HTSS199 - Using risk vs reward in sales presentations for objections - Scott Sylvan Bell
Risk vs reward in sales and business
Google the words risk or reward and you will see exactly what they have to do with your sales presentation. As you meet with your buyers they are thinking about the risk they have of doing business with you, they just may not say it that way. The risk vs reward levers are used in purchases you make as well as your buyer.
“The juice has to be worth the squeeze in sales and business”
This is really the framework of offers, and or deals in business, marketing, and sales. One of the movies that explain this thought the best is Tommy Boy. At the end of the movie, Tommy needs to sell brake pads. He wants to show a superior product so he talks about guarantees. Some people, not all reduce their risk by wanting a guarantee. Here is the exchange from Tommy and Ted:
Tommy: Ted, why would somebody put a guarantee on a box? Hmmm, very interesting.
Ted Nelson: Go on, I'm listening.
Tommy: Here's the way I see it, Ted. Guy puts a fancy guarantee on a box 'cause he wants you to fell all warm and toasty inside.
Ted Nelson: Yeah, makes a man feel good.
Tommy: 'Course it does. Why shouldn't it? Ya figure you put that little box under your pillow at night, the Guarantee Fairy might come by and leave a quarter, am I right, Ted?
People buy on emotion and justify with logic
You will hear people buy on emotion and justify with logic. People are emotional creatures and do think about the emotions in the deal. People will outweigh what the risk is of purchase and compare it to the reward for what they are getting. Worrying about failure or risk is something people have issues for just about any purchase. Look to risk reversal to help understand how to help serve them.
How your own stories can reduce risk for buyers
People want to find comfort when they buy. Stories about your clients' successes and even failures will help you overcome objections you face. You can also reduce reactance and oscillation or the back and forth on a decision. Stories will come to play before you need them. You will want to have some well thought out stories of how you helped people. The stories can be based upon:
There is a risk to a low price in sales
Think through the reasons why risk vs reward is important. What are all of the risks when someone only buys on price? When people solely buy at a loser price their reward is the cheap price, their risk may be high but they are willing to take it. If someone goes with a full offer company the risk may be that they pay too much, the reward is the warranties and guarantees put in place.
Tough questions to ask yourself about risk vs reward in sales
Here are a few questions to think about when it comes to dealing with the reward of purchases as well as risk. These questions could be asked about your buyers:
You can close deals with outcomes
The objections you face may not be about “the money” it could be about the risk. There are image issues when someone makes a bad purchase. There are people who can be harmed in a company with a poor decision.
Rewards from making the right decision
Rewards on the other hand can be the dopamine rush people are looking for.
The fear in business is making a mistake, to be judged by others, or to be harmed. The truth is there isn’t 100% indemnity from mistakes. You have to be able to help your buyer explicitly see their risk vs reward:
Nothing works 100% of the time. You have to be able to show your buyer why they are “safe” you may not be able to use that word, you can convey it.
You sell how you buy and risk vs reward in sales
Your personal life is part of your business life. You sell how you buy and if you need all sorts of risk reversal to make a purchase you will push this idea hard in the sales process. If you don't need risk reversal you may skip over it.
How to understand risk vs reward to close more deals
If you really want to understand what your buyer faces you can map it out. There are 2 steps here to get you going. First, make a list of all of the risks your buyer faces when they make a purchase. Second, make a list of all of the ways you take care of those risk factors and fears.
Questions to end on
You can do this short exercise in order to understand risk and reward better. There are a few questions about listening to this episode:
How your competition can be left to deal with risk vs reward in sales
You can explicitly talk about risk vs reward with your buyers and put the onus of work on your competition. You can point out problems your competition has and explain the risk using the work "risk". You can get the buyer discussing their problems with the purchase to make it more powerful.
It is Free