| A Sale is considered closed when the buyer and | | | | (RFP). I always remind sales people that I work |
| seller reach agreement on terms for the buyer to | | | | with - "if receiving an RFP is a surprise - losing it |
| take ownership of a product or service. To get to | | | | shouldn't be!" |
| this stage, the seller normally has to "close" the | | | | One of the competitive tactics, I teach, is to |
| sale, by asking the buyer for their business. This is | | | | "Raise the Bar". What this basically means is that |
| where the buyer raises "objections". Objections | | | | if you're neck and neck in a competitive bid, |
| generally fall into three main types. This article will | | | | throw in some additional features or benefits, |
| explore the types of objection, how they arise | | | | which the customer may need, that you know |
| and how to overcome and avoid them. Part II will | | | | your competitor can't deliver. |
| then discuss the 10 most common objections, and | | | | A great tactic, but what do you do if this happens |
| how to handle them to close the sale. You must | | | | to you? You need to test if this is a genuine |
| get the customer to reiterate the value that they | | | | requirement. You need to ask them how valuable |
| are getting first and foremost. | | | | to their business would having this requirement be. |
| Potential customers generally raise objections for | | | | You also need to confirm whether or not it is a |
| three specific reasons. Two of these are easily | | | | sale breaker. If it is, then either walk away, or |
| handled. The third however, normally points to a | | | | see if you can match their need in a way that still |
| fundamental breakdown in the sales process. All is | | | | benefits both parties. |
| not however lost, and while most of these can be | | | | Sales objection Type 3 - Genuine Concern, or an |
| overcome, it is important to understand why they | | | | Expectation Gap. |
| arose, and ensure future sales do not fall into the | | | | The final type of objection arises normally due to |
| same trap. | | | | a lack of qualification, or indeed not following an |
| Sales objection Type 1 - Negotiation Tactics. | | | | appropriate sales process. If at the close, a |
| Assuming that your buyer fully appreciates the | | | | potential buyer is still not convinced, then either |
| value that your product will bring them, some still | | | | you have closed too early, or you have not |
| need to get a "deal". The range of people looking | | | | addressed all their concerns. |
| for a deal can be entrepreneurs, professional | | | | At this stage, you need to find out exactly what |
| procurement and government departments. | | | | the issue it is. It may be one of lack of authority |
| You must get the customer to reiterate the | | | | - they can't actually make a decision to purchase, |
| value that they are getting first and foremost. | | | | or is could be because they have not matched |
| This will strengthen your negotiating position. If it | | | | the value your product can give them, with their |
| is confirmed that they really need this, and that | | | | needs and expectations. |
| they truly believe that you have the best solution | | | | Price should certainly not be an issue, if your |
| for them, you must make a judgment call. This in | | | | customer appreciates the value of the product or |
| effect means that you must also look at the | | | | service. Size and financial viability also fall into this |
| lifetime value of the customer, and whether | | | | category, and there are a number of ways of |
| winning the immediate negotiation, could affect | | | | turning these around to appease the customer's |
| future relationships. Remember, we must always | | | | concern |
| strive for a win-win scenario, since good | | | | The most common reason, and indeed the |
| customers become long-term partners! | | | | easiest to solve, is the "prove it" objection. Like all |
| If you feel you need to still do a deal, try and | | | | others, this should be confirmed as the last |
| throw something into the deal that they need. | | | | remaining question, by asking something like - "If |
| Why - because a discount comes straight out of | | | | we can do or show you that, will you go ahead". |
| your profit. Giving them a value added service, | | | | A selection of proof points may be a pilot, a |
| not only costs less, but it gives them a deal, while | | | | reference visit or maybe a factory tour if you |
| making their life as a customer even better. | | | | manufacture your own products. |
| Sales objection Type 2 - Competitor Planted. | | | | In Part II I willl cover the top 10 objections, based |
| Very few sales professionals operate in a | | | | on research. Click here to access the article |
| vacuum. They normally have to face competitors | | | | directly: Part II - Handling Sales Objections, faced |
| at many different stages in the sales cycle. The | | | | by SMEs |
| earlier you face them and help the customer | | | | Our existing customers get weekly advice like this |
| reject them, the easier your job will become. | | | | directly for their sales teams. You may wish to |
| Many top sales professionals, who know that their | | | | consider Sales Management Outsourcing, which is |
| customers need to go out to tender, help the | | | | a service we provide to help drive up your sales. |
| customers, write the Requests for Proposals | | | | |