Feb 8, 2011

If you are in Sales, I bet you will love this.


Difficulties and obstacles are part of a sale

Difficulties and obstacles in the shape of questions and objections are almost certain to arise in the mind of the prospect in connection with any important purchase. These difficulties are most effectively overcome by personal salesmanship. Were it not for the inertia of human nature in looking into new things, the procrastination which delays a definite decision to buy, the questions which must be answered before a prospect is ready to buy, advertising and direct mail follow-up would influence a much larger percentage of logical prospects than is now the case.
These obstacles to the consummation of a sale do exist, however. For convenience they are classified as objections. These objections—these difficulties and obstacles to a sale—are more or less inherent in the selling process. A salesman must accept them as part of the sale and be prepared to meet and overcome or circumvent them.

Classification of objections

Objections may be divided into two broad classifications. First, those which apply to the product or offering itself, referred to as usual objections or, probably more frequently, "stock" objections. Second, those which arise from the peculiar circumstances of a particular sale or from the attitude or frame of mind of the particular prospect approached.
Those "stock" objections applying to the offering may further be subdivided into those which will almost invariably arise in every sale unless they are anticipated by the salesman; and those which, while they are met frequently, do not necessarily arise in every sale. Objections may be viewed, furthermore, from their degree of seriousness. They grade all the way from idle questions and idler statements, criticisms forgotten by the prospect almost as soon as uttered and slight doubts which will quickly be cleared up by the salesman's selling talk, to those important and serious attitudes of mind on the part of the prospect which must be removed or changed before the sale can be made.
The salesman can make specific preparations in advance to meet the usual or stock objections. In the case of the second class, those arising out of the individual situation or by reason of the individual prospect, he must handle, so far as they are new, by falling back on a general method which we shall presently discuss. It will be found, however, that seldom if ever are objections so rare or unusual as to arise on one occasion with one prospect and never again. Usually they are old opponents that the salesman has met many times before and for which he is prepared.

Usual or stock objections

It is essential that the salesman, just as quickly as possible, get a knowledge of those objections which are fairly certain to arise in every sale of his offering, or very frequently, and work out a definite method of handling each one. Frequently his sales executives will work this out or have it worked out for him. The description of a method frequently used by sales executives to ascertain and prepare to meet sales resistance on a new product or service will serve to suggest to the salesman how he may proceed.
The sales manager will require the salesman, over a certain period, to check up after each sales interview and make a list of the objections and points of sales resistance encountered. These reports, sent in daily, possibly accompanied by a resume of the methods the salesman has used to meet the objections raised, are, after a period of time, tabulated by the sales manager, the objections are reduced to a common form and a composite list is made. Usually, this list reveals the fact that all the objections, however numerous, met by all the salesmen, resolve themselves into only fifteen or twenty, and sometimes only eight or ten, categories.
The list of objections thus formulated is then sent to a number of experienced salesmen in the organization with the request that they check each one up separately and state in detail just how they would handle it. The answers or methods of handling the objections thus secured are then reduced to one or two suggested methods embodying all the good points of each. These are then sent to all sales, men.
In the same manner, the individual salesman who will over a period tabulate his objections and sales resistances as he meets them, will find that there are certain situations and objections which will engage his attention. When he has these carefully tabulated he can work out one or more methods of handling each one and then experiment with them in actual practice until he makes them most effective.

Tabulation of stock objections

For illustration, let us tabulate what might be some of the more usual stock objections met in several different lines of selling.
In a staple line:
  • "I am too busy to give you any time today."
  • "I am stocked up—not in the market."
  • "I cannot afford to put in that line just now."
  • "I am satisfied with my present connections—I don't care to change."
  • "Your prices are too high—I can beat those prices."
  • "I can get a better quality at that price."
In electric fuel service :
  • "Electricity is too expensive."
  • "It costs too much to change equipment."
  • "I am satisfied with my present heating arrangements."
  • "I would rather change to oil."
  • "Electricity is too dangerous."
  • "Coal is better than electricity."
In bonds and securities :
  • "I buy all my securities through my banker."
  • "I am not interested in securities just now."
  • "I have no available funds for investment just now."
  • "I prefer real estate as an investment."
  • "Your yield is too low—I can get a better yield."
  • "I don't like public utility bonds—I prefer railroads."
  • "I am not in the market now. Come and see me later."
There are other stock objections in each of these offerings, but the foregoing will be sufficient for purposes of illustration. It is quite possible for every salesman, by means of a careful check-up made in the manner suggested, to get a fairly definite list of the objections which he will usually meet in selling his kind of offering. He can then develop in detail an answer, or a number of answers, to each, and experiment with them until he finds the ones which give the best results.

Special objections

Special objections arise out of the individual circumstances of a particular sale. These may be the personal prejudices of the buyer; the state of local business conditions, or of a particular business ; inexperience or lack of information on the part of the buyer; his preference for some competing product or company; his opinions and preferences concerning terms, discounts and deliveries; his opinion regarding his need for the particular offering, his buying habits or his personal financial condition.
There are others too numerous to mention. It is not possible to get a definite line, in advance, upon special objections or to make any such specific preparation for them as can be done with usual or stock objections. One can prepare himself, however, in a general way by gaining a thorough knowledge of his own proposition and competing propositions. He may do this by learning as much as possible about individual buyers in advance; and by studying the more general needs and problems of each class of buyers. A large part of the salesman's preparation will necessarily come from actual experience in handling buyers.

A fundamental method of handling objections

There is a good general method which is fundamental for handling all kinds of objections. Treat the objection with respect. Concede its apparent reasonableness. If it be unimportant turn it aside briefly and fix attention on another selling point of the offering or problem of the prospect. If it be important meet it squarely by proving in detail that it is not valid. Let us take this method apart and discuss it.

Treat the objection with respect

It is poor salesmanship to ignore or attempt to ride roughshod over an objection. To do so will stiffen opposition. If the objection be treated with respect and courtesy the prospect's opposition is apt to relax. The skilful salesman always shows good sportsmanship in the face of opposition. He expects it and is ready for it. He will say: "I am not surprised that you look at it in that way because—" etc., or, "You are correct about that in one respect—" etc., or "It does seem so on the face of it, but I wonder if—" etc. This may appear to be a small matter but it lessens antagonism and is well worth remembering.

If it be unimportant, turn it aside

Some objections obviously are not seriously offered. They are mere "alibis." Frequently they are made in order to get rid of the salesman. Although unimportant, they are often troublesome. The salesman can not ignore them. He should treat them courteously even though he does not do so seriously.
He tactfully turns the objections aside and makes some statement which is calculated to arouse the prospect's interest and change his attitude. For example, a bond salesman at the outset of the interview may be met with the objection, "I am not interested in securities just now." He can handle that by stating: "I dare say that you are not interested in buying anything just now but I know that you make investments occasionally and one thing that bothers you is how best to keep your investment position well balanced. We have worked out a system of diversification which tells you how to do it. It costs you nothing." And from that point he launches right into his selling talk.
A coffee salesman might be met with this objection:"Nothing in your line today—I am not in the market." He can interest his prospect by talking about conditions in the industry. "I presume you have a fair supply on hand, but have you noticed what the market is doing? Those Brazilian coffee planters are—" etc.
It is interesting to note how quickly the average prospect will drop such an objection when the salesman touches one of his problems. This method can be adjusted to any kind of offering.

If it be important, meet it squarely and show that it is not valid

Many objections go to the merits of the case and, in the mind of the prospect, they constitute good reasons for not purchasing. Such objections cannot be lightly disposed of. They must be faced. The salesman must focus upon some main selling point which meets the objection squarely. An automobile salesman meets the objection: "I can get the Blank car for fifteen hundred; I don't care to pay eighteen hundred. Your car is all right, but your price is too high."
The salesman handles the objection in this way: "Yes, you do lay out a few more dollars at the outset and yet our price is really lower. You get so much more value for your money. Just consider the exclusive features of this car." Here follows a strong quality argument, going into the outstanding details of the car and aiming to prove that it is a remarkable value at the price asked.
A staple salesman frequently meets this objection: "Yes, that is a good line, but I am handling a good line now, and I have a trade worked up in it. I don't care to change connections." The salesman may reply: "You are absolutely right about holding on to a line where you have a trade established. I should do the same if I were in your place but this is not a matter of throwing that line out. It only means making your line more complete. I know how you worked up such a good business as you have here. You have never hesitated to improve your stock and keep it up to date, have you? Now you take this—." Once again the salesman follows with a quality argument on fast selling branded specialties, we will say, which he is endeavouring to persuade the prospect to stock.
Let us get back to the salesman selling fuel gas installations for industrial purposes. A very natural reaction for his prospect to express is : "Gas is too expensive. I don't care to go into it now." In response to this the salesman uses one of the points touched upon earlier in this text, in this manner :
"It may be true that your gas bills will be slightly higher than your fuel bills are now, but I think you will agree that there are other things besides these bills to consider. Take the item of labour alone. You employ highly skilled labour to attend your furnaces. You use labour to haul coal and remove ashes. When you use gas you will not need this labour. The fact is that this saving alone would more than offset the increased fuel bills."
At this point, the salesman is well started on his selling talk on the points of economy of operation, elimination of labour costs, valuable storage space occupied by coal, and no necessity for capital tied up in fuel. His talk bears weight because the customer himself brought up the item of expense.

Some objections common to all offerings

There are a number of objections which are likely to come up, mostly at the outset of the interview, no matter what the salesman's particular proposition may be. These are sometimes referred to as standardized objections. The answers to them have become pretty well standardized, too.

"I am too busy to talk to you now."

The answer to that fundamentally, in one or another variation, is : "I know that you are a busy man, Mr. Prospect. That is why I am here to see you. Busy men are our best customers. I wonder if you noticed the article in last Sunday's Times about—" etc. The principle here is to acknowledge the objection briefly—and then enter into a sales talk.

"I am not interested."

This is probably the most common statement which comes from a prospect, right at the outset, when he desires to avoid an interview—as most men do. Probably the most common answer to it is, "Naturally so. I should be rather surprised, if you were interested at this point, Mr. Prospect. You are not acquainted with just what we are doing.
That is why my company instructed me to see you. They wish you particularly to look into our plans for reducing your costs on—." One of the big points in this particular talk is the statement of the salesman that he has been instructed by his company to call upon the prospect. That is calculated to cause the prospect to realize that the salesman has an important message to convey. The message should offer information that will be interesting.
Though the prospect may have no intention of buying he feels that he may profit by listening. There are countless variations to the standardized answers to objections, calculated to fit the personality of the particular salesman. For example, one salesman of particularly genial personality, when he meets this abrupt, "not interested" statement, simply smiles broadly and asks, "Not interested in what?"
Then, as the prospect hesitates, somewhat mollified by the salesman's most apparent good fellowship, the salesman continues interestingly, "You don't really know, do you? Just let me sit down in your office with you for a few moments. Then, if you are interested, fine. If you are not, I will withdraw without any obligation on your part. That's fair enough, isn't it ?"

When the prospect has heard the story before

A variation of this is the prospect's statement immediately upon the salesman's approach: "I have been all over that. One of your men was through here two months ago and told me the whole story. I am not interested." The salesman meets that attitude of mind with something like this, suited to the particular proposition he is selling: "You know, when a man of your calibre says that to me, I feel that it is because he doesn't know the scope of our service or has no realization of how easy it is to use it. Just let me sit down with you in your office for a few moments and discuss the proposition from those specific angles." The prospect who has been previously talked to and told about the proposition in detail, is disarmed by this suggestion that the proposition be reviewed not in its entirety, but just from one or two angles.

"Can't afford it."

This is another of the obstacles to the sale common to almost any sales proposition—more especially to specialty propositions. It is answered most effectively by showing the prospect that he will pay for the offering whether he buys it or not. The adding machine man proves this to his prospect by figuring the higher cost of all calculating work by the old method. The branded staple man shows the dealer that he will pay in lost sales if he does not stock the goods.
The exclusive agency man shows that the dealer will lose profits which will go to his competitor if he does not accept the agency in question. The advertising solicitor shows the business man who needs advertising that he will pay for the advertising many times over, in trade that passes his door if he fails to advertise. The foregoing will be sufficient to illustrate the applications of the principle. Each salesman must work out for himself methods of applying this "you pay for it whether you buy it or not" idea to fit his particular offering.

Another effective method of handling all objections

A very able sales manager, fearing that his salesmen, no matter how well prepared and trained, would be floored and thrown off the track in the early stages of, their selling work by the objections of their prospects, instructed them to use one single formula in answer to all objections that came up during the interview. That ran something like this: "Well, possibly, Mr. Prospect, there is something to what you say. Tell you what let's do. Let me just run through this whole proposition and tell you my whole story. Then, if, when I have laid all the facts before you, you have any questions in mind, we can discuss them at that time."
The sales manager's theory was that all important and substantial objections or questions of the prospect would be answered to his satisfaction once the whole story was told in full; and that the more or less unimportant ones that he may have brought up would either be effectually disposed of by the salesman's presentation —or forgotten.
Not only is this a good formula for new men—to whom it is likely to mean so much—but it is one that can be used to great advantage by experienced salesmen in certain lines. It is a fact that a prospect might bring up during the course of the sales presentation, a dozen questions and objections, all more or less important, and yet be unable to mention half of them at the conclusion of the salesman's selling talk. Furthermore this method has the advantage of causing the prospect to listen politely during the remainder of the salesman's talk, without interposing any further interruptions.

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