle you will note the various steps of the selling process from new business generation (or prospecting) to qualifying, to pre-call planning, to telephone skills, to appointment scheduling, rapport building, needs assessment, proposal preparation, presentation skills, objection handling, closing techniques, negotiation skills, on-going customer service and asking for referrals.

Work ethic is extremely important, however, hard work alone will only get you so far.  I’ve always worked hard without being told to do so.  Unfortunately, I discovered that left me short of hitting my objectives and reaching my sales goals.  There are a number of essential skills and beyond those are many other pieces of the puzzle that can have a huge impact on results.  Our primary goal through a structured, formal training program is to discuss these pieces of the puzzle, explain what they are individually and then cover how they fit together.

In The Bourne Supremacy, the second in the trilogy, there is a line in the movie that is directed towards Matt Damon’s character and those other individuals who were trained to be operatives like him.  Bourne gets caught crossing a European border and one of government agents states that he must have made his first mistake, a random error and got caught.  The woman who had once been his handler states, “It’s not a mistake they don’t make mistakes, they don’t do random, there’s always an objective, always a target.”  The point is that they were trained, programmed and conditioned to know what they were doing at all times and be 100% conscious of it at all times.  You will find that those sales professionals who end up at the top of the ranks in their chosen field are the same!  There is a reason for everything that they say and do their timing is well thought out and positioned, they are perfectly deliberate in their actions.

It isn’t practical to think that anyone, who doesn’t commit themselves to their profession, can fully reach their potential.  It is also rare for the majority of people to step up and take on this responsibility on their own.  If you are one of those rare individuals who has acted on your own in the past, congratulations!  It is likely that you are well on your way to achieving exceptional results in your sales or business endeavors.  You may already be in a management position or one of the principles of your organization.  This is all best summed up by the quote, “Those who don’t need a boss are usually asked to be one.”  Either way, in order for people to be fully productive contributors to the corporate effort, knowing and putting the steps of The Sales Process into action each and every time is not optional, it must be mandatory.

Visit Marshall’s website at www.marshallnorthcott.com.

  • Share/Bookmark

2 responses so far

Jun 25 2009

If you live by price - you will die by price

Published by Alen Majer under Objection Handling

If your prospect does not see the value in your product or service, and if the only difference between you and the competitors is in pricing, you didn’t do a good job as a sales person. 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.

  • Share/Bookmark

5 responses so far

Mar 01 2009

Podcast - don’t compromise on price

Published by Alen Majer under Audio / Podcast

Alen Majer - TSE Daily Interview

Alen Majer - TSE Daily Interview

“Times are too hard, I cannot afford to buy anything“- how often have you heard that in the last few months?

So what to do when customers complain about the price?
Why is compromising on price such a bad idea?

How to win the deal and not even touch the topic of discounting of your product or service?

Listen to my interview with Top Sales Experts Daily:

Read more about Top Sales Experts here.

  • Share/Bookmark

No responses yet

Feb 19 2009

Three Classes of Price Objections

Objections to price are the most frequent of all objections. The ability to meet these successfully is a valuable asset, and efficient selling is impossible without it. It is so important that every sales manager should take special efforts to see that each member of his sales force is able to meet successfully price objections.

Price objections may 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 cannot tell this kind of price objection, and continue with arguments 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 the plan of sale with that in mind. On the other hand, if the customer cannot 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 Valentine’s day 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.

  • Share/Bookmark

No responses yet