We Already Have a Supplier

Wouldn’t it be nice if – when you place a cold call – the person answering said:  “I am so glad you called.  Your product is exactly what I need today.”

Unfortunately, that does not usually happen.  If it has happened to you, consider yourself very lucky.  What sales reps usually hear is:  “We already have a vendor,” or “We have a supplier that we are very happy with.”

What can you say after hearing these responses?

The Automatic Objection

These are either true objections or automatic responses – an effort to get you off the phone quickly. But if you know the prospect uses or may have a need for your products or services, it is not being pushy to use one of the responses below.

How can you respond?

First, use a “cushion” statement like “I understand,” or “I see.”  Reason: these statements let the prospect know you are not going to argue.  Then ask a question to get the prospect involved in a conversation.

Four Ways to Respond

1.)  “I understand.  Which [products] are you buying now?”

Or, after hearing: “we are currently buying from the XYZ Company and so we’re all set.”

2.)  “I understand.  So you are the person who does the purchasing?”  Reason:  It is important to know if you are talking with the decision maker.  or:

3.)  “I see [or "I understand"] “Customers who have switched over to our company tell us our [fill in with your benefits, i.e., quality products, response time, or service, etc.] is the best they’ve found.  Do you need any [suggest a specific product] today?”   or

4.)  “That’s great!  That gives you time to evaluate other resources so you can have a second source for [your products or services] when your current vendor is back ordered. Is it okay if I send you our monthly sale announcements?”

The late financier J.P. Morgan once said: “People have two reasons for what they do – the reason they tell you and the real reason.” This is true with objections your prospects raise. You can’t always take the objections at face value. For example, when they say:

“We’re happy with our current vendor,” or “Your price is too high,” or “Just send me a catalog,” these objections may be smoke screens, hiding the real objection. They could really be thinking:

“Why should I change?”

“Will the quality be the same as what I’m getting now?”

“Is this company reliable?”

Objections are often a value test. It’s as if the prospect is saying to you: “Do you believe in what you’re selling? Would you buy it?”

Get Past the Smokescreen

Before you make your next call, write down the objections you hear most often. Next to these objections, write down what the prospect may be thinking, based on the examples listed above. Then, write down your response to what you feel the prospect may really be thinking. You’ll find that the answers you write for what they may be thinking will also work for the answers they give you.

When you hear “I’m happy with my current vendor,” imagine they are saying “Why should I change?” and prepare your reasons why other prospects have switched over to your company and the benefits they have found after becoming one of your customers.

As a last resort, when nothing else works:

The Soft Sell Approach

“I understand.  Please keep us in mind as an alternate source. If your currrent supplier is ever back-ordered on an item you need, just give us a call and we can get the product to you [the same day, next day or whenever you can truthfully promise delivery.]  We would love to be your second source.”

This is a very non-threatening response.  I hear from sales reps who tell me they are surprised at how often they get calls back from these prospects – to place an order.

What works best for you, when responding to the “We already have a supplier” type of objection?   I would love to hear from you.