Here is the really good news about objections. There are only a limited number of standard objections. This means it is not difficult to be prepared for what the prospect is about to say. We have also spoken about how to respond to objections in a general sense. This included being empathetic and not arguing. It also included coming to a full understanding of the objection. Now we will spend more time going over what to say more specifically.
No matter what your product or service, the objections will typically be grouped into at least the following categories…
• Price
• Loyalty
• Timing
• Prejudices
It is price that is typically the most common objection. For example, a loan officer answers the phone and hears–
What is your rate?
A real estate agent answers the phone and hears–
What is the price of that house?
What is your commission to sell my house?
Every industry has a different definition of the term “price.” We need to understand what will be questioned and in addition, come to an understanding of what is important to the prospect.
For example, when prospective home buyers are concerned about the price of the house and the rate of the mortgage, the question is–why? Actually, home buyers are really concerned about two things–how much cash they will need and what is their monthly payment. Yes, they understand that the price of the house and the rate on the loan may affect the payment–but many do not know the precise relationship. They also may not know the tax ramifications—or payment after taxes.
Therefore, in responding to these objections one must focus upon what is important to the customer. For example, the “commission” question might invite a response such as “what would you like to net from your home after you complete the sale?” If they say “$25,000,” you might say–if I can sell your home in a way that will meet that requirement, will you consider listing with me? Mind you, we are not suggesting you guarantee this amount–but you should have a plan to show how your services will help make this objective possible.
Loyalty is a hard objection to overcome. Some prospects make their decision purely based upon price and others based upon loyalty. Most make their decision based upon a combination of the two. In this situation you need to find out the depth of the loyalty and relationship–
My brother runs a title company.
This statement may leave no room for overcoming the objection. Certainly the fact that the competition is the prospect’s brother indicated that there is little chance. However, this does not mean that you don’t inquire with questions
Does your brother practice in the area?
How long has he been in the title business?
What if you are in New Jersey and the brother is located in North Carolina? Perhaps the prospect is aware that the work may have to be referred to a local company. On the other hand, if the brother is local, experienced and can handle the case, you should not try to convince the prospect to ignore the relationship. Yet, there will still be an opportunity. Perhaps you can meet with the brother and set up a referral relationship.
Timing can always be an issue. You may want the prospect to act now, but the prospect may not be ready. This is especially so when real estate values are falling or rising. In a down market, many could be waiting for home prices to fall further before they purchase their next home. What could change their mind? If they could purchase a home 20% below the value of today’s market–would that spur them to action? Perhaps so.
Prejudice is an objection that is hard to overcome because many prejudices are deep-rooted and many prospects will not admit to them. If the prospect thinks you are too young/old to serve them–they are not likely to tell you that. Prospects are not only prejudiced against people, they are also prejudiced against situations. For example–
I would never purchase an older home.
What if the home were renovated? What if there was a warranty? Your questions will lead to the right answer.
A final point. Even though you should know the possible objections and be ready to answer, you should not be memorizing scripts. The key here is to find the real needs and you do that with deep questions and conversation. This builds trust. Conversation skills must be developed–and practice in the form of role playing helps.
