Case Study...Overcoming the Price ObjectionWhen handling the price objection in a business-to-business situation, sell value, not price. You can also conduct a comparison between your product and your competitors' lower-priced products. Take Kellogg Company, which works to educate its customers and potential customers about the benefits fo doing business with them.
To maximize perceived value and respond to price objections, Kellogg uses facts about the company. It asks customers to consider the research and development that goes into products, the ongoing support the company will provide, the certainty of on-time delivery, the company's history and reputation, and its market knowledge. Taken together, those factors are worth a lot.
Selling Value as More Than Price
If you want to take this concept a step further, you may use a competitive comparison. This method of handling objections begins with a comparison of product features and return on investment. Then it adds all the value-added aspects of doing buseinss with your company to show how price is not the only factor that should be considered. This competitive comparison method of handling objections can be difficult. It requires a cool head and thorough preparation. Showing customers this comparison of the total package helps the customer see that doing business with a company that has higher-priced products may suit its needs and address its overall situation better than the one with lower-priced products.
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16 comments:
If I were a Kellog's sale representative, I would sell my product based on value. I would show that my product has whole grain, vitamins, nutrients, and so on that are essential to health. I would also argue that Kellog's has been such a reliable brand for such a long time. They also sell a wide ranged of products that have such a wide market spread. Using both techniques together could also be successful because by having such a valuable product, it is easy to make yours seem much better than the competitors.
Handling and overcoming objections is the most important part of the sales process. When a sales associate can convince the customer to purchase the good or service, the process is pretty much finished. It takes a lot of effort to answer all of the customers questions and remove all of their doubts. If the sales associate cannot help, the sale will never happen. A well prepared and knowledgable salesperson will help this process a lot.
-David Chung is better than Shannon, no matter what she says.
If I were a Kellogg's sales representative, I would use value to sell my product. I would use this because customers are concerned with the products they are buying. Especially in this time, they want to make sure they are getting the most of their money and if they know that the product is good and reliable then they will want to buy it. But underlying this method is a touch of the competetive comparison. While they are concerned with how valuable the product is, they also want to know they are getting the best possible deal with their money. By comparing your product to competitiors it can help the customer decide easier.
In sales, there are ofen objections. If you can not overcome these objections with ease then you will not make it as a sales person. Objections can often help people in the long run because they hear what the customer feels is wrong and are given the opportunity to improve it. Also, it helps you to know what points you have to sell. Sometimes there may be an objection because you did not project the right qualities in the product. To fix that in the future, you hear what the customer feels was wrong, and make sure to prove to the next customer that it is not wrong.
-Shannon Riley
I would use competitive selling. It is easier to sell the product that way to me. It also takes away business from competitors at the same time. With value it does sometimes sell more than price but some people always think about the money so they wouldn't as much with value. I also think competitive selling allows a better releationship with the customer.
It's important because if they say no, you don't make the sale. If you can't make the sale, then you are failing. Almost 90% people will say no the first time, so you must learn how to overcome it because 10% of the people is not enough. Without overcoming objections, making sales will be almost impossible.
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If I were a Kellog's sale representative, I would use competitive selling. It is easier to sell the product that way to me. It also takes away business from competitors at the same time. With value it does sometimes sell more than price but some people always think about the money so they wouldn't as much with value. I also think competitive selling allows a better releationship with the customer.
It is important because if they disagree, you don't make the sale. If you can't make the sale, then you are failing. Almost 90% people will say no the first time, so you must learn how to overcome it because 10 percent of the people is not enough. Without overcoming objections, making sales will be almost impossible.
Alex .A.
Kellog's sales representives must get a lot of money, so I'd take the job seriously. If I worked for them I'd show all the positive benefits of eating our cereal compared to other brands. Then I's show that we have always been a healthier alternative to our competitors.
It is important to overcome objections to form a business relationship. If you are able to do that in a good way, the customer will keep coming back, and consider you reliable and trustworthy. It also shows that you care enough to take the time to talk with them
-Emmett
Being a sales representative Kellog's, i would make many arguements about how our brand has been reliable for a lonmg period of time now . i would also promote how it is filled wit many vitamins and nutrients for the consumer . Value is more important than the price in the end .
A lot of times, the hardest thing for a sales associate is to convince the buyer to consume the product . You have to prove the buyer that they are making the right decision with the right points and it is what they are looking for . If you can not prove to them that they are gaining something out of the product, then there will be a consumer lost .
-Grace V.
The one that I would use would be competitve comparison. I believe that using that would demonstrate to the customer the real value of the product. Showing them that what you are buying can benefit you this way; while the other product can only do this. This can be more effective to to help the sale of a product.
How people handle objections is a very important to their selling skills. The way the customers percieve the sales associate could make or break the sale.When selling a product you don't want to do your pitch and then when rejected hust give up. It's key to try to then have a rebutel to the customers no. If you simply just give up then it show the consumer that you are not confident with your product.
If I were a a Kelloggs sales representative, I would use the percieved value method for a price objection. First, I would inform the customer about all the benefits that the product has, like it nutritional facts. And second, I would compare the product to other competitors. This can include what the porduct has that others don't, and even include the history behind the company.
Handling and overcoming objections is a very crucial part of the sales process, mainly because it is the fundamental of your business' success. If you can think on your feet and persuade someone about how the product can benefit them, then it would make you a very good seller.
- Jair Pasaye Lopez
If i were a sales representative for Kellogs, i would sell my product based on comparison.Alot of customers like to compare things and see comparisons. People like to buy the "best" product. If you can prove and show that your product is better tasting, cheaper price, and simply better than the competiton customers would go for it.
Objections is a very tough thing to handle. It happens all the time and if you dont have the right skills to overcome these objections then your out of business. If your able to overcome these objections you have the ability to sell your product and make money. Its not the easiest thing to do but if your able to then you will have a succesful future.
Edgar Ochoa
(how bout dem cowboys)
I would use competitive comparison becuase it is much easier than percieved value. I would use this because I could then see what the other products are. I would use it because it helps me focus on our products and how we can make it better.
Handling and overcoming objections is very important because you need to sell something to make a living and earn a wage. It is also important because you want to make a sale and if you make the sale you know how to do it next time you want to make a sale.
TARIQ MASOUD!@#$%^&*()!@#$%^&*()
If I were a Kellogg's representative I would want to sell my product off on it's value. I want it to be a healthy snack that dose good for everyone that eats it. I want customers to buy this product because of the nutrients it has and because it also taste good.
Handeling and Overcoming Objections is very important in the selling bussiness because you have to be ready to get rejected. You have to handle the rejection well but you must also be able to bounce back. You might have to remind the customer of how good your product is and the small price they are paying.
--Shabnam Gardezi
If I were a Kellogg sales representative, I would use competitive comparison to handle a price objection.I would use it because, you can have a competition with that same company if its across from your store. So, both stores can't have the same price. One has to be a high price and the other has to be a low price. So, people would come to the lower price store.
It's very important to handle and overcome the objections. You need to be very good at verbal speaking. Its mostly the last part of the sales process and if you can make the customer buy the product then you're mostly done with that cusotmer and there you applied all the process.
If i were a Kellog's sale representative, I would sell my product based on the info and base my product on its value. I would show what ingriedients are in my product and how it contributes to the consumers health. I would also show just how reliable Kellog's brand is. I would also sell my product nationwide. Basically, I would just use both techniques together because I feel it would be a way to show-up the competitors and prove that my company is truly better than theirs.
The most important part of the sales process seems to be the Handling and Objections. Sales representatives/sales associates try to convince the customer to purchase their product, and once they have sold it to the consumer they have pretty much completed their process. It takes a lot to sell their product, they have to convince the customer to buy and answer all the questions the customers have . If the sales person can't help,or doesn't convince the customer then it was a fail and they don't sell the product.
--RaShara Toney--
To handle a price objection its best to use perceived value. A competitve comparison is not necessary because even though the Kellogg's cost more, everything knows they are better. With this knowledge, consumers will buy Kellogg's over the bootleg products any day.
The sales process is not established if the employee cannot handle or overcome objections. The main part of the sales process is getting the product sold. It's best to spot out objections before you begin the sales process because when you overcome them, it makes it easier for you as the salesperson to get the product sold.
Chris Lynn
If I were a Kellogg's representative, I would use the perceived value of the product to overcome a price objection. This is because most customers do not think about the process the product goes through before it gets into their hands. Depending on the product and the various locations that its ingredients are comprised of, the product will sound much more expensive than it actually is.
Handling and overcoming objections is a very important part of the sales process. It may further promote the product when the salesperson is giving the features of it. Also, it can convince the customer into buying the product, despite their judgement against it.
~Julia Su
If I were a Kellogg's sales representative, I would sell my product based on value.I would use this because customers are concerned with the products they are buying and rather it's worth buying or not.
They want to make sure they are getting the most of their money and if they know that the product is good and reliable then they will want to buy it. But underlying this method is a touch of the competetive comparison. While they are concerned with how valuable the product is, they also want to know they are getting the best possible deal with their money.
Handling && overcoming objections is a very important part of the sales process. It may further promote the product when the salesperson is giving the features of it. Also, it can convince the customer into buying the product, despite their judgement against it.
-Yessica Salamanca
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