1. Handling Customer Objections
Step 5 of the Sellling Process

2. What is an Objection
A point of difference between the customer and the sales person that may prevent an agreement to purchase
Objections are a natural part of the sales process
Objections show that the customer is interested and considering purchasing the product
Objections should be expected and welcomed by the sales person
Objections lead the sale toward closing
Objections are merely customer doubts and questions

3. Objection vs. Excuse
An objection is a sincere concern on the part of the customer
An excuse is an insincere reason given by a customer to cover up a valid concern
Example: “This product looks too complicated.”
What they really mean is “this product is too expensive” or “I don’t understand how to use this product”.

4. Types of Objections
PRICE – customer thinks that the product is too expensive or is not worth the price
Most common objection
Often the customer does not understand the price
Handle the objection by
Stress quality, durability, & performance
Show product features & benefits
Promise prestige

5. Types of Objections (continued)
PRODUCT – customer has concerns with some aspect of the product, such as
Quality
Features
Brand
Color, size, style, or model
Required service

6. Types of Objections (continued)
COMPANY – customer has concerns about the product manufacturer or the store selling a product/service, such as
Store location
Store sales people
Store policies
Store image
Store services
Previous experience with store or product manufacturer

7. Types of Objections (continued)
NEED – customer is not sure that they really need the product
Need vs. want conflict
Conflict of needs – customer is not sure which need is most important or which feature/benefit is most important
Example – “Should I spend more to get a better quality product, or save money and buy the less expensive item?”

8. Types of Objections (continued)
TIME – customer is not sure when they would like to purchase the product.
Product might be out of season
Customer wants to wait for a sale
Customer may not have resources to purchase the item
Customer may have a fear of buying decisions (buyers remorse)

9. Types of Objections (continued)
QUANTITY – customer may not want to buy because of required accessories or supplies needed for the product
Required complementary or accessory products are necessary to use the item
Bindings for skis or snowboard
Stereo receiver for DVD player
Supplies for printer or copier

10. Name that Objection
“If I buy a season pass, I’ll have to pay to rent skis every time I want to go skiing”.
“I’m not sure I should buy a new car; my old car still runs well”.
“I hate waiting in line at Carl’s Junior”.
“Are you sure that these shoes are as good as Nike?”
“I know that that jacket is on sale, but it’s August”.
“Why is Under Armour so expensive?”

11. Methods of Handling Objections
Yes, but – agree with the customer and then provide information to overcome the objection.
Objection: Gosh, this seems expensive!
Response: Yes it is expensive, but that’s because it is made with quality materials that are made to last for years to come.

12. Methods of Handling Objections
Toss It Back (Boomerang) – use the objection as a selling point.
Objection: This ski binding seems very light weight. Is it durable?
Response: That’s exactly what you want in a ski binding. The materials used to make the binding are light weight but also very durable, which makes it a great binding for moguls and quick turns.

13. Methods of Handling Objections
Deny It (Direct Denial) – provide correct information to the customer when they are mistaken about a product feature.
Objection: I’ve heard running is bad for your knees. Why would I buy running shoes?
Response: Actually, an exercise program that includes running can strengthen your legs and knees, as long as you gradually increase the amount of running you do.

14. Methods of Handling Objections
Point-Counterpoint (Superior Point) – agree with a valid point made by the customer and then offer an equal or superior point.
Objection: This smaller laptop computer does not do as much as a full sized one.
Response: You’re right, it does not have as many functions as a full sized laptop. However, the smaller laptop is great for students that only need a computer for typing papers, answering , and using the internet. Its compact size is ideal for carrying it around a college campus in a backpack.

15. Methods of Handling Objections
Inquiry (Question) – by asking the customer a question, the sales person encourages the customer to answer their own objection.
Objection: This snow thrower is very expensive.
Response: How much snow do you typically receive where you live?
Customer: We live out east of town and often have 2 foot deep drifts.
Sales Person: A smaller, less expensive snow thrower won’t be able to handle 2 foot drifts in a single pass, which means it will take you longer to clear your driveway. Additionally, by overloading a smaller machine it won’t last as long and you’ll have to replace it sooner, which will be more expensive in the long run.

16. Methods of Handling Objections
Show ‘Em (Demonstration) – answer the objection by showing the customer the product or feature.
Objection: This Blackberry cell phone looks way too complicated for me to use.
Response: Once you use it a few times, you’ll wonder how you got along for so long without your Blackberry. Here, let me show you how simple it is to answer an .
Example

17. Methods of Handling Objections
Testimonial (3rd Party) – answer the objection by using a neutral third party as an example.
Objection: I’m not sure if I want to buy a snow board. It looks too difficult.
Response: My Dad felt the same way before he learned to board. However, after only one day of trying, he was able to make it down a green run without falling. Now he boards all the time and loves it!

18. Methods of Handling Objections
Try It – allow the customer to try the product as a means of answering their objection.
Objection: These cowboy boots don’t look very comfortable.
Response: The high quality leather used in these cowboy boots make them very comfortable. Would you like to try them on to see how comfortable they really are?

19. Procedures for Handling Objections
Listen carefully and don’t interrupt
Pause before responding, rather than immediately firing back a response
Empathize with the customer
Restate their objection to check understanding, if necessary
Avoid arguing and remain calm, courteous
Turn objections into selling points, if possible
Answer honestly

20. Assignment
For each product, write 2 objections and 1 response. Use each type of objection and each method for handling objections at least once. For each objection and response, identify the type or method used.
Snow board
Camping tent
Necklace
Laptop computer
Pick up truck
Washing machine