Chapter 8
Addressing Concerns and Earning Commitment
Objections defined!
 Reasons as to why a prospect will not buy or
make a commitment to your product, service
or organization
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.
Major Categories of Objections
Category
 Need
 Product or Service
Features
 Company or Source
 Price
 Time
Examples
IYour
time
to think
over.
company
is
tooit small
toor
We
can’t
it.
I need
have
don’t
allafford
like
I the
can
design,
use.
color,
meet
my needs.
style.
Ask
me
againto
next
month
IIcan’t
spend
that when
don’tafford
need
any.
you
stop
I’ve
never
heard
of your should
much
rightby.
now.
Maintenance
agreement
The equipment I have is still
company.
be included.
I’m
not30%
ready
to buy
yet.your
That’s
higher
than
good.
Your company
too big;isI’ll get
competitor’s
comparable
ofis
product
IPerformance
haven’t
made
up
mycompany
mind.
I’m
satisfied
with
the
lost
in
the
shuffle.
model.
unsatisfactory.
usewant
now.to commit myself
Iwe
don’t
How
do I aknow
you’ll
be
around
We
have
better
offer
from
Packaging
is atoo
bulky.
until
I’ve
had
chance
to
talk
to
We
have
no
room
for
your
line.
to
take
care
of
me
in
the
future?
your
competitor.
engineering.
Specifications don’t match what
company
recently
in
IYour
need
something
a lot
cheaper.
we
have
now. was
the newspaper. Are you having
Your
price is not
different
The product
is poor
quality.
problems?
enough to change suppliers.
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?
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.
LAARC Method for
Handling Buyer Resistance
1.
2.
3.
4.
5.
Listen
Acknowledge
Assess
Respond
Confirm
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.
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?”
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.
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.
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.
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
Traditional Closing Techniques
 Professional salespeople often use more than
one technique during a presentation
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
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
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
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
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
Video Discussion Questions
1. What types of objections did Mark raise?
2. What technique(s) did both Jim and Lisa use
to handle the objections put forth by Mark?
3. What closing techniques are present in both
video clips?
4. If you were Mark, who would you buy from
and why?