5 Common Sales Objections and How to Overcome Them

common sales objections

Did you know 79% of the marketing qualified leads or MQL are never converted and that nurtured leads make 47% larger purchases than the non-nurtures ones? These statistics clearly signify the importance of qualified leads.

marketing qualified leads - sales statistics

Another overwhelming statistic is that at least 50% of the targeted prospects are not a good fit for the products that you are selling. This is another common sales objection where the sales representative either pitches in too early to the prospect or misunderstands the prospect’s challenges altogether.

We all know how difficult it is to close a deal after all these figures. Furthermore, even when you have the perfect solution at hand, your prospect might come up with an unforeseen objection to avoid closing the deal. Research says that only 3% of your market is actively buying. The rest is either not ready or almost ready.

So, the rest 97% of the market will surely come up with some kind of common sales objections to avoid closing the deal. Therefore, it is important for the salespeople to –

a) Identify the warm leads correctly

b) Foresee the common sales objections that might come up in their way of closing the deal and overcoming these objections in sales.

It is quite discouraging to hear the below five sentences from your prospects after you have pitched in your offer really well, and had several rounds of questions and answers.

1. We have an in-house team doing it

OR/

2. Our budget doesn’t allow us to spend on your product

OR/

3. We have another work priority right now

OR/

4. My manager denied for the deal

OR/

5. We will buy it soon

Overcoming Objections in Sales – Proven methods

Let us check out some possible methods and conversations that can help you in overcoming objections in sales.

1. We have an in-house team doing it

Well, it might sound like a very common sales objection to you. You know that your prospect has spent a considerable amount of time in the discussion about the product. That time was worth a lot of money and certainly not meant for wasting on a product or service that they already have.

Even when you understand this, you are probably stuck with this objection, unable to proceed further. However, there are possibilities after this. You at least know that there is something stopping your prospect from buying your product. You only have to dig in further to gauge the real reason behind it.

common sales objections no. 1

Let us say you are offering your prospect a CRM application. Your conversation can go on something like this –

Prospect– I like your product but we already have an internal system followed for managing our customers and sales. I do not think we need your product.

You– Okay, I understand. But, if you have shown interest in our product and have come such a long way in the discussion, I believe there is something in our product that you liked. So, probably there is more to it that is preventing you from buying the product. Is it?

Prospect– No, it’s just that we have a well established pre-designed system that is working pretty much effectively right now.

You – Okay, but that is still manual. I understand it will take time to incorporate this CRM in your organization but we are there to help you. In addition, once this is done, it will not only save time of your in-house sales operations team but also help your salespeople focus more on generating qualified leads. In fact, they will be able to manage their current leads and customers more efficiently.

If the pre-existing system is the real objection for your prospect, adding value to your product should work with them. However, you can expect their reply to be something like this.

2. Our budget doesn’t allow us to spend on your product

In a survey, 55% of the respondents, who were sales representatives, said that budget was  the most common reason for the falling apart of the stronger sales opportunities.

So how do you go about with this most common sales objection? Well, price is generally another mask that scapegoats use to run away from a deal. They wouldn’t be in business if they couldn’t afford. It is the responsibility of the sales executive to decode the real basis for the prospect to call off the deal. Below is a possible excerpt from a conversation that could help you in such a situation.

less budget as sales objections

Prospect– Yes, I am afraid that your product is out of our budget. Hence, we would not be able to invest in your product.

You– Okay, that makes sense. But I just wanted to check if our product meets your requirements? Is it able to provide a good solution for your sales and customer management?

Prospect– Yes, it is a good solution but the price is too high.

You– Okay! So may I ask you what are you comparing our product with? I mean, it is ‘too expensive’ compared to what?

Prospect – After researching the CRM market thoroughly, I feel you are charging too much for it.

You – Alright, I get it! But sir, better things are expensive. Our system provides you easy adaptability and customization as per your business. Moreover, we give a larger space for your customer database. In addition to it, we give you options to customize your email and messaging campaigns up to a much larger extent than most of the others in the market. Our product is expensive because of the value that it brings along to your business.

High performing salespeople do not discuss price. They discuss value. There is nothing called ‘too expensive’. Expensive or cheap is the value of the product.

Another way to overcome this objection in sales is to customize your product in such a way so that it doesn’t lose its important benefits and value. Moreover, it should also address the technical as well as financial issues of the prospect. In other words, you can probably remove the features that are not useful for your prospect and then mark it as per your prospect’s expectations.

However, there are chances that even price is not a real objection for your prospect.

Prospect– Yes, it is a good solution but the price is too high.

You– Is price the only thing that is keeping this deal from being cracked?

You can expect something more coming up now.

3. We have another work priority right now

If you and your product isn’t a priority for your prospect, you probably have been working on the wrong one. If your prospect is being honest here, he was not a qualified lead ever for the product that you are offering.

overcoming work priority sales objections

Prospect– Probably not! Because we have some other priority right now.

You– Well, I am a bit puzzled here. In the beginning of our discussion, you told me you needed to manage your sales better because your sales force is mostly busy in documentation and follow-ups and they are not able to focus, as much as they should, on the strong opportunities. That was the reason why I offered this CRM to you. I guess I have missed something in between. Can you reiterate please?

Prospect – We are facing a crucial cash flow issue currently. It wasn’t a major issue a month ago when we started our discussion. However, at this point, we are not in a state of buying this product because there are some other essential investments that need to be done. Hence, our IT department is on a cost-cutting mission.

You – I understand sir. I have a solution to this problem. We can work out on the payment terms and make them more flexible to suit your current situation. This can help you in two ways. First, your cash flow issue will not be a hindrance anymore. Second, by adopting our CRM, you can streamline and even fasten your sales process. Thus, you can even overcome your cash flow issue by the time this quarter ends.

Thus, you have been successful in overcoming this objection in your sales. However, it becomes quite tricky to analyze if your prospect is not being honest. This might be just another common sales objection that he is using as an excuse. As a salesperson, you need to address all the worries that your prospect is facing.

4. My manager has not approved the deal

You can now see another obstacle coming in the way of your success.

manager not approving - overcoming objections in sales

Prospect – I am afraid my manager didn’t approve for this deal due to the same reason we discussed. Let me talk to him once more and share your solution with him.

You – That makes sense. When would you be able to discuss this with your manager?

Prospect – We meet every Monday for our weekly discussions.

You – Okay! So I will get back to you on Monday.

Contrary to what you had expected, you might get a negative feedback from your prospect the following Monday. It becomes difficult for the intermediary to share the exact idea with the same enthusiasm from one person to another. That is what it takes to ruin a deal.

Luckily, in this scenario we know the real grounds of falling apart of this deal. Thus, you can jump in for your own rescue and insist the executive to connect you to his manager directly or take up a telephonic appointment to talk to his manager. Further, you can discuss with his manager about your solution and use your convincing skills to satisfy the manager with your solution.

In a different scenario, you will have to dig up even more to get to the root cause to amend your path towards success.

5. We will buy it soon

Everything went as per your wish till now. You might suppose that you are about to close the deal when you hang up after your discussion with the manager. Today, would be the day when you are about to make the final negotiations. However, you get to hear this.

Manager – I really liked your product as well as your solution to our cash flow issue. We are thinking to buy your product soon.

That is certainly not what you had anticipated or wanted. You need to do something really fast to save this deal before it slips off your hand.

You – That’s great! Just to make sure, is there anything that you need from our end before you decide to buy it?

Manager – Not really! Everything is going good.

You – Okay! I just wanted to know more about your sales cycle. What happens next?

Manager – I will discuss about it with the management and other stakeholders to know about their inputs.

You – Okay! When would you be able to discuss this product with them?

Manager – I meet them on the first day of every month. So next week I am meeting them and I can discuss this with them.

You – Sounds good! And what if they liked the product?

The idea here is to take your prospect to the step until you hear those golden words – we are in business.

will buy later

Conclusion

A sales job is a difficult but very rewarding job. You should know how to read people’s minds or else trick them into speaking their minds. These are just a few common sales objections that salespeople face. The actual list is much longer. If your team fails in overcoming objections in sales in front of their prospects, it would become very difficult for your organization to survive in the market.

Another method to overcome objections in sales is to seek help from a B2B sales consulting firm and let them strategize your sales techniques. They have a team of highly experienced salespeople who have the experience of handling many such objections on a daily basis. By hiring a B2B sales consultant, you can dump all your sales-related worries and focus on other aspects of your business.