- - AGRICULTURAL CORE CURRICULUM - - (CLF1000) Core Area: AGRICULTURAL BUSINESS MANAGEMENT (CLF1550) Unit Title: SALES AND SELLING ____________________________________________________________________________ (CLF1556) Topic: HANDLING CUSTOMER Time Year(s) OBJECTIONS 1 hour 3 or 4 ____________________________________________________________________________ Topic Objectives: Upon completion of this lesson the student will be able to: Learning Outcome #: (*-*) - Demonstrate effective handling of customer objections in a role Playing situation. Special Materials and Equipment: National FFA Foundation, FFA Selling and Fundraising Guide References: Ditzenberger, R., & Kidney, J. (1986). SELLING: HELPING CUSTOMERS BUY (2nd ed.). Cincinnati, OH: South-Western Publishing. Miller, Larry E. (1979). SELLING IN AGRIBUSINESS. New York: McGraw-Hill. Resources: California Agricultural Teachers Association. (1991). CATA CURRICULA CODE. Available from: Agricultural Education Program, Career-Vocational Education Unit, California Department of Public Instruction, Sacramento, CA 94244 National FFA Foundation. (1991). FFA SELLING AND FUNDRAISING GUIDE (and Transparency Set). Available from: FFA Supply Service, P.O. Box 15160, Alexandria, VA 22309-0160. University of Missouri-Columbia. (1984). AGRICULTURAL BUSINESS SALES AND MARKETING: Instructor's Guide (Unit V: Sales and Selling. Available from: Instructional Materials Laboratory, University of Missouri, 22316 Industrial Drive, Columbia, MO 65202 Evaluation: Quiz and student demonstration. TOPIC PRESENTATION: HANDLING CUSTOMER OBJECTIONS A. Two Main Types of Resistance and How They Differ __________________________________________________________ ACTIVITY: Ask the students to think about occasions when they have gone into stores and have been approached by salespeople while looking at merchandise. What types of reasons did they give for not buying? List these on the board. Categorize the reasons into excuses (no intention of buying) and objections. __________________________________________________________ 1. Excuse (usually offered when a person has no intention of buying) a. May be based on fact (for example; "I haven't got the time to discuss it with you right now".) b. May sound like an objection (however, if the salesperson answers the excuses and the customer keeps coming up with more, they are excuses.) c. The intention of excuses is to stop the sales presentation. 2. Objection a. Usually based on fact or what is thought to be fact. b. Use objections to pinpoint the needs of the customer. c. Objections show that the customer has thought about purchasing the product or service. d. Objections are raised because the customer is not convinced that the product or service fits his need. They are not meant to stop a sales presentation. B. Specific Objections and How to Deal with Them __________________________________________________________ ACTIVITY: Ask the students to list some specific types of objections or to name some categories in which objections can be listed. Add these categories to the board along with the previously listed reasons for not buying. __________________________________________________________ 1. No Solution a. These are objections that cannot be overcome. Examples are: 1) Not enough money to pay for the product or service 2) Not authorized to buy b. Do not force a presentation when these objections are given. 2. Need a. These are objections made because the customer doesn't believe the merchandise fits his/her need. Examples are: 1) "That lawn mower is really too large." 2) "I don't think I need that new corn hybrid seed." b. The salesperson should help the customer analyze his need again and consider the benefits of the product or service being offered. 3. Quality a. The product or service seems to be lacking in some way. Examples are: 1) "The suggested rate of use for your herbicide is much lower than brand X." 2) "Are you sure that post hole auger is made of steel strong enough to withstand rocks?" b. If higher quality products are available show them. c. Emphasize features that offset poor points. d. Also correct any assumptions about lack of quality that are not true. 4. Source a. The customer is not familiar with the brand or manufacturer. Examples are: 1) "Oh, I thought you carried a different brand of fertilizer; I've never heard of this brand." 2) "Well, I always buy Bob Bear tractors; I don't know too much about those big green tractors." b. Give examples of other satisfied customers. c. Compare the product of other brands. d. Point out all the beneficial features. e. Give information about the product or service; also give information about the company that sells it. 5. Price a. The customer thinks the price is too high. Examples are: 1) "The price of these garden hoses has gone up a lot since last year." 2) "Why does this item cost more than that one? They look exactly the same." b. Highlight the quality of the merchandise. c. Show less expensive products if they are available. d. Truthfully compare the quality of the product with a competitor's. e. Point out the following reasons for different prices between two products. 1) Better quality 2) Difference in construction 3) Hand made vs. machine made 4) Different brands; reputation, guarantees are different 5) Less maintenance or repairs 6. Time a. The customer is too busy for a sales presentation, or the product is not needed at the present time. Examples are: 1) Trying to sell to a farmer when he is busy with a farm operation such as harvesting. 2) Trying to sell snow blowers in July. b. Make an appointment to come at a more convenient time. c. Point out advantages of buying out of season, for example, lower price or tax advantages. 7. Service a. The customer is concerned about the kind of service and/or availability of service. Examples are: 1) "I need to grind feed for my hogs every day. What happens if the grinder breaks down?" 2) "I would like to buy a combine from you but your dealership is located 100 miles from my farm." b. The salesperson should be able to guarantee good and fast service. c. Statistics showing the minimal service required on the product would be helpful. __________________________________________________________ ACTIVITY: Ask students to name major points or strategies to keep in mind when handling objections. Use Handout #1 to help. __________________________________________________________ C. General Rules for Handling Objections 1. Get a clear understanding of the objection. a. Have the customer restate the objection if it is not clear. b. Do not interrupt before the customer is finished. 2. Do not flatly tell a customer that he or she is wrong. a. Acknowledge the customer's viewpoint, but point out that the situation can be seen in another way. b. Agree that the objection has been made before but that others have found the product better in different ways. 3. The salesperson can restate the customer's objection in his/her own words. a. Do it in a less negative way. b. This verifies that the salesperson really understands the objection. 4. Restate the customer's objection as a question. a. This can lead into a sales talk. 5. Try to turn objections into advantages. a. To do this successfully, a salesperson must have good knowledge of the product being sold. b. This is an effective technique for a quick-thinking salesperson. c. Listen carefully to the customer and don't answer too soon. __________________________________________________________ ACTIVITY: Ask two or more students to conduct sales presentations using role playing. Assign the class to observe and record the types and number of customer objections and how the salesperson handled each. Following the sales presentations, discuss the observations. __________________________________________________________ HANDOUT #1 - OVERCOMING OBJECTIONS From the following objections listed below, tell what type or types of objections they are and how to overcome them. 1. "I would like to buy the plow from you but I won't need it until next fall." Type(s) ___________________________ 2. "I've got to finish putting this seed in the ground and I don't have time to talk to you about that new tractor." Type(s) ___________________________ 3. "That is a nice automatic feeding system, but with all those gadgets wouldn't more things go wrong?" Type(s) ___________________________ 4. "Those livestock gates don't look very sturdy. What brand did you say they were?" Type(s) ___________________________ QUIZ - HANDLING CUSTOMER OBJECTIONS'' 1. List the two types of resistance and give a short definition of each. a. b. Place an "X" in the space opposite the true statements about the types of objections and how to handle them. _____ 1. An excuse is usually based on fact. _____ 2. One type of objection may be that the customer is unfamiliar with the source of a product. _____ 3. One way to counter an objection about a price on two items is to point out that one item is hand made and the other is machine made. _____ 4. A salesperson should make sure that the customer knows without a doubt that his or her objection was stupid and wrong. _____ 5. One example of a time objection is that the service or product is out of season. _____ 6. A skillful salesperson can turn objections into advantages. _____ 7. Having a good service program is one way to avoid some objections. _____ 8. Making a sales appointment for a future time is an example of a solution to an objection about a lack of need. HANDLING CUSTOMER OBJECTIONS' -INSTRUCTOR KEY 1. 1. Objection - usually based on fact or what is thought to be fact. 2. Excuse - usually offered when a person has no intention of buying. 2. 1. 2. X 3. X 4. 5. X 6. X 7. X 8. 12/5/91 JL/sg #%&C