It’s often said that selling is the polite battle for control. For those of us directly in business development (well, who isn’t selling?), we can grasp the truth in that statement.
Prospective clients engage us in that give and take, and they have common ‘defenses’ that they use to try and maintain control. Over the next four weeks, I’m going to break down the four common defenses that we experience in the world of staffing.
Four? Yes, four.
Defenses? Call them objections if you like, but they are defensive in nature.
You will recognize them immediately. We’ve all been challenged by them. I’ll call out each one and then provide some thoughts on how to address them successfully.
Let’s get started.
The first defense I’ll call the Budget/Price Barrier.
You’ve laid out your entire presentation, discussed why you are the best solution, and you come to the last page – the bill rate. Here’s what you hear next:
“This looks great, but your bill rate is too high.”
“Things are tight, and we don’t have the budget right now.”
“Our current staffing provider’s rate is less than yours.”
What is really being said here?
Does the prospect not perceive the value you’re bringing to the solution? Most likely. As you know, when we fail to communicate the value and uniqueness of our services, we’re left to compete on price.
So, how do we handle the budget/price barrier?
Here are three ideas:
1. Focus on ROI.
Demonstrate how your service/solution will improve efficiency and, by doing so, improve the overall return on the investment being made. For instance, this can be a combination of enhanced quality of the people being assigned and improved retention.
2. Communicate the value.
Shift the conversation from the bill rate to the value being provided. Highlight the unique features that your staffing firm offers that competitors do not. Make it clear that the premium is directly correlated to the performance.
3. Flexible pricing.
In some cases, this may open the door to different pricing plans, such as a volume discount, rebates, or tiered rates.
Don't be afraid to hear this defense and even expect it. If we know it’s coming, we can adequately prepare and have a solid response. Preparation beats perspiration day in and day out.
Next week we will tackle the second defense: Status Quo Shield. It starts like this – "I'm happy with..."