Conquering Objections Part 2: Price
Sticker shock is something you see all too often in the F&I office. Understanding the difference between a complaint about price versus a true objection is key in sidestepping this issue with customers.
You can’t blame your customers for wanting to pinch pennies when it comes to F&I products. After signing the dotted line on one of the largest purchases in their lives, it’s no mystery why they might be hesitant to spend more money at your dealership. However, it’s important to be able to decipher when a customer understands value but is disappointed about price versus a true objection over the price of an F&I product.
Is it a complaint or an objection? Neither scenario sounds ideal, but when a customer fires back and repeats the price you’ve quoted for a service contract, there are subtle but defining differences between the two. When a customer is complaining about price, it’s probably because they see the value but are hesitant to dip further into their monthly budgets. A true objection would refer to customers who are struggling to even see the value in your products to begin with. Knowing these differences should shape your next steps.
What questions do you ask? To find out if a customer is complaining about price or objecting, it’s all about the next few questions or statements that you deliver. You could take the route of standing firm on your price, stating as a fact and seeing how the customer responds. In many cases, a customer will express disappointment but understanding as well. This shows they were complaining about price. If a customer fires back questioning why they even need the product, you now know you’re dealing with an objection.
What’s your approach? Handling a complaint can be as simple as stating the price very matter-of-factly. You can play off the value they see and reiterate how they shouldn’t drive off without protection. If you’re dealing with an objection, you can handle it much like the affordability objection we covered last week, using past repairs and monthly budget calculations to illustrate your point.
How do you ask for the sale? Presenting two options, neither of which is a “no” is still the best way to close out this objection. For a complaint, it’s a simple as delivering your matter-of-fact response and rolling right into asking which option the customer prefers. For objections, it’s again much like managing the affordability concerns. You can present multiple options and ask which they’d prefer if cost weren’t an issue. Play of the value you’ve established and ask for a choice between the options you’ve presented.