How to handle the top 10 SME Sales Objections - Part II
How to handle the top 10 SME Sales Objections - Part II
Tactics for Negotiation
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.
Planted by Competitor
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
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.
The top 10 Sales Objections that SME’s face are as follows;
1. You are too expensive! - This is obviously a ploy, since you should have been getting the customer to iterate the value of your offering in their terms, throughout the sales cycle. Ask them the following, make sure you use the word “feel”, since this could be an emotional response; “In respect of the value you believe you will be getting which is X, how do you feel this is too expensive?” This will give you the real reason, or may just help in clarifying what they are really getting.
2. You are too small! - This is a genuine concern for a lot of buyers. However you have not got to the closing stage of a sale, if you did not have something that they want. In this instance, you need to ask specifically – “In what way do you feel we are too small” and then answer that concern, with a matching benefit about size, such as the ability to meet their needs easily, due to your size and agility.
3. I will need to check with the Boss! - Why are you trying to close a sale with someone who does not have authority to buy? If they do have authority, they are looking for time, because something has spooked them, you need at this stage to ask them “If you could make the decision now – would you buy it?” and if the answer is yes follow up with “will you then recommend to your boss that we buy it, would you like me to meet with your boss to help you?”
4. You don’t have XYZ feature! - One of the oldest in the book, normally preceding a negotiation – unless of course they really want it, in which case, why did you only find out now? The best response is to ask them first “If we had XYZ feature, would you go ahead?” if the answer to that is yes ask them “What benefit, in addition to those that we have discussed will that bring?” This will flush out if it is real, and will also give you a chance to put their value on this new feature, which you can then build into the pricing.
5. Not sure if I have the budget for that! - Again, without a budget clearly identified, what are you closing for? What you need to do is reiterate the value, discuss how they had previously agreed to fund it, and ask if you can help with finance. The old fashioned hard-sell “If budget was not an issue” just doesn’t cut the mustard anymore!
6. I can get that cheaper elsewhere! - You have to ask them the direct question “would that be the exact same model, with the same options and the same level of support that we give you?” If they answer yes to that, then wish them all the best and walk away if you know your price is fair. Many times, it is a ploy, and sometimes a competitor is “buying” the business – don’t sacrifice your margins for the sake of it!
7. Our policy is to go out to tender! - Again, I must ask, why now, why did you not know the decision making process beforehand? Still if you didn’t know, you must clarify what the basis of decision will be. It is always smart to ask straight up, if they would award you the business if they did not have to go out to tender. Helping write the RFT (Request for Tender) is one of the surest ways of winning!
8. How can I be sure you will still be in business in 2 years? - This is probably the most difficult to answer, especially as you won’t know exactly where they are coming from. If you are a software company and they are worried that they would lose the rights to the source code, should things go wrong – use a company to hold the code in Escrow. What ever the situation, always ask for clarification as to their concern.
9. Not sure if we need one right now! - Oh for goodness sake! What have you been selling? Have you not clarified early on in the sales cycle; a date of ownership, the value of owning what you are selling and what happens if they maintain the status quo? If you have done all the above correctly, then ask what has happened to make them change their mind?
10. I’ll need to get back to you on that! - Don’t let them off the hook now. You must not let them get away, without setting the date and time for the next meeting, when they will deliver you a decision. You should ask them what criteria they will be using for that decision, and if there is anything else you can do to help them.
There are far more objections than these which you will face, however most of them are variations on a theme. The most important thing to do is to clarify the reason behind the objection, by asking open ended questions. Always make it easy for the prospect to save face, and remember, the more qualifying you do up front, the less objections you will face at the close!
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 II - To learn more about this author, visit Peter Lawless's Website.
Like this article? Share it with your friends
To recap briefly, in part I, we saw that potential customers generally raise objections for three specific reasons.
Tactics for Negotiation
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.
Planted by Competitor
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
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.
The top 10 Sales Objections that SME’s face are as follows;
1. You are too expensive! - This is obviously a ploy, since you should have been getting the customer to iterate the value of your offering in their terms, throughout the sales cycle. Ask them the following, make sure you use the word “feel”, since this could be an emotional response; “In respect of the value you believe you will be getting which is X, how do you feel this is too expensive?” This will give you the real reason, or may just help in clarifying what they are really getting.
2. You are too small! - This is a genuine concern for a lot of buyers. However you have not got to the closing stage of a sale, if you did not have something that they want. In this instance, you need to ask specifically – “In what way do you feel we are too small” and then answer that concern, with a matching benefit about size, such as the ability to meet their needs easily, due to your size and agility.
3. I will need to check with the Boss! - Why are you trying to close a sale with someone who does not have authority to buy? If they do have authority, they are looking for time, because something has spooked them, you need at this stage to ask them “If you could make the decision now – would you buy it?” and if the answer is yes follow up with “will you then recommend to your boss that we buy it, would you like me to meet with your boss to help you?”
4. You don’t have XYZ feature! - One of the oldest in the book, normally preceding a negotiation – unless of course they really want it, in which case, why did you only find out now? The best response is to ask them first “If we had XYZ feature, would you go ahead?” if the answer to that is yes ask them “What benefit, in addition to those that we have discussed will that bring?” This will flush out if it is real, and will also give you a chance to put their value on this new feature, which you can then build into the pricing.
5. Not sure if I have the budget for that! - Again, without a budget clearly identified, what are you closing for? What you need to do is reiterate the value, discuss how they had previously agreed to fund it, and ask if you can help with finance. The old fashioned hard-sell “If budget was not an issue” just doesn’t cut the mustard anymore!
6. I can get that cheaper elsewhere! - You have to ask them the direct question “would that be the exact same model, with the same options and the same level of support that we give you?” If they answer yes to that, then wish them all the best and walk away if you know your price is fair. Many times, it is a ploy, and sometimes a competitor is “buying” the business – don’t sacrifice your margins for the sake of it!
7. Our policy is to go out to tender! - Again, I must ask, why now, why did you not know the decision making process beforehand? Still if you didn’t know, you must clarify what the basis of decision will be. It is always smart to ask straight up, if they would award you the business if they did not have to go out to tender. Helping write the RFT (Request for Tender) is one of the surest ways of winning!
8. How can I be sure you will still be in business in 2 years? - This is probably the most difficult to answer, especially as you won’t know exactly where they are coming from. If you are a software company and they are worried that they would lose the rights to the source code, should things go wrong – use a company to hold the code in Escrow. What ever the situation, always ask for clarification as to their concern.
9. Not sure if we need one right now! - Oh for goodness sake! What have you been selling? Have you not clarified early on in the sales cycle; a date of ownership, the value of owning what you are selling and what happens if they maintain the status quo? If you have done all the above correctly, then ask what has happened to make them change their mind?
10. I’ll need to get back to you on that! - Don’t let them off the hook now. You must not let them get away, without setting the date and time for the next meeting, when they will deliver you a decision. You should ask them what criteria they will be using for that decision, and if there is anything else you can do to help them.
There are far more objections than these which you will face, however most of them are variations on a theme. The most important thing to do is to clarify the reason behind the objection, by asking open ended questions. Always make it easy for the prospect to save face, and remember, the more qualifying you do up front, the less objections you will face at the close!
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 II - 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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