How to Overcome Sales Objections
The ability to overcome pricing objections is a skill that every salesperson must master.
In fact, 35% of salespeople mention pricing issues as one of their top selling hurdles. Understanding that price is almost never the real obstacle is the key to overcoming pricing objections.
No matter how excellent the offer is, the majority of purchasers will try to haggle the price. There are 2 main causes for this: First of all, it's their job. They have a duty to shop around for the greatest deal possible since they are the buyer. Second, asking has no negative consequences ("if you don't ask, you don't get"). The client is aware that no salesperson will ever back out of a deal just because they have been offered a discount.
How well the consumer thinks your product works will determine whether or not they make a purchase from you, regardless of whether or not you offer a discount.
It is essential not to focus just on value, as simply having a solution that provides a considerable amount of value to your client will not necessarily be enough to close the transaction on its own. The individual responsible for making sales must have complete faith that the client is aware of the whole scope of the value that the solution provides.
Building Value
To be able to extract value, we must first be able to define what we mean by value, and there are two distinct sorts of value that are significant in this context:
1. The quantitative, measurable form that is associated with a cost
2. The value which derives from how you make another person feel about themselves.
The first of them, which will determine the structure of your value offer, is the one that will be the easiest to tackle; nonetheless, salespeople seldom get it completely right. If done effectively, it has the potential to set you apart from other businesses in your industry.
To further understand this concept, picture what takes place when you toss a rock into a body of water: it creates waves, also known as ripples. These ripples are at their greatest extent close to the site of contact, but they persist for some time and distance away from that point of impact, diminishing in size but still having an effect and creating movement in the water. One might think of the measurable value of a solution in the same way, with the larger waves indicating the most significant and, in most cases, the greatest cost advantages of the solution. But the effects of a solution, much like the ripples in the water, continue to be felt long after the original great waves have subsided.
Capturing the larger, more noticeable waves is simple for salespeople. Capturing the value that results from all of those tiny ripples, even those that hardly stir the water, is the key to success and separating oneself from your rivals (who can also easily capture those "larger waves"). There is a measurable value in each and every wave. When these are combined and presented to the consumer, not only does the ROI dramatically increase, but you also reinforce your case by showcasing a thorough knowledge of your client's industry.
In everyday language, this translates to considering factors other than the value added by resolving the primary problem or difficulty faced by the consumer (the big ripples). It is of the utmost importance that you figure out precisely what value is to your consumer.
Examine aspects like how soon you can supply your solution, what levels of support are accessible to your client, etc. in addition to other company activities where your solution has a ripple impact. Learn what matters to them, then include that into your value proposition. You must have a strong relationship with your customers and intimate knowledge of their businesses in order to do this. In order to find the less visible areas where your product has an influence and work with them to give them a numerical value, you must be able to ask the proper questions and have your client feel comfortable sharing information with you.
The second form of value, which depends on your capacity to elicit a favourable reaction from your client in regard to you and/or your solution, is determined by the manner in which you interact with them. The degree to which we like or trust someone affects whether or not we decide to buy from them. Since they quickly give the buyer the impression that they can trust the salesperson, recommendations and reviews are extremely successful at bringing in new business. So, having a consumer that likes and trusts you is quite valuable. Even though you might not be able to put a price on it, this value might influence a consumer to pick you over your rivals.
Creating this kind of value is less clear-cut than just recording a number. Excellent interpersonal and communication skills are necessary. Strong emotional intelligence, following through on commitments, and conveying information to customers in a way that suits them and guarantees their complete understanding of the value of your service are all crucial abilities in creating this kind of value.
Improving Perception
All of this value identification is useless if your consumer does not recognise it. The salesperson must make sure that they effectively convey value so that they may be sure the customer is aware of every aspect of the value their solution will provide.
Rules for communicating value:
· Never assume anything
Salespeople are the experts when it comes to their solutions. They have certain innate knowledge about their goods and services. Sadly, the salesperson may not bring up these topics during value-based interactions because they feel they are so clear that they presume the client does too, or they may not think they are important enough. It is crucial the salesperson makes a concerted effort to be as impartial as possible, eliminating their own prejudices and preconceptions to ensure they capture and effectively explain every piece of value. What may seem obvious to one person may not even register to another.
· Use value waterfall charts
When you use a value waterfall to record the monetary benefits relative to the price tag, you provide an effective visual depiction of the return on investment (ROI), which improves the customer's appreciation of your product.
· Check for understanding
Verifying your customer's comprehension is a crucial step in effectively conveying value. Ask questions to ensure comprehension and eliminate the need for speculation or wishful thinking.
· Make use of storytelling
Making your consumers a part of a narrative while proposing your solution is a particularly powerful technique to achieve the second sort of value we described above, in which we move them from simply knowing to truly experiencing and seeing. In a sales setting, effective storytelling takes the facts and weaves them into an intriguing, captivating tale that arouses emotion and influences purchasing behaviour.
· Map the customer buying journey
Adding value is something that needs to be communicated not just at the time of the pitch, but all the way through. Before going on to the next phase of the purchase cycle, you should make sure you have thoroughly researched the needs of your customers at the current phase. This will help you create and convey value as you go, allowing you to really shine in your pitch/proposition by capitalising on the groundwork you've previously set.
The best method to silence price-related criticisms is to create such a compelling value proposition that it becomes secondary. Customers will pay for the value they perceive if your offer is attractive enough. Determine early on what it is they consider most crucial by inquiring as to the nature of the value they are seeking. The first part of your value proposition should focus on the problems your solution addresses. Next, discuss the hidden benefits of your solution that your consumer likely wasn't anticipating or even aware of. In order to close the deal, it's important to establish a good relationship with the client by showing them that you're trustworthy, likeable, and worth their time.