How do you handle sales objections related to price?
Theme: Sales Techniques Role: Sales Associate Function: Retail
Interview Question for Sales Associate: See sample answers, motivations & red flags for this common interview question. About Sales Associate: Responsible for assisting customers, processing transactions, and maintaining a clean and organized store environment. This role falls within the Retail function of a firm. See other interview questions & further information for this role here
Sample Answer
Example response for question delving into Sales Techniques with the key points that need to be covered in an effective response. Customize this to your own experience with concrete examples and evidence
- Understanding the customer's perspective: I start by empathizing with the customer and understanding their concerns about the price. I listen attentively to their objections and ask probing questions to uncover their underlying needs and expectations
- Highlighting value & benefits: I focus on highlighting the value and benefits of the product or service. I explain how it meets the customer's needs and provides long-term benefits that outweigh the initial cost
- Offering alternatives: If the customer is still hesitant about the price, I offer alternative options that may be more affordable or provide better value for their budget. This could include different product models, payment plans, or discounts
- Comparing with competitors: I educate the customer about the competitive landscape and compare our prices with those of our competitors. I emphasize the unique features and advantages of our product that justify the price difference
- Negotiating & finding common ground: I am open to negotiating with the customer to find a mutually beneficial solution. This could involve offering a limited-time discount, bundling products, or providing additional services at no extra cost
- Building trust & credibility: I strive to build trust and credibility with the customer by providing transparent information, sharing positive customer reviews, and offering guarantees or warranties that alleviate concerns about the price
- Closing with confidence: Once I have addressed the customer's objections and provided satisfactory solutions, I confidently ask for the sale. I reiterate the value and benefits they will receive and assure them of our commitment to their satisfaction
Underlying Motivations
What the Interviewer is trying to find out about you and your experiences through this question
- Problem-solving skills: Assessing the candidate's ability to address customer concerns and objections related to price effectively
- Negotiation skills: Evaluating the candidate's capability to negotiate and find mutually beneficial solutions when faced with price objections
- Product knowledge: Determining if the candidate can effectively communicate the value and benefits of the product to justify the price
- Customer focus: Assessing the candidate's ability to empathize with customers' concerns and find suitable alternatives or compromises
Potential Minefields
How to avoid some common minefields when answering this question in order to not raise any red flags
- Lack of empathy: Not showing understanding or empathy towards customers' concerns about price
- Lack of negotiation skills: Inability to negotiate or find alternative solutions to address price objections
- Lack of product knowledge: Not being able to effectively communicate the value and benefits of the product to justify the price
- Defensiveness: Reacting defensively or becoming argumentative when faced with price objections
- Lack of confidence: Displaying a lack of confidence in handling price objections or uncertainty in addressing customer concerns