Overcoming objections in sales, Overcoming Sales Objections, overcoming objections sales, overcome objections, sales training, Jenae Rubin, Stress-Free Selling

Overcome Overcoming Sales Objections

Selling in the 2009 Economic Recession

State of Affairs

Every week, publishers are closing titles, shutting down and laying off employees. 2009 is not a good year. What separates those bucking the trend from those sucked into the downward spiral?

In March and April 2009, I surveyed publishers around the country to find out what they’re doing to overcome the sales challenges they face as a result of today’s recession. Unsurprisingly nearly half reporting our current economic situation as their number one problem with an equal number indicating it is a problem. For 95.7%, our economy is affecting their business.

For the curious among you, those who reported the economy is working in their favor cited examples like: movie rentals are expensive than other entertainment; more people are fixing their own cars rather than spending money at repair shops.

Consistent Approaches, Inconsistent Results

So, what is everyone else doing to overcome this challenge? What sales tactic has been the most effective in overcoming the objection "We're not advertising now, business is slow." Responses fall into these categories:

• Show historical data of companies who stopped advertising
• Now is the time to gain market share
• If you stop advertising, you’ll lose even more business
• It’s even more important to advertise now!
• The market is less crowded, now’s the time to stand out
• Your competitors are advertising
• Give value addeds
• Cut rates

Ironically, the same techniques used by companies who claim they are greatly effective are being used by those who are say the results are dismal. The response epitomizing clarity came from I. Petrov who wrote, "There isn't such." And I agree. The reason some are successful is not because of a tactic they employ: it’s because the sales skill level in their company is solid, the sales approach is appropriate, and their product is strong.

The tactics listed above are used by companies saying they work very well to companies saying they do not work well at all. Less than one in five thinks these approaches are very effective. How can this be that the exact same tactic works well for 18.2% and not for 81.8%?

In a strong economy, mediocrity survives. In a weak economy, only the strong survive. Unfortunately, so many are looking for the gold ring. "Our sales reps have not found that tactic, and sales are sliding really fast," reported an association publisher. There is no trick… or there is, depending on how you look at it. The trick is a combination of being good at what you do and having a product worth what you ask. When cutbacks are the norm, poor and second-rate performers are the losers.

Not an Ace in the Hole

After trying these tactics, many revert to discounting thinking they have to do business this way even in a good economy. What a shame. 59.5% of respondents did previously give discounts as a way of doing business, and they are now. But how is this working? "Before the recession, a 20-30% discount was offered; now a 50-60% discount is offered." I’m scared for this regional magazine. There are very few P&Ls that have a 20-30% margin no less a 50-60% margin. How are they going to stay in business even if they sell at 50-60% off? They have to be bleeding.

Other problems of accepting discounting as a way of doing business are:

• How can you expect to ever sell on rate card if you never did? So many publishers give "trial" discounted rates. Think about this... you almost never get discounted advertisers back on rate card? advertisers even have the audacity to ask for bigger discounts the next time. And the people who buy on rate, leave on rate. There’s always a better deal around the corner. So many times, I’ve said NO to an Advertiser only to have them come back to me, at full rate, later, when they realized the great deal was not a great deal after all. And in the meantime, I ran a profitable magazine all along… despite the economy.
  
  
• How can you expect to ever be credible if you are always discounting… and to such a large degree? Publishers who discount heavily have a farce as a rate card. Realistically, they actually set themselves up to discount. It’s not the economy! It’s the only way they know how to sell either because of bad sales skills or because their product is not worthy.

Publishers who don’t cut rates have less difficulty selling than those who do!

Ironically only one third of survey participants admit that discounting is frequently or usually effective. This proves that if what you are selling is not considered valuable, then 70% of the time, you can offer lower prices, and you will still not make a sale. Additionally, you unnecessarily cut into your profit weakening your company.

Defying the Odds

One of my clients, a consumer niche publication in California, called me after launching their first magazine. Despite the economy, following the Stress-Free Selling® approach, they are:

• Refusing one-time contracts, and
• Selling 100% on rate card, and
• Having fun!

Another Client, who launched a new magazine in January 2009, in the heavily depressed real estate market, expects to break even on their fourth issue. Summer said, "If I had called you earlier, we would have broken even sooner!"

A B2B Client who has been in business for 50+ years was losing a ton of money. I showed them how to sell without discounting, even though all their competitors are. "I am selling 500% better than ever, and having fun," announced their number one sales Rep in a conference call.

The reality is in every economic downturn some businesses succeed. They are the ones with a good product and the know-how to approach sales. The best thing you can do right now is invest in your sales skills or in improving your product. Just like your advertisers, if you don’t invest now, you will worsen your condition… or out of business.

The choice is yours. Some are succeeding. You can too. Even in this economy.

Welcome to Stress-Free Selling Selling,®

Jenae