With increased product and service commoditization, sellers in almost every industry complain about price pressure and shrinking margins.
At the same time, there are some sellers and sales organizations who are consistently winning sales against lower-priced competitors and growing their margins.
The word "no" can be a tough pill to swallow.
In selling, when you're trying to meet a quota, squeeze in an extra deal before the end of the quarter, or get your bonus, the word "no" is too often interpreted as a sign to run for the hills when, in fact, it should be the exact opposite.
A sales objection is an explicit expression by a buyer that a barrier exists between the current situation and what needs to be satisfied before buying from you. Beyond that, it's an indication that the buyer is engaged, which sure beats apathy.
However, you still have work to do.
When a buyer indicates that he is not ready to buy, don't get discouraged. Use the following 4 steps to overcome sales objections and move closer to the sale.
In this post Tom writes, "A lot of the time, however, price is not the only issue and it's merely being used as a smoke screen."
I couldn't agree more. Price often is not the heart of the issue but an indicator that something else is going on. Clients will use the price objection because it's a convenient excuse.
In his article, Tom provides 4 excellent thoughts to help you get control of the price discussion. Check them out here.
I'd add a few more to his:
How many of us have heard from prospects, "Your fees are too high," "Someone else will do it for less," or "I don't see why I have to pay all that money just to have you do an audit, write a brief, create a marketing plan, etc.?" And, more important, how many resist the urge to simply lower our fees to get the work?
Master the 4 types of sales objections, and you'll be on the road to much greater sales success.
An objection is not a rejection; it is simply a request for more information. - Bo Bennett
Are you the type of person who quickly deals with sales objections, providing answers immediately, trying to overcome them as quickly as possible and move towards the close?
Prospecting and setting appointments via cold call is not easy. But learn to overcome these objections, and you'll instantly find more success in it.
A recent business-to-business client of ours closed a mid-six figure deal that started with a cold call.
But it started out rocky. Indeed, about 20 seconds in to the cold call it almost fell apart.
"Your fees are too high; can you do it for less?"
In the highly competitive marketplace we hear dreaded phrases like this all of the time. The easy thing to do is to offer a discount, but that cuts into your profit margins and sets a precedent for the future. You don’t want to become a victim of discounting gone wrong.
So what do you do when clients push back on your fees?