By Keith Rosen, MCC
The Executive Sales Coach™
Harry trained to be a loan officer and provide homeowners with financial services and debt consolidation. He interviewed with several companies and landed a position with Third Federal Funding. Harry thought this was a great time to begin a career in finance. The benefits that the homeowner receives from consolidating their debt are as follows:
- To pay off all of their debt and put it under one monthly bill.
- To make their credit card bills tax deductible, unlike before consolidation.
- To offer a fixed, lower interest rate than what they previously had.
- To offer cash back out of this loan.
- To reduce the total amount that they pay each month in bills.
“How hard could it be to enroll people in the concept of saving money?” Harry thought. Harry did not close his first three prospects. He could not figure out what he was doing wrong. After all, he was trying to save people money!
That afternoon, Harry’s company received a call from someone interested in its available services. The ad the company ran that morning on the radio pulled in a handful of inquiries. Harry turned to his sales manager for help. He decided to take Paul, his manager, with him on his next appointment.
They arrived at Sandra Smulen’s home and almost immediately, Harry began talking about why he was there. After Harry explained the concept of consolidation, Sandra was still unreceptive. After all, people are very cautious with their money.
Before Harry concluded his presentation, Paul jumped in. Paul saved the deal and walked out with the paperwork he needed to begin the consolidation process. So, what did Paul do that Harry did not?
When the Salesperson Creates The Objection
Debt to income ratio, 80 percent loan to value, simple interest loan, compound loan. These are foreign terms to most people. When people do not understand where their money is going, they do not buy.
Although Harry explained the concept of consolidation in terms he understood, he failed to explain it in terms that Sandra could understand. Harry never took the time to take the prospect’s pulse while he talked at her.
Lay out your information in terms that the prospect can comprehend. Rather than confuse Sandra, Paul made a complex loan appear very simple and beneficial to her. Harry portrayed the process of consolidation as confusing, time consuming, and risky.
Ironically, by creating this perception in Sandra’s mind, Harry actually created the objection himself. This would have been avoided had he delivered a message crafted for Sandra to understand.
Here’s what Paul did. Paul simply took out a sheet of paper and listed all of Sandra’s bills. Then he listed the interest rate she was currently paying on her money.
On the opposite side of the paper, Paul showed Sandra the amount of savings she would realize with a lower interest rate and with the tax deduction. He wrote down the new total monthly payment for all her bills. Paul even demonstrated exactly how much money she would put back into her pocket every month.
Because of Paul’s approach, the prospect was able to visualize and comprehend exactly how what they were selling — that is, debt consolidation — could benefit her.
Be wary of creating obstacles that would not have surfaced without your doing. If you make assumptions in your presentation without actually hearing them expressed by the prospect, you are putting thoughts in the potential client’s mind. Or, you’re selling the way you buy.
Here are some of the statements that salespeople mistakenly make and that create their own objection:
- I know this may be a large investment for you right now.
- It might take a very long time to process your order.
- You might have to go through all of this paperwork again.
- There are many companies that sell what we have.
- Do you want to shop around?
- Do you think the price is high?
- Are you getting other estimates?
- Have you gotten any other estimates, bids, or Requests For Proposals yet?
- You can probably borrow the money more cheaply at your own bank or lending institution.
- Well, obviously So So, Inc. is the best, but if you’re not going to go with them, you should go with us.
- Okay, you know my price, you know what we can do. So, call me when you’re ready, okay?
- What do you think about the price?
- You’ll never be able to … (Once again, telling a customer what they can or cannot do is not typically well received).
Address these concerns only if they are stated or implied by the prospect. Otherwise, you will find yourself climbing over obstacles that you create. There is no need to inflict ourselves further with self-imposed detours, challenges, and barriers to selling and peak productivity.
About Keith Rosen, MCC — The Executive Sales Coach
Keith Rosen is the executive sales coach that top corporations, executives, and sales professionals call first. As an engaging speaker, Master Coach, and well-known author of many books and articles, Keith is one of the foremost authorities on coaching people to achieve positive change in their attitude, behavior, and results. For his work as a pioneer and leader in the coaching profession, Inc. magazine and Fast Company named Keith one of the five most respected and influential executive coaches in the country.
If you’re ready for better results quickly, contact Keith about personal or team coaching and training at 1-888-262-2450 or e-mail email@example.com. Visit Keith Rosen online at Profit Builders and be sure to sign up for his free newsletter The Winners Path.