You've been working with a prospect, moving closer
and closer to a sale. Just before you clinch the deal, they decide to
go with a competitor's product or service. They may say that your firm
is too small, or you charge too much or they decided to work with a friend
in the business after all, or all of the above. Closing sales can be a challenge. How do you keep this
from happening again?
Catherine called from real estate agency in town with a similar problem.
Her firm regularly competes against national real estate chains and one
of the most common objections prospects give is that Catherine's company
is too small. Given that the average sale price of a home is $1 million
in town, with some properties selling for over $10 million, losing a
listing hurts.
Its natural to want to avoid potential objections to closing sales and hope a prospect
never brings them to light. You hope you can make the sale without your
prospect ever balking because your firm is small, expensive, located
in an unusual place, or whatever.
Many small businesses are, well, small. You may need to charge substantial
fees to make a good living from your work and most people have a friend
of a friend in the business. Unfortunately no matter how much you try
to avoid them many prospects will bring up objections and you can lose
their business. How can you overcome these common objections?
Use prospects' objections to your advantage and transform them into selling
points. In the sales process, prospects always have concerns. If you
don't discuss them or figuratively leave them under the table they will
come back to haunt you later. To move beyond prospects' objections, acknowledge
them. Identify their concerns and put them on the table for discussion
to resolve them. Here's how:
Over the years that you've been in business, you've heard all of the
common objections prospects raise. Take out a piece of paper and fold
it in half. In the left column, list all the reasons prospects give for
not working with your firm leaving a couple of lines between each reason.
Across from each objection, in the right column, jot down reasons each
objection is actually a plus for your clients.
When you meet with a prospect, use your list to bring up potential hurdles
yourself and address them up front. For example, Catherine's real estate
firm is small compared to the national chain firms in town. Catherine
might say to a prospect, "You know we are a small firm with ten
employees. Let me tell you about all the resources we have to help you
sell your home. In addition to providing you with the same resources
you'd find at a larger firm we provide more attention to detail, more
local knowledge, etc."
Then Catherine can go on to explain how her firm sells a higher dollar
volume of homes per employee than the national firms. She could also
talk about her highly motivated brokers who earn higher commissions in
large part because they aren't part of a national chain. She could mention
the $100 million in homes sold last year. After explaining the many advantages
of working with her unique firm Catherine could ask her prospect, "Are
you interested in having a small firm of highly motivated experts help
you sell your home?"
With your experience in the business you know the most
common objections prospects raise but what about others you haven't considered.
How can you keep these from getting in the way?
To make sure you've covered all of a prospect's concerns, ask them. Jot
down a question or two to use to uncover any hidden or lingering concerns
they have. Address them and move on. After they've explained their concern,
restate it clearly to make sure you have it right and then counter it.
For example if they are hung up on price, explain the value and benefits
of your services and expertise.
Don't know why prospects aren't using your services? You gave it your
best shot, but they still selected another firm. Its time to do a post-mortem
and find out what went wrong. Call up that lost prospect and ask them
why they picked another service provider. Write these reasons down and
tack them above your desk. The next time you meet with a new prospect,
bring them up.
Early on in the sales process, bring up possible objections and get prospects
talking about their concerns. When these are on the table you can address
each one and show how each is an advantage. When you put prospects'
objections on the table and transform them into selling points, you'll
see your sales and your business soar.
Email Charlie Cook Helping you attract more clients
and be more successful
