Here are the best methods from the top retail salespeople for handling price objections. They often get fewer price objections because the customer likes, trusts, and respects them. The first thing they do is determine if it is a true objection or just a stall or a condition.
Stall- (customer is unsure and needs more information) There are many methods for dealing with a stall. The top retail salespeople really only use two. If they know for sure it is a stall they ignore it. When they are not sure they treat it like an objection. I feel treating a stall by ignoring it involves the risk of alienating the customer so I almost always treat a stall like an objection.
Condition- A condition is a legitimate reason a customer should not go ahead with the recommended solution. You know it is a condition when after you go through the process it still remains. Most top salespeople still treat it the same as a price objection. A condition is a reason that the customer should not go ahead with a particular solution. At that point it is best to gain additional information and then possibly change direction.
Isolate the Objection- Before you start to address the objection isolate it. A question like this can work wonders, “Other than___ are there any other concerns that you have about____?” We always want our customers completely satisfied with their purchase. If she answers “no that is my only concern” you can now go on to answer the objection.
Rephrase- Rephrase the objection to make sure you understand it. Feed it back to the customer for her clarification. Sometimes your customer will answer it herself. There are times when she will correct you and give you more information. Most often she will agree that you understand her objection. The additional listening and interaction should cause a tighter bond between you and the customer, thereby increasing your chances of closing the sale.
Competitors-When the customer believes they have found the same item somewhere else for less with the same services they will adamantly say so. If your store has a price guarantee and this situation falls within your company’s guidelines, close the sale. If it falls outside of your company’s guidelines you should bring your manager into the sale at this time if possible. Some shoppers are disingenuous while others may simply be mistaken. In either case you should close on the objection. Top salespeople use a softening statement to help the customer out of the corner. “Mrs. Jones sometimes our customers get confused about___ at___ store also.” “We have the same set for less money than____ store.” “The set you seemed to want is not offered at __ store.” Enter the closing question of your choice. This is a natural alternate of choice close. Sometimes the customer tries to get the best of both worlds, they want a lower price but they want your store’s reputation, service, and inventory. So they get a price from a competitor often on the internet that does not include delivery and present to you as a delivered price. They want it tomorrow and the competitor does not have it in stock. Remember there is a reason they came back to you. Most stores feature a verification component to their price guarantee. If you don’t believe the stores reputation is part of your value proposition please watch this funny but true video.
Never Defend- Top salespeople insist the biggest mistake they see by rookie salespeople is defending their price, store, or product. They explain in a confident manner the differences between their products and lower priced products and use their price guarantee to close customers.
Value- Failure of the retail salesperson to establish value and to communicate product differentiation to the customer can lead to price objections. Customers typically do not know how to make a value judgment. They do not understand the good, better, best story in your store. In many stores the customer can do comparison shopping within the store. The top retail salespeople do not find themselves in this position often. When they do they start over with needs analysis, then after thoroughly exploring their customer’s needs make a presentation which emphasizes product differentiation. Gerry Morris wrote a great article featuring creative ways to establish value and switch your customer’s focus. You can read it here at http://sellmorebeds.wordpress.com/2011/06/29/overcoming-price-objections/
Culture- Some cultures encourage negotiation. The children are raised to negotiate. The price objection here is simply the beginning of negotiations in their mind. If you can not negotiate lean on your price guarantee and close the sale. If you can negotiate, start! It is important to keep your credibility, so if you give up something (price) get something in return. i.e. an add on sale. “If you will purchase the mattress protector and pillows, I can discount the package by $____.”
Financing- Top retail salespeople use their company’s finance offers to close sales after they find out that the customer really did not see the same item for less but are just trying to fit the desired items into their budget. Every top salesperson that I spoke with regarding price objections uses their finance plans to close the sale. Their last choice was to use their company’s layaway plans to close the sale.
Action Step- Please Click on Gerry’s link to his article on objections. It is a fantastic article! There have been entire books written on price objections. Please post your comments with your best practices when dealing with price objections. For more ideas or to share successes please call me at 419-560-3169. Next week the top retail salespeople in the furniture and mattress industry share their secrets for closing the sale. Thank you to Gerry Morris for helping edit my article!
Wishing You Success,
Pete