1. Addressing Concerns and Earning Commitment
Chapter 8
Addressing Concerns and Earning Commitment

2. Objections defined!
Reasons as to why a prospect will not buy or make a commitment to your product, service or organization

3. Reasons Why Prospects Raise Objections
The prospect wants to avoid the sales interview.
The salesperson has failed to prospect and qualify properly.
Objecting is a matter of custom.
The prospect resists change.
The prospect fails to recognize a need.
Prospect lacks information.

4. Major Categories of Objections
Examples
Category
We can’t afford it.
I can’t afford to spend that much right now.
That’s 30% higher than your competitor’s comparable model.
We have a better offer from your competitor.
I need something a lot cheaper.
Your price is not different enough to change suppliers.
Your company is too small to meet my needs.
I’ve never heard of your company.
Your company is too big; I’ll get lost in the shuffle.
How do I know you’ll be around to take care of me in the future?
Your company was recently in the newspaper. Are you having problems?
I need time to think it over.
Ask me again next month when you stop by.
I’m not ready to buy yet.
I haven’t made up my mind.
I don’t want to commit myself until I’ve had a chance to talk to engineering.
I don’t like the design, color, or style.
Maintenance agreement should be included.
Performance of product is unsatisfactory.
Packaging is too bulky.
Specifications don’t match what we have now.
The product is poor quality.
I have all I can use.
I don’t need any.
The equipment I have is still good.
I’m satisfied with the company we use now.
We have no room for your line.
Need
Product or Service Features
Company or Source
Price
Time

5. Handling Objections Effective salespeople are able to:
Anticipate objections
Answer them with confidence
Probe for more concerns
Quickly get back to motivating the prospect/customer to make a decision in favour of purchasing/trying the product
Why do most salespeople say that they welcome objections? Don’t objections get in the way of the sales?

6. Objection-Handling Techniques
Forestall the Objection
Compensation
Boomerang/translation
Direct Denial
Indirect Denial
Postpone in presentation
Third-party reference or support
Applying the URT, through disclosure and proof providers
LAARC is a method for handling resistance should be engaged.

7. LAARC Method for Handling Buyer Resistance
Listen
Acknowledge
Assess
Respond
Confirm

8. Buyer Commitment
The creation of an obligation between the seller and buyer.
The seller obtains the buyer’s obligation to a specific action. Examples of commitment include:
An Appointment
Agreement for next meeting
Agreement for product demo
A sale
The specific action is usually linked directly to one of the sales call objectives.

9. Guidelines for Earning Commitment
Look for Commitment Signals
“That will get the job done”
“I didn’t realize you delivered everyday.”
“The price is lower than I thought it would be.”
Also non-verbal messages
Ask Trial Commitment Questions
“What do you think about the what we’ve discussed?”
“Do you see how this will help your organization?”

10. Guidelines for Earning Commitment
Resolve “Red Light” statements made by the prospect
I’m not sure that will work.
The price is higher than I thought it would be.”
Your delivery schedule does not work for us.
I don’t see the advantage of going with your proposal.

11. Techniques to Earn Commitment
T-Account or Balance Sheet Commitment
Summary Close on Paper
Success Story Commitment
Salesperson tells a story of a Business that successfully solved a problem by buying his or her product.

12. Techniques to Earn Commitment
Ask for the Order/Direct Commitment
Simply ask for the order
Legitimate Choice/Alternative Choice
Give the prospect a limited number of choices
Summary Commitment
Summarize all the confirmed benefits that have been agreed to.

13. Closing Mentality
A completion mentality emphasizes the point that all sales presentations must reach some type of conclusion, which may or may not result in a transaction
On average, it takes five sales calls on a business prospect to complete a transaction

14. Traditional Closing Techniques
Professional salespeople often use more than one technique during a presentation

15. Additional Closing Techniques
No risk close (guarantee)
Ask for help close
Standing-room only close
Pretend-to-leave close
Continuous yes close
Price reduction close
Trial/Puppy dog close

16. Employing Closing Techniques
Although traditional closing techniques can be effective under the right circumstances, salespeople should use them judiciously
Many prospects find it difficult to make decisions
Prospects want to make the right decisions, but complete certainty in buying never exists*
Many prospects will postpone decisions if salespeople let them
After a sales presentation, prospects often feel confused and hesitant
*relates to the URT

17. Dealing with Yes! Obtain the customer’s signature
Provide a plan of action (i.e., answer the question “now what?”)
Answer any remaining questions.
Assure the buyer you will follow-up
Thank the customer for the business
Partnering mentality - A partnering mentality changes the salesperson's primary goal from one of just completing the transaction to one of beginning a partnership with the prospect

18. When to Walk Away
It is helpful for businesspeople to establish in advance at what point they will walk away
Disagreement during a particular negotiation does not necessarily mean that the partnership dissolves
Often such business relationships are reconciled and become very successful partnerships

19. Dealing with No! Evaluate the customer’s explanation
Maintain the relationship foundation
Understand rejection is a fact of life
Evaluate your performance
Learn from the situation
Make improvements

20. Video Discussion Questions
What types of objections did Mark raise?
What technique(s) did both Jim and Lisa use to handle the objections put forth by Mark?
What closing techniques are present in both video clips?
If you were Mark, who would you buy from and why?