AUGUST 2000 ISSUE
FOUR WAYS TO ANSWER DISCOUNT WAREHOUSE OBJECTIONS
By Ann Barr

There is a perception among consumers that the price for toner and other products is lower (than anywhere else) at discount warehouses. In some cases, this is a reality. Price objections can be very difficult to handle. But the fact that your prospect gives you a real, specific objection, is a good sign. This means they are willing to talk about their concerns. You now have the opportunity to tell them about the benefits of buying your products from you. Remember that prospects are not as knowledgeable as you are about your company and products and they will be more likely to want to buy from you when they find out about the value you can provide. Think of objections as requests for information instead of roadblocks.

It helps to use a "cushion" statement before answering the objection. A cushion statement is a friendly or agreeable statement. Reason: This immediately lets the prospect know you don’t intend to argue. Some examples of cushion statements: "I understand," or "I can understand why you feel that way."

If you are the authorized Canon (or Minolta, Ricoh, etc.) dealer and you hear this:

OBJECTION:
"Your Canon copier toner is too expensive. I can get the same Canon branded toner for a lower price at Office Max."

RESPONSE:
"I’m glad you mentioned Office Max. Toner is a chemical, as you know, and chemicals are very sensitive to the environment. We are the authorized Canon dealer and are obligated by the terms of our contract to store toner in approved warehouse conditions. Non-authorized distributors are not under the same obligation. If toner is stored in very warm temperatures, it can become defective and could actually damage your copier. I would hate to see you take that risk with your copier. Most of our customers feel more comfortable using our genuine Canon toner because we are the authorized Canon dealer. Shall I send you a case of Canon toner today?"

IMPORTANT: Always end your answer/benefit response with a trial close question or a direct close question to get an answer from the prospect.

ANOTHER RESPONSE:
"I understand how you feel. Since you did buy your Canon copier from us, there may be a way you can save money on your copier toner as well as your fax and printer supplies. If you qualify for an Annual Supplies Agreement, we can offer you a discount on all of your supplies and your prices would be protected for a full year, even if the manufacturer raises our price. Would you like me to find out if your company qualifies for an Annual Supplies Agreement?"

GENERIC vs. OEM

When a customer is buying generic products and compares the generic price to the branded or OEM price, you can tactfully educate the customer about the benefits of buying original, OEM products. Whenever possible, use examples of other customers who had similar concerns in the past. 

Example:

OBJECTION: "Your branded copier toner is too expensive. I can get the generic product for a much lower price."

RESPONSE: "I understand how you feel. Some of my other customers felt the same way you do. They bought generic copier toner but then had problems with their copier, so they needed more frequent service calls. After using our OEM supplies their copiers

had fewer problems and they found that OEM toner lasts 20% longer than generic copier toner, so their cost per copy is actually lower when using our branded toner. Shall I send you a case of genuine OEM toner today?"

ANOTHER RESPONSE:
"I can understand why you say that. Our OEM toner may seem more expensive, but because branded toner is manufactured to work in exact precision with the sophisticated technology of your equipment, the copier will have fewer problems and make cleaner copies when you use genuine OEM toner. And if you order a year’s supply today, or put your copier, printer and fax supplies on an Annual Supplies Agreement, your savings could be substantial. I’d like to ask a few questions about your situation to see if this is something that you’d like more information on. Okay?" If you hear a "yes," ask questions like: "How are your fax and printer supplies currently purchased?"

Find out more about how to market Annual Supplies Agreements and get a free Annual Supply Agreement letter at:  http://www.sellingsupplies.com/ASA.htm

Ann Barr is a consultant and sales trainer with 19 years’ experience in Sales and marketing. ENX readers can get a complimentary e-mailed copy of her report: "64 Ways to Increase Your Sales" by subscribing to Ann’s free e-mailed newsletter "Weekly Sales Tips."E-mail your request to: annbarr@sellingsupplies.com with "Sales Tips" in the subject line, or visit Ann’s web site: www.sellingsupplies.com

Closing Questions
Different ways to ask for the order include: The "standard choice close," the "you’ll save" close, the "trial close," the "direct close" and the "act now" close.

Standard Choice Close
l "Do you want delivery to your warehouse or your office on Main Street?"
l "Do you want the standard service contract or would you like more comprehensive coverage?"

"You’ll Save" Close
l "You used 6 of these last month, and you’ll save $10.00 by ordering a dozen. Shall I send 12 out to you today?"

Direct Close
l "I can get it there tomorrow. How many would you like?"
l "Can I write up the order?"
l "How many do you need today?"
l "I know you’re going to be happy with this chair. Can I turn in your order today?"
l "We have a truck going into your area on Friday and I would love to put your cartridges on it. Shall I write up the order?"

AVOID asking for the order in a negative way, such as: "Why don’t we write up an order?" That is an invitation to rejection and sounds wishy-washy.

Trial Close
l "How does that sound to you so far?"
One reason a trial close works well is because a trial closing question asks for an opinion and not a decision. Opinions are easier to give than decisions. After a trial close question, a prospect will often say: "That sounds good. Send me a dozen." But if you only hear: "That sounds good," you’ll need to follow up with a direct close question.

Turn-Off Closes
There are certain closes that can turn off prospects. One classic "turn-off" close is the one used by some automobile sales people: "What will it take to get you to buy today?"

Another turn-off close, which – until a few years ago – was taught in a popular selling skills seminar: "If I can show you a way to save money with my product, will you buy today?"

The "Act Now" Close
Professional salespeople don’t rush or pressure their prospects into making commitments. Nevertheless, there are times when a price or quantity will only be honored for a limited time. Telling your prospect about price increases or promotional specials can motivate an undecided buyer by creating a sense of urgency. Example:

l "The manufacturer has announced the prices will go up by five percent next month. If I can write up your order now, you can stock up before the increase takes effect."

WARNING: Be careful how and with whom you use the "Act Now" close. Make sure the prospect/customer knows who you are because this is a favorite tactic used by toner pirates.

The "Act Now" close can endear you to customers if it is not used too often. You will be a hero any time you prevent a customer from running short of inventory or paying higher prices.

Ann Barr is a consultant and sales trainer who conducts Selling Supplies Seminars in the U.S. and Canada. ENX readers can get a complimentary e-mailed copy of her report: "64 Ways to Increase Your Sales" by subscribing to Ann’s free e-mailed newsletter "Weekly Sales Tips." E-mail your request to: annbarr@sellingsupplies.com with "Sales Tips" in the subject line, or visit Ann’s web site: www.sellingsupplies.com