Salespeople must know how to close a deal in the face of tough objections. First, they must understand the difference between a valid objection, often referred to as a condition, as opposed to simple mental resistance – usually composed of irrational fears.
Conditions are those things which make the deal impossible to close at the moment. These include no money or credit, no buying authority, or complete unsuitability (a pizza chain has no need for a fleet of bulldozers, for example).
These unsurpassable conditions are rare, so let’s examine how to close a deal using three deal-saving, tough objection handlers.
One of the best methods for how to close a deal blocked by price objections is the Reduction to the Ridiculous Close. Here, you point out how the price difference is really minuscule when you consider the service time and the benefits. To do so, break down the cost of acquisition to a daily figure.
Buyer: “It costs too much.”
Salesperson: “I see. Could you tell me how far apart we are in price compared to your expectations?”
Buyer: “I was expecting around $25,000. Your solution is double that!”
Salesperson: “Okay, let me make a note of that.” (Takes notes and continues scribbling). “Now the life of this plan is three years. If you divide $25,000 by 3, that’s $8,333.33 per year, which comes out to $694.44 per month, and about $23 per day. Do you think $23 per day should stop you from getting all the benefits we discussed?”
It’s all in the delivery.
Technical issue where your product can not meet one or more needed specifications
Sometimes you could run into a deal which falls apart on a technical issue. If it’s a major business requirement, the deal is likely dead. But if it’s a minor issue that is out of spec, the deal can be saved by selling to the business problem your product or service solves.
These are generally big picture items the buyer is investing in to try to expand: revenue growth, increased efficiency, speeding up production, gaining more customers, etc. When you get the prospect to focus on the high-level issues, minor technical points lose their importance.
“The impossible client” who wants to drag out the negotiation and get every ounce of blood from you
The first step in how to close a deal with a client like this is to hold firm. If the client treats you like that before the sale they will do the same afterwards indefinitely. You must put your foot down, even if it means walking away, because this buyer might cost you more in time, effort, and aggravation than the commission is worth.
An excellent technique to use on this buyer is to nibble back. Every concession you give must be answered with a concession of their own, or no deal. “This is not easy to do. If I do that for you, could you do ____ for me?” Get all concessions in writing, be forewarned.
You can close these tough deals – just make sure they are worth it!