Handling

Objections
in Sales

By Jack Cullen and Len D’Innocenzo

Chapter from The Agile Manager’s
Guide to Customer-Focused Selling
 Handling Objections in Sales

It was the last two weeks of the fiscal year. Les,

who covered one of the more rural territories, was
briefing the Agile Sales Manager about an
upcoming sales call.

“And at four o’clock we’ll stop at the Jones farm to

pick up the contract for the order that I forecasted
last month,” said Les. He smiled and continued,
“With that order I’ll qualify for the incentive trip to
Hawaii.”

“That’s great,” said the Agile Manager. “I bet your wife is pretty excited
about that.”

“Well as a matter a fact,” beamed Les, “she went to the mall just last night
and bought a new suitcase and several outfits.”

The Agile Manager and Les were greeted later that day at the farm by two
brothers, both tall enough to be professional basketball players. On the way
in to meet their eighty-year-old father, one of the brothers explained how
badly they had wanted to act months ago on the decision to buy Les’s
solution to their problem.

“Dad is extremely frugal,” said one of them, “and very deliberate when it
comes to money.” Although the sons played a big role in the success of the
family’s egg business, Dad ruled with a tight fist and made all final
decisions.

Upon entering the office, the Agile Manager noticed an antique desk with a
marble-based pen-and-pencil set. The only other thing on the desk was a
pile of papers. Being skilled at reading upside down, the Agile Manager
noted that it was their contract.

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 Handling Objections in Sales

As they were seated, the old man behind the desk said, “Well Les, I’m glad to
see you again. Young fellow, it certainly is nice to meet you,” he said nodding
to the Agile Manager. “The boys have convinced me that going with your
organization is the right decision. Of course I also received the blessing of our
banker, accountant, and attorney.”

Taking the pen from the desk set, he said, “The papers appear to be in order.
There is no reason why we can’t get started on this right now.” Everyone was
smiling, especially the two sons. The Agile Manager noticed that they
appeared to be even more excited than Les about the order.

Just as the pen was about to touch the paper, the old man looked at Les and
raised a simple, innocent objection in the form of a question. “This product
will work with that new conveyor line we’re thinking about, won’t it?”

It was so harmless and inconsequential that a simple “yes,” “no,” or “maybe”

would have sufficed.

But Les was suddenly struck down with that terrible affliction that even the
most experienced salespeople suffer from occasionally: Let-me-tell-you-all-
that-I-know-it-is. He gave a lengthy, completely unnecessary explanation.

Les rambled on for three or four minute and would have continued, except
that the father’s head slowly drooped down and came to rest upon the antique
desk.

The Agile Manager feared the worst – that Dad had died. But he was relieved
when he heard the sound of deep snores. Les stopped talking and the two
brothers stared coldly at him. The Agile Manager reached down to pick up the
pen; it had fallen on the floor and was resting against the old man’s black-wing
tip shoe. He managed to make just enough noise to wake him up.

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 Handling Objections in Sales

“Well boys,” he said, “with the information that Les was kind enough to
provide, we’re going to have to think this thing over some more and probably
consult with our outside advisors. Les, I suggest that you call us in about
thirty days. No, don’t do that. I just remembered – the wife and I will be
taking off for a six-week vacation middle of next month. You better make that
just after Thanksgiving.”

Considering the fiscal year ended September 30, and he needed this sale to
get the trip to Hawaii, Les did his best to undo the damage he had done.
Nothing worked.

Outside his father’s office, son number one, towering over Les by a good foot,
said, “I have a pretty good idea why your parents decided to give you the
name that they did.” The Agile Manager intervened and apologized for the
debacle.

Eventually, Les did get the contract signed. Unfortunately, his wife never got
to use the items purchased, for there was no trip to Hawaii. Not only did Les
not qualify for the incentive reward, but the new fiscal year’s commission plan
resulted in his receiving only two-thirds of the money he would have received
if he had only responded to a simple question with a direct answer.

Stalls, seeming indifference, and objections are normal in the sales

process. There are ways to deal with all of them.

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 Handling Objections in Sales

Customer-Focused Selling Wards Off Objections

One of the best ways to handle objections is Best Tip

to follow the customer-focused selling
approach. When you do, you learn the Earn the trust of your
issues, needs, goals, priorities, and personal prospects. That
win for your prospects. That’s a great way to eliminates many
build a foundation of credibility and trust. This objections and makes
alone results in fewer objections. More those you face easier
important, the objections you get will usually to handle.
be real concerns and not smoke screens.

Nevertheless, every salesperson needs to be ready for an objection at any

time.

Objections can be very different. Often, a salesperson may confuse a

simple question with an objection. Or he may think a product shortcoming
or request for special terms is a deal breaker. The better a salesperson
handles these situations, the higher his sales will be.

Answer Simple Questions Directly

The first step in dealing with an objection is to determine whether it is a

simple question, or if it is a real objection.

Whenever your prospect asks you a simple question, answer it. Simple
questions require direct answers. Don’t overstate or explain more than is
required.

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 Handling Objections in Sales

Use your judgment and common sense to determine if it’s a simple or trick
question. Simple questions are honest requests for information you haven’t
discussed yet, or clarification on something your prospect doesn’t
understand. After you respond, let the prospect decide if you’ve answered
the question.

Sales Professional’s Hot Tip #8

Know the Value of Your Time

Your cost for wasting one

If you expect to Each minute is
Each hour is worth hour per day per year
earn worth

$40,000 $20.00 $.33 $5,000

$50,000 $25.00 $.42 $6,250
$75,000 $37.50 $.63 $9,375
$85,000 $42.50 $.71 $10,625
$100,000 $50.00 $.83 $12,500
$150,000 $75.00 $1.25 $18,750
$175,000 $87.50 $1.46 $21,875
$200,000 $100.00 $1.67 $25,000
$225,000 $112.50 $1.88 $28,125
$250,000 $125.00 $2.08 $31,250

Remember: Place a value on your time. No one else will.

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 Handling Objections in Sales

At times, you’ll encounter trick questions.

Trick questions may sound innocent, but they Best Tip
carry a hidden meaning or agenda. Again,
use your judgment and common sense to Answer a simple
decide if the question is a trick question. question simply. Let
your prospect decide if
For example, a prospect might ask: you’ve answered it
adequately.
“Is it a big deal if we want to get updates to
any of this printed material?”

“No problem. We do it all the time,” replies the salesperson.

“Well, since it’s no problem, we’d expect there’s no charge!”

If you think you’re being asked a trick question answer it with a question.
This will usually force your prospect into giving you the real meaning of the
question or the issue behind the question.

In the example above, for instance, answer with something like, “Normally
not, but what do you mean by big deal?” Or simply, “Why do you ask?”
This may even uncover a bad prior experience with a current supplier.

Open the Prospect’s Mind

Overcoming real objections requires opening up a prospect’s mind just

enough so the salesperson can “continue to sell.”

Objections can be either hard (tangible) or soft (intangible).

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 Handling Objections in Sales

Soft objections (“I’m happy with my present supplier”) are really stalls on the
prospect’s part. They are another way of the prospect saying, “I’m not
interested,” or “I don’t trust you yet.”

Hard objections (“Our present supplier has a much better warranty”) are
usually the result of a product or service deficiency, price discrepancy, or a
competitor’s advantage.

Both types of objections are normal in the

selling process. Soft objections can be more
difficult to deal with sometimes, because they
are disguised by a prospect who may be trying
to avoid a confrontation.

You overcome objections regarding hard product or service deficiencies

by opening the prospect’s mind to see another point of view. Whatever
the type of objection, you need a system to deal with them.

Six Steps to Overcoming Objections

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 (a real problem)

● Avoid confrontations
● Reduce tension
● Build credibility and trust
● Create a favorable emotional climate
● Open closed minds to see things in a different light.

1. LISTEN to the entire objection. What is it about? What are the

issues? Are they valid? What is the prospect saying? What is not
being said? Are emotions high or low?

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 Handling Objections in Sales

2. ANALYZE the type of objection and your response. Is the objection

hard or soft? Valid or invalid? Easy or difficult to answer? What has
caused the objection?

3. SUPPORT the prospect’s right to object. Don’t support the objection

itself. The prospect is entitled to an opinion. To reduce tension,
recognize that right. Acknowledge you understand his concern.

Don’t complicate the objection. Avoid an Best Tip

immediate rebuttal or challenge. Buy
yourself some extra time by making a Overcome objections
supporting statement. For example, “I can by opening the
appreciate how important this decision is to prospect’s mind
the business.” Avoid using words like “but” enough to see another
or “however” after you make a supporting point of view.
statement. Just pause for a few seconds
instead.

4. CLARIFY the specifics and their importance. Gather additional

information. Use open-ended questions and probes to identify issues.
Is there a misunderstanding? What makes any perceived deficiencies
important to the project? Are all issues on the table?

After the prospect provides additional information, you’ll be better able

to respond to the objection.

5. RESPOND with a simple explanation or a “reframe” dialogue (more on

that in a moment). Offer proof, clarify, or explain. Update incorrect
data. Open the prospect’s mind to larger issues. Change the
prospect’s perspective by reviewing the goals and priorities you
uncovered in the F.I.N.D. Interview.

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 Handling Objections in Sales

Know the Two Major Types of Objections

Hard Objections. Easy to identify, difficult to deal with because they
usually involve tangible issues.

● High price
● Product/service failure
● Availability
● Disadvantage in the total solution offered
● Product disadvantage
● No budget
● No authority
● Bad prior experience with your company

Soft Objections. Tricky to identify and deal with because they usually
involve intangible issues.

● Loyalty to a competitor
● Prospect is too busy
● Other priorities/not interested
● No Immediate need
● Prospect takes a wait-and-see attitude (stall)
● Lack of credibility and trust in you or your company
● Doubts your products are necessary for success

6. VERIFY that you have dealt with the objection successfully. If not, go
back to step three and try again. Is the prospect satisfied with your
response? Have you overcome the objection? Does the prospect
agree?

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 Handling Objections in Sales

Recently, the Agile Sales Manager observed this conversation between one
of his salespeople, Mary and her prospect, Pat. He admired the way Mary
overcame a key objection from Pat and set up a neat pathway to a close.

“Mary, I like your proposal but we don’t want to be the first ones to install the
system in our area.”

“Pat, I understand how important this decision is.” Mary paused for a
moment then continued. “What concerns do you have about the
installation?”

“Well,” Pat replied, “you said there was no

place nearby that I could go to see it up
and running. How do I know it’s not filled Best Tip
with ‘bugs’”?
Avoid rebutting an
“I apologize for not being clear earlier, Pat,” objection
Mary said sincerely. “We have customer immediately. First
installations all over the tri-state area – just offer a supportive
not in this county. If you’re willing to take a statement.
drive, we could visit a few.”

“That’d be terrific,” said Pat enthusiastically.

“If you were comfortable with the level of satisfaction most of the customers
have, would you be ready to proceed with the order?’

“I sure would,” said Pat. “Could we schedule visits next week?”

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 Handling Objections in Sales

Reframe Objections to Open Minds

Reframing is one of the most powerful tools at your disposal to overcome

objections. The following true example (the company name has been
changed) illustrates the principles of reframing beautifully.

The Agile Sales Manager was speaking with

Sarah, the senior account manager heading up
the major-account sales team. She was
explaining how her team was one of two
finalists for a multi-million-dollar order with the
Giftware Sales Company.

The opportunity involved replacing one

thousand order-processing systems used by the
company’s distributors around the U.S. The current system was causing
severe service problems, resulting in late deliveries and unrest among
the distributors and other customers.

Giftware products are sold by a direct sales force at small house parties
or local office functions. It’s known for high-quality products, sold through
a customer-oriented sales force. Because of this unique approach, it is
able to command a premium price compared to less-expensive, imitation
products. Any interruption in superb customer service hurts its image.

“We really have a wonderful opportunity,” exclaimed Sarah. “Giftware

has evaluated our system, and we meet all of its criteria. We also have
the advantage of having a field-service organization. Our reputation in
that regard is excellent, and service capability after the sale is a major
criterion.”

“Who is the other finalists?” asked the Agile Manager.

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 Handling Objections in Sales

“That’s the surprise in this deal,” said Sarah. “The other finalist is a much
smaller company that does not even have a field-service organization. They
do, however, have a lower price, and that’s a concern.”

“How much lower?” asked the Agile Manager.

“As best as we can tell, 30 percent lower,” Sarah replied. “And that’s for the
same configuration we’re proposing.”

The Agile Manager thought for a moment and

then said, “It may appear to be the same, but
it’s not the same. Remember, we have our
field-service organization. Hold your price.
When is our meeting with Giftware?”

“A week from Friday,” said Sarah.

Two days later, the Agile Manager’s beeper went off while driving to the
office. It was the senior account manager, Sarah.

“You won’t believe what happened!” she said.

“What?” asked the Agile Manager.

“Giftware called our v.p. of field engineering, José Aguillar, and said it
decided to buy the other company’s system.”

The Agile Manager replied, “I thought they weren’t making a final decision
until after our meeting on Friday.”

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 Handling Objections in Sales

“That’s what we thought,” said Sarah. “But they called to ask José if he
would write a service agreement to maintain the other company’s system!”

“What did he say?”

“He said he would. That was our major point of differentiation, you know. I
called José and asked why he would do something like that. He said he
made a ‘business decision.’”

I’ll give him a “business decision,” thought the Agile Manager. Then he said,
“Meet me at 10 a.m. We need to map out a plan to ‘reframe’ Giftware’s
thinking.”

Later that morning at the planning session, the sales team discussed
Friday’s meeting with Giftware.

“Let’s show them our new system,” suggested

one member of the team.

“That’s not available yet. What’s the point?”

said another.

“Maybe we can stall the decision and buy

ourselves some time,” said another.

The Agile Manager said, “Tell me again: How did we hear they called our
v.p. of service?”

“Giftware called and told us,” said someone. “They asked if we could
match the other company’s price.”

“So they haven’t quite made a final decision. Good,” said the Agile
Manager.

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 Handling Objections in Sales

Sarah jumped in and said, “They say both systems are essentially the same
and since our service people would be handling maintenance, we need to
think about lowering our price.”

The Agile Manager said, “So they think both offerings are the same. I guess
if any of us thought that way, we’d ask for a lower price, too.”

“But they aren’t the same system,” said Sarah. “Our system is constructed
to much higher specifications. We have pre-sales and post-sales support,
the other guy doesn’t. And we have a top-quality image and reputation.”

“So we offer greater value than the competition?” asked the Agile Manager.

“Yes,” said several people at once.

“But they don’t see it, do they?” asked the Agile Manager. A few people
murmured “no.” He continued: “We need to open their minds – we need to
reframe their thinking so they realize why we are different and why we are
worth the higher price.”

Reframing helps prospects expand their

Best Tip
mindsets. People sometimes stand so
close to something that they see only a
Always verify that
small part of it. If you help them back up a
you’ve answered an
few steps, they might see things from a
objection to the
different frame of reference or in a new
prospect’s satisfaction.
light. Done well, reframing helps prospects
see the “bigger picture.”

You always have an opportunity to open prospects’ minds to broader

issues, new ideas, and different solutions. This is what reframing is all
about. The key is to reframe the prospect’s thinking without starting an
argument or making any challenging statements.

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 Handling Objections in Sales

Two of the more advanced objection-handling techniques are the Analogy

Reframe and the “Big Picture” Reframe.

The Analogy Reframe

When salespeople encounter a lack of interest from prospects, or when they

say the problem is of low priority, the Analogy Reframe can be very
effective.

Sales Professional’s Hot Tip #9

Invest Your Time. Average salespeople are busy during the course of
the day. Successful sales professionals are both busy and effective
during the course of the day. One of the keys to effectiveness is
investing time being proactive rather than spending tie being reactive.

Such sales professionals believe that they are the CEO and major
stockholder in a franchise called “Me, Inc.” They recognize time is the
greatest asset they possess. The tools or resources they use to
maximize their return on this asset are goals and priorities.

How can you possibly maximize your time without clearly defined goals
and priorities? You can’t. With so many things to do each day, the only
way you can decide which are the most important is to develop clear
goals.

Remember: It’s not how busy we are but what we actually accomplish
that counts most. If you focus on your goals, your activities will be much
easier to prioritize.

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 Handling Objections in Sales

This type of objection usually occurs when a prospect can’t quite grasp the
value of your solution or is happy with a current vendor. You don’t get an
opportunity to sell because the prospect can’t see things your way.

For example, if a prospect doesn’t see the value your products or services can
add, she might say, “Your price is 15 percent higher. I’m sorry, but I don’t see
how your company is worth an extra 15 percent.”

You say:

● I can understand your desire not to pay

higher than necessary these days.
[Supporting statement.]

● Suppose you were building a new home.

[Analogy.]

● I think you’d agree that the lowest prices

is not always the best deal. You’d want to
work with a builder who had an excellent reputation for using high-
quality materials and excellent craftsmanship at a fair price. Then
we’d be talking about value instead of the lowest price. [Analogy
Reframe.]

How important is it for your people to work with a company where high-
quality, reliable products are the standard? A company that’s committed
to providing your people the “best value” in terms of:

1. Proven and reliable state-of-the-art products to maximize performance

and increase your productivity.
2. Compatible migration to new products in the future to protect your
investment.
3. Reliable documentation and training to simplify use, minimize support,
and cut overhead.

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 Handling Objections in Sales

Which of these important issues should we talk about first to help

increase your sales and profits? [Analogy Reframe.]

Note that we have reframed the discussion from “you’re 15 percent higher”
to the most “value” in terms of the three items mentioned above.

Best Tip
The ‘Big Picture’ Reframe
Reframe prospects’
The second method is the “Big Picture” Reframe. concerns to both open
This technique broadens the prospect’s view to their minds to new
encompass a bigger picture. Your discussion ideas and to
moves from narrow concerns to larger issues emphasize value over
(benefits) that will interest the customer. This price.
gives you a chance to change his perspective.

Let’s deal with the price objection again. Prospect: “Your price is 15
percent higher. I’m sorry, but I don’t see how you’re worth it.” You:

I understand your concern to get the best deal for your company.
[Supporting Statement.] And that concern sounds like you’re interested
in the best value.

Let’s talk about the best value for a minute in terms of:

Proven and reliable state-of-the-art products to maximize performance

and increase productivity;

Compatible migration to new products in the future to protect your

investment;

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 Handling Objections in Sales

Reliable documentation and training to simplify use, minimize support,

and cut overhead.

Which of these important issues should we talk about first to help

increase your sales and profits? [“Big Picture” Reframe.]

Note that we haven’t started an argument with the customer over price.
And we didn’t imply the prospect was dumb because he forgot that high-
quality, proven, state-of-the-art products maximize the company’s
performance. Or that compatible migration to new platforms in the future
increases productivity. Or that reliable documentation simplifies use and
minimizes support costs that cut overhead.

Reframe by Bringing Up Key Benefits

List three value-added benefits:

1. _________________________________

2. _________________________________

3. _________________________________

When they talk price, you reframe their thinking to

incorporate value. How? By bringing up the three
value-added benefits you’ve identified that address
their concerns.

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 Handling Objections in Sales

But we reminded him of all the things at a key moment. Success allows
us to continue to sell.

Rather than lower your price, you’ve reframed the discussion to include
the value-added benefits that are important to the prospect.

Remember: You don’t want to lose the sale or lower your price. You
want to open the customer’s mind to the added value your firm provides.

Sales professionals earn their pay by reframing

the customer’s objections (price or anything
else) so they can see the value-added benefits
your solution offers.

Giftware arrived for the meeting on Friday. The

group included three people, including their v.p.
of operations.

The sales team’s strategy: The first portion of

the meeting was a review of the new systems to
be announced later in the year. The second
part would be an attempt to reframe their
thinking so they thought “value” instead of
“price.”

The setting was the Executive Conference Center with its large, plush
leather chairs, beautiful mahogany conference table, and Lenox china
cups and saucers.

After some opening remarks, the Agile Manager turned the program over
to the product-marketing manager to review the new products.

There was not much interest from the guests and very few questions.

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 Handling Objections in Sales

Then it was the senior account manager’s turn. Sarah thanked them all for
coming and then asked a question. “Do you remember when we first
talked about your situation and needs?”

They nodded their heads in agreement.

“We asked, ‘Why do your customers do business with you.’ Remember?”

They nodded.

Next, she reached under the podium and put two plastic bowls on top. She
said, “The bowl on the right is made by Giftware. It holds three quarts,
comes with a lid, and sells for $10. The bowl on the left is another brand.
It also holds three quarts, comes with a lid, and sells for $6. Could one of
you please tell me why the Giftware bowl is $4 higher than the other?”
With that she folded her hands in front of her, smiled at the group and
began looking each person in the eye.

An eerie silence fell over the room. It

seemed to last for several minutes. In
reality it was only a few seconds, but it
required great courage for Sarah to
stand in front of the group waiting for a
response.

The v.p. of operations sat stone-faced

with his arms folded.

Then, one of the Giftware people started to rock in his chair. He was
about twenty-seven years old, and he could not stand the silence.

“They’re not the same,” said the young man.

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 Handling Objections in Sales

The v.p. of operations turned quickly and glared at the young man with a
laser-like stare

“Oh?” said Sarah. “They look the same to me. How are they different?”

“Well, the Giftware bowl is manufactured to very high-quality specifications.

It carries a lifetime guarantee, and it is sold by a direct sales organization.”
With each word the young man sank lower and lower into his chair, wishing
he had remained silent.

Sarah spoke quickly. “So if I understand you, the Giftware product stands
for high quality, is sold by a professional sales organization, and will last a
lifetime. The other is a poor imitation, sold in any discount store, and will
not last a lifetime. Is that about right?”

“Yes,” said the young man very softly.

Sarah continued, “Let me ask you another question then, gentlemen.

Since Giftware stands for high quality, service, and exceptional value, what
message do you send your sales organization when you ask them to sell a
premium product – but when you send them tools to do their job, you send
a lower-priced imitation?”

Silence again engulfed the room.

Now the v.p. of operations broke the silence. “You must know your system
was our first choice. We found it hard to justify the premium price to our
senior management.”

“Superior products, built to high quality standards, sold and supported by a

top-notch organization will always carry a premium price,” said Sarah. “We
call that value, and you folks certainly understand value.”

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 Handling Objections in Sales

The room once again became very quiet.

The Agile Manager spoke, “My, my look at the time. It’s nearly noon. Let’s
move to our Executive Dining Room. After lunch, we’d like to review some
financial options that we feel would benefit your company.”

The v.p. of operations said, “We really would prefer to go with your
company. Let’s see if we can work this out.”

As they walked toward the Executive Dining Room, the Agile Manager
thought, What a great example of an Analogy Reframe. Value is defined
by many things. Relating value to a prospect’s business or products
seems to work all the time.

A smile came across his face as he thought about the very professional job
Sarah just did. She was able to open closed minds to see things from a
different perspective in just five minutes. Life was good!

The Agile Manager’s Checklist

 Remember that stalls and objections are a normal part of the sales
process.
 To deal with objections:
 Listen to the objection
 Analyze the objection
 Support the prospect’s right to object
 Clarify the issues involved by gathering more information
 Respond to issues by offering proof or explanations
 Verify that you’ve dealt with the objection
 Anticipate objections and be prepared to “reframe” them. By
showing prospects the bigger picture, you’ll help them see benefits
and the value of your solution.

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 Handling Objections in Sales

For more information about how to Gain Commitments in Sales, and how
Corporate Sales Coaches can help maximize employee potential to drive
bottom line results, please feel free to contact us:

Corporate Sales Coaches, LLC

678-341-9051 or 215-493-2465
www.corporatesalescoaches.com

If you enjoyed this article ,our book “The Agile

Manager’s Guide to Customer Focused
Selling” has more articles that may be of interest
to you:

 Establish credibility and trust

 Create interest in your product or service
 Conduct customer focused interviews
 Deliver outstanding proposals
 Handle objections
 Negotiate win-win agreements

To find out how to purchase a copy – click here.

©2012, Corporate Sales Coaches, LLC. – 678-341-9051 – www.corporatesalescoaches.com 24