Answering the Objection – Step 6

Answering the Objection – Step 6

In November, if you have been following my posts, you learned how to accomplish the fifth step of the eight step closing pattern, “isolating the objection.” You have successfully navigated the first five steps of the eight step closing pattern. You Listened carefully (step 1) and completely to the prospect’s objection. Then you Paused, (step 2) giving the prospect time to restate the objection, change it, or in some cases decide the objection didn’t even make sense to them.

Once sure they didn’t have more to say, you Empathized (step 3) by saying you could understand how they might feel as they do.

Next you “Repeated the Objection changing” it ever so slightly which is (step 4).

And then you made sure there weren’t any other objections they had prior to answering the objection, which is to Isolate, step 5.

So then now you are at the step you’ve been building up to. You are now ready to “Answer The Objection” the prospect raised. 

Answering objections requires you learn answers to, at the very least, the top 3 to 5 common objections salespeople hear when selling alarm systems. To determine what those objections are simply get together with other salespeople in your company and ask them to list the objections they routinely hear. When you do that exercise you will no doubt learn that the common objections are just that, common.

The objections salespeople all over the US tell me they hear are as follows:

1.     We need to think about it. (Or any iteration of that same statement)

2.     We plan to shop around.

3.     Your price is too high.

4.     We’ve never had a problem. (Safe neighborhood etc.)

5.     We have a good watch dog.

The above objections are likely the ones you hear regularly, but of course there are others you hear infrequently. However, I can assure you, if you learn to answer the above five objections professionally, you will make more money and protect more homes, families and businesses in the bargain.

I believe answers to objections come in three forms.

1.     A Verbal Answer – This is an answer to an objection you have memorized.

2.     A Written Answer – This answer style is accomplished by writing or referencing a written document which supports your argument.

3.     A Third Party Answer – Often the strongest tool, because this answer comes from a satisfied customer, or a customer that wished they had purchased a system before they were burglarized.

Not to make this article too long, we’ll deal with one objection in this article utilizing one type answer. I will cover them all, including all styles in future posts.

The number one objection heard in any form of belly-to-belly sales is the first listed above. “The Think About It” objection.

Sales professionals all over the world will attest that the “Think About It” objection is often a smoke screen at best, meaning the objection isn’t they want to think about it, the real objection is hidden. They have another reason for not saying yes, they just don’t want to tell you what it is. However, on occasions the prospect does truly want to think about your offer, which then begs the question, for how long?

In my humble opinion the best way to deal with the “think about it” objection is for you to assume they do want to think about it, talk it over. Assume they need only a few minutes without you staring at them to ask each other, so what do you think? To handle the objection with the above assumption in mind I would use the five minute close. The five minute close assumes they only needed a few minutes to mull over the decision. So here is what I would say.

1.     I would “Listen” completely and intently to the words they are saying to me when they say they want to think about it.

2.     When they finish talking I would “Pause”, looking directly at them, saying nothing for a few seconds. If they don’t start talking again………

3.     I would “Empathize” with them. You know Mr. & Mrs. Jones, I certainly understand how you feel. After all, a decision as important as protecting your family is surely worth thinking about.

4.     Next I would “Repeat but Change the Objection.” So what you are saying is you like the system and would have me install it just as soon as possible, but you feel you need some time to mull it over, to talk it over between you two, is that right?

5.     When they agree to the repeat step, I would “Isolate the Objection” by saying: Other than thinking it over, is there anything else that would prevent you from saying let’s protect my family right away, anything else?

6.     Hearing no other objections I would “Answer the Objection” by saying; I have another appointment after this one, and I’m not completely sure how to get there, so if you don’t mind I’ll just step into the next room and make a call to my office to get directions. That will give you two time and privacy to talk it over.

If they don’t stop me, they only needed a few moments to decide. When you return to the room, don’t ask if they have decided to buy. Ask a minor point, alternate choice question, assuming they are going to buy. The question could be as follows: So would a morning or afternoon installation work best for you?

Do this and you will find a high percentage of the think about objections vanish, replaced by their signature on your sales agreement. 

Lou Sepulveda C.P.P. is a 35+ year veteran in sales and sales management. He has managed very large and small sales teams selling in 30 countries around the world. Lou is a published author. His most recent books are “Selling Security Systems Like A Pro”, “How To Manage A Security Sales Organization,” and “Gerencia de Ventas Efectiva,”all of which are available as an E-Book or in paperback. His previous books are “The Formula for Selling Alarm Systems,” “Surviving in the Security Alarm Business,” and “Managing To Sell”. Lou’s company, Lou Sepulveda Consulting, provides consulting services, sales and sales management training, and motivation seminars designed to help companies grow. Lou’s web page is www.lousepulveda.com. Or email him at lou@lousepulveda.com.

Sales Management Part Six

Sales Management Part Six

Answering Objections & Closing the Sale

Using the 8 step Closing Pattern
(Continuing from last post)

Step 4: Repeat the Objection, Changing It Slightly

Salesperson: “Just so I’m clear, what you are saying is that while you agree that you like the system and you would give my company the go-ahead to start work as soon as possible, you feel you need a bit of time to talk it over between you two, without me staring at you. Does that about cover it?”

Prospect: “Yes.”

What the salesperson changed was the first part of the original statement. He repeated the objection, but added that the prospects agreed that they liked the system and would buy it as soon as possible once having a “bit” of time to talk it over without the salesperson being present. That statement also assumed that the prospects only needed a few minutes versus hours, days, or weeks, to think it over.

When you hear prospects say they want time—the classic “think it over” objection—how much time do you assume they want? I’ve asked that question all over the country at seminars I’ve conducted, and the answers I get are mixed. Mostly I get the impression that in general; salespeople haven’t thought to ask themselves that question.

Years ago my wife met with a man who said he would help us find government grant money for our son’s college education. I suspected the man was selling something but my wife was convinced he wasn’t selling only helping us with a government grant. But given he insisted we both be present I was convinced he was in fact selling something; probably insurance. I wasn’t happy to see what I knew was a salesperson, probably selling insurance. I felt I had more than enough insurance and didn’t need more. However, my wife had made the appointment, and I was bound to suffer through it.

When he arrived for the scheduled appointment he did a great job warming us up. He spotted our sailing pictures, and from those photos and some well-asked questions, he learned of our love for sailing. After that crucial step I liked him and was more open to hearing what he had to say. When he launched into his presentation, and it became clear that indeed he was selling insurance, I wasn’t concerned. My wife, however, now realized that I had been right—he was selling insurance—and she thought she knew my feelings about that since we had discussed it earlier that day.

From that point forward my wife assumed I wanted no part of what this guy had to sell, so she dutifully listened to his presentation. She knew that at the end, she would simply tell the man we wanted to think it over, he would leave, and that would be the end of it. However, as I listened to what he said, I was sold. While it was true that a large component of his plan was to sell me more insurance, the whole package kind of made sense for our youngest son’s college education, which all of this was aimed at.

So picture the situation. My wife was half listening, knowing I had made it clear before he arrived that I was against buying more insurance. In fact, we made a pact before the salesperson arrived: if it turned out I was right, that he was selling insurance, we would get rid of the salesperson by saying we wanted to think it over. So while my mind was changing, my wife didn’t know that, and she had resigned herself to telling the salesperson the lie we agreed to.

However, as the presentation came to an end, the salesperson asked the most unbelievable closing question I’ve ever heard. In fact, because it was so unbelievable, I was stunned into silence. The closing question was, “Do you folks want to take a couple of weeks to think about all of this?”

He said a couple of weeks? Being married to someone who is an author of sales books, a sales management executive, and a sales trainer, my wife knows all the sales steps and all the closes. She’s heard me talk about them in seminars, and since she had helped me with my audio closing CD, she heard me talk about what to say so many times she could recite it in her sleep. So when the salesperson said what he did, she was also shocked. And she knew me well enough to understand that even if he was selling gold bars for the price of chewing gum, I wouldn’t buy anything from him after he committed such an incredible sales crime.

Obviously, this salesperson had come to the conclusion that everyone needed time to think about a decision, and in fact, needed at least two weeks. The fact is, had he asked the most basic closing question like, “So what do you think?” My wife would have jumped in, and said we needed time to think about it. And if the salesperson had been smart enough to perhaps assume we needed only a few minutes, and suggested as much, I would have told my wife I had changed my mind, and we would have bought the insurance policy. But he didn’t and we didn’t either. The sale never happened.

Take my advice, and first assume your prospect only needs a few minutes.

This then leads you to the next step which we will cover in the next months posting.

Would you like to hear Lou Answer the common salespeople in the security industry face every day in a role playing environment?

Here is how you can.

Order Lou’s New CD – Handling Objections & Closing the Sale

Also a Great tool for Salespeople is Lou’s new E-Book entitled:

Selling Security Systems Like a Pro

In this NEW E-Book Lou teaches salespeople how to prospect, present themselves, your company, the problem, the survey, the investment, and how to answer commonly heard objections. Lou share’s 12 Powerful Closes sure to help salespeople close more sales. The E-Book is available NOW! And the best part is the investment; only $29.99. Wow! How can you beat that? To order go to www.lousepulveda.com.

Lou Sepulveda Consulting & Training

985-778-1571

Lou@lousepulveda.com

www.lousepulveda.com

Book Titles by Lou

·        How to Manage a Security Sales Organization – NEW (E-book only)

·        Selling Security Systems Like a Pro – NEW (E-book only)

·       Gerencia de Ventas Efectiva  - NEW (E-book only)

·       The Formula for Selling Alarm Systems

·       Surviving in the Security Alarm Business

·       Managing to Sell

·       Gerencia de Ventas Efectia

Note: If you would like to read previous Blogs go to http://lousepulveda.blogspot.com

Income Caps - Why? Do they make sense?

A Ceiling on Income – Income Cap

Does it make sense?

In the late 1960’s, after completing my college education and after working my way through college selling door-to-door, it was time to begin looking for a career. My goal was to work for a National company that provided benefits, a career path and, of course, given the sales experience I had gained while in college, I hoped to earn good money.

My first interview was with the Burroughs Corporation. I was given a test to complete which was followed up by an interview with the Sales Manager. At the conclusion of the interview I was offered a position in sales. The position paid a salary, benefits, a potential annual bonus based on achieving corporate sales goals, a car and business expenses. At the time, I considered this offer an attractive offer. However, since I had already scheduled other interviews I told the Sales Manager I’d get back to him with an answer.

My next interview was with IBM. At the time IBM wasn’t nearly as big as it is today, but IBM had already earned quite a nice reputation and was an appealing company to work for. The interview with IBM went much as did the Burroughs interview. IBM explained the offer which included salary, benefits, a potential annual bonus, a car and expenses. The salary was about the same as the salary offered by Burroughs.

My next interview was with Xerox. That interview concluded about the same as the previous two. So after a couple of days of interviewing I had a pretty good picture of what my potential earnings could be.

My last interview was with NCR, National Cash Register. At the time, NCR was the run-away market leader in cash register sales. No one was close. NCR was also competing with IBM in the then new computer business. Before discussing the pay plan I ranked NCR right with the three previous interviews with the exception that the explanation of the training program NCR offered its salespeople added extra appeal to me. NCR’s training in my judgment appeared to be second to none.

The final portion of the interview was, like the others, a discussion of income. When I asked how much the salary was, the NCR manager informed me that they didn’t pay a salary. I was told NCR salespeople were paid commission and in the beginning were given a very small draw. I then asked if they provided a car. The reply was not only no, but worse, all NCR salespeople were required to purchase a station wagon to work out of. It was necessary, I was informed, so salespeople could carry cash registers to demonstrate to potential buyers. Wow, I thought, I am so not going to take this job.

Anticipating that I wasn’t exactly thrilled with what I heard, the Sales Manager asked me to take a walk through the building with him. I agreed purely out of courtesy. The manager led me into a Sales Room and once there pointed to one of the fifteen or so salespeople busy working at their desk. “Lou,” he said, “you see that man right there in front?” He pointed at a man apparently in his late forties. “Where do you think he is going once the sales meeting is over?” The man he pointed to was in casual, going to play golf today, clothes. “Based on how he is dressed,” I said, “I think he’s going to play golf.” The manager smiled and said “you’re probably correct.” “And you know what” he asked? “I don’t care. He is one of our top salespeople and he is on the very same compensation plan I’ve offered to you. And Lou, with that plan he will earn five times or so more than the other companies have offered you including the potential bonus. You see with us,” he explained, “we don’t limit income by paying salespeople a salary and bonus. Because that is exactly what a plan like that does; the strong pay for the weak. We also don’t set a cap on income. We give strong salespeople an opportunity to earn as much as their sales skills allow them to make.”

I accepted the NCR offer and position and quickly became one of the top producers. My first year, and every year after I earned far more than the salary the other companies offered. I earned every dollar, and I was proud of what I accomplished.

Three years after joining NCR the President retired and a new President was brought in. Soon after he announced he was changing the compensation plan. He announced that the new plan would include a salary and bonus plan. He didn’t say as much, but reading the plan and how it paid, an automatic cap on income would be in place. The commission plan as I knew it was out. I did the calculation. Based on the new plan, assuming I achieved what I achieved the year before, plus a predictable increase, I would earn approximately one third of what I earned the previous year. Within a few months I resigned and so did many of the top performers. Not surprising, the weak salespeople stayed.

Today, most people reading this article have never heard of National Cash Register, NCR. I believe changing the compensation plan contributed greatly to the company losing market share.

Next I am led to ask, why limit a salesperson’s income? Am I the only one that knows and believes that it is human nature to slow down or even stop once realizing additional sales and effort no longer contributes to income? Think about it. Your salesperson is enjoying a great year. He has worked hard, made lots of calls, worked long hours, often well into personal time, and is literally kicking sales butt. However, as he approaches month eight of the sales year he realizes that he is already at or very close to the “capped income” the company set. He can’t earn any more money. Will he continue to work hard? Will he continue to forego personal time to close more sales? Or will he begin to coast, play a lot of golf or whatever activities he has been putting off in favor of work?

Not long ago I worked for a fortune fifty national company that understood that problem. So they announced to all employees that there was absolutely no limit on income. They instituted a tiered (they called Plateaus) commission structure designed to reward production, to cause salespeople and the managers that managed them to work hard up to the very last day of the year. They made a big deal out of their “NO Caps on Income” policy. The “No Caps Plateau” plan produced phenomenal, record breaking results.

How did the “plateau” commission plan work, you ask? Let’s look at an example. Let’s assume a territory salesperson sold $3 million dollars of product this past year. (The amount doesn’t matter as much as how you arrive at the Plateau plan.) Let’s further assume that the projected production achieved quota or plan. Corporate would budget for next year’s sales prior to the past year end. Looking at “run-rate” we could determine quite accurately what the next twelve months production should be for the company and each salesperson. So let’s assume the goal is to grow 10% over run-rate.

The salesperson that produced $3 million in sales last year would be expected to produce 10% more in the New Year, $3.3 million in sales. That goal would be Plateau One production. Plateau two production may be set at 20% growth and Plateau three may be 40% growth. Commission/bonus calculations changed by plateau. Every dollar of production over Plateau one earned a percentage increase in income, thereby motivating the employee to continue to push even after achieving Plateau One. Even more important was the fact that once achieving Plateau Two, the employee received a higher, per dollar, income bump. The same applied to Plateau Three. The goal is to drive the salesperson/manager to continuously push to the last day of the company year.

Managers were charged with the responsibility of staying on top of every salesperson’s year-to-date production. If we saw that a salesperson was on track to achieve the highest commission plateau (Plateau 3) a month or more before the end of the year, the manager would meet with the achieving salesperson to give him yet a higher Plateau commission plan, Plateau Four or even Plateau Five. We hoped the salesperson would make record breaking income by producing record breaking sales. If he did, the word spread throughout the company causing other salespeople to work hard in an effort to earn top dollars. One year, at a corporate management meeting, our CEO, Dennis Kozlowski, spoke about the great results we achieved as a company the previous year. He attributed a lot of the success to the no-caps Plateau compensation plan. We had empirical evidence that the plan worked. He challenged us all to look for ways to motivate every employee in the company with a similar plan. He suggested everyone would contribute more, work harder, and produce greater results if they were rewarded when they did.

Now the bad news; The CEO of the fortune 50 company resigned and the newly appointed CEO decided the existing compensation plan was too rich. He decided a Cap on income was appropriate. As the new policy was instituted I couldn’t help but think about NCR and what happened to them after they did the same. Are the company salespeople and managers working as hard, producing as much as they did under the No Caps plan? Will they continue to push for more sales after reaching the company “Cap” in income? I would bet they will not. Only time will tell.

Limiting income leads to limited effort.

I often compare the sales profession to professional sports. In both cases professionals are involved. Suppose the PGA announced that a ceiling will be placed on income and so no golfer will be allowed to earn more than one million dollars. Would the top golfers continue to play tournament after tournament once reaching the income cap? Suppose a similar cap was placed on football, basketball and baseball. Do you think a policy like that would result in players working as hard? No? Then why would anyone expect a salesperson or a manager to continue to work hard when he knows, because of the company No Cap plan, additional effort won’t result in commensurate pay.

If you want to drive your employees to produce, keep dangling a carrot of additional income in front of them and you will see production grow, I promise.

Am I wrong? Do you have an opinion? Email me if you want to weigh in.

Lou Sepulveda C.P.P. is a 35+ year veteran in sales and sales management. He has managed very large and small sales teams selling in 30 countries around the world. Lou is a published author. His most recent books are “Selling Security Systems Like A Pro”, “How To Manage A Security Sales Organization,” and “Gerencia de Ventas Efectiva,”all of which are available as an E-Book or in paperback. His previous books are “The Formula for Selling Alarm Systems,” “Surviving in the Security Alarm Business,” and “Managing To Sell”. Lou’s company, Lou Sepulveda Consulting, provides consulting services, sales and sales management training, and motivation seminars designed to help companies grow. Lou’s web page is www.lousepulveda.com. Or email him at lou@lousepulveda.com.