Recognize the question by thanking the person for raising the issue. You may say “I understand how you feel” or “I appreciate your concern.”
Clarify to make sure you fully understand. Say, “Let me make sure I understand that issue so that I can help you. Is it … ?” or “If I am clear about the issue, your concern is … Is that right?”
Deal with their concern. Use one of the power strategies outlined below to deal with it.
Provide factual evidence to support your case (rationality).
Provide documented case studies and reference to support your position (legitimacy).
Show how other clients with similar issues have benefited from your product/service (precedent). Show reference letters.
Identify others in their industry that are getting ahead by using your product/service (competition).
Offer to rebate the full cost — if that is their concern — if they are not fully satisfied (risk-taking). Depending on the client, such an offer could be construed as confidence or desperation. This may cause you additional headaches as you may need to put your offer in writing.
Confirm that the potential buyer has understood your point of view. “Have I made my point?”
Confirm that they agree with you. “Do you agree?”
Never lie if you have no response to an objection. Always recognize that it is a tough and legitimate issue and then ask for time to research the issue and get back to the objector. Suggest a realistic time when this will be done.
Consider avoiding dealing with the objection. Some objections are simply an attempt to be argumentative. Responding might legitimize the issue. So acknowledge the objection by saying, “Yes, I understand how you feel about it, and let me …” You then proceed to deal with another issue. The issue may be forgotten because it wasn’t valid. But if the objection is raised a second time, it probably is valid and needs to be dealt with. Alternatively, offer to come back to the issue.
Deal with the objection upfront and brag about it! You probably could anticipate the most commonly expressed objection in advance. So get it out of the way by turning it into a feature. For example, if the vehicle you are selling is small, you might say: “The vehicle would have been unacceptable a few years ago, but now North American consumers have wised up to the advantage of a car that uses space in ways we couldn’t have even dreamed of, yet still offers the comfort of a much larger vehicle. It also looks great and is more economical than ever before.”
Issues and Answers
There are two sides to every argument — until you take one.
LAWRENCE J. PETER
Here are the most common objections and strategies to deal with them.
“The price is too high.”
This is a frequent objection. Help solve the problem by asking open-ended questions such as “How did you arrive at this conclusion?” or “High compared to what?”
Based on the answer, work with the customer to prove that the price is in fact reasonable. Or find a way to ease the perceived financial burden such as leasing.
Reduce the objection to make it seem ridiculous. For example, if the person is buying a computer and objects to the price, ask how overpriced he thinks it is. If he says $150, ask how long he intends to use it. The answer might be three years. Ask him to estimate the cost per year. Answer: $50 per year. Ask him to calculate the additional cost per day. Answer: about 13¢. Ask how many hours a day will he use it. Answer: 6 hours. Ask what extra cost per hour would this amount to? Answer: about 2¢. Then point out, “Would you lose the opportunity to invest in a computer of this quality for 2¢ an hour?” Guess what will happen?
“I always buy from your competitor and have been completely satisfied.”
Acknowledge her loyalty and share your understanding. Then through questioning, find out why she uses your competitor and why she chose them originally. Depending on her answers, find a way in which you can do better.
“We are closer to you.”
“We deliver in less time.”
“We have made the most innovations to our product as you can see from this survey.”
Ask the person to rate their supplier on a scale of 1 to 10. If she suggests anything less than 10, find out what it is that she is not getting and show how you can meet that particular need.
“You’re too far away from me.”
Change the way she sees distance. Move from miles to time. Even if your office is twice the distance, show that it takes the same amount of time to get to you.
“I don’t like ______________ who works for you. He was rude to me.”
Show your concern and appreciation of his sentiments. Then suggest ways you can remedy the situation, bearing in mind that you have no control over another’s personality. Alternatively, you might ask your customer. “If one of your employees behaved that way, what would you do?” Listen to his response and see if you can apply his solution.
“I don’t like your product because it failed me in this way …”
Don’t argue. Again, show empathy for her comments. Then ask, “Have you ever had a product of yours that failed to meet the needs of your customers? If so, what did you do about it?” Whatever she answers, respond by saying, “That’s exactly what we are working on,” assuming this to be true. If not, let her know that you’ll bring her recommendation to your manager.
“I need to check with someone else.”
Do two things. First, ask for the person’s phone number. That way you can
test whether the need to get approval is legitimate
offer to assist in getting approval
Then find out
whether the customer has approved the purchase and just needs the OK (In that case, offer to make the call.)
whether the “someone else” is the real decision-maker (In that case, offer to phone and get the approval from her.)
what criteria the real decision-maker has for giving the OK
Pricing Issues
What we obtain too cheap, we esteem too lightly.
THOMAS PAINE (1737–1809), ANGLO-AMERICAN POLITICAL THEORIST AND WRITER
One of the key needs of a customer is value. Value does not mean cheapness; it means creating the perception that there are sufficient benefits to justify the price you are charging.
Prices may go up or down. This can cause your client to be puzzled, surprised, annoyed, or even angry.
Here are the reasons for and strategies to deal with price changes.
The primary reasons for price changes include the following:
Technological changes. Newer technological innovations are often more expensive since demand is initially high.
Obsolescence. Prices may be cut on end-of-the-line products.
Quality improvement. As mistakes, reworks, and returns are reduced, the increased efficiency can be passed on to the customer through lower prices.
Financial problems. If an organization has a liquidity crunch, it may resort to price-cutting to reduce inventories quickly, turning them into cash.
Rationalization. Improved work processes can lead to dramatic cost reductions, some or all of which can be passed on to the customer.
Competitive pressures. The market might simply not allow change to a premium without being able to demonstrate some added-value advantage.
In the event of a significant price change — up or down — be sure to do the following:
Explain why. Be rational in showing why there has been an increase. Provide factual data instead of opinion-based discussion. If your price has declined, show the client the advantage, trying to link the change to project a customer focus.
Help the client overcome problems associated with the price increase. Suggest, for example, that they
order before the increase
order more to take advantage of a bulk discount
do a promotion to ensure that inventory clearance helps their bottom line
consider other ways of saving money such as alternative delivery methods, less expensive packaging, using their staff for some of the process, etc.
Here are some strategies to deal with “sticker shock”:
Stay away from price resistance levels. Charging $99.99 seems so much easier to deal with than $100. The difference is inconsequential, but psychologically significant.
Amortize the price. Instead of quoting $10,000, consider selling on the basis of $500 per month. If you need an example, just think of the popularity of lease finance on premium vehicles.
Quote a price range to give the client time to adjust. Suggest a price range that is not too broad, such as $12,000 to $14,000. If you quote $10,000 to $15,000 it might suggest to the client that you are testing them for acceptance and are likely to “load” the price if they do not protest.
Avoid roundup prices. If you are doing a significant job for a client, and quote $10,000 or $100,000, they are likely to feel that you’ve rounded up the price and built a lot of “fat” into it. A price of $9,400 or $98,700 sounds far more legitimate.