Well, well, well.....
the Good old "Yours is priced too high" objection.
This one is truly an objection that anyone who is involved
in sales, had better learn butt quick how to handle.
This objection normally will arise when a customer has done substantial research about the product they want, or on the flip side, they just want to throw the salesperson "off track" to see if the salesperson can respond in a logical way. This person may have already met with another competing company at their house, or if it's a car, they may have taken a test drive got the numbers and so on. This potential customer has already invested time in researching the product they are interested in buying. They are truly serious buyers.
But are always, LOOKING FOR A BETTER DEAL.
This person has actually done quite a bit of homework. They are normally very pragmatic in their buying approach, and must be dealt with in such a way where the justification of them spending their hard earned money with you, is the very best way to make that purchase. It is your job to make sure that this is in the forefront of their mind.
This is where the gap in your skillset
will rear its ugly head, unless you are prepared.
will rear its ugly head, unless you are prepared.
As I said before,
This kind of person always loves
to throw the salesperson off course.
They want to get the salesperson rattled so he or she
will get diarrhea of the mouth and do stupid things
like telling the customer,
"if we could knock off off two or three thousand dollars
and get you the price you want, would that make you happy?"
HERE IS WHAT THE
CUSTOMER JUST HEARD
"Please, please, buy from me."
THIS KIND OF BUYER,
WILL MAKE THE SALESPERSON
PAY DEARLY FOR NOT BEING PREPARED.
Ugh, how it makes me nearly vomit,
when I hear a salesperson do this.
They're just throwing money right out the window
for no reason at all.
You know something, they are doing exactly what they have seen other salespeople do, maybe even their sales managers, a veritable RACE TO THE BOTTOM, to see who can give up the most money to just get a sale.
Remember, there are only two ways
to make more money in sales.
Number 1 is to sell more.
Number 2 is to raise your gross.
Neither will happen, unless you get better at negotiating.
You need to be in control of your paycheck.
So you wanna learn how to handle
"your price is too high," objection?
For this exercise let's use
Joe Master Closer Car Salesperson
The close I want to show you here
is "the time value of money close"
BTW...
Take notes, and mold it to what you need.
For this example Joe has presented his customers with the numbers...
HERE WE GO!
Salesperson: Guys, I've got great news for you! Were going to get the car to you for only $22,000, your payments are only $423.00 per month. If you just sign here I'll get the car cleaned up for you and we will have you out of here in just a few. Oh, BTW when would you like your payments to be set up for the 1st of the month or the middle of the month? What works best for you?
Customer: "Joe, you seem like a nice guy and we actually like you, but dude the price for this car is way too high."
Salesperson: I understand, other than the price are you ok with the payments?
Customer: Joe, we said your price on the car is way too much.
Salesperson: Ok, I understand, when you say the price is too much, would you mind just being a bit more direct with me, why you think the price is too much?
Note: Joe is not being hostile,
he is just asking a question,
so he can give a better answer
Customer: No problem, we just got done driving the exact same car at the other dealership 10 miles down the road. They are going to sell it to us for $19,900. If you can match their price, Joe we have a deal. If not, we won't be doing any business here with you today.
Salesperson: Guys I completely understand, if I were in your shoes, I would probably feel the same way. Do you mind if I show you something?
Customer: No, just as long as we are on the same page here.
Note: Joe pulls out a fresh sheet of paper,
draws a cross down the middle,
places his car with his price on one side,
and the other car with
the other dealership's price on the other side.
Then he calmly proceeds
Salesperson: Ok, so we have our car that we can sell to you for $22,000.00 and they can sell you theirs for $19,900.00.
(Joe then writes the word WHY after the $19,900.00 price)
Mr. and Mrs. Customer, I am not trying to be smart or silly with you here, but why didn't you buy it for the $19,900.00?
There had to be some reason
why you didn't actually take advantage of it.
Statistics show that 99% of the time the reason that someone didn't buy a vehicle they looked at and liked, was that it didn't pass their own personal test. In other words, they couldn't picture themselves driving it everyday, or it being in the driveway.
I don't care how cheap something is,
if you can't picture yourself actually owning it.
If you're having to pay for something,
wouldn't you rather pay for something you actually want to own?
Of course you would, right?
Customer: Yes, of course.
Salesperson: Look it really doesn't matter how much it costs if you can't see yourself driving it everyday, or can't picture it in your driveway. Most people that I deal with purchase something on a gut level basis, you're not putting PRICE in your driveway, everyone always puts VALUE in their driveway.
Does that make sense?
Customer: It does, however the difference of $2,100.00 can go a long way to assist with that.
Salesperson: I agree with you, however there had to be a reason you guys didn't jump on the deal. Maybe it didn't smell right to you, maybe it had a few door scratches, or just overall it didn't feel right. You know something, it also didn't feel right to the other 12 people who drove the car before you guys. Those people also felt the same way, or it would have sold already. That's the reason they have it priced the way they do. I can guarantee you that if that car doesn't sell soon, it's headed right back to the auction. Dealerships aren't museums, we don't buy cars to keep them, we buy them to sell them.
You follow?
Customer: Of course
Salesperson: Do you mind if I ask you something?
Customer: No
Salesperson: I can see that money is important to you, as it should be. Between the two of you, how much would you say that your time is worth per hour? $300 maybe $400 per hour?
Note: Joe is about to add up the amount of time
per hour that the customers have spent
looking at the other vehicle without making a decision
Pay close attention
He is about to shut this down
Customer: About $300 per hour
Salesperson: Ok, so about $300 per hour. I know that you guys have already spent probably about 2 hours at the other place, Right?
Customer: Yes
Salesperson: Well there is $600.00
and I'm sure you guys probably spent at least 3 hours online doing research, right?
Customer: Yes
Salesperson: There's another $900.00. Guys even before coming to see me, you guys spent $1500.00 in time. You also have spent 2 hours with me, so at this point you have already invested $2100 in time alone. After you have invested all this time, if you decide to settle on something solely based on price, every time you see the car in the driveway, or make that payment, your dissatisfaction will be MAGNIFIED 100 %. You can always make more money, but you can't make more time, right?
Customer: Right
Salesperson: With the $2100.00 that you have spent already in time; when you add that to the $19,900, you could have already been in the car you really want for the same price. And Since your time is worth about $300.00 per hour, let me help you from wasting any more money unnecessarily. Look I don't just want to sell you this car, I want to sell you the next 10 you buy.
Make Sense?
Customer: Yeah
Note: Joe immediately
THROWS OUT HIS HAND
and does a double fisted handshake.
and continues into his close.
Salesperson: I am going to get you guys over to Suzanne in finance and we will have you out of here in about 20 minutes. While you are with her I am going to have your new car cleaned up for you.
Who are you going to show it to first?
Customer: Our kids, they are at my mom's
Salesperson: Awesome. Guys I am truly excited for you, it's my honor to have helped you. Make sure that if you have any friends or family members who are in need of great service, please make sure to give them my name. Here are a few more cards for you.
BABAMM
BABAMM
BABAMM
THAT'S HOW A CLOSER DOES IT!
HE MADE SENSE LOGICALLY AND FINANCIALLY
AND IT WAS A DIFFERENT APPROACH TO MONEY
JUSTIFICATION.
People will spend their money with you,
if you give them logical reasons to do so
You need to sharpen your skills in order to be
able to use this effectively.
As I always say...
Will this work 100% of the time?
Hell no.
But it is just another tool in the toolbox.
So practice, get better and Crush it.
Da Bear