Conquering Objections Part 5: I’ll Risk It
I’ll risk it. I’ll chance it. I’m fine without it. All these statements are variants of the same objection – one that can be conquered with a simple pencil and paper.
Before you start overcoming this objection, it’s important to understand what it truly means. In reality, the customer in this scenario is expressing doubt that they’ll ever need to call his or her service contract into action. And even if you know this, the first step in getting past this mentality is confirming it with the customer.
First start by asking something along the lines of “So what I’m hearing is that you don’t think you’ll use it, correct?” Once the customer provides an affirmative response, you have your window to outline just how expensive even a single repair can be.
Place your product brochure side by side with a piece of paper and start walking through the costs just one day in the shop can accrue. Breaking each expense out one by one is an effective way to showcase how little-known repair costs can pile up. As you call out these expenses, point out where they are covered in your service contract offering to demonstrate what the customer stands to gain with service contract coverage.
Here are some examples of common costs to call out:
Labor. If a repair takes four hours at a rate of $100 per hour, things are off to a pricey start at $400 worth of labor time.
Parts. Even on smaller repairs, part costs can get expensive as well. Pay attention to past paid claims to understand these costs and you can even account for shipping if the part had to be sourced from another location.
Transportation. A full day in the shop can lead to the need for a rental car. At $35 per day, this is another cost that can add to the financial burden.
Towing. If the vehicle’s failure required a tow to a nearby facility, your customer could be looking at $100 or more.
Trip Interruption. Not all vehicle failures happen close to home. If your customer is on vacation, the price of hotels and meals for even just one night could be in excess of $200.
As you go through this exercise be sure to write each and every expense down on a piece of paper. When you’re done, highlight the total of all these costs combined and compare it to the cost of the vehicle service contract. Be sure to mention that these costs are associated with just one day in the shop. If a repair requires multiple days, this total number is likely to multiply and skyrocket even higher.
Especially if your customer is likely to own a vehicle for several years, pointing out that anything can happen over that timeframe helps bring to light how devastating even just one day in the shop over the course of many years can be.