Price objections can result in a very sticky situation for sales people. As a manager do you know what your salespeople are going to do when they get in that situation? As a salesperson do you know what your manager wants of you when you encounter a price objection? This is why managers need to coach.
According to Tom Reilly, who conducted a web cast on handling price objections. Some statistics that Reilly uncovered are that 18% of sales are closed without discounting the price. That leaves the other 78% of sales that are cut-back. Imagine if you coached your employees to deal with price objections. Maybe that 18% might be increased to 40%; that would increase sales considerably. A great way to coach your employees is to participate in a role-play, so when they encounter one of these situations they have practiced and they know exactly how to execute.
CSO Insights provides the selling industry's most valuable data in terms of trends. Below is a graph showing how reps rate themselves in regard to selling value and avoiding discounting:
50% admintted to needing improvement in this area. If 50% of the sales staff is discounting versus selling value, imagine the impact on the bottom line if those reps were given the proper tools to succeed.
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