A very fundamental change has taken place in household expenses in the last couple of months. Have you noticed?

Suddenly families have realized (yes realized) that they can live happily with very little money for their monthly and day-to-day expenses. A loss of job has helped some to realize. A reduction in income has helped others to realize. Yet others have realized because they do not have any where to go and spend – no malls, no cinema, no restaurant meetings, no parties, etc.

Lifestyle expenses consume our income – not living expenses

All families have realized a fundamental truth – most of their expenses are not living expenses, but lifestyle expenses. Life style expenses are incurred to meet personal ideas of standard of living, social pressures, conveniences of travel and living, etc. All such expenses have not been incurred in the past 2 to 3 months, helping all persons to save a lot of expenses. The saving has taken place either because people do not have the money or because they did not have the normal avenues to spend. To use a jargon, people have out of necessity turned minimalists.

Profound implications for our selling activities.

One of the most common objections that we face is money. It is not that customers do not have the money, but their current priorities are elsewhere. They prefer to spend on a holiday or spend shopping, and find that they are short of money for long term planning. But whatever the reason, we are left with the objection of no money to handle.

The current situation of lock down has made people realize how little they need to survive and also to enjoy life. Use of internet has provided many outlets for recreation and relaxation at virtually no cost. While expenses on food, clothing and shelter is minimal.

This is your moment – seize it.

Nest time you meet your customers do not start by telling them about your product. Start by discussing the lock down and the living expenses during the lock down period. Discuss in sufficient detail and get an agreement from your customers that if we want we can curtail expenses without adversely affecting our lifestyle too much. Getting the customer’s agreement on this is very important before you start your product canvassing.

Prepare your customer’s mind

A decision that has long term implications (such as life insurance purchase), needs building the right environment in the sales interview you conduct with your customers. Most objections are raised because the customer’s mind is not well prepared to receive your suggestion to buy a life insurance policy for his or her needs.

There are many ways to prepare the customer’s mind. The current situation, where there is a lock down, offers a golden opportunity. People’s movements have been restricted. No where to go and therefore no where to spend money. The situation offers an appropriate environment were you can remind the customer of spending habits of the past 2 to 3 months. Get his or her agreement that one does not need to spend a lot of money today to be happy. One can also save for the future so that we can also be happy in the future, not just be happy today.

Do not proceed further in your sales process till there is complete agreement. Only after the agreement is reached, you should spend time on connecting emotionally for the long term needs ) and then make your product presentation.

By following this process you are selling risks not returns. Because risks are certain, while returns are uncertain.