Objection Handling.

• What is Objection Handling:
  • Objection handling is how you (the seller) responds to a prospect’s concerns about purchasing your product or service during the sales process. Objections often arise during or after the sales pitch, but they can happen as early as the initial cold call and as late in the sales process as contract negotiations.
  • Zig Ziglar, a celebrated sales trainer and motivational speaker, famously said, “Every sale has five basic obstacles: no need, no money, no hurry, no desire, no trust.” This quote encapsulates the core reasons behind most sales objections, highlighting the importance of understanding and addressing these fundamental concerns to overcome objections and close more sales.
• Top 3 Common Reasons for Objections:

1. Price – “We don’t have budget for this.” “That’s too expensive.”
   • Price is often the most common objection, especially if the customer feels the product or service does not offer sufficient value for the cost. This objection can also arise from real budget constraints or the perception that a cheaper alternative might offer similar benefits.
   • In “Sell or Be Sold: How to Get Your Way in Business and in Life,” Grant Cardone offers numerous insights into the art of selling, including how to handle objections. One notable quote from the book that addresses objection handling is:
     “The price myth is probably the most interesting of all sales myths, because while price is the most common objection, it is rarely the real issue.”
   • This quote highlights Grant Cardone’s perspective on the nature of price objections, suggesting that while price is often cited as a barrier, it’s usually not the core issue preventing a sale. Instead, it’s a surface-level objection that masks deeper concerns or unaddressed needs. Cardone’s approach encourages sales professionals to dig deeper, understanding the true needs and concerns of their prospects, rather than taking price objections at face value.

2. Need/Urgency – “This is not something we really need right now.” “We already have a solution in place for this.” “This isn’t a priority right now.”

• • This objection arises when the sales pitch fails to adequately address the specific needs or pain points of the customer, or if the customer is not yet aware of a need that the product or service could fulfill (latent pain).
  • A lack of urgency or immediate need can lead to objections. If customers do not feel compelled to act quickly, they may decide to delay their purchase decision. Creating a sense of urgency involves demonstrating the immediate benefits or the potential costs of inaction.

3. Trust – “I’ve never heard of your company.” “Another company has a better solution.”

• • Trust objections occur when there is skepticism about the product’s effectiveness, the company’s reliability, or the credibility of the salesperson. This can stem from a lack of brand recognition, previous negative experiences, or insufficient evidence or testimonials presented during the pitch.
  • It may also mean that they have a stronger relationship with the competition.
  • Use the Trust Formula (and focus on the Self-Orientation divisor) to help you quickly increase trust. Trust Formula: Trust = Credibility + Reliability + Intimacy / Self-Orientation
    From the book “The Trusted Advisor” by David H. Maister, Robert Galford, Charles Green.

• Objection Handling Method: FEEL, FELT, FOUND
  • The Feel, Felt, Found method is a common and relatively simple method to help you deal with an effectively respond to an objection during your sales process.
  • Dealing with objections during a sales pitch is a critical skill for any salesperson and business owner. A structured approach can help turn objections into opportunities, strengthening the client’s understanding and interest in the product or service.
  • The “Feel, Felt, Found” method is meant to be both empathetic and persuasive.
  • This framework is effective because it combines empathy with evidence, showing prospects that their concerns are valid but also manageable. By demonstrating understanding and then providing examples of positive outcomes, you can help shift the prospect’s perspective and move closer to a sale.

1. FEEL:
   1. Pause and listen actively.
   2. Acknowledge the prospect’s concerns. Start by validating the prospect’s feelings or concerns. Show that you understand and respect their viewpoint. This step is crucial for building rapport and trust.
   3. “I understand how you feel…” or “I hear what you are saying…”
2. FELT:
   1. Relate by sharing past customers’ experiences. Share how others felt the same way initially. This demonstrates that the objection is not unique and has been successfully addressed before. It helps the prospect to see that their concern is normal and solvable.
   2. “Many of our customers felt the same way…”
   3. For more complex objections: Ask questions to possibly uncover the real objection, and paraphrase.
3. FOUND:
   1. Present the solution or outcome: Explain how others found a solution or saw positive outcomes after deciding to invest in your solution. This should be specific and ideally quantifiable, showing clear benefits.
   2. “They found that after using our product/service, they were able to…“
   3. Confirm that you have addressed the objection.

• Role Play: (Use these typical objection scenarios to practice using this method of Objection Handling. While role playing can feel awkward, it’s an effective learning method for skill development.)
  • Objection: You solution is too expensive, and we have higher priorities right now.
  • Response:
    • (Feel): “I understand how you feel…“
    • (Felt) “Many of our customers felt the same way…”
    • (Found) “They found that after using our product/service, they were able to…“
    • (Confirm)
      
• Additional Objections Handling Tips:
  • Discovery Positioning: If discovery (an opportunity before the sales pitch to understand their business) is part of your sales process, anticipate possible objections and address them early, gather the information you need to help them resolve the objection, and position traps against the competition.
  • Prepare in Advance: Anticipate common objections and have your “Feel, Felt, Found” responses ready.
  • Listen Actively: Ensure you fully understand the objection before responding. Sometimes, the real concern is not the first one mentioned. Be sure to Pause and Paraphrase.
  • Customize Your Response: Tailor your “Felt and Found” examples to be as relevant as possible to the prospect’s situation. If appropriate, mention similar businesses.
  • Follow Up: After addressing the objection, check to ensure the prospect’s concern has been fully resolved. Ask if they have any more questions or concerns.

Episode Host: Henry Lopez is a serial entrepreneur, small business coach, and the host of this episode of The How of Business podcast show – dedicated to helping you start, run and grow your small business.