Sales Tip - Beat The 'Competitor' Objection
How to Sell to a Company that is Happy Buying from Another Supplier
Feb 23, 2009
One of the most difficult objections to overcome in business-to-business selling over the phone is that the prospect already has the service or product from another supplier. It's similar to when the prospect performs a service in-house.
It's a tough objection to turn to an advantage because as the sales person you are trying to persuade the prospect to ditch a decision that has already been made. You are trying to change a mind that has been made up.
One ray of hope is that the company supplying the product or service you want to replace has fallen down on the job. The only way to find out is to be persistent in making calls. Sometimes, you strike lucky.
Sales Objections
When the prospect is happy with the products or service from your competitor, these are some of the objections in the prospect's mind:
- The prospect has put considerable analysis into choosing a supplier and does not want a sales person to imply that the decision was unwise or less than the best or will not stand the test of time.
- The prospect will have invested time, energy and money into making the choice and be unwilling to invest more.
- The choice might have required brainstorming and discussion that was uncomfortable or disruptive; the company would be reluctant to do it again.
- A new choice implies a risk; the choice already made is the comfortable status quo.
Business Strategy
The business strategy to overcome this, suggests sales trainer Paul S. Goldner, author of author of Red-Hot Cold Call Selling, is not to try to unseat the competitor or convince the prospect to change. His strategy is to offer a product or service that adds to but does not compete with what the competitor is providing. The objective is to get into the organization and open the door to further sales.
Take, for example, an organization whose computing is performed by an IT services firm. An add-on service could be to assist with training and support for employees with their notebook computers or wireless email devices such as BlackBerry, Palm or Apple iPhone, which the IT supplier might not want to provide.
In another example, many organizations have facilities managers but outsource day-to-day management of office facilities to FM service firms. In many, the FM manager assumes responsibility for document management, which is a specialized task. A firm could offer records management services that the FM service firm would not provide.
Executive and Mid-Manager Sales Techniques
How you approach the prospect depends in part on the level of person you contact. Another sales trainer, Mark Hunter, says executives are interested in value while middle managers focus on cost.
When selling at the executive level, you need to stress how your add-on service or product can improve productivity or sales, hence overall value. You might find it easier than at the middle-manager level because the executive is less likely to be "wedded" to a supplier and more willing to consider a change.
The middle-level manager, on the other hand, might have a long-standing, and comfortable, relationship with a supplier. He or she will want to know how the add-on service will help day-to-day work. As for cost, it helps to be able to pitch the service at a price within the manager's budget level; otherwise the manager will have to sell senior management on the investment.
Sales Strategy for Future Business
Never try to sell on price unless the service or product being offered is a commodity. You will just be inviting another objection about the value of what you're offering.
Never knock the competition. That's the quickest way to suggest the prospect has made a bad decision.
Choose a niche service that doesn't compete with the competition and sell it on value or on making a mid-level manager's work easier. That way, you'll get in the front door for potentially further sales.
See also: How To Sell Over The Phone ; Sales Tip: Best Times For Cold Calls
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