How to deal with Common Objections in Sales

Sales and revenue production can be a frustrating game when prospects don’t buy. Too often in sales, price is the main objection by prospects. While there are times when this is legitimate, price objections can be indicators that you have failed in your sales process. Use price objections to get a better handle on the situation. When a prospect feels your service or product costs too much, ask yourself the following questions:

• Do I really understand the prospect’s needs?
• Have I communicated value?
• Am I speaking to the purse holder?
• Should I work with them on the price?

Do I really understand the prospect’s needs?

Regardless of objection, you should always look to see if you truly understand the prospect’s needs. Somewhere along the way you have asked the prospect about his or her situation and determined that your product or service could help with a particular issue. Make sure when you are in the interviewing stage of the sales process that you ask plenty of probing questions to determine the points of pain to your prospect. Always verify with them at the end of the call that you understand their needs. It is as easy as asking…”So that I understand completely, you are telling me that you are having trouble with X service and production is poor in this area?” This will confirm their areas of need. Price objections are often a prospect’s way of saying that you failed to uncover my true needs and your service doesn’t match them.

Have I communicated value as well I can?

Going hand in hand with understanding needs is your responsibility to show value in what you are selling. Price concerns are equal to the lack of value perceived by your prospect. When showing value, use real examples and factual results of clients that already work with you. Explain how your service or product reduces costs, improves production or any number of other benefits. Make sure to back statements up with facts and never deal with hypothetical situations. By showing your prospect that ABC Company increased revenue by 25% after using your service, you are making a strong statement. Sell the results to build the perception of value.

Am I speaking to the purse holder?

One of the quickest ways to get around the price objection is to make sure you are speaking to someone that can make a decision to purchase. Find out early on if you are speaking to this person or not. This can be done by simply asking…”If you decide to move forward with us, are you the person who will make the final decision?” If the person you are speaking to is not, then you need to get to the person who holds the purse. It is ok to start with someone lower on the decision making pole, but make sure it is only a step to get to the person with authority. Then if price comes up you can look at other possible reasons for the objection.

Should I work with them on the price?

What if you understand the prospect’s needs, have communicated value, and have spoken to the decision maker and price still comes up? Now is the time for you to make the decision to either work with them on price or move on. Sometimes a prospect really wants to work with you, but the cost is just too much for them. This happens often when dealing with different sized prospects. Try and look at the overall picture. If you work on them with price now, will they always need to get discounts? Will this eventually lead to a bigger opportunity with this prospect? Will this prospect lead to other accounts through referrals or good public relations? How will the loss of immediate revenue affect your company and your commission? These are all things to consider when working with your prospect on price. Make sure that you have all the information you need to make the decision that works for both sides.

Conclusion

Price objections are common and can make sales difficult, but if you take a step back and look at why they are brought up you can use them to your advantage. Remember, an objection is your prospect telling you that your job isn’t done yet! Focus on the prospect’s needs and the value you offer and, in turn, price objections will not be as common.