Phase 4—Ethically Managing Resistance and Objections

Once again, Renato has used the suggestions given, and presented his offer by connecting its value to the real needs of his customer. Yet the customer is not convinced, and insists on raising “annoying” objections. Renato initially feels almost offended by his customer’s doubts, and in any case considers it a waste of time to provide further explanations. He’s tempted to argue his points vehemently, but he read somewhere that “the customer is always right” so he gradually convinces himself that this is not the best tactic if he wants to maintain the relationship. However, the most worrying objection from this customer is “I think you are asking too high a price.” Renato, in fact, believes that his customer is partially right: Why indeed should anyone pay more for Joy Motor’s products? Again, we will help him out.

Once your customers have heard the presentation you put together based on the needs that emerged in the analysis phase, they will react in one of three ways:

•  They will have a positive reaction: “I like the house, it has a great yard!”

•  They will ask further questions: “How soon can you make delivery?” “Will it shrink in hot water?”

•  They will come up with actual objections: “Are you really certain this brand is reliable?” “A colleague of mine said this model has given him a whole lot of problems!”

Comments, questions, and objections²⁷ are all good signs as they indicate that your customers are seriously considering what you said and are trying to gain a better understanding of your offer. Now is the time to reassure them about the choice they are about to make.

First, you must realize that not all objections are real objections; often they are just excuses that customers use to conceal an unspoken fear. They may be accountable to another person for the choice they make—“What am I going to tell my boss if I buy this printer?”—or maybe the purchase goes against deeply held personal values—“I would like the purse, but having a designer label like this might be embarrassing when I do my volunteer work”—or they feel awkward about justifying the expense—“How will I explain to my wife that I spent so much?” In all these cases, your customers want to make the purchase but something outside their desire is bothering them and they are making a more or less direct plea for help to overcome the obstacle; you are being asked to fight alongside them as an ally. You, as an ethical seller, must now get involved in the process of defending their choice, by providing valid arguments and being ready to aid them (even to the extent of accompanying them physically) when they have to explain their reasons.

Another trap that we sellers often fall into is mistaking a simple question for an objection. “Is it true this car consumes a lot of fuel?” is nothing more than a question. The form of the question may make it sound like an objection, but simply provide a neutral response and avoid any irritation in your reaction.

Sometimes, on the other hand, customers make serious objections that are a true expression of confusion or doubt; we must underline here that our conception of Sales Ethics is based on open exchange and free debate, requiring respect for all positions, and that the aim is to reach a genuinely shared agreement. Hence, sellers should not fear objections. It is much more worrying if customers stare at you without uttering a word as these are the ones who are most likely to conclude the conversation with: “I’ll think about it, and I’ll let you know” or “I’ll come back later” and then disappear forever. We will discuss this type of customer below, but for now let us focus on direct objections.

When customers tell you they do not agree with your opinions or arguments, implicitly they are saying “Give me a reason to believe” or “explain this concept clearly because otherwise I do not understand.” You can therefore use objections to further enhance your proposal, allowing your customers to prompt you into presenting your offer in the best way.

Objections must always be dealt with and resolved by working through them methodically with your customers, using your in-depth knowledge of your product or service. Maintain a positive attitude throughout, safe in the knowledge that objections are, in fact, an actual test that your customers put you through to check motivation, skills, and abilities, before placing their full trust in you.

Overcoming the Tests of Trust

A generally effective method for passing the test of trust involves three actions, namely listening, acceptance, and response, organized in the following way:

•  Listen actively to understand what the customer is saying while adopting an open and neutral attitude and maintaining empathy while avoiding prejudice or expressions of disapproval such as “That’s really rather silly!”

•  Make them feel accepted and understood through both your body language and your eye contact. You can even verbalize this by saying, “I understand what you’re getting at,” “I thought the same thing.”

•  Respond by emphasizing the features and benefits that can resolve customers’ doubts; present the unique and special features of your offer that may appear as defects if not effectively explained.²⁸

Following is an example of how you may apply this model:

•  The customer expresses an objection: “I heard your watches aren’t waterproof; I do a lot of sport and outdoor activities and I’m always in a rush, so taking off my watch every time I shower is a hassle.”

•  The seller accepts the objection without arguing: “I understand—the watch must be water-resistant and practical. Do you use more than one watch?”

•  The answer provides more information: “Yes, and I like changing them frequently and buying new ones.”

•  The seller then responds to the objection by highlighting features and benefits: “The watch case is sealed with a technique that ensures it is actually water-resistant up to 1 meter, so you can keep it on in the shower or when you have a bath.”

•  Alternatively—if you have no other choice—turn the limitation into a feature: “Our watches are crafted with a traditional technique that means they are reliable and elegant; they only require that little extra precaution of taking them off before entering water.”

If you want to be ready to handle the situation with clarity and confidence, it is useful to prepare for the most common objections. Competence enables you to face this phase in your sale with a natural firmness that reassures the customer by signaling your expertise. Where possible, it is very effective to offer practical demonstrations. For example, if a customer is concerned that the sofa fabric is not waterproof, show them what happens by throwing a glass of water on to it; if they are unconvinced that the product was made in Italy, let them look at the trademark label; or show them where it was produced. If you put together websites and the customer needs to understand how they are designed, bring along demo work or invite them to visit the agency and talk them through the various stages of website production.

Apart from using a logical and rational approach, you must recall the purchasing motivations revealed during the investigation phase. In  the short dialogue earlier, where our hypothetical buyer underlined practicality and speed, it would be superfluous, and perhaps misleading, to point out that “the special way it is crafted means the watch will last over 20 years,” especially because the customer specified that he liked to change his style of watch over time.

Underlining the unique characteristics that set our offer apart, as we did in the last sentence of the example, is extremely important to inform your prospects of the less obvious aspects of your offer, so they can fully appreciate the benefits and the special nature of the product or service you are proposing. In the example, we could build on the fact that this customer likes changing his watches frequently by adding “A watch like this, if well looked after, is an investment as it will keep its market value if you decide to change it.”

We have personally met with quite a number of sellers who are not able to exploit the unique features and benefits of their offer, and even misrepresent them as defects in the eyes of the customer. While working for a well-known motorcycle producer, the manufacturer of the only scooter still built with a metal body, we found salespeople were often at a loss when customers objected, “Why don’t you build plastic scooters like all the other producers and offer a lower price?” A question like this provides the perfect opportunity to argue the unique value of the company’s product: greater durability, greater safety in accidents, easier maintenance, and a sturdy frame that resists bending and ensures improved dynamics, and so on. All qualities that should certainly help customers to appreciate the value of making this particular purchase.

Objections must be handled in a relaxed and collaborative way; it is not a matter of attack and counterattack. Yet very often this stage becomes a battle of words—“I don’t agree,” “I think you’re wrong,” “That’s not true,” That’s impossible.” Let us remember, however, that every encounter of this sort causes damage to both parties. If the seller manages to prove what the customer is saying is nonsense, it will be a bitter victory, as the potential customer will feel offended and humiliated and most likely lose interest in the exchange. On the other hand, if the customer wins by demonstrating the inadequacy and incompetence of the seller, the exchange will end in any case. Who would buy from someone who fails to instill confidence?

You must therefore aim for a shared victory, which generates value for both parties: The goal is not to prove who is wrong or who is right, but to merge the elements that you and your customers are seeking during the bargaining by making sure that they do not conflict but rather support each other. If you both win, you will make your sale and the customers will satisfy their needs!

Every action before, during, and after the negotiation should lead to mutual satisfaction.

In the light of this new awareness, the oft-quoted motto “the customer is always right” is demonstrably anachronistic. Sales Ethics does, in fact, aim to move beyond this precept to enable you to transform it into an objective that is really useful. Of course, it’s impossible that customers are always right and there is no point humoring them when we think that they are talking nonsense. It is mistaken to be either overcondescending or choose flattery over truth and clarity during a negotiation. We suggest that the motto should be reworked to remind you what your aims are throughout the relationship: “The customer is always right at the center of my work.”

Let’s take a look at a model for managing transactions when the salesperson has one opinion (A) while the customer is convinced of another (B):

•  The salesperson listens carefully to the customer’s argument to find the least common denominator (C) which is a point that opinions A and B have in common.

•  The salesperson gives weight to the customer’s opinion by focusing on common point C.

•  The salesperson connects point C to their own opinion A.

•  Thanks to the transitive property, opinion A becomes acceptable to the customer (syllogism technique).

•  When the customer receives and accepts the agreement, the salesperson remains silent while maintaining eye contact.

In this way, you can maintain a good relationship while opening up a range of opportunities and solutions that the customer had not considered in the initial phase, or which were causing concern or resistance. Objections can actually be useful to strengthen and disclose the process of building your common value. They will allow you to demonstrate to the customer that your goals do not conflict with theirs.

Let’s imagine that Renato has presented a car to a customer who then objects, “I know this model is manufactured in Poland not in Italy and I’ve heard their assembly lines are not so reliable” (opinion B). Instead of contradicting the customer, “You’re wrong about that—the level of production in our Polish factories is actually just as good, if not better than the work done in Italy,” (opinion A), he takes note of the customer’s opinion to emphasize what they have in common “You’re right, in fact, this model is manufactured in Poland” (lowest common denominator C). At this point though Renato follows up this statement by connecting it to his initial opinion adding “But, in fact, our factories in Poland are managed by highly qualified engineers and the quality of the products is at least as high as those assembled in Italy, if not higher as you can see for yourself.” Renato will then leave the customer time to reflect and verify the information, as he knows what he’s saying is true. This approach will have provided his customer with a further reason to make the purchase.

When the customer interrupts your presentation with a question or objection, you should take it into account and adapt your strategy by providing an appropriate response. If you go on talking and ignore the request or pretend you haven’t heard, your prospect might interrupt you again for an explanation or say nothing but fume inwardly because they think you are either not listening or you have no answer.

If the objection crops while you are in the initial stage of the presentation (and have not yet given any information to support your explanation), you can reassure the customer that you will deal with that point as soon as you have explained some important details that will clarify the query.

Two objections, however, undermine any negotiation, “It’s too expensive” and “I’ll think about it.” These come up so frequently that they each merit a specific section where we will analyze the reasons they occur and suggest how to tackle and resolve them.

“It’s Too Expensive”

If, despite all your efforts to present the offer clearly in relation to the price, the customer cuts you off with the words “It’s too expensive!” you must investigate to find out the reason behind this statement. Our experience tells us that it will be for one of the four following reasons:

1. Limited economic resources (the product costs $100 and the customer has $80 to spend)

2. The price is higher than that initially budgeted for the purchase (the product costs $100, the customer has $100 but wanted to spend $80)

3. The value perceived by the customer is less than the asking price

4. A competitor has offered them the same thing at a lower price.

How do you find out what the situation is? By asking questions!

Avoid interrogation techniques with aggressive questions like “Too expensive compared to what?” We suggest you choose a softer and more ethical approach, such as “Do you think the price is too high for what you are getting?”

Listen carefully to the prospect’s answer and then calibrate your presentation accordingly. Following are four possible answers that the customer may give when asked to explain; as you will see each of them provides us with the information necessary to continue the negotiation:

1. “No, it’s a good offer but I can only afford $80.” If this is the custom-er’s answer your only option is to check if there’s a cheaper alternative in your product range that will still satisfy the customer’s fundamental needs.

2. “No, but I only wanted to spend $80.” In this case you must stick to your price and underline the value of your offer, while reiterating the benefits it will bring.

3. “Yes, actually I do.” If the customer clearly states that, in their opinion, the value does not warrant the price, you will have to explain your offer in detail. Possibly, you have failed to present the elements of your offer system adequately and left information asymmetries. Sum up the features and benefits and utilize the customer’s purchasing motivations. You should also bear in mind the price–value diagram we provided earlier.

4. “Firm X offered me the same thing at $90.” Go through this with your customer: Are you sure it was the same? Even very similar offers will entail differences between one firm and another—it is highly unlikely that two competitors are offering exactly the same thing. You may have extra services or be an established company and the characteristics of your firm as well as your personal commitment contribute to making the difference. In the past, you yourself have probably bought from one supplier rather than another, just because they were more helpful or competent. Underline what is special about what you are offering your customers and what your strong points are, and remember to link these characteristics to the information you gathered while talking to this prospect in the analysis phase.

As we saw in the section on price presentation, when faced with an objection you must definitely avoid answering with a dismissive “All right, I can bring down the price.” You would give the impression of having artificially raised the price to cheat the customer. Moreover, this would devalue all your efforts up to that point, including not only your explanations but also you, as you are an integral part of the offer system.

But what should you do if you think that your product is actually expensive and the price is too high compared to the quality? Every so often, during our classes, when we have finished presenting the arguments in favor of Sales Ethics, someone asks, “That’s all very fine, but in my case I’m selling something that really is overpriced, so how can I apply anything you’ve taught?” In order to be an ethical salesperson, you must first resolve any identity conflicts within yourself and regarding what you sell. If you think your product or service is a rip-off you should not be going around trying to sell it! But don’t forget, we also said that acting ethically means taking your share of responsibility. We also noted that most objections made by customers regarding the price are due to information asymmetries. Think again—are you still sure your offer is over-priced or are you too lacking in information? Are you sure you cannot do anything to present the price as justified? If the answer is no or even “I’m not going to try and trick folks with half-truths” then act accordingly and change what you sell. Find an offer system in which you believe.

“I’ll Think About It”

This objection, which could equally take the form of “I have to talk to my wife, husband, or boss,” is very delicate, because (unlike an objection to the price) it means you have retreated a step in the circle of trust. The good news is that it is mostly due to your bargaining work, so you can resolve the situation by going back to the early stages of the sale and carrying them out more effectively.

When the customer says, “I’ll think about it.” they are signaling that you are not in harmony and that you have failed to figure out what they need and what their purchasing motivations are. You have not succeeded in communicating the benefits and advantages they will receive by taking up our offer. In other words, you have not provided enough logical reasons and emotional drive (trust, confidence, enthusiasm) for a purchase!²⁹

If you suspend the negotiation without reaching any sort of agreement in the meantime, there may be two negative outcomes:

•  The customer will forget both you and your offer.

•  The customer will meet a more effective salesperson, or simply one who is in the right place at the right time, and will close the deal.

How can you avoid this?

If the customer gives you a chance, go back to the investigation stage. Perhaps you failed to convince the prospect because you missed some crucial detail or did not notice a deeper buying motivation. You are still in time for a last ditch attempt, like “While we’re here, I’d like to ask you something to understand … .”

The situation changes if you are dealing with customers who prefer to meet more than once or need to involve a third person or simply want to evaluate a range of options. How should you deal with these? Here is a list of useful tips:

•  Agenda another appointment for a face-to-face meeting or even by phone to conclude the negotiation, and ask the customer to commit to a definitive answer on that occasion. If you agree to hear from each other by phone, ensure you are the one calling so that you are actively leading the negotiation. Underline your trustworthiness by calling punctually on the date you set.

•  Request that the influencer be present at your next encounter,³⁰ whoever it is (owner, spouse, superior). Remember that no one can sell your product better than you so don’t delegate to someone else. At the next meeting remember to start from Phase 1 again so that you get to know and understand the decision maker you are now dealing with, but do not neglect or ignore your former contact.³¹

•  Let your customer know that you are keeping the offer on hold for them and will wait before proposing it to someone else and set a date when you will hear from each other for confirmation. Once again, state that you will be the one to call. For example, you could say, “I’m putting this car aside to make sure the model, color, and accessories you requested are available. I’ll call you 9 a.m. Thursday to complete the purchase.”

This stage is very tricky. Frequently the salesperson’s fear of receiving a refusal as they go to close the deal causes them to slow down the negotiation (we will analyze this fear in the next phase). Sometimes the salesperson may even plunge in with kamikaze phrases like “Would you like to think it over?” which only serves to create greater confusion in the customer’s mind rather than provide help.