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Objection Handeling: 'It's More Than I Can Afford'

Originally published: 12.01.08 by Tom Piscitelli

Objection Handeling: 'It's More Than I Can Afford'

Knowing how to respond to objections will boost your confidence and your close rate.

What do customers mean when they say it’s more than I can afford, it’s too much, it’s more than a competitor, or I just don’t want to spend the money?

When customers give a money-related objection, what are they actually saying about wanting the system? They want it! If they didn’t, they wouldn’t be thinking about finding or justifying the money it costs. Remember that an objection is the customer’s way of saying “I want it but (something) is in the way. Help me understand that and I’ll buy.”

First reaction

What do most sales people typically suggest when money objections come up? Most begin cutting back on the proposal and taking something out to reduce the price. Some will even immediately do a price drop without taking anything out. This old-school technique went something like this: “If I reduced the price by $200 would you buy tonight?” Effective? Sometimes. But at what cost to your integrity, the value of the product or service, and your future relationship with this customer?

When you are challenged, you must draw on your belief in the value of what you offer. Explain the value and ask for the order again. Most people will be satisfi ed and will buy. If you can’t, you probably would not have been able to make them a

lifelong happy customer anyway. And if they would have ever given you a referral, you could be sure they would tell their acquaintance to make sure they asked for a discount too. Do you want to create that kind of self-fulfi lling future customer base? I wouldn’t.

Do you think money is an issue most of the time? Sure. Most people don’t spend or invest thousands of dollars carelessly. It is natural for this objection to come up, so you should anticipate it and be prepared, as a professional, to appropriately respond.

Honor Value

When people bring up money as an issue does it mean necessarily that they aren’t going to buy what you’ve proposed? Certainly it does not. In fact, you should respond without surprise that the customer has asked about the value. Intelligent people question things before they make a decision. Honor their right to question you about price, respond to their question, and close again.

Is the amount of money you are asking for what they expected? Most people are relatively clueless about the cost of heating and air conditioning. Consumers buy one to two hvac systems in a lifetime. They know little about them, and they are generally suspicious of contractors and sales people. Whatever price(s) you show them will always be more than they expected. That’s just the way it is, and it’s okay.

Offering Choices

Do most people have $10,000 or more of ready cash available? According to a Wall Street Journal article last year the typical American household could come up with $5,000 in cash if they had to. Even so, few are anxious to spend their ready cash.

When people want something but they don’t have the cash, they will typically finance it. We want what we want, and we want it now. Always show the monthly payment, same-as-cash and credit card payment choices when you ask for the sale. When you sell high-end systems, more than 50 percent of your sales will include fi nancing in some form. It’s vital that you become competent at using fi nancing as a selling tool. This has always been true. In the current economic climate it’s more true than ever.

Affordability is a legitimate consumer concern but not a show-stopper. The sidebar script will help you with effectively handling this objection before you begin taking anything out of the system to reduce your price. Remember friends, an objection is the customer’s gift to you. They’re highlighting what they need to have answered so they can say YES! Until next month…Good Selling! 

Tom Piscitelli is president of T.R.U.S.T.® Training and Consulting. For more information on how his System Selling In-Home Sales Call Training DVD, CD and Self- Study Workbook can help you sell more jobs at higher margins and higher prices go to www.sellingtrust.com.

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