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|How To Build Your Network Business Part 4
Giving value and being valuable is the best way to overcome objections.
Warren Buffet wisely said, “Price is what you pay, value is what you get.” Recognizing value is not easy at first. If it was, we’d
all be wealthy billionaires as we continue to reinvest our resources in attractive value propositions. Over time, we get better at
identifying great opportunities.
Everybody in sales has heard it at least once and probably more often than they care to remember: "Your products are too
expensive" or "Your price is too high". The price of a product or service is very often a hard to take hurdle for sales people. I am
not going to bore you with all kinds of sales techniques to overcome the price objections. That is a great subject for a sales
training article. I will give some insight though in why customers use this objection so often and how value can overcome price.
You should have already read my series on building your business, parts 1, 2, and 3 before continuing on with building your
business part 4.
When a customer pops the price objection, he will have one of the following motives: He doesn't see enough benefits; He is
starting the negotiations; He doesn't have the money in his budget; Your price is indeed too high; or He wants to get out of
Let's have a look at these motives.
He Doesn't See Enough Benefits
Most salespeople tend to sell their sales products and services. But that is usually not what the customer is buying. In fact, a
product or service in itself has no value whatsoever. Customers buy the sales person not the products or the service. They are not
willing to pay for products per say, they are willing to pay for the benefits or convenience those products or services provide to
them. Let's say you are trying to sell auto insurance. If you are trying to sell it to someone that does not own a car then it
has no value to them because they don't see any benefit to having it.
In short, there is no balance between the benefits and the price. When you sell benefits, make sure that they indeed benefit your
specific customer. A healthy start weight loss pack is an excellent product and will help someone lose lots of weight. But how
much value does it provide someone that wants to gain weight? Maybe a protein powder and some healthy chocolate would be
more in line of what the customer is looking for. But the benefit must be valuable to the buyer before they can put the value of
the item above, the price they are paying.
Even so the good news is that you are still in the game. The customer is still interested, you are just not done selling yet. There
are some sales techniques and methods to avoid and overcome this kind of price objection. I will give you one tip: Never 'sell'
all of your benefits before you mention the price! Remember in my article Building your business part 2, Presenting. This is
what most people think of when we talk about sales, giving a demonstration of how your product or service meets the needs of
your customer. It comes after the Assessing phase because until you actually understand your customer’s situation, you won’t
know how to tailor your presentation to show how your product or service meets your customer’s needs.
Flexibility and adaptability are key in this step. Your product may have 50 features and benefits that you have memorized, but if
the customer brought up only six or seven that are areas of concern and you still cover all 50 points in your demonstration, you
can easily overwhelm your customer with too much information. You don’t need to cover everything. Highlight the key points
that are of concern to your customer and maybe a few more. If you do that and the customer comes with his sales price
objection, you have nothing to throw into the sale to offset the objection. Most sales people start repeating the already mentioned
benefits, which comes across as desperate. That is overselling and won't help you close the deal. Giving a discount is probably
the only viable option and that could have been avoided.
Car dealers use this technique all the time. They tell you all about the car you want, then you say that its still to expensive. What
do they do? They say, well we can give you a two year factory warranty, which you were going to get anyway. And you say,
well I really need to talk it over with my spouse. And they say, we will give you roadside assistance, a factory rebate, this car
will lower your insurance cost, a bumper to bumper maintenance plan, scratch guard and so on. All of which you were going to
get anyway. The salesman has just added value to the deal to keep the ball in the buyers court.
The Customer Is Starting The Negotiations
Customers are smart. They know that most sales people have the ability to make alterations when it comes to the price. In MLM
businesses (multi level marketing) the products have a two prices listed, one for retail, and one for members. The prices are set
so there is little room for any markup. So the distributor really can not reduce the price. If the product is marked up the buyer
can easily find the item cheaper by just buying it at the original retail price from the parent company or from someone that is
not marking up their items. In MLM the real value is your attention and customer service that gives your products and business,
value. So if the value is not understood, then even if a customer is totally convinced of the benefits and in his perception the
price is reasonable, he will most likely tell you anyway that your price is too high.
Customers that come up with this objection usually at the end of the presentation, count on the fact that too many sales people
feel cornered and start throwing around discounts or deals. That is too bad. With decent negotiation skills in your toolbox,
you can get an even better deal for yourself and the customer even after the customer told you that you are too expensive. This is
a good indication that the customer does not yet understand the value of what you are offering.
Doesn't Have The Money In His Or Her Budget
In the MLM business it happens a lot that your potential customer just doesn't have the money. He wants your product or service
and if he had the money, he would have bought it. There is very little you can do. Sure, you can offer him a cheaper alternative
or maybe a payment plan, aut-oship, or lesser product, but the initial deal will fall through. That has nothing to do with
salesmanship. I am convinced that you know how to follow this up.
No budget is a slightly different matter. In the business world, money is allocated, usually at the beginning of the fiscal year.
That doesn't mean that there is no money. It just means that your customer had no plans to spend it on your product or service.
You will have to sell your benefits and in this case specifically: Return-on-Investment.
This is the approach we use when selling to a Doctors office, spa, health food store or any business where budget is a factor.
We also offer management of their orders, down-line placement and training of their employees as value we add to the sale.
Your Price Is Indeed Too High
This sometimes happens. Due to competition or a calculation mistake or whatever cause, it can happen that your product or
service is simply overpriced. Don't get me wrong, I don't mean just being more expensive than the competition. I mean asking
by far, more money than the product or service will ever be worth to anybody. I have just one advice: Don't sell it. Even in the
case that you are able to make some sales, in the long run your customer will find out that you 'tricked' him. It will backfire on
you very badly.
He Wants To Get Out Of The Deal
Last but certainly not least, the undercover objection. This one happens usually in a scenario like where you have had an initial
meeting or presentation with a customer or prospect. At the end of the meeting you agreed on the product or service and the
cost. After some time you call the customer and he tells you that you are too expensive. No matter what you say, he will tell you
that he's very sorry but he won't do business. Good luck and maybe next time.
By far most of the time, the price has nothing to do with his rejection. But it is a very convenient way to get out of the deal
without hurting anyone's feelings. The customer wants to hide the real reasons from you. Suppose that you are a purchaser and
you have the choice between two competitors. The products, conditions and prices are close to each other. The cheapest one has
one problem. You don't like the salesperson. He calls to inform about the status of the project. You already decided on the more
expensive one. What are you going to say? That you don't like the salesperson’s sales techniques? Probably not. The easy way
out is: "You are way to expensive." No hurt feelings and the salesperson can go to his boss and complain that he 'again lost a
deal over the price.'
The price itself is hardly ever the real objection. Nobody buys anything 'just because' it is cheap. We all buy things because we
see some use for it. Sales people who get rejected most of the time because of the price of their products and services should
have a good look in the mirror and be brutally honest to themselves. "Was the price really the main issue or was it the
I guarantee you, usually it is not the price that is the issue. Customers know the principle of 'white lies' too. This is also an
indication that the customer does not understand the value of what you are selling or you have not read "Building your business
parts 1, 2, and 3"?
Overcoming Objections In 6 Easy Steps.
The following is a simple system you can use to overcome most objections. By following this system, you will be able to:
Identify and deal with the correct objection (the real problem)
Build credibility and trust
Create a favorable emotional climate
Open closed minds to see things in a different light
Listen - Listen to the entire objection. What is it about? What are the issues? Are they valid? What is the client saying?
What is not being said? What is the emotional level?
Analyze - Analyze the type of objection and your response. Is the objection hard or soft? Valid or invalid objection? Easy or
difficult to answer? What has caused the objection?
Support - Support the client's right to the objection. They are entitled to his/her opinion. Reduce tension, recognize their right.
Acknowledge you understand their concern. Don't complicate the objection. Avoid an immediate rebuttal or challenge. Buy
yourself some extra time.
Clarify - Clarify the specifics and their importance. Gather additional information. Probes and questions needed to identify
issues. Is there a misunderstanding? What makes a deficiency necessary? Are all issues on the table?
Respond - Respond with a simple explanation or a "refrain" dialogue. Offer proof, clarification, or explanation. Update
incorrect data. Open their mind to large issues. Change their perspective. Review their goals and priorities.
Verify - Verify that you have successfully dealt with the objection or go back to step 3 and try again. Is the client satisfied with
your responses? Have you overcome the objection? Does the client agree?
These are simple ways to close more sales. Remember, you don’t need to pressure your prospects into buying. The ‘name of the
game’ is to help them by offering solutions to their problems. When you do this, they will want to buy your product and/or join
your business because they see you as a leader.
|Some customers want out of the
deal and will use price as the
|Some things are just not worth what
is being asked for them
|Some customers have trouble
seeing the value in what you are
|Value is worth more then price
|Customers will start negotiating
price without first
|Customers fall into one of four categories of buying. 1) They want something for nothing.
2) They cant afford it. 3) They will buy at your price. 4) They would have paid more!
|You must see "NO" as
"Tell me more."