Jacques will be speaking at the April 2015 Power Series Breakfast on The Power Close
I read an article in the Harvard Business Review that quoted researchers Lynette Ryals and Iain Davies. It wasn’t comforting. According to them only nine percent of sales meetings end in a sale and only 1 out of 250 salespeople exceed their targets.
They observed 800 salespeople in live sales meetings. What they discovered was a revelation. The majority of salespeople that failed to close a sale, were poor at overcoming objections. The super stars were, in the main, great at thinking on their feet.
So, it is clear to me that more time needs to be spent on objection handling.
Back to the “Price Objection.”
A price objection is simply a prospect saying, “You haven’t demonstrated enough value for me to feel comfortable yet.”
To get to the nub of a price objection, sales people first have to understand the difference between price and value.
Price is what’s paid for an item at a given time. Value is an investment made in exchange for future value.
So, how do you make sure that your product stacks up in the prospect’s perception of value? Ask these three questions:
- What is your unique selling proposition (your point of difference)?
- What value does your company bring to the table?
- Why should the prospect care?
Your prospects are pretty jaded when it comes to hearing sales pitches. They’ve heard the same party line from both you and your competitors over and over.
Do these sound familiar:
- We’ve got the best service
- We’re available 24/7
- We’re best-of-breed
- We have leading-edge technology
- We’ve been in business for over 30 years
These hackneyed phrases are your perception of what is valuable, not your prospect’s. If you want to swing the deal your way, you need to get into your prospect’s head and find out what is valuable to him.
Unfortunately, many sales people don’t understand the true value of their product and if they do, they don’t know how to articulate that value in such a way that it presses the prospect’s emotional hot buttons.
How Does One Uncover The True Value Of Your Product?
There are two ways to go about this:
- Talk to your existing customers
- Eat your own dog food
Talk to your existing customers and find out:
- Why did they buy from you?
- What is it about your product or service they like?
- How do they use your product or service?
- What problem does your product or service solve?
- How does your product and service impact them?
Eat your own dog food
As hard as it is to believe, some companies don’t consume their own products or services. Using your own wares is a great way to get first-hand experience and allows you to empathise with the customer.
Deliver value to your prospect
Your prospect has a lot competing for his attention. To cut through the clutter, you need to highlight value more than ever before.
To overcome the dreaded price objection your job is to determine the prospect’s motivation for buying your product or service, and then articulate that value in such a compelling way so that your prospect feels comfortable buying from you.
What will swing the deal your way is to answer these three crucial questions for the prospect:
- Is the price worth the investment?
- Is the risk worth the reward?
- Is the effort worth the impact?
Take another look at how you overcome the “price objection” and see how you can bring more value into the mix.
If you do this, I’ve no doubt that you will close more sales more consistently.