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Business tool: Handling customer objections

Provided by GSES, Content Partner for the Sendea Business Tools.

There are some objections, which will be typical to your country, and/or culture and you must try to identify them and develop responses. Typical objections to Solar Home Systems are listed below. We have included some typical responses BUT you must develop your response.


List of Typical Objections

1. The system is too expensive

The response should be approached in two ways.

a) Real Value vs Cost

This really means that the customer perceives no “value” in buying the solar home system. The value of a product can be determined by the following formulae:

value = benefits/price

Looking at this formula the customer has not seen enough benefits to see the value in the product. You do not need to decrease the price you need to increase the value as seen by the customer by increasing the benefits. You must provide the customer with enough benefits that he then sees that the value of the item is affordable.

b) Cost comparison

You must compare the cost of the solar home system with how much they are currently spending on energy. If the solar home system will have a cost benefit over a relative short time in comparison to their current expenditure on energy then they will be interested. If the system can be “paid back” in an acceptable time and the customer sees sufficient benefits then you can overcome this objection.

It is also important to look at whether the “system being too expensive” is really as a result that they do not have the capital to afford the system now. If this is the case it is important that you try to develop some financing scheme with a micro-credit facility to allow the customer to obtain the system now and they do re-pay the loan over a set time period. 


2. The Solar Home System is not as good as grid power.

Many people do not want the inferior power that a solar home system supplies compared with that available from the grid. They feel that they are getting second class power compared with their relatives or friends who live in villages which are connected to the grid.


Read the full article here.