Just when you think you have something in the bag, along comes the objection. My objection came last Friday as I was preparing for the long weekend. My last stop of the day was to follow up (in person visit) for an objection that I received via email last week.
That objection was "your price is too high". Okay, too high compared to what I thought. I felt like responding via email right away, however, I opted for the visit because you just can't get everything you need with a constant barrage of emails.
After a few minutes I found that the objection was not "your price is too high". The objection turned about to be the lease. I had quoted a 60 month lease term and due to the scope of work the device would sit somewhat idle for six months of the year. The client did not want to pay for the device if it was not being used.
Thus, how do you respond to resolve the objection?
In the next moment I found my-self answering that objection with offering up a seasonal lease. A seasonal lease will allow a client to pay six months of payments and have six months of no payments each year. Yes, the cost is much higher, however, the thought of paying for something you are not using carries a bigger heart ache than having a higher payment. My client had never heard of a seasonal lease and thought that might be the ticket to get the order placed. Of course, I'll need to contact the leasing company for the rate, and say a short prayer that this will be my answer to complete this order. Either way, the seasonal lease option answered the objection and we'll have another shot.
The bakers dozen lease is pretty cool to use when you're client doesn't have the funds to purchase and isn't interested in a long term lease. In most cases the objection is paying the interest on that long term lease. With a bakers dozen lease most vendors will ask for 5-10% of your invoice. It's good to call the leasing company first before you make the offer to the client. In order to quote the bakers dozen lease, you'll need to take the purchase price and divide by 12. That amount will be the payment, however, the client will make 13 payments (the client then owns the device at the end of the lease). You can state that the last payment is the interest payment.
The annual lease can be a another tool to help close the order. I heard this today from one of my leasing reps. In most cases it can be used for education accounts that don't want to be involved with making a payment each month. Since most schools have the funds available, you may want to offer them the annual lease where one payment would be made each year. Again, consult with your leasing company to see if this is offered.
We all know about the $1.00 purchase option for the end of the lease, however, did you know that you can also offer a10% purchase option? Back in the eighties the 10% purchase option was the preferred method of the lease transactions. You can offer this when a client wants a fixed cost at the end of the lease and is wishy washy about whether they would return or buy the copier at the end of lease. Some DM's just want the peace of mind that they know what the price will be at the end of the term.
Step Leases have you ever heard of them? Many leasing companies can offer a step lease program. These step lease programs can be used to help a client ease into a payment. Do you remember your what your first quarterly quota was, I'll bet dollars to doughnuts that your monthly/quarterly quota has increased over the years. Same is true of the step lease, the client can start out with low payments, build the business and then they'll be able to pay the higher payments. Payments can vary, call your leasing company for details. Years ago we were placing digital duplicators where the payments were $100 per month for the first 12 months, and each year thereafter there was a increase for the 5 years.
If you don't ask you don't get. We need to have every tool available to us when it comes to objections. These leasing tools (programs) can help you close more orders, and solidify yourself as the resident copier guru. More importantly you don't have to walk away with a lease objection, you can hold your ground an offer a fix to the objection
If anyone else has heard of other programs, we'd love to hear about them. Please feel free to post in the reply section.