[powerpress]
“I can’t afford it.” It’s the worst, right? Perhaps you are grimacing as I speak! The worst part about it is how often you hear it. And you aren’t going to argue with them. I mean, finances are so personal right? You don’t want to make anyone feel bad or get into a confrontation. Good news. You don’t have to.
Insanity is doing the same thing over and over again and expecting a different result. Don’t be surprised by hearing “I can’t afford it.” It its the most common thing a customer says during the buying process. Let’s be prepared for it. Today I’m going to share with you my five best proactive tips so you can avoid some of the “I can’t afford it,” or have a low pressure, customer-centric approach when it does come up. The most important thing is to not get caught off-guard anymore.
Reasons they can’t afford it:
1. They don’t think it’s worth it
2. It doesn’t fit into their budget
This also sounds like, “I’ll get it next month,” or, “let me talk to my spouse.”
You handle all of this with these five tips.
The first is easy to address proactively, and the second is all about how you respond if they don’t go for your first package.
Tip #1: Qualify Your Prospects
Start with making sure the people you see have jobs and own homes. Homeowners are typically more established and have more cushion in their finances. People who rent are likely saving up for purchasing a home so while they might be able to afford it, it’s likely their priorities are different. Think through your own target market.
If it’s your warm market, ask yourself the following questions: Are they married? Are they working? Do they need their spouse there to make a $200 buying decision? Asking these simple questions will give you a good start to keep your time focused on people who can buy.
For referrals, ask these questions to the people who have been referred. You can ask, “Just so I know a little bit about these people, can you share with me if I should see this first person with her husband, or you think if she liked them she could just make the call?” Customers understand that and in the hundreds of appointments I did selling Cutco, they were always helpful. Remember, if your customers are giving referrals, they want you to do well.
Tip #2: Build value
People don’t buy features, they buy benefits. Make sure that every statement about your product answer the question, “Why do I care?” People don’t want a new mattress, but they want a good night’s sleep. So you wouldn’t just explain how the springs work. No one cares. You have to connect the dots as to how the spring will lead to a better night’s sleep, leaving them ready to conquer their next day.
Make a list of the core features of your product or service, and then make a list of the benefits. I wouldn’t say, “buy this mechanical pencil because the lead comes out with a click of the eraser.” I would say, “For this pencil the lead comes out when you click on the eraser, which means you will save time on your projects because you won’t be wasting time sharpening pencils.”
People like to have fun, save time, save money, make money, and be healthier.
Tip #3: Start with your highest offer first, and drop down slowly
3% of customers will buy the first thing you offer. The other 97% will say no. The average sale is closed on the fifth try. What does all that mean? It means most people will not buy your first offer, no matter what the price is. If your first option is $1000, they can’t afford it. If the first option is $100 they can’t afford it. It’s the knee-jerk reaction so don’t sweat it. If you start at $1000, then go to $600, then $400, then $200.
They have more opportunities to buy and they will feel more comfortable affording a more modest option. Get more excited as you drop down. Many sales are made just by showing all of the buying options, instead of stopping when they say, “I will buy that one next month.”
Tip #4: Have a small cash and carry option
I went over this in detail last week. Price something they can buy for about $20-30 as the most affordable option, after you have exhausted all else.
Tip #5: Examine your own issues with money.
Ok now I’m going to go all “sales therapist” on you. Is your budget super tight? Have you come to believe that your product is “expensive?” If you haven’t done the steps I have outlined above, you likely hear “I can’t afford it” or “it’s too expensive” more often than you hear “yes, I’ll take it.”
Have you started to believe your customers? Are they in your head? The first step is to recognize this, and take a deep breath. Go back through the features and benefits exercise for yourself and get your head on straight.
Let’s recap. Qualify your prospects. Build value. Start with your highest offer first, and drop down slowly. Have a small cash and carry option. Examine your own issues with money. Everyone hears this concern and hearing it doesn’t mean you won’t be successful. You can do this. That’s all for today. Thanks for listening. I am looking forward to chatting with you again next week.
Tasha