Tag Archive | "selling techniques"

Don’t Be Afraid of ‘No’

Objections Are OK – They’re Just A Normal Part of the Selling Process

Closing the sale and overcoming a customer’s objections sound like two different topics. But closing the sale and handling objections always work together, and it takes effective skills at both to make more sales.

Most salespeople are so afraid of objections that they say and do all the wrong things. That’s too bad because in sales, knowing how to handle objections correctly is one of the most important skills you need to develop.

A customer having an objection doesn’t cause you to miss the sale. It’s how you handle their objection that determines whether you make the sale or miss it.

Getting a ‘no’ doesn’t mean they don’t like you or that they aren’t going to buy from you, so don’t burden yourself with all of those feelings of ‘rejection.’

Just assume what I just said is true and you’ll sell a lot more and earn a lot more in your career. ‘No’ simply means…

Based on the information you’ve given me so far, I can’t say ‘yes’ – tell me more and ask me again later!

Since 80 percent of all sales are made after the fifth attempt to close and overcome the objection, especially remember that…

Persistence eliminates resistance!

Your Habits Cause Most Of The Objections

Most real objections are created by salespeople. There’s a statistically correct and incorrect response when you get an objection. Toss out the right response, and objections just disappear, or you bypass them until later.

If you incorrectly respond to a question or an objection the first time it comes up though, it’ll become a bigger issue, and it may become almost impossible to overcome on the spot and/or later in the sales process.

Examples of a few wrong ways to answer simple common questions that you’ll pay for later in closing or negotiating:

  • I like the car, but it’s a lot of money, how low can you go? Don’t worry – we’ve never lost a deal because of price.
  • What’s my trade worth? What did you want for it?
  • Do you have one of these in white? No, but I can get you one.
  • What would payments run on this? What did you want to spend?

Yeah, I know. Each of those answers is what most of us were taught to respond with – and that’s the problem. There’s a better way.

Let’s look at how you can take a common objection and turn it around so you can close on it again to make the sale.

Early in the process…

• “It’s a lot of money.” If this comes up before they’ve found a vehicle they’re ready to take home, bypass the objection.

First, answer their question: “To get you accurate information, let’s make sure this is the vehicle you want to own (no bridge) who wants to drive first Bob, you or Betty?” Continue to build rapport, investigate, present, demonstrate, build value, introduce them to people in service, etc.

If it comes after they’ve selected a vehicle…

You’ve started closing on the demo at your Landmark, they parked in the Sold Line and you’re getting your Action Closes and they bring up the same objection. Instead of bypassing it this time, you’ll rephrase the objection to budget and close.

“Like I said before, this is a lot of money.” Rephrase to Budget: “It sounds like you’re like me and everybody else, it sounds like you guys are on a budget, am I right?” “Yes, absolutely.”

Now Isolate: “So Bob, if we sat down and went over the figures and you both felt your budget could handle it (Isolate) other than fitting this into your budget is there any other reason we couldn’t put all this shopping behind you and send you home in this brand new truck right now?” “No, I guess if it worked out, sure we’d take it…But what do you think they’ll give us for our trade?”

Bypass the trade question and close: “Let’s get all of the information on our car and yours and we’ll go see – were we registering this in one name or two?” “Both names.”

Let’s look at a couple of other good responses…

“What’s my trade worth?” Answer and bypass: “That’s one thing I can guarantee you I don’t know. The good news is we have the highest bidder in town who buys all of our vehicles, we’ll have him take a look at it as soon as he’s free.”

“Do you have a white one of (these)?” Answer, bypass and expand your inventory: “Let’s go see, so who’s the lucky one, who gets the new car this time. Bob, is it for you or Betty?” “For me.” “Congratulations, and what’s your second favorite color?” “Silver, or maybe that off-white color you have.”

“What would payments run on this?” Answer and bypass: “That’s going to depend on equipment and speaking of equipment, what’s the feature you like best on the car you’re driving now?” “Back up camera.” “Really, why is that?” (They explain.)

“Yeah, but…” Why wouldn’t we want to get payments, trade values, or color out of the way before we spend extra time with them? Because 86 percent of the people are flexible on color and equipment, they always take less for their trade, and always make higher payments. Plus, the more excited they are about the vehicle, the more they raise their sights. Get them excited first and they’ll buy ‘silver’ – and find a way to pay for it.

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Game Changers: Three Can’t-Miss Closes

Cash, lease and high-mileage pre-owned can be some of the more challenging deals in the Finance Office. Yet, these deals can make up 40 percent of what Finance Managers see on a monthly basis.

In my workshop last month during the F&I Conference and Expo in Las Vegas, I discussed how Finance Managers can apply the right attitude, approach and close to create additional profits for the dealership from these types of deals.

For example, in a cash deal, the Finance Manager spends the first 45 minutes trying to convert the customer to finance. Trying to convert the customer by implying that paying cash is a bad idea only elevates the customer’s wall of resistance. It’s no surprise that after 45 minutes of perceived badgering, the customer will be a “no” when it comes to ancillary products. This approach seems rather old school when you think about it, doesn’t it?

What if we tried going with the flow when it comes to cash customers? Instead of trying to convert cash buyers to finance, what if we reinforced their buying decision by telling them how few customers are able to pay cash. Then, you can offer protection products that are advantageous to cash buyers in a non-adversarial environment.

Lease deals can also be a challenge for the same reasons listed above. Instead of trying to convert the customer to finance, put yourself in a better position by communicating the benefits of leasing. At this point, you can capitalize on the fact that the customer is budget minded. Pretty much every ancillary F&I product can be presented from the budgeting point of view.

Plus, with products like Lease Wear & Tear, Key Replacement, Paintless Dent Repair and Windshield Protection, you can really hone in on products that will be beneficial to the customer when it comes to avoiding additional fees or lost security deposits at the time he or she turns in the leased vehicle.

High-mileage pre-owned deals come with a perception problem. Many Finance Managers assume that these customers won’t buy ancillary products and rush the paperwork through without offering any products to these customers. Don’t assume that just because a vehicle has high mileage or is less expensive that the customer will not buy any product. JUST ASK!

Conduct an interview with these customers just like you would with any other customer. Then, use the information gleaned in the interview to offer products that make the most sense for the high-mileage customer. Roadside Assistance and Tire & Wheel are two great products because they provide many benefits and needed protection at a realistic price range for these customers.

Finance Managers have a great opportunity to be facilitators instead of barricades for cash, lease and high-mileage pre-owned customers. Start selling what the customer wants to buy and not what you want to sell. Use the techniques you have learned through training – interviewing, features and benefits, menu selling and objections handling – to customize your delivery for these customers.

With rate flattening, it is a good idea to get in the practice of focusing on selling what ancillary products the customer wants to buy on any deal. Customizing your selling to what vehicle the customer is buying, how they are paying and their individual needs can raise your PVR significantly.

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