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MySuccessCompany.com E-NEWSLETTER
February 2006
"Unless you have prepared yourself to profit by your chance,
the opportunity will only make you ridiculous. A great occasion is valuable
to you just in proportion as you have educated yourself to make use of it."
Orison Swett Marden
This Month's Selling Principle:
The Three Types of Objections
Did you know that the average retail car customer has to object or say "No" somewhere between four to seven times before psychologically they're even in a position to say "Yes"? Also, did you know that there really are only three basic types of objections? It's true. And did you also know that each of them need to be handled differently than the others? Let's take a closer look.
In order to effectively overcome objections, we must first, understand what objections truly are.
The most prevalent type of objection is the smokescreen (also referred to as reflexive). These usually come out on the lot, not always of course, but the vast majority of the time these are blurted out before we are able to build rapport with our client. These are simply knee jerk reactions or merely things customers have been conditioned to say to salespeople. Things like, "I'm just looking." or "How much discount can I get?" or "What's your best price on this one?" (when they haven't even landed on a specific unit yet) or "I don't have a lot of time." Or "I don't want you to waste your time because I'm not going to buy anything today." etc.
Experience has taught us that, most of the time, these are simply illusions, and not really true. Sometimes they're even sincere attempts to just throw us off. Remember most customers have been mistreated somewhere else (haven't we too?) and they think they have to protect themselves from us.
Some smokescreens can even be out and out lies, like, "I need to talk with my wife first." Or "I can't do anything until _________ happens." Or "You don't have the color I want." We have to remember that these are not malicious lies, but rather defensive lies. We can't take them personal, and we have got to understand them. It is important, particularly at the beginning of our career, but even all the time thereafter, to realize the distinction between personal rejection and conceptual rejection. It is also very important to insulate ourselves against both.
The second type of objections we get are called stalls. These usually occur after the commitment, not always of course, but the vast majority of the time these are blurted out after we have written up our customer. These don't necessarily mean, "No," they just mean "Not yet." and many times they are nothing more than a request for more information. Poor needs determination or just plain short cutting will create the need for our customer to call a time out in the form of a stall tactic. Here are a few of the most common ones; "I don't have enough time." Or "The payments are still a little too high." Or "I need to think/sleep/pray about it." Or "I guess it's just not meant to be." Or "I need to talk with my wife first." Or "This is the first place we've shopped." Etc.
Some stalls sound like smokescreens, and many salespeople, who have already done a good job upfront of building value and rapport, make the mistake of handling stalls like they would handle a smokescreen. Many salespeople, after hearing a stall objection, make the mistake of going back into the "selling mode" trying to build value or they try to convince their customer that their car is worth every penny of that $XXX a month, when in fact all their customer really needs is to be helped to feel comfortable about paying that dollar amount. Furthermore, some customers are perfectly willing to pay $XXX a month, but they just want to test the salesperson to see if there's a "little more room left". By falling back into the "selling mode" or by offering to go back and try to get some more, we unwittingly tell the customer they were probably right.
It's the same concept as talking past the close. Any competent salesperson knows that once the client has said "Yes" you don't keep trying to close the sale. Why? Because it telegraphs to the client that the salesperson themselves aren't convinced it's a good idea to go ahead with the purchase. When dealing with a stall type of objection (usually near the end of the negotiations) it's almost always better to deal with our customer's emotional state than with the good logic of the purchase.
The third and least prevalent type of objection we sometimes get are actual conditions of sale. These sound like; "I'm only sixteen years old, I think I need my dad." Or "I hate everything you've shown me." Or "I really do need my wife." Or "I've got some credit challenges, I can't even buy a Schwinn with cash." Etc. If these conditions can't be met, if these objections can not be overcome, then the sale does not happen. If these objections are overcome, then it affords us a closing opportunity.
Above all else, it's imperative that we understand that all objections are a necessary part of the buying process. Objections are our friends. In fact, the only thing stupider than not being prepared for objections is hoping we don't get any.
Like I mentioned at the outset, depending on which source you are quoting, the average customer will object or tell us "No" between four to seven times. Which means we, as salespeople, have to ask the average customer how many times? Yep, that's right, we have to ask five to eight different times for their business before they're even in a position to look us in the eye, tell us "No", and actually mean it!
The problem with the car business is that the average customer has to go to three or four places before they are ever collectively asked five to eight times for their business. That's because the average new sales person fears rejection and sometimes doesn't ask at all and the average experienced salesperson knows only two closes, which means they don't ask enough. Even worse, a few do ask seven or eight times but use the same close over and over and over again. No wonder most customers think car salespeople are pushy.
Now, as I mentioned before, experience has taught me that nothing works all the time and no one thing will work for everybody. That's why it's important to have seven or eight fall back positions or different ways to handle each of the most common objections or situations we encounter.
I can hear some of you now, "But Michael, that would mean I'd have to memorize dozens and dozens, heck...maybe even over 100 different word tracks!" My reply is, "Yeah, and what's your point?" Either we are committed to being one of the top in our field, or we're not. Either we are prepared for the game or we're not. Period. Being the top in any field requires lots of preparation and work. If we're not willing to do that, then we can't complain about what we get in return for our efforts. For those of us willing to put forth the kind of effort required to be the best, complaining won't be necessary. It's our choice.
Sadaharu Oh, the Japanese home run hitting king, and arguably the greatest hitter to ever live, used to consider the opposing pitcher his ally. Mr. Oh believed that, even though the pitcher's intent was to make him miss, each time the man on the mound would throw him a pitch, he would give him another chance to hit one out. No pitches, no home runs. And it's the same with us in the selling game. No objections, means no sale. We all would be more effective if we could develop this kind of empowering attitude, wouldn't we?
Until the next time, be well, do good work, and keep in touch!
Michael D. Hargrove
mhargrove@bluinc.com
"Unless you have prepared yourself to profit by your chance, the opportunity will only make you ridiculous. A great occasion is valuable to you just in proportion as you have educated yourself to make use of it."
Orison Swett Marden
Objection of the Month: "I don't need a salesperson."
These are just a few of the most common strategies shared
at the workshops we've conducted all across North America and attended by
thousands of the top sales people in our field. Please keep in mind that nothing
works all the time, and no one thing will work for everybody. Each of these
strategies, of course, need to be tailored to the individual user, to the
specific customer, and the particular situation. Also, this is by no means
the definitive work on overcoming this particular objection and it's not intended
to be. For more ideas on this and other objections, please visit the Idea
Exchange area of our website.
a. "Relax Ma'am, I assure you I'm so salesman. Actually, my sales manager reminds me of that fact just about every day!" (Then after they stop laughing, we introduce our self or use one of the other techniques.)
b. "You know Sir, it sounds like you've had a bad experience at another dealership before. May I please make a suggestion? Let's simply do this, if you agree not to treat me like the last pushy salesrep you had to deal with, I'll agree not to treat you like the last rude customer I had to deal with. Does that sound fair enough?"
c. "Ma'am, I know YOU have an intimate knowledge of what you want and need and I have an intimate knowledge of what this particular dealership can offer you. We can save each other a lot of time and grief by comparing notes and working together. Shall we try?"
d. "Sir, what do you do for a living? What are you expected to do in your job?" (After our customer responds we say), "In my job, I'm expected to treat each customer with respect and assist them in any way I can to make their shopping experience as pleasant and efficient as possible. Will you please allow me to do my job?"
e. "That's fine, Ma'am, here's my card. I'll just lay back here a few feet from you, that way if you need me to open up a car for you, or if you have a question, I'll be close enough to help out." (Then we wait until they invite back over to them with a question or to open up a car.)
f. "Ma'am, did I do something to offend you or am I just catching you on a bad day?" (We need to look stern, frown, and move closer to them when we ask the first part before the word "or" and then step back, relax, smile and shake our head slowly "yes" when we ask the second part. Use this one only if the customer is being rude to us. When she says she's having a bad day, she's opened herself up to us.)
g. "It seems to me you've had a bad experience with sales people before. What happened?" (Now we let our customer vent and simply listen to them. Once they've stopped we say), "You know what I don't like about sales people?", (and we add one thing we don't like about sales people that they didn't mention. Then we say), "You know, not all sales people are the same. Some are even pleasant and helpful. Will you please give me the chance to prove that to you?"
h. "It's obvious to me that you've been mistreated by a salesperson before. What happened?" (We let our customer vent and simply listen to them. Once they've stopped we say), "You know, that's so unfair...", (and then we pause and hold our thumb and pointer finger an inch apart. Then we say), "It's that tiny little 97% of pushy car sales people that ruin it for the rest of us!"
Next month's objection will be: "This is the first place
we've shopped." We need YOUR input! Please forward your ideas on this
one, or your suggestions on which objection to cover next, to editor@bluinc.com.
"For decades great athletic teams have harbored one simple secret that only a few business teams have discovered, and it is this: to play and win together, you must practice together."
Lewis Edwards
On Life Balance
The Annual Letters
by Raymond L. Aaron, from the book A 2nd Helping of Chicken Soup
for the Soul
Shortly after my daughter Juli-Ann was born, I started a loving tradition that I know others (with whom I have subsequently shared this special plan) have also started. I tell you the idea here both to open your heart with the warmth of my story and also to encourage you to start this tradition within your own family. Every year, on her birthday, I write an Annual Letter to my daughter. I fill it with funny anecdotes that happened to her that year, hardships or joys, issues that are important in my life or hers, world events, my predictions for the future, miscellaneous thoughts, etc. I add to the letter photographs, presents, report cards and many other types of mementos that would certainly have otherwise disappeared as the years passed.
I keep a folder in my desk drawer in which, all year long, I place things that I want to include in the envelope containing her next Annual Letter. Every week, I make short notes of what I can think of from the week's events that I will want to recall later in the year to write in her Annual Letter. When her birthday approaches, I take out that folder and find it overflowing with ideas, thoughts, poems, cards, treasures, stories, incidents and memories of all sorts - many of which I had already forgotten - and which I then eagerly transcribe into that year's Annual Letter.
Once the letter is written and all the treasures are inserted into the envelope, I seal it. It then becomes that year's Annual Letter. On the envelope I always write "Annual Letter to Juli-Ann from her Daddy on the occasion of her nth Birthday - to be opened when she is 21 years old." It is a time capsule of love from every different year of her life, to her as an adult. It is a gift of loving memories from one generation to the next. It is a permanent record of her life written as she was actually living it.
Our tradition is that I show her the sealed envelope, with the proclamation written on it that she may read it when she is 21. Then I take her to the bank, open the safe deposit box and tenderly place that year's Annual Letter on top of the growing pile of its predecessors. She sometimes takes them all out to look at them and feel them. She sometimes asks me about their contents and I always refuse to tell her what is inside.
In recent years, Juli-Ann has given me some of her special childhood treasures, which she is growing too old for but which she does not want to lose. And she asks me to include them in her Annual Letter so that she will always have them.
That tradition of writing her Annual Letters is now one of my most sacred duties as a dad. And, as Juli-Ann grows older, I can see that it is a growing and special part of her life, too. One day, we were sitting with friends musing about what we will be doing in the future. I cannot recall the exact words spoken, but it went something like this: I jokingly told Juli-Ann that on her 61st birthday, she will be playing with her grandchildren Then I whimsically invented that on her 31st birthday she will be driving her own kids to hockey practice. Getting into the groove of this funny game and encouraged by Juli-Ann's evident enjoyment of my fantasies, I continued. "On your 21st birthday, you will be graduating from university." "No," she interjected. "I will be too busy reading!"
One of my deepest desires is to be alive and present to enjoy that wonderful time in the future when the time capsules are opened and the accumulated mountains of love come tumbling out of the past, back into my adult daughter's life.
"Watching for unexpected opportunities yields additional time. For example, times occur when a parent just finds himself alone with a child, as when others are outside playing. Here is another opportunity to fill that child's emotional tank and prevent problems brought on by a dry one. This time of focused attention may be quite short, just a moment or two can do wonders. Every moment counts. It's like making deposits in a savings account."
Ross Campbell, M.D.
Upcoming Public Events:
Retail Automobile Sales: The Professional's One Day
Workshop
"I enjoyed my 2nd time even more than my 1st and I already know the 3rd time will be better still!"
Jack Sommerville, Sales Manager - Honda North
"This is the third time I've seen Michael. He can get you
focused and help you take the next steps to further your learning! Sales people
always need updated info and should visit with him once a year! This makes
sales easier by understanding your clients better!"
J.T. Toste, Sales - Ron Smith Buick
"For the second year in a row, Michael has taught me lessons
that I will apply to my work and even more importantly, to my life. Thank
you and see you next year!"
David Press, Sales Consultant - Hedrick's Chevrolet
Date(s): Feb. 7th & 8th, 2006
Location: Piccadilly Inn Fresno University
4961
North Cedar
Fresno, CA 93726
Date(s): Mar. 21st & 22nd, 2006
Location: Owyhee Plaza Hotel
1109
Main Street
Boise, ID 83702
Here's our entire
schedule of upcoming public events--> Schedule
Page
Here's ALL of our client's comments (good & not so good)--> Comments
Page
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