Handling Objections – The Objection Cycle

Posted by: theinvestortoday / Category: Articles

This article is a continuation from Closing Techniques to Master Closing in Sales. Although it is not absolutely required that you read it first, the previous article really helps build on some of the ideas going forwards.

Whether you are a real estate investor extraordinaire or a house wife in Boise, objections are a part of your life. If you learn to handle objections properly, you can persuade people much more frequently to your desired outcome. On top of it, because you will have clearly understood their point of view, they will actually usually be happier and more responsive in this outcome. It’s like the difference between being forced to eat when you’re already full and being offered a plate of food in a time of hunger. While in both cases you’re eating food, your emotional state will be night and day apart.

I say this not to use as some evil power, because all knowledge in the wrong hands is dangerous, but to inspire you to greater things for yourself. People can be persuaded to give you what you want and be happy doing it. I don’t mean to push boundaries but… many women are very satisfied in bed because their man “took what they wanted” and was “being a man” about it.

Yes, I understand that this knowledge can make big deals go through, attract the opposite sex, get you the job interview, get you out of arguments at home and so on. Just be positive in how you use it.

I believe that it is people’s natures to want to see others happy. I believe you can help lead everyone to that conclusion, a win-win situation for all parties involved.

Remember that over 90% of sales presentations end without the salesperson asking for the close even one time.  Most sales actually happen after the 5th time the salesperson has asked for the order. If you want to be a top pro in selling you’re going to need to at very solid way of handling these objections. More importantly, if you’re going to be a top real estate pro, you’re going to have to handle objections very smoothly. How are you handling them now?

Opposite Points of View – Neither is Right or Wrong

The world is filled with people who have a different point of view than yours. You have wisdom of the benefits of your product or service. That is the knowledge with applied experience to see how it works. Chances are the client or customer has the knowledge you have given them through the presentation, but given their unique point of view in the world, they do not arrive at the same wisdom as you. What do you use to invite them to your truth?

Follow these 5 simple steps every time.

1. Agree With / Validate Their Concern

“Mr. Prospect, I can see where you’re coming from on this point”

You’d be surprised how many salespeople begin arguing at this point and turn a potential sale into a quick disagreement. Your truth is not always the world’s truth. Strive to see other’s points of view for what they are. To clarify, you don’t have to agree with what they other person is saying, you simply have to agree that you understand how they see it that way from their personal point of view. By doing this, you empower their point of view so that when you persuade them to a new one, they will be much more decisive.

2. Feed It Back To Them as a Question to Verify

“So what you’re saying is that you definitely like this (insert benefit) about it but you just can’t see yourself affording it” (or whatever other objection they had goes here).

For instance, “So what you’re saying is that you’d like your home sold but you’re not sure this is your best option right now?”

At this point they’ll either agree with you outright or elaborate on how they’re feeling about the situation. You’ll often see that there was more to their point than the figurative cards they had laid before you.

3. Reverse the Point to Lead Towards Your Truth

“However, to tell you the truth”

Those exact words invite them to a new point of view and are extremely effective in persuasion. You’ve understood their point of view and are still standing by yours. While it is only on the subconscious level, the idea that you are standing by your point of view even after understanding their point of view is a powerful declaration to the universe.

4. Restate Benefits

This one is rather open to what the benefits of what your product or service is. Do not sell technical features. Sell the emotional benefits behind the technical feature. I once met a real estate investor who sold “happiness” to “real estate problems” and he would wish everyone a “super fantastic day”. You are in the same business whether you have realized it yet or not. Sell the happiness your product brings in the life of the customer and not the product itself.

5. Close Again

“Mr. Prospect, why don’t you get it?”

You’ve shown them your truth and chances are they’ve seen it. There’s only thing left to do. Closing should be a natural outcome to the validated points you have made.

How it Works Practically:

Altogether it works like this. A customer says for instance “I can’t afford it”. You respond back with “I hear what you’re saying Mr. Prospect. So what you’re saying is that while you can see it’s obviously worthwhile to purchase these investments, you just can’t see yourself being able to make the payments for it right now?”

The customer may reply back with something like “yeah and I have my daughter’s wedding coming up, it’s just a poor time in general to afford it”.

“So what you’re also saying is while you think the investments are worthwhile and something you would normally feel comfortable purchasing, it’s also poor timing to do them right now”.

“Yes definitely.”

“I can understand that as well Mr. Prospect. However, to tell you the truth Mr. Prospect, how are you going to feel next time something big comes up? Life doesn’t get cheaper as it goes. Money in a savings account will grow slower than inflation. At this rate, you’ll never catch up. In fact, you’re only going to get farther behind. You can’t afford not to do this so that next time something big like this comes up, you won’t be stuck. You’re going to love the way you won’t have to worry about finances like this again all from a tiny bit of money each month you’ll learn to not even miss.”

Get back to showing payment options. Find a suitable one.

“Mr. Prospect, why don’t you get it?”

It’s so simple yet so strikingly effective. Use it.

In real estate investing like we do, from start to finish, it could go something like this.

“Mr. Prospect, I can understand where you’re coming from. Just so I clearly understand it, what you’re saying is that if you knew I had an investor lined up right now, you’d sign this contract?”

“Yes and my real estate agent was telling me it might not be a good idea because I could get more if I were to wait it out a bit.”

“I can understand that too. If could get a little more, I would take it as well. However, to tell you the truth, my database of investors is the best there is. I have more qualified contacts than any 10 real estate agents combined. I market this all year round so that when someone like you comes up, I am able to quickly handle this assignment of contract. While I agree with your agent said that if you could get more money you should take it, none of your realtor’s advice has sold your home or even gotten you much traffic. There is also very little reason to think that will change without doing something. There are tons of other homes like yours that are listed in the area for the price he is telling you to list yours for. At the very least, I’ll be getting dozens of investors in here to actually come visit your place within the next few days. You’ll know that there’s interest in your home because you’ll be the one showing them. Just imagine how much better you’ll feel at night when you lay down and there aren’t any more threatening notices from the bank. You’re going to feel so much more at ease when this whole ordeal is just done and over with. You’ll also have your credit intact so you that you’ll be able to buy a home again in the near future if you really want. Mr. Prospect, why don’t we sign this contract?”

Now compare that to what some people do when they say that “You’re wrong, I have tons of investors and your agent is an idiot”. Believe it or not, there are “investors” (not good ones of course) who actually do this.

The good news is that no matter what product or service you sell, there are only a few basic objections disguised a few different ways. If you’re selling multimillion dollar industrial machinery or chocolate bars door to door, the objections are the same.

Handling Objection Types

1. Can’t Afford It

This is the most common objection. Even when a customer says other things, often this is what’s really behind their objection. You know what’s ironic? If you came in selling a brand new Ferrari for $10,000 which is actually valued at $400,000 somehow your customer could find a way to afford it. The truth is that they cannot afford it based on their current perceived value of it. Those are two very different things to be clear on. You should handle this one a few ways at the end of the objection cycle.

- you can’t afford not to
further illustrate it’s benefit
- show payment plans and how yes they can afford it
- work with them to find a suitable payment
- illustrate a need for the product so that the price becomes irrelevant
- show how its use far outweighs its cost
- show what it will cost to not make a decisions (bankruptcy, forecosure, bad credit, etc.)

2. Too Expensive

Too expensive is different than can’t afford it. It means they can afford to pay that much but just feel it’s overpriced. Often when people say it’s too expensive, they really mean I can’t afford it. That’s why it’s important to ask the question in step 2 to confirm this is the actual objection you’re dealing with. This one is just a question of benefits versus price it is worth.

- paint a visual picture of one of its benefits
- illustrate its benefit through the use of the product
- go back to the key benefits they agreed to earlier and pound home that value
- show benefits that show a few dollars more is easily worth it for their life
- ask them why they feel it’s overpriced

All too often people are afraid to ask. You won’t know otherwise. If you’re afraid to ask, suggest something and they’ll come out and tell you why.

3. I Need To Think About It

When I first joined with my magazine partnership, my partner lost more sales to “I need to think about it” than anything else in human history. I asked him how many sales he had this month and he’d say a few but “I’ve got all these people I’ve got to get back to in a few days to see how it went”. He was excited about all the people that had told him they need to think about it. A few weeks went by and he diligently called everyone back to find that he gotten only one sale from the hundreds of potential customers he had seen. The lesson to be learned here is that “I need to think about it” is a way to delay having to make any decision at all. The truth is nobody thinks about it after you leave. Five minutes after you have left, they are done “thinking about it”.

- I understand it takes some time to make these decisions, can I ask you though, what about it do you still need to think about?
At this point, they’ll give you their true objection
- It’s very smart to think over your decisions, is it because you are unsure of this model or that one?
Suggesting a reason why will cause them to say “No actually it’s just because€¦.” And you can get to the true objection
- This is my personal favourite. In our new magazine partnership, when clients would state they needed to think about it, we’d gladly agree. I completely understand Mr. Prospect. Decisions like this take time and you’re a smart man for not jumping to a quick emotional decision. I’ll tell you what. We’re just about to run up for a coffee anyways. Do you want anything while we’re out?
When you come back in 10 minutes, he won’t be able to use “I need to think about it” again.
- Agree with them and leave to your car to “get something” or go to the bathroom for 10 minutes. Come back. Ok Mr. Prospect, you’ve had some time to think about it, can I ask you then? Why don’t we sign this?

At this point the real objection will come out again or they’ll have realized in that time that there really was nothing to “think about”.

4. Don’t Agree With a Particular Benefit

This is a very simple one that even the average salesperson can deal with. As long as you don’t argue with the customer about the benefit and use the objection cycle, you should be in good shape.

- Show some emotion behind how the benefit is going to help them.
- Illustrate through a picture.
- Give a demonstration.
- Call a past satisfied customer that you’re close with to prove what you say (when you get a top customer like this be sure to ask them if it’s ok ahead of time if you were to ever call them regarding this). This is great if you’ve had past clients that you’ve closed deals with. Call them and see what they have to say.
- Show a testimonial. Don’t be afraid to ask for them either.

5. Already Own One

The chances are if you’re selling a product, it is of higher price than a lot of other products in the same field, which are not sold through personal sales. People may say they already own a car when you’re offering a Ferrari. It’s just simply not the same thing and you need only to prove it. Isn’t it ironic that people can waste 10s of thousands per year on things like coffee and restaurant meals but because it’s done in a series of small purchases it doesn’t bother them? Do people think for hours on buying a $3 pair of socks? It’s actually these small purchases that can’t be accounted for that causes most of the financial burden in people’s lives. You have to get back to showing them that your product versus what they already own should hardly be considered the same product at all.

- Show how your product replaces the other product and adds more convenience to their life.
- Show some emotion behind how the benefit is going to help them.
- Illustrate through a picture.
- Give a demonstration.
- Call a past satisfied customer that you’re close with to prove what you say (when you get a top customer like this be sure to ask them if it’s ok ahead of time if you were to ever call them regarding this)
- Show a testimonial

6. Can’t Fit It In the Budget

A lot people use the budget constrictions as the reason for not making their purchase. This is very similar to I can’t afford it in how you can deal with. All the things stated previously work for this one in addition to some other ones.

- Be flexible and show you can adjust the billing time to have it reflected in the new budget
- Work with them to look at the budget to see where concessions can be made
- Find out who makes the decisions with the budget so that flexibility can be attained
Your job is to work with them and problem solve to see that it can be made possible.

7. I Need To Talk It Over With My Boss/Spouse/Business Partner

A lot of people use this just like a modified version of “I need to think about it”. It’s important to realize that when you leave no in depth discussion with the partner, spouse or boss is going to take place. There’s a number of ways you can deal with this.

- Get them to make a solid decision for themselves.
“Mr. Prospect, I understand you cannot make this decision without (Objection person), let’s just suppose for a moment that the decision was solely up to you.”
Get them to sign the deal with a little comment “pending [Objection person’s] signature”. Meet with the other person separately or with your current prospect again as soon as possible.
- Ask them to call their boss, spouse or business partner into the meeting
- Get them to sign the deal now on their own merit and give them a few hours to discuss it over with the objection person
- Most importantly and effectively, qualify them up front on the phone. Mr. Prospect, are you the person who makes the decisions for purchasing? You’ll find that most objections are easiest when dealt with before they ever come up.

Now relating this all to real estate, understand that like in everything else, clients will disagree with you from time to time. Use these 5 steps to turn your situations into winning deals. If you disagree with someone and argue with them, you won’t close deals. If you disagree with them and you use the objection cycle to turn the disagreement into an agreement, you’ll close a lot of deals. You can practice this technique any place, any time that someone has a different point of view than you.

All that’s left for you to do is to put these steps into practice. Turn your current knowledge into applied wisdom.

See also Closing Techniques.

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