How to handle the top 10 SME Sales Objections - Part I
How to handle the top 10 SME Sales Objections - Part I
Sales objection Type 1 – Negotiation Tactics
Assuming that your buyer fully appreciates the value that your product will bring them, some still need to get a “deal”. The range of people looking for a deal can be entrepreneurs, professional procurement and government departments.
You must get the customer to reiterate the value that they are getting first and foremost. This will strengthen your negotiating position. If it is confirmed that they really need this, and that they truly believe that you have the best solution for them, you must make a judgment call. This in effect means that you must also look at the lifetime value of the customer, and whether winning the immediate negotiation, could affect future relationships. Remember, we must always strive for a win-win scenario, since good customers become long-term partners!
If you feel you need to still do a deal, try and throw something into the deal that they need. Why – because a discount comes straight out of your profit. Giving them a value added service, not only costs less, but it gives them a deal, while making their life as a customer even better.
Sales objection Type 2 – Competitor Planted
Very few sales professionals operate in a vacuum. They normally have to face competitors at many different stages in the sales cycle. The earlier you face them and help the customer reject them, the easier your job will become. Many top sales professionals, who know that their customers need to go out to tender, help the customers, write the Requests for Proposals (RFP). I always remind sales people that I work with – “if receiving an RFP is a surprise – losing it shouldn’t be!”
One of the competitive tactics, I teach, is to “Raise the Bar”. What this basically means is that if you’re neck and neck in a competitive bid, throw in some additional features or benefits, which the customer may need, that you know your competitor can’t deliver.
A great tactic, but what do you do if this happens to you? You need to test if this is a genuine requirement. You need to ask them how valuable to their business would having this requirement be. You also need to confirm whether or not it is a sale breaker. If it is, then either walk away, or see if you can match their need in a way that still benefits both parties.
Sales objection Type 3 – Genuine Concern, or an Expectation Gap
The final type of objection arises normally due to a lack of qualification, or indeed not following an appropriate sales process. If at the close, a potential buyer is still not convinced, then either you have closed too early, or you have not addressed all their concerns.
At this stage, you need to find out exactly what the issue it is. It may be one of lack of authority – they can’t actually make a decision to purchase, or is could be because they have not matched the value your product can give them, with their needs and expectations.
Price should certainly not be an issue, if your customer appreciates the value of the product or service. Size and financial viability also fall into this category, and there are a number of ways of turning these around to appease the customer’s concern
The most common reason, and indeed the easiest to solve, is the “prove it” objection. Like all others, this should be confirmed as the last remaining question, by asking something like – “If we can do or show you that, will you go ahead”. A selection of proof points may be a pilot, a reference visit or maybe a factory tour if you manufacture your own products.
In Part II I willl cover the top 10 objections, based on research. Click here to access the article directly: Part II - Handling Sales Objections, faced by SMEs
Our existing customers get weekly advice like this directly for their sales teams. You may wish to consider Interim Sales Management, which is a service we provide to help drive up your sales.
How to handle the top 10 SME Sales Objections Part I - To learn more about this author, visit Peter Lawless's Website.
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Potential customers generally raise objections for three specific reasons. Two of these are easily handled. The third however, normally points to a fundamental breakdown in the sales process. All is not however lost, and while most of these can be overcome, it is important to understand why they arose, and ensure future sales do not fall into the same trap.
Sales objection Type 1 – Negotiation Tactics
Assuming that your buyer fully appreciates the value that your product will bring them, some still need to get a “deal”. The range of people looking for a deal can be entrepreneurs, professional procurement and government departments.
You must get the customer to reiterate the value that they are getting first and foremost. This will strengthen your negotiating position. If it is confirmed that they really need this, and that they truly believe that you have the best solution for them, you must make a judgment call. This in effect means that you must also look at the lifetime value of the customer, and whether winning the immediate negotiation, could affect future relationships. Remember, we must always strive for a win-win scenario, since good customers become long-term partners!
If you feel you need to still do a deal, try and throw something into the deal that they need. Why – because a discount comes straight out of your profit. Giving them a value added service, not only costs less, but it gives them a deal, while making their life as a customer even better.
Sales objection Type 2 – Competitor Planted
Very few sales professionals operate in a vacuum. They normally have to face competitors at many different stages in the sales cycle. The earlier you face them and help the customer reject them, the easier your job will become. Many top sales professionals, who know that their customers need to go out to tender, help the customers, write the Requests for Proposals (RFP). I always remind sales people that I work with – “if receiving an RFP is a surprise – losing it shouldn’t be!”
One of the competitive tactics, I teach, is to “Raise the Bar”. What this basically means is that if you’re neck and neck in a competitive bid, throw in some additional features or benefits, which the customer may need, that you know your competitor can’t deliver.
A great tactic, but what do you do if this happens to you? You need to test if this is a genuine requirement. You need to ask them how valuable to their business would having this requirement be. You also need to confirm whether or not it is a sale breaker. If it is, then either walk away, or see if you can match their need in a way that still benefits both parties.
Sales objection Type 3 – Genuine Concern, or an Expectation Gap
The final type of objection arises normally due to a lack of qualification, or indeed not following an appropriate sales process. If at the close, a potential buyer is still not convinced, then either you have closed too early, or you have not addressed all their concerns.
At this stage, you need to find out exactly what the issue it is. It may be one of lack of authority – they can’t actually make a decision to purchase, or is could be because they have not matched the value your product can give them, with their needs and expectations.
Price should certainly not be an issue, if your customer appreciates the value of the product or service. Size and financial viability also fall into this category, and there are a number of ways of turning these around to appease the customer’s concern
The most common reason, and indeed the easiest to solve, is the “prove it” objection. Like all others, this should be confirmed as the last remaining question, by asking something like – “If we can do or show you that, will you go ahead”. A selection of proof points may be a pilot, a reference visit or maybe a factory tour if you manufacture your own products.
In Part II I willl cover the top 10 objections, based on research. Click here to access the article directly: Part II - Handling Sales Objections, faced by SMEs
Our existing customers get weekly advice like this directly for their sales teams. You may wish to consider Interim Sales Management, which is a service we provide to help drive up your sales.
How to handle the top 10 SME Sales Objections Part I - To learn more about this author, visit Peter Lawless's Website.
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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