eBusiness Weekly
Robert Gonye
The word “no” can be a tough pill to swallow. In selling, when you’re trying to meet a quota, squeeze in an extra deal before the end of the quarter, or get your bonus, the word “no” is too often interpreted as a sign to run for the hills.
Worse, some salespeople see most objections as a call to battle. With this attitude, it’s no wonder they handle sales objections poorly. However, when we break it down, you can see that objections can actually be a good thing.
What is a sales objection?
A sales objection is an explicit expression by a buyer that a barrier exists between the current situation and what needs to be satisfied before buying from you. In other words, it’s a clear signal that you have more work to do in the selling process.
The Most Common Sales Objections
Sales objections often signal that you haven’t made the value proposition case to the buyer as powerfully as possible. Typically, sales objections fall into a need, urgency, trust or money category. When a buyer indicates that they’re not ready to buy, we recommend using the four step approach
- Listen Fully to the Objection
Your first reaction when you hear an objection may be to jump right in and respond immediately. Resist this temptation. When you react too quickly, you risk making assumptions about the objection Instead:
Take the time to listen to the objection fully.
Don’t react defensively
Train yourself to ignore any negative emotions you may be feeling
Stay focused on what the buyer is saying and the business problem you’re helping to solve
- Understand the Objection Completely
Many objections hide underlying issues that the buyer can’t or isn’t ready to articulate. Often the true issue isn’t what the buyer first tells you. It’s your job to get to the heart of the objection — to fully understand it and its true source.
To do this, ask permission from the buyer to understand and explore the issue. From there, restate the concern as you understand it.
- Respond Properly
After you’re confident you’ve uncovered all objections, address the most important objection first. Once you work through the greatest barrier to moving forward, other concerns may no longer matter as much to the buyer.
- Confirm you’ve satisfied the Objection
Once you’ve responded to the buyers objections, check if you’ve satisfied all of their concerns. Just because they nodded during your response doesn’t mean they agreed with everything you said. Ask if the buyer is happy with your solution and explain your solution further if necessary.
If the buyer isn’t ready, don’t try to force a commitment. Be sure not to accept a lukewarm “yes” for an answer though, either.
What to Keep in Mind when dealing with Money Objections in Sales
Tips for Responding to Money Objections
To overcome money objections without lowering your margins, keep in mind:
Choose your words wisely: As much as you might like to respond, “You get what you pay for,” or, “Those are our fees and we’re worth every cent,” don’t. There’s no simplistic answer to money objections.
It’s not all about the money: Price is often a “red herring” objection. Work to uncover the real objection. Ask questions. Find out if money is really the issue with one simple question: “If money wasn’t an object, what then?” This will usually lead you to the root objection to the sale.
Get back to value: Communicate a clear picture of the value of the solution you established in the selling process. The right buyer can usually “find” the money if the value is too strong to pass up—if the solution you’ve proposed answers their needs especially well. Most times when buyers say, “Your price is too high,” what they’re really saying is, “I don’t see the value of your solution.”
Ask, “Which part don’t you want?” Review the component parts of the solution. This may lead to either a reduction in scope or having the buyer realise the whole package is the best solution.
Don’t talk cost structure: You’ll end up going down a slippery slope if you start justifying your price by what your costs are.
Don’t drop price in a vacuum: If you’re willing to simply drop your price, you’re telling buyers this is the way you operate. Instead, explore new possibilities, change scope, or make a trade that could change the price. An arbitrary price reduction can sow mistrust and set the precedent for lower prices for as long as you work with that buyer.
Be sure you’re talking with the decision maker: You may be dealing with the wrong buyer who isn’t high enough in the organisation, or isn’t the economic decision maker. Money is certainly an objection for them because they can’t pull the trigger even if they wanted to.
Typical Money Objections
Money objections come in many different flavours and they often mean something entirely different. Work to get to the heart of the objection. Here are common money objections, what they sound like, and what they mean:
- Bluffing
What the buyer says: “Oh, I don’t have the money. We’ll need to do it for less.”
What it means: The buyer has the money, but doesn’t want you to know that. It’s a ploy to see how low you’ll go.
- Value Challenge
What the buyer says: “It costs too much. Money is going to be a problem.”
What it means: The buyer doesn’t see the value your solution delivers. Perhaps they can’t justify spending more than they did previously.
When faced with sales objections, don’t lose sight of your end goal: overcome the sales objection and make advances towards gaining commitment from the buyer.
Remember, you have to work with these people once you’re done selling to them! Remind salespeople that objections have merit: they’re often a sign that something else is going on.
Robert Gonye is a business growth expert and influencer. He writes in his capacity. Comments and views: [email protected]
