1. Responding to Objections
Chapter 11

2. Important Questions Answered
► When do buyers object?
► What objections can be expected?
► How should salespeople prepare to respond to
objections?
► Which methods and techniques are effective when
responding to objections?
► How do you deal with tough customers?
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3. Objection
► An objection is anything the prospect says or does
that is an obstacle to smooth closing.
► Objection is a concern or a question raised by the
buyer.
► Opposition or resistance to information or the
salesperson’s request is an objection
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4. WELCOME OBJECTIONS
► Learn to Accept Objections as a Challenge Which,
When Handled Correctly, Will benefit you and
Your Prospect.
► If You Fear Objections. You Will Fumble Your
Response Often Causing You to Fail.
► Prospects that buy have 58% more objections
► Learn to overcome objections
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5. WHY PROSPECTS OBJECT
•Dislike decision making
•Prefer old habits
Psychological
•Reluctance to give up something old for something new
reasons
•Unpleasant past associations with you or your company
•Resistance to domination
•Perceived threat to self image
Logical •All or part of the presentation was misunderstood
Reasons •Prospect is not convinced
•Hidden reason (stall)
Question: WHEN DO PROSPECTS OBJECT?
Any Time During Your Sales Call - From introduction to
Answer:
close.
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6. What Does a Prospect
Mean by an Objection?
Is the prospect’s
Is the prospect’s
response a...
response a...
Request for more
Request for more Hopeless
Hopeless
Condition?
Condition? True objection?
True objection?
information?
information? objection?
objection?
Major?
Major? Minor?
Minor?
Practical?
Practical? Psychological?
Psychological? Practical?
Practical? Psychological?
Psychological?
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7. Examples of Objections
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8. Basic Points to Consider in Meeting
Objections
► Understand objections
 Request for information
 A condition (negotiation can overcome a
condition)
 Major or minor objection
 Practical or psychological objection
►A real objection is tangible
►The salesperson must uncover hidden
objectives and eliminate them
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9. When Do Buyers Raise Objections
Prospect may object any time during sales call. Always be
ready to handle a prospect’s objections. Problems could
also be raised during formal sessions
►Setting up an initial appointment
►The presentation
►Attempting
►After the sale
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10. Setting up an initial appointment
Prospects may object to setting the appointment
times or dates that salespeople request to introduce
the product. This type of objection happens
especially when products, services, or concepts are
unfamiliar to the buyer.
No, I don't need to see you.
I've not heard much about what you're sell­ing, so it
must not be too good.
The same types of objections can also occur during
the approach.
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11. The presentation
Buyers can offer objections during the approach to
the presentation. They may not like or believe the
salesperson's attention getting opening statement.
They may not wish to engage in small talk or may
not agree with statements made by the seller
attempting to build rapport. Buyers may object to the
salesperson's stated goals for the meeting.
Objections often come up to points made in the
presentation. Buyers sometimes let the salesperson
deliver the entire presentation without showing any
reaction. Judging the effectiveness of the
presentation is difficult in such circumstances.
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12. Attempting
Objections may be voiced when the salesperson
attempts to obtain commitment. Skill in uncovering
and responding to objections is very important at this
stage of the sales call. Also, knowing the objections
that are likely to occur helps the salesperson prepare
supporting documentation (letters of reference,
copies of studies, etc.). Salespeople who hear a large
number of objections at this point in the sales call
probably need to further develop their skills. An
excessive number of objections may indicate a poor
job at needs identification and the omission of
significant selling points in the presentation.
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13. After the sale
Even buyers who have agreed to purchase the
product or service can still raise objections. The
objection may include the quality of the product or
service, the customer service department's lack of
friendliness, or the credit department's refusal to
grant the terms the salesperson promised. To
develop long-term relationships and partnerships
with buyers, salespeople must care­fully respond to
these objections
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14. Common Objections
Types of Objections:
1. Related to Needs
2. Related to the Products
3. Related to the Source
4. Related to the Price
5. Related to the Time
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15. Related to Needs
► I DO NOT NEED THE PRODUCT OR
SERVICE
► WE NEVER DONE IT THAT WAY
BEFORE
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16. I DO NOT NEED THE PRODUCT
OR SERVICE
A prospect may validly state that the company has no
need for what the salesper­son is selling. Salespeople
may encounter objections such as "My business is
different" or "1 have no use for your service." These
objections, when made by an accurately qualified
buyer, show that the buyer is not convinced that a
need exists. This problem could have been prevented
with better implication and need payoff questions. If
the salesperson cannot establish a need in the
buyer's mind, that buyer can logically be expected to
object.
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17. WE NEVER DONE IT THAT WAY
BEFORE
Most human beings are creatures of habit. Once they
develop a routine or establish a custom, they tend to
resist change. Fear or ignorance may be the basis for
not wanting to try anything new or different. The
buyer's natural tendency to resist buying a new
product or changing from a satisfactory brand to a
new one can be found behind many objections.
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18. Related to the Products
► I DON'T LIKE THE PRODUCT OR
SERVICE FEATURES
► I DON'T UNDERSTAND
► I NEED MORE INFORMATION
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19. I DON'T LIKE THE PRODUCT
OR SERVICE FEATURES
Often the product or service has features that do not
satisfy the buyer. At other times the prospect will
request features currently not available.
► I don't like the design.
► It doesn't taste good to me!
► I wish you included free maintenance.
► I was looking for a lighter shade of red.
► I can't get my machines repaired quickly by your
service technicians.
► It took a month for us to receive our last order.
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20. I DON'T UNDERSTAND
Sometimes objections arise because customers do not
understand the salesperson's presentation. Because
these objections may never be verbalized, the seller
must carefully observe the buyer's nonverbal cues.
Misunderstandings frequently occur with customers
who are unfamiliar with technical terms, unaware of
the unique capabilities of a product, or uncertain
about benefits arising from services provided with
the product, such as warranties. Unfortunately,
buyers often will not admit that they do not
understand something.
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21. I NEED MORE
INFORMATION
Some buyers offer objections in an attempt to get
more information. They may have already decided
that they want the product or service but wish to
fortify themselves with logical reasons they can use
to justify the purchase to others. Also, the
salesperson may not have provided enough credible
proof about a particular benefit. Conflict may also
exist in the buyer's mind. One conflict could be a
struggle taking place between the dictates of
emotion and reason. Or the buyer may be concerned
about the risk, and the seller hasn't sufficiently sold
value. The buyer may be trying to decide between
two competitive products or between buying and not
buying
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22. Related to the Source
► I DON'T LIKE YOUR COMPANY
► I DON'T LIKE YOU
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23. I DON'T LIKE YOUR COMPANY
Most buyers, especially industrial buyers, are
interested in the sales representative's company
because the buyer is put at risk if the seller's firm is
not financially sound, cannot continually produce the
product, and so forth. These buyers need to be
satisfied with the selling company's financial
standing, personnel, and business policies. But
unvoiced questions about the sales rep's company
may affect their decisions and the long term
partnerships the sales rep is trying to establish.
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24. I DON'T LIKE YOU
Sometimes a salesperson's personality clashes with a
prospect's. Effective salespeople know that they
must do everything possible to adjust their manner to
please the prospect. At times, however, doing
business with some people appears impossible.
Prospects may object to a presentation or an
appointment because they have taken a dislike to the
salesperson or because they feel they cannot trust the
sales­person.
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25. Related to the Price
► I HAVE NO MONEY
► THE VALUE DOES NOT EXCEED THE
COST
►
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26. I HAVE NO MONEY
Companies that lack the resources to buy the
product may have been classified as prospects. The
ability to pay is an important factor in lead
qualification. An incomplete or poor job of
qualifying may cause this objection to arise. When
leads say they cannot afford a product, they may
have a valid objection. If so, the salesperson should
not waste time; new prospects should be
contacted.
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27. THE VALUE DOES NOT
EXCEED THE COST
Most buyers must sacrifice something to buy a
product (called opportunity costs). The money spent
for the product is not available for other things.
Buyers usually object until they are sure that the
value of the product or service being acquired more
than offsets the sacrifice.
► I can't afford it.
► I can't afford to spend that much right now.
► I never accept the first price quoted by a salesperson.
► I was looking for a cheaper model.
► I don't care to invest that much; I'll use it only a
short while.
► I can beat your price on these items
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28. Related to the Time
► I'M JUST NOT INTERESTED TODAY
► I NEED TIME TO THINK ABOUT IT
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29. I'M JUST NOT INTERESTED
TODAY
Some prospects voice objections simply to dismiss
the salesperson. The prospect may not have enough
time to devote to the interview, may not be interested
in the particular product or service, may not be in the
mood to listen, or may have decided because of some
unhappy experiences not to face further unpleasant
interviews. These objections occur when salespeople
make a cold canvass or try to make an appointment.
Particularly aggressive, rude or impolite salespeople
can expect prospects to use numerous excuses to
keep from listening to a presentation.
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30. I NEED TIME TO THINK
ABOUT IT
Buyers often object to making a decision "now."
Many, in fact, believe that post­poning an action is
an effective way to say no
► I haven't made up my mind.
► I want to think it over.
► I'm not ready to buy.
► I don't want to commit myself.
► I think I'll wait awhile.
► I want to look around.
► I'm waiting until my inventory goes down.
► Just leave me your literature. I'll study it and then let
you know what we decide.
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31. 31

32. OTHER OBJECTIONS
► I'm satisfied with the company we use now.
► We have a reciprocity agreement with your
competitor.
► We are all stocked up.
► We have no room for your line.
► There is no demand for your product.
► You'll have to see Mr. X.
► .My brother-in-law is in the business.
► Your competitor just came out with a brand-new
product that seems superior to yours.
► I've heard complaints from my friends who use your
product.
► I prefer to do business with Islamic-owned firms.
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33. 33

34. 34

35. 35

36. Invalid Objections
Hidden objection
► Prospect who asks trivial, unimportant questions
► Prospect conceals feelings beneath a veil of silence.
► The salesperson must ask questions and carefully listen in
order to smoke out the prospect's real objection.
Stall "Put Off"
► "I'll think it over..."`
► "I'll be ready to buy on your next visit"
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37. TYPES OF OBJECTIONS
Stopper Objection - no solution can be found
No •This is widely used because it gets rid of the salesperson.
Need •It is tricky because it also includes a hidden objection and/or a stall.
•Encompasses several forms of economic excuses
•It is simple for the buyer to say.
Say that it is risky to discuss the product's price until it can be
compared to the product's benefits.
When buyer asks
for the price ----OR----
No Quote the price and go right on selling.
Money Once you convey the benefits, price becomes a secondary factor which usually can be
dealt with successfully.
•Used to determine if a prospect is or is not convinced the price
The is too high.
Price / Value •Price/value = cost
Formula. Cost comparison of what is received to money paid.
Value what the prospect sees the product doing for them.
•Usually a stall •You must determine if the statement is truth or it is a smoke
No •Screen for decision screen designed to get rid of you.
Authority making authority •One of the 37
toughest stalls to overcome arises when selling a
early new consumer product.

38. Classify the Objection
1.Product objection
Six Basic 2.Objection to the salesperson
Categories 3.Objection to the your company
of Objections 4.Don't want to make a decision
5.Service objection
6.Price objection
•Major or minor objection.
Other •Practical or psychological objection.
Classifications •Practical (overt).
•Psychological (hidden).
Some General Tips for Handling Objections
•Keep the buyers attitude toward your product positive.
•Let buyers know you are on their side
•Help with objections.
•If you get no response, give a multiple choice question to display an attitude of genuine caring.
•Your goal is to help your prospect realistically examine reasons for and against buying now.
•The main thing is not to be satisfied with a false objection or stall.
•Bring out any or all of your main selling benefits now and keep on selling!
•They need your product or service
The prospect •Your product is the solution to my problem
must agree •You are the person from whom I should buy
that •Your company is the one to deal with
•The time to buy is now
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•The price and terms are fair

39. Traits and Behaviors of Successful
Salespeople
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40. Preparing To Respond
► Develop a positive attitude
► Commit to always tell the truth
► Anticipate objections
► Relax and listen – do not interrupt
► Forestall known concerns
► Evaluate objections
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41. Develop a positive attitude
To respond to objections effectively, nothing can
substitute for having a positive attitude. Proper
attitude is shown by answering sincerely, refraining
from arguing or contradicting, and welcoming even
inviting objections. Objections should be expected
and never taken personally. The temptation to prove
the prospect wrong, to say "I told you so" or "I'm
right and you're wrong," is always strong. This kind
of attitude invites debate, encouraging perhaps even
forcing the prospect to defend a position regardless
of its merits. Egos get involved when prospects find
their positions bluntly challenged.
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42. Commit to always tell the truth
In dealing with prospects and customers, truthfulness
is an absolute necessity for dignity, confidence, and
continued relations. Lying and deception are not a
part of a successful long term relationship. Over time
it will be hard to remember which lie you told to
which customer. Salespeople should avoid even
white lies and half truths when they answer
objections. One way to avoid lies is to spend more
time gaining knowledge about their products and the
products of their competitors.
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43. Anticipate objections
Salespeople must know that at some time, objections
will be made to almost everything concerning their
products, their companies, or themselves. Common
sense dictates that they prepare answers to
objections that are certain to be raised because few
salespeople can answer objections effectively. When
salespeople know an objection will be raised, they
should have good answers ready. The ability to
respond readily to objections helps to build
confidence. Unanticipated or unanswerable
objections can easily cause embarrassment and lost
sales.
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44. Relax and listen – do not interrupt
When responding to an objection, listen first and
then answer the objection. Allow the prospect to
state a position completely. Do not interrupt with
an answer, even if the objection to be stated is
already apparent to you. Listen as though you have
never heard that objection before. Using humor
may help defuse the nervousness that both buyer
and seller are feeling during this part of the
process.
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45. Forestall known concerns
Good salespeople, after a period of experience and
training, know that certain features of their products
or services are likely to be misunderstood, or are
materially different from competitors' products. The
salesperson may have products with limited features,
may have to quote a price that seems high, may be
unable to offer cash discounts, may have no service
representatives in the immediate area, or may
represent a new company in the field. In these
situations, salespeople often forestall the objection?
To forestall is to prevent by doing something ahead
of time. In selling, this means salespeople raise
objections before buyers have a chance to raise them.
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46. Evaluate objections
Objections may be classified as unsatisfied needs (i.e.,
real objections) or excuses. Excuses are concerns
expressed by the buyer that mask the buyer's true
objections. Thus, the comment "I can't afford it
now" would simply be an excuse if the buyer
honestly could afford it now but did not want to buy
for some other reason. Salespeople need to develop
skill in evaluating objections. No exact formula has
been devised to separate excuses from real
objections. Sometimes it is best to follow up with a
question
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47. 47

48. 48

49. Strategies for Deciding when to Answer Objections
Anticipate
•incorporate objections and the answers in the presentation
and •You should be certain that the objection will arise
Forestall Objections •Prevents a confrontation and communicates objectivity
•Gives you time to present more benefits
Postpone •Allows you to maintain control
•Gives you time to think about the response
the •Acknowledge the objection
Answer •Employ empathy
•Promise to get back to the question
•Write it down
Answer •The prospect not listening.
Immediately •The prospect feeling that you are hiding something.
Postponement of •The appearance that you also feel it's a problem.
objections •The appearance that you're not able to answer because you do not know the answer.
•The appearance that you are not interested in the prospects opinion.
may result in: •The appearance that you are not sympathetic
Do Not
Answer •Serious objection will be repeated
an Excuse •Not answering suggests that the excuse is not truly relevant
Disagree •Selling should be win-win
•Don't try to show up the prospect
Without •Challenge ideas without offending
Being
Disagreeable Remove blame by prefacing answer. "I have not made myself clear......"
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Make a concession before taking exception: "You raise an excellent point….."

50. Effective Response Methods
► Listen carefully
► Repeat prospect’s objections
► Acknowledge the apparent soundness of the prospect’s
opinion
► Evaluate the objections
► Decide on the method(s) to respond
► Get a commitment from the prospect
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51. A Negotiating Strategy for Handling Buyers’ Concerns
(A Six-Step Process)
Listen Carefully Hear the Prospect Out
Confirm •Validate the Problem
Your Understanding •Clarify and Classify
of the •Use confirmation questions
Objection •Ask if there is anything else
•Try to distinguish between genuine objections and excuses
•I understand how you feel
Acknowledge their •That is a logical question
Point of View •Restate or rephrase in your own words
•Use words such as, “I understand how you feel”
•Prepare the prospect for your answer
•The prospect's behavioral style
•Select a specific •Phase of the interview
technique •The prospect's mood
•Base your decision on: •The number of times that this objection came up
•The type of objection
Answer the objection
•Confirm with the buyer that you have answered the objection
Attempt to Close 51
•Continue the Presentation If You do Not Succeed

52. Answers Based on Concrete Evidence
•compare advantages and disadvantages
Product
•When the prospect is mentally comparing the present product or a
comparison:
competing product with your product, you may make a complete
comparison of the two
case history or
•Describe the experience of a customer whose situation is similar to
testimonial
that of the prospect
•One of the most convincing ways to overcome buyer resistance and
Demonstration specific objections.
•Sometimes a second demonstration is needed to overcome buyer
skepticism.
•Removes resistance by reassuring that the purchase will not result in
Guarantees or a loss.
warranty •Guarantees must
•be meaningful
•provide for recourse on the part of the customer
cost of delaying •The prospect wants to wait a while before making a final decision.
•Use pencil and paper to show that delaying the purchase is expensive
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53. Flow-Chart Approach for Handling
Objections
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54. Common Methods Of Responding
Probe first (using probing method) to be sure you understand the objection
and to make sure the buyer is really concerned about it
Direct denial
If the buyer makes a statement that Indirect denial
is factually not true, use
Compensation
Feel-felt-found
If the buyer raises a valid concern Boomerang
or offers a valid opinion, use Pass-up
Postpone
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55. Common Methods Of Responding
 Direct Denial
 Indirect Denial
 Compensation Method
 Feel-Felt-Found Method
 Boomerang Method
 Pass-up Method
 Postpone Method
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56. Direct Denial
At times salespeople face objections based on
incomplete or inaccurate information by the buyer.
They should respond by providing information or
correcting facts. When using direct denial, the
salesperson makes a relatively strong statement to
indicate the error the prospect has made. No one
likes to be told that he or she is wrong, so the direct
denial must be used with caution. It is appropriate
only when the objection is inaccurate and potentially
devastating to the presentation. The salesperson
must also possess facts to back up such a denial. The
direct denial should never be used if the prospect is
merely stating an opinion or if the objection is true.
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57. Indirect Denial
In the indirect denial method, the salesperson denies
the objection but attempts to soften the response.
The salesperson takes the edge off the response by
agreeing with the prospect that the objection is an
important one. Prospects expect salespeople to
disagree; instead, a salesperson who recognizes the
sincerity of the objection will carefully respect the
prospect's view. This approach avoids a direct
contradiction and confrontation. To begin an
answer, a salesperson would do well to agree with the
prospect, but only to the extent that the agreement
does not weaken the validity of the salesperson's
later denial.
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58. Compensation Method
Every product has some advantages and some
disadvantages compared to competing products.
Also, an absolutely perfect product or service has
never been developed; the firm always has to make
cost benefit decisions about what features to include.
Buyers note these trade-offs and often object because
the salesperson's product is less than perfect. The
wise salesperson will admit that such objections are
valid and then proceed to show any compensating
advantages. This approach is called the
compensation method of responding to objections.
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59. Feel-Felt-Found Method
When buyers' objections reflect their own attitudes or
opinions, the salesperson can show how others held
similar views before trying the product or service. In
this method, called the feel-felt-found method, the
salesperson goes on to relate that others actually
found their initial opinions to be unfounded after
they tried the product. The sequence of the feel-felt-
found method is important, as is the person or
persons identified in each stage. The sequence
should be as follows: I can see how you feel. . . others
felt the same way. . . yet they found. . . Inexperienced
sales­people often mix up the order or the parties
identified
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60. Boomerang Method
When using the boomerang method of responding to
objections, the salesperson turns the objection into a
reason for acting now. This method can be used in
many situations. The boomerang method requires
care. It can appear very pushy. It sounds like a high
pressure sales tactic. This method does have useful
applications, however. Often the product or service is
actually designed to save the buyer substantial
amounts of time or money. If the buyer objects to
spending either the time to listen or the money, the
boomerang method may be a powerful tool to help
the buyer see the benefit of investing these resources
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61. Pass-up Method
At times the buyer voices opinions or concerns more
to vent frustration than anything else. When this
occurs, the best strategy may be to use the pass-up
method: Simply let the buyer talk, acknowledge that
you heard the concern, pause, and then move on to
another topic. Sometimes the salesperson can use the
pass-up method by simply agreeing with the
prospect and then moving on, which suggests to the
buyer that the con­cern really should not be much of
an issue. The pass-up method should not be used if
the objection raised is factually
false.
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62. Postpone Method
In the early part of a sales interview, the prospect may
raise objections that the salesperson would prefer to
answer later in the presentation, after discovering the
prospect's needs. Using the postpone method, the
salesperson would ask permission to answer the
question at a later time. Some objections are best
answered when they occur; others can be responded
to most effectively by delaying the answer. if the
buyer is convinced that he or she deserves the answer
right now? Then the salesperson should answer the
objection now.
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63. 63

64. Classic Objection Handling Techniques
Feel •Answer it by referring to a third party and using that experience as your "proof or testimony".
Felt •If the source is reliable or reputable this can be especially successful with the expert or skeptical prospect.
Found I understand how you feel
Let a Third Your friend, Hugh Jass, felt the same way
Party Answer.
Here is what he found.
Compensation
or •Admit the objection is valid
Counterbalanc •Describe some counterbalancing benefit
e
Ask "Why?" •Answer with a question
•Rephrase the objection
Direct •Considered a high risk method of handling buyer resistance. Use it with care.
•If the buyer resistance is not valid, there may be no other option than to refute it by providing accurate information.
Denial •Example: If the quality of the product is questioned, meet the statement head on with whatever proof seems appropriate.
•Be firm in stating your beliefs and be sincere, don't be offensive.
•Acknowledge that the prospect is at least partially correct.
Indirect •It initially appears as agreement with the customer's objection but moves into denial of the fundamental issue.
•If done in a natural, conversational way the salesperson will not offend the prospect.
Denial •Rephrase or have the prospect rephrase
•Blame yourself
•Give the facts that answer the objection
Boomerang
turn the •Prospect: "I don't like the size"
objection into a •Seller: "The size is exactly the reason you should buy it!"
benefit
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65. Using the methods
Salespeople often combine methods when answering
an objection. For example, a price objection may
initially be postponed and then be discussed later,
using the compensation method. At other times
several methods can be used in one answer. Before
moving on with the presentation, the salesperson
needs to make sure that the buyer agrees that all
objections have been completely answered..
► Did I answer your question?
► Does that make sense?
► Do you see why that issue is not as important as you
originally thought?
► I hope I haven't confused you.
► Do you have any more questions
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66. 66

67. The Price Objection
Sales managers continually hear from salespeople that
price is the most frequently mentioned obstacle to
obtaining commitment. Price is still an issue even
between partnering firms. One leading firm in its
industry has estimated that only 3 percent of its orders
are sold at list price; the rest are price discounted
► Use Up-to-date Information
► Establish The Value
► Use Common Communication Tools Effectively
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68. Use Up-to-date Information
Successful salespeople make sure they have the
most current pricing information available to them.
They know not only their prices, but competitors'
prices as well. Firms are helping salespeople in this
regard.
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69. Establish The Value
The product's value must be established before the
salesperson spends time discussing price. The value
expected determines the price a prospect is willing to
pay. Unless the salesperson can build value to a
point at which it is greater than the price asked, a
sale will not occur. As a rule, value cannot be
established during the early stages of the
presentation. Price objections are best handled with
a two step approach. First, the salesper­son should
try to look at the objection from the customer's
viewpoint, asking questions to clarify the customer's
perspective, the next step is to sell value and quality
rather than price.
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70. Use Common Communication Tools
Effectively
Just telling customers about quality and value is
not enough. Intangible features can also provide
value that offsets price. Some of these features are
► Services
► Company Reputation
► The Salesperson
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71. Services
Good service in the form of faster deliveries,
technical advice, and field assistance is but one of
the many intangibles that can spell value, savings,
and profits to a customer.
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72. Company Reputation
For a customer tempted to buy on price alone,
salespeople can emphasize the importance of
having a thoroughly reliable source of supply: the
salesperson's company. It has been demonstrated
time and again that quality is measured by the
reputation of the company behind it.
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73. The Salesperson
Customers value sales representatives who go out of
their way to help with problems and promotions
salespeople who keep their Word and follow
through when they start something.
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74. Effective Strategies for Coping with Price
Objections
The meaning of a price •The prospect places insufficient value on the product
objection •A competitive product is a better deal
•The prospect just wants to bargain
YOUR PRICE IS TOO HIGH YOUR PRICE IS TOO HIGH!
•Learn to respond to this objection.
•It is inevitable.
•Buyers will object just to get a discount.
•Knowledgeable buyers know that there is often a standard discount for which
they qualify
•Price objections are an opportunity to sell the value of the product or service.
•The danger is to respond to the wrong price objection.
•"Tell me more" or "Explain" 74

75. Six fundamental price perspectives:
Price versus •Discover the differences between the competitor's proposal and your proposal.
•The price is lower because
competition •the product or service is less robust.
•A time related "special offer."
Price versus •Was it a budget, or an expectation
approved budget •Was it based on old or unreliable data?
•Was the prospect told about a less expensive solution provided to a friend?
Price versus •Explore the friend's solution.
buyer expectations •The buyer can then accept the other solution at a lower price
•The buyer can then accept the higher price for the original solution.
Price versus •Your price is being compared to a process alternative.
a process alternative •Buying software may be compared to manual methods.
•There are often new benefits that are simply impossible with the manual method.
Price versus •Maintenance or support costs can be greater than the original cost.
a percentage of the •20 years ago hardware and software was more expensive than support.
product price (for •Today hadware and software costs are low. Labor for support is high.
•Support may be more comprehensive than in the past.
continuing services) •Understand and communicate these changes to the prospect
•Denies the cost of labor of the participant
Price versus •Denies the cost of extended time to implement.
•Example: lawn care.
"do-it-yourself" •Everyone can cut grass cheaper than hiring a service
•Few enjoy spending time on this chore.
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•"Do it yourself" places less value on your time

76. When Dealing with Price Resistance
•Add value with a cluster of satisfactions.
•Point out the relationship between price and quality.
•Explain the difference between price and cost.
•Employ the Presumption of Exclusivity
•Stress your product's exclusive features
DO •Identify extras that only come from you
•Sell quality, exclusivity and differential features
•Sell Down
•All prospects have a buying range
•Show the best first and then let the prospect reduce price by
removing features or lowering quality
•Apologize for the price.
DON' •Make price the focal point of your sales presentation.
T •Become demanding,
•Become defensive
•Become hostile
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77. Five Question Sequence Method of
Overcoming Objections
Q "There must be some good reason why you're hesitating.
1 Do you mind if I ask what it is?"
YES Ask what it is and Go To Q2
Q "In addition to that, is there any other NO Go To Q3
2 reason for not going ahead?"
YES Go forward to discuss this
Q "Just supposing, M. Buyer, you could... NO Go To Q4
3 then you'd want to go ahead?"
Answer GO TO Q2
Q "Then there must be some other reason.
4 May I ask what it is?" No Answer GO TO Q5
Q
"What would it take to convince you?"
5
This series of questions keeps the conversation going and gets the
real objections out in the open which helps increase your sales.
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78. Dealing with Tough Customers
Salespeople give up when faced with tough customers,
rather than work with them to mutual benefit. Instead,
sellers need to maintain the positive attitude discussed
earlier, even with rude, hard-to-get-along-with
prospects. It's not easy, and it's not fun. Sellers need to
realize that we all have bad days. Maybe the buyer is
just having one. If the buyer continues to be
unreasonably rude, you might want to kindly call
attention to the fact. After all, to develop a long term
win-win relationship and partnership you both need to
be on the same footing. The buyer's culture often
dictates the way he or she will respond to a seller.
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79. End of Chapter 11

80. Thank you