#007 How to Address And Overcome Buying Objections

#007: How to Handle And Overcome Buying Objections

Read time: 3 min

Today I’m going to share how to address and overcome objections correctly.

In a world where competition has become increasingly fierce, prospects have become alarmingly more stringent in their criteria when moving forward with a product.

I’ve listened to many calls where the prospect is literally telling the founder what needs to be done in order for them to move forward, and because of the founder's limited experience in addressing their concerns correctly, the deal fell through.

Once you’re able to read between the lines on what the prospects is really try to convey, and address those concerns — your close rates will go way up.

Learning the science of objection handling conveys competence and authority.

Before we dive in Iet’s use the sport of boxing as a metaphor to frame how to think about this.

A boxer has 4 punches they can throw at you. A jab, cross, hook and an uppercut. There’s various combinations they can throw, but there’s only 4 punches.

A boxer's job is to understand the different combinations that can be thrown at him, how to slip each, and counter with his own to lower the chances of getting caught, and potentially knocked out.

As a founder you need to understand the punches (objections) a prospect can throw at you, and how to address them, so you do not lose deals that are closeable, and you increase your chances of closing. Usually, it’s only four or five outcomes that play out consistently.

Let’s take a look at the 5 most common objections and how to address them.

5 Most Common Objections

1. Too expensive / cheaper solutions

2. How are you guys different than competitors?

3. Timing is off / Not the right time.

4. Don’t think the problem is big enough.

5. Build in house vs. outsource

There are 4 steps you need to understand to handle objections.

Step 1:  Acknowledge

Step 2: Isolating

Step 3: Pain / Solution

Step 4: Commitment / Close

Here’s what it would look like addressing the “Too Expensive” objection.

Acknowledge

I understand your concern.

Isolating

Is budget the only thing that is preventing you from moving forward, are there any other concerns?

If No: There are no other concerns, proceed to Step 3: Pain / Solution.

If Yes: There are other concerns you need to identify each one of them and use this cadence.

Pain / Solution

Ok, on our previous call you mentioned that you were using 3 different pieces of technology and it required a lot of bandwidth and resources for your team to manage this workflow. Is that correct? (Pointing to the problem)

With us, we are literally removing that bottleneck because our solution automates the entire process for your team. Not only do you no longer have to duct tape different pieces of technology together, but we are giving you and your team back all that time to focus on higher priorities and ship faster. And the effort required to manage this is pretty much nonexistent. We do all the heavy lifting for you. That’s why the investment might be slightly higher with our product, it’s because our execution is significantly better than any other competitors. (Directing to the solution)

Commitment / Close

Now let me ask you this. If we could make this more economically feasible for you, would you consider moving forward?

If Yes: They would move forward, then offer them a better deal.

If No: They would not move forward, ask why.

Best Practices

1. Write down the most common objections you hear from your ICP.

2. Write out the rebuttals using the cadence mentioned above.

3. Study and role play the rebuttals so they can be delivered flawlessly when the objection comes up.

Key Takeaways

1. Acknowledge the objection.

2. Isolate the objection.

3. Point to the pain and direct to the solution

4. Get the commitment and close.

That’s it for today folks.

See you all next week!

Darren

If you’re interested in learning more you can book a call with me here.