Sales and Sales Management Blog

February 23, 2011

Guest Article: “Your Customer’s PIR: Price Investment Ratio,” by Mark Hunter

Filed under: Closing Sales,sales,sales psychology,selling — Paul McCord @ 11:58 am
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Your Customer’s PIR: Price Investment Ratio
by Mark Hunter “The Sales Hunter”*

Have you ever really considered how price affects your customer with regard to their *perceived benefit*?  Too often, we use a simplistic approach to determining a price – figure the cost to produce a product or service, tack on some arbitrary percentage, and call it good, right?

Price, though, is consequential in ways we may not initially consider.  The price a person pays for something goes a long way in determining the perceived benefit they expect to get from it.  The perceived benefit cuts two ways. First, the expectation of service goes up the more a person pays for something. Second, the perception of what they’re gaining also goes up with the amount they pay.   The two are not opposites; they work in tandem, and in nearly all businesses, this tandem relationship can and does work to your advantage.

Many companies, hopefully including yours, are known for delivering incredible service.  This quality service may be what your customers comment upon and why they are willing to refer you to other customers.  This level of service comes at a price. One of the things you always should be doing is explaining to and showing your customers how your level of service helps them.

The more you share this type of information with your customers, the more comfortable you become in seeing the value of what you offer.  Having confidence in your service allows you to increase your “Price Investment Ratio” (PIR). This all has to do with what you expect customers to pay.

For the customer, the PIR is revealed when you help frame their expectations.  To help explain this best, let me refer to what I call the “IBM paradox.” This is the belief people have that although you will pay more for anything you buy from IBM, you will never be fired for using IBM.  What this means is there are plenty of companies that sell the exact same items and services as IBM, but at a less expensive price.  Although other vendors will be less money, there is a level of safety and confidence in using IBM – so much so that it translates to a premium price that customers will pay.

The “Price Investment Ratio” (PIR) is the amount over the minimum amount a person would have to pay for something. They are willing to pay it to feel confident in what they are buying.   You might say the PIR should really be the CP – the “Confidence Premium.”

There are no two ways about it – when you have great service but do not reflect it in your PIR, then you are underselling.   If you are underselling, you are not making the profits you could be making.

I can hear some of you at this point thinking, “What if we don’t have a solid sense of how good our customer service really is?”   In other words, maybe your company receives very few complaints, but at the same time, you are not sure if your service is at a higher caliber than what your competitors bring to the table.

In order to find out your “Price Investment Ratio” (PIR), you must do a deep dive with your existing customers to get them to tell you what your service means to them.  Once you do this, you can then match up what existing customers are telling you with what prospective customers are asking you to do.   When you grasp this, you begin to understand what the PIR really should be.  How much “investment” is the customer willing to make in going with you instead of your competitor?

As I have often said, in the B2B arena, companies don’t buy anything, they only invest.   If your customer can’t see the return on investment, they won’t *invest* – they won’t pay the price you want to get.   When they *do*see the value, though, then you can feel very confident in charging a price above what your competitors charge.  Don’t settle for a lower price when doing so is detrimental to your bottom line.

Mark Hunter, “The Sales Hunter,” is a sales expert who speaks to thousands each year on how to increase their sales profitability.  For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit http://www.TheSalesHunter.com

 

October 29, 2010

Guest Article: “The Biggest Goof Sellers Make When Dealing with Hot Prospects,” by Jill Konrath

Filed under: Closing Sales,Handling Prospect,Qualifying Prospects — Paul McCord @ 8:19 am
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The Biggest Goof Sellers Make When Dealing with Hot Prospects
By Jill Konrath

I dream of hot prospects who call me up and say, “We’ve heard good things about your company. We want to make a decision quickly. We’re hoping you can help us out.”

Occasionally my sales fantasies turn into realities. When it happens, it’s so easy to be seduced by this low-handing fruit. Outwardly, I try to appear calm, cool and collected – a true professional. But inside, every inch of my body wants to scream out, “Take me! Take me!”

Okay. I’m being a bit dramatic here, but I really want to make my point.

It’s so easy to be tempted by these opportunities. And when you yield to this temptation, you make fatal mistakes—ones that can totally derail your sales efforts and cause you to lose the business.

True, But Embarrassing Story

Let me give you a personal example, to show you how easy it is to get caught up in this seduction.

A few years ago, my primary business focus was working with large corporations in the Minneapolis/St. Paul area when they were launching new products. My expertise? Helping them shorten time to revenue on new product introductions.

I’d just launched SellingtoBigCompanies.com to help small businesses gain access to my expertise. It was my new baby. I’d invested tons of time and lots of love to get it up and running.

When the phone rang that day, I answered absentmindedly. But when the caller announced that he was from Southwest Airlines, I snapped to attention. He’d been all over my new Web site, was very impressed, and also very interested in my training programs.

The airline was going to be putting its salespeople through training in the not-too-distant future and was evaluating its options. When I asked who else he was looking at, I was delighted to be included with the industry biggies.

Mr. Southwest had dozens of questions about my content, delivery models, remote training options, learning reinforcement and more. I answered every single one of them in glorious detail.

When he requested a proposal, I asked, “How soon?” When he answered that he wanted it in two days, I quickly agreed.

The proposal I sent to him via e-mail covered everything we had talked about in our conversation, plus a full range of pricing options. It was a masterpiece. I had high hopes that this opportunity would take my business to a whole new level.

I never heard from Mr. Southwest again. Even though I contacted him many times, he never called back.

Lesson Learned

It was my own fault. I mistakenly let my own eagerness to land this marquis customer outweigh my common sense.

The truth is I really needed the business at that time. After spending many months and lots of money to create SellingtoBigCompanies.com, I was running short on cash. I should have known better, but I was seduced by the opportunity.

In retrospect, I failed to find out if Mr. Southwest was just exploring his options or actually in the final stages of decision making. It’s highly likely he was just doing the former.

Had I known that, I would never have written a detailed proposal. Instead, I would have focused on helping him determine the business value of making a change. I would have used my expertise to help him sell the concept internally and establish decision criteria favorable to my solution.

Over and over again, I see other sellers make similar mistakes when they have a hot prospect on the line. Like me, they expound on their capabilities and benefits. They willingly provide detailed information and do tons of extra work to create proposals or presentations—anything the prospects want.

While that puts you into the “nice” seller category, it’s not a good business decision to invest tons of time and effort to land a fantasy customer. Nor does it help your prospects make the best decision for their organization.

If Mr. Southwest was actually deciding in a couple days, I should have addressed the fact that I was a small boutique firm that didn’t compete head-on with the larger companies he was looking at.

Doing business with me would have been risky. I knew that. But I didn’t want to bring it up; I was hoping he wouldn’t notice!

I was so blinded by the opportunity that I was willing to do anything that he asked. It was delusional on my part. Wishful thinking. Hopeful. When we feel this seduction, we need to remind ourselves that “hope is not a strategy.”

While hot prospects may hold the promise of big paychecks, there’s often much that still needs to be determine if it’s a good fit for your company.

Don’t be overeager. Instead be ruthlessly realistic. Detach from the fantasy and assess your true chances. Bring up the tough questions. .

Why? Because it’s the right thing to do for both you and your prospect.

Jill Konrath, sales strategist and bestselling author of Selling to Big Companies and SNAP Selling, is a frequent speaker at annual sales meetings, kick-off events and professional conferences. Visit her website

May 12, 2010

Where Is Your Sense of Urgency?

Filed under: Closing Sales,lead generation,marketing,prospecting,sales,selling,small business,success — Paul McCord @ 12:30 pm
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My wife and I are In the middle of purchasing a new home.  Since we had to arrange for insurance coverage on the house, I thought this would be a good time to re-evaluate our auto policy.  About three weeks ago I called four local agents, including our current agent, for quotes and completed an on-line questionnaire to see if quotes from agents who compete for business generated by an internet site would be more competitive.

I completed the on-line questionnaire on a Thursday and almost as soon as I submitted it I received calls from two agents—one local, the other out of Austin.  I didn’t receive any other calls from the on-line form until Tuesday of the following week when I received one.  I was contacted by another insurance agent on Wednesday and then two more on Thursday—fully a week after submitting the questionnaire.  They were way too late as I had decided by Tuesday to stay with my current insurance company.

But the calls from agents haven’t stopped.

I received calls from nine agents the following week and by seven more agents the third week.

To date, I’ve received calls from 22 agents–which should have given me every opportunity to acquire the best policy/rate combination possible.  Except only two agents responded to my inquiry in a timely manner.   Twenty agents or marketing departments had no sense of urgency in following up with my inquiry and consequently had no chance of acquiring my business.

Only two out of twenty-two agents had a strong enough desire to make a sale that they found a way to contact me quickly.  That’s pathetic.

But that’s hardly the only case of lethargy I’ve encountered lately.

We’re getting the carpets cleaned in our current residence when we move.  As with insurance, I called multiple carpet cleaning companies to get quotes.  I called six companies on a Tuesday and immediately spoke to one and had my voice mail returned the same day by another.  Another company called me Wednesday.  I heard from the fourth on Friday and the fifth the following Tuesday. I have yet to hear from the sixth company.   I had made my mind up by Wednesday afternoon on which company to hire.  Fully 50% of the companies I called never had a chance to get the business because they did not respond quickly enough to be in the running.

Should I give a third or even fourth example?  I experienced the same issues hiring a home inspector and trying to arrange for a paint contractor.  In both cases over 50% of the companies I contacted either have not responded or responded after I had hired one of their competitors.

In all four cases I believe I’ve acted as most consumers would—I made the inquiry and made my decision within two to five days.  Those who reacted promptly competed for my business; those who either because of a lack of a sense of urgency or because their marketing department or sales manager didn’t get them the lead in a timely manner lost the opportunity to make a sale and squandered their marketing dollars.

A quality lead has a very short shelf-life—whether we’re talking about the retail situations above or a long sales cycle, sophisticated product or service.  Someone–you or your company–has paid good money to get the phone to ring, to get a lead card mailed back, or get a form filled out on the internet.  Every minute you wait to contact a prospect is a minute you’re giving the competition to close the deal before you even get there.

If leads come to you directly, discipline yourself to respond to them immediately.  If they come through your sales manager or marketing department and you know that they are slow to distribute them, light a fire under their butts. 

There is simply no excuse to lose sales because a lead wasn’t contacted in a timely manner; nevertheless, there are a large number of sellers and companies who have no sense of urgency, giving those who are quick to respond a significant—and likely decisive–advantage.

What about you?  Where is your sense of urgency?

April 26, 2010

Guest Article: “Four Things To Do When Clients Pressure You for Lower Fees,” by Mike Schultz

Filed under: Closing Sales,sales,selling,Uncategorized — Paul McCord @ 8:16 am
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Four Things To Do When Clients Pressure You for Lower Fees
By Mike Schultz

“We are ‘firm’ on all fees and never discount.”
     ~ Respondent to the RainToday.com 2008 Fees and Pricing Benchmark Report

Ask a services firm leader at an industry conference, “Does your firm discount its fees?” and you’re likely to get a response that goes something like this, “We don’t discount.”

You’re then likely to hear that due to the demand for the firm’s services and the high level of its quality and service, the firm simply doesn’t need to discount.

One alternative answer might be, “Yes, we discount. If the client pressures us on price, you know, you gotta do what you gotta do to get the business.” While you might hear this, it’s unlikely you will. Nobody wants to position themselves as the firm that needs to drop fees to win clients. And if a firm does discount, they sure don’t want it public.

While firms might do it quietly, they do, indeed, discount. In the 2008 Fees and Pricing Benchmark Report, 1,811 respondents from five major professional service industries reported heavy discounting.

What percentage of firms reported that they discount their fees, you ask?

  • 76% of law firms
  • 66% of architecture and engineering firms
  • 65% of consulting firms
  • 61% of accounting and financial services consulting firms
  • 58% of marketing, advertising, and PR firms

As much as firm leaders would like to avoid it, and as much as the consultants to services firms rail against it, firms discount. And discounting is likely to continue.

The question then becomes, what do you do when clients push back on your fees?

The glib answer is: focus on your value. It’s trite, but true. If it’s worth it to the client they’ll pay for it. But when faced with price pushback, many are at a loss for what to do at that moment.

Here are four guidelines to follow the next time a client puts the price pressure on:

1  Don’t backtrack: I was playing golf with a bunch of old friends last summer. One of these gents is an attorney who was speaking about his services with another old friend who runs a hedge fund. Without being asked, he got to price and said, “My fees are $300 per hour, but if you need me to, I’ll work for less.”

Here’s an example of backtracking before even getting pushback. (I’d hate to see him in court, “Members of the jury, he’s innocent! Unless, well, you don’t think so. OK, we’ll plea bargain with opposing counsel…”)

Folks are tempted to backtrack when the buyer says, “But I can get it from XYZ provider at a lower price.” At this point, many service providers give the indication that they’re willing to negotiate prices.

Instead, acknowledge that other sellers’ prices are, indeed, all over the map and leave it there – you’re basically saying, “I acknowledge other providers’ prices are lower than mine, but my fee is my fee.”

Sometimes buyers might walk – that’s a risk you take. Many times, however, you’ll simply set the foundation for continuing the business development process at your preferred fee level.

2  Don’t start talking cost structure: Imagine, for example, your firm is looking to win a $7k retainer. Some clients will ask, “Well, how did you come up with that price?”

The service provider then pulls out a scope sheet of how this person’s rate is X, this person’s rate is Y, and this cost that we have to pay every month is Z, so here’s the fee. Heading down this path is a slippery slope and leads to nickel and diming here, there, and everywhere.

In Fees and Pricing Benchmark Report: Consulting Industry 2008, RainToday.com and the Wellesley Hills Group found that firms of various price and profit levels use retainer pricing. However, those firms that achieve premium prices and profit levels do not share the underlying fee structure nearly as often as the other firms.

Think of it like this: If you went to buy a car and asked what the exhaust system cost or how much the dashboard set them back, you would probably get laughed at. In the same vein, you should not lift up the hood simply because you’re asked what your costs are.

3  Ask, “Which part don’t you want?”: Service providers are tempted to cut fees when they get pushback, especially for large deals. The logic goes like this, “Well, it’s a $120k deal, but if we get it, we can get by with $110k and be OK. That would be better than losing the whole thing.” So they cut their fees.

This is a bad precedent to set if repeat business is important at your firm. You’ll always play the price-cut game at contract renewal time.

Instead, when a client is considering a $120k deal comprised of 5 major components, ask them which component they don’t want? You might find yourself going component by component and, as the client realizes they want the whole thing, you don’t cut your fee.

Also, going component by component forces the client to consider what it would take them to do that particular component of the work (if they could even do it). All of a sudden they realize how much they’d prefer to pay you to get it done.

4  Don’t dismiss the buyer when they push back: I often hear this comment, “If they push back on price, we don’t want them! Pushing back on price is an indicator that a client will be high maintenance or worse down the road.”

Perhaps this is not the case. Buyers are often taught to challenge prices in multiple ways. Just because they challenge you doesn’t mean they are bad people or are destined to be bad clients. It also doesn’t mean they’re challenging your value personally. (I’ve seen many service providers react viscerally and personally to fee pressure. Bad form.)

It often means they’re trying to figure out how to engage you and your services. Some providers discount, others don’t. They’re just asking. Hold your ground and treat them reasonably in the process, and oftentimes they’ll just come around.

Clients will, in the end, pay more for your services if they see you offer more value than the alternatives. And as much as you might disdain the thoughts, buyers will continue to pressure price, and service providers will continue to discount to win business. Follow these guidelines when you get price pressure, and you’ll find yourself winning more deals at your asking price.

Mike Schultz is Principal and Founder of the Wellesley Hills Group, a management consulting and training firm focused on helping companies in the services sector to increase their revenue and profit. WHG specializes in both marketing and selling of services and offers a full suite of capabilities including sales training for consultants and professionals, marketing strategy development, and marketing implementation.  Visit his website

February 19, 2010

Guest Article: “The Seduction of Low-Hanging Fruit,” by Jill Konrath

Filed under: Closing Sales,prospecting,Qualifying Prospects,Sales Failure,Sales Process,selling,time management — Paul McCord @ 10:06 am
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The Seduction of Low-Hanging Fruit
by Jill Konrath

I remember the first time it happened. It was on a Thursday, about 4 pm, and I was worn-out after a day of cold calling. I hadn’t uncovered even one viable prospect. Enough was enough! Time to go back to the office and do some paperwork.

When the phone rang, I answered it tiredly. But by the time I hung up I was a new person. I had just talked to one hot prospect!

Her company was BUYING! Not just looking – BUYING! They needed several new systems to handle their growth. And they wanted to make a decision quickly.

“Can we come in for a demonstration,” she asked.

How could I refuse! They came in the following Monday and we spent about two hours together. We discussed their needs and I showed them several possible options. Things seemed to go really well. In parting, they asked me to call back early the next week.

Tuesday morning I left a message. Wednesday and Friday too. My calls were never returned. It wasn’t till a week later that I finally got my prospect on the phone. She thanked me for my hard work, fast service and excellent demonstration. Then, very apologetically, she told me they’d selected another vendor.

I asked “Why,” but her answer was evasive and focused on minor details. Of course, price was thrown in too – as it always is when you lose.

I’m embarrassed to tell you that this happened to me more than once. And sometimes I invested an inordinate amount of time and effort in those so-called “hot prospects.” I coordinated elaborate meetings and prepared detailed proposals. I even rearranged meetings with prospective customers who weren’t quite ready to move ahead.

Can you guess what happened? That’s right. I almost always lost the business.

Lest you think I’m not too smart, it didn’t take me too long to figure out something was wrong. My proposals, presentations and demos were fundamentally sound, so it had to be something else. But what … When I talked to the more seasoned sellers, I was cautioned on wasting my time with ‘low-hanging fruit” – in other words, companies who are ripe to buy.

They told me that many of these prospects already have made their decision, but are checking the market for two reasons: 1) To prove to higher-ups they did a thorough investigation, or 2) To leverage competitive offers to reduce their preferred vendor’s pricing.

Yikes! That explained a lot of things. Naively, I had assumed that I had a fair shot at every deal.

Learning how to ferret out those opportunities where it was worthwhile to pursue low-hanging fruit was hard. I had to be much more straightforward than I was used to being and ask questions that made me uncomfortable. But by doing this, I saved myself lots of hard work. And, I had more time to spend on prospects where I could win.

* * ******************************************************************

It’s not only individuals who are seduced by low-hanging fruit. Sometimes whole companies are sucked into these ‘get-rich-quick’ schemes.

Several years ago one of my clients introduced a new product targeted at a highly profitable niche owned by their competitor. They were late to this market and, in essence, their product was a higher-priced copycat with enhanced capabilities.

In the months preceding the launch, sales reps continually fed marketing stories about all the money being left on the table because the new product wasn’t ready. They told marketing about all the prospects who called wanting to know when their new system would be available. Everyone was drooling. So many buyers, so little time.

Their entire launch plan focused on the low-hanging fruit. Sales reps, armed with proposal templates and PowerPoint presentations highlighting competitive strengths, were chartered to go after companies on their “Hot Prospects List.”

Hard as I tried, I couldn’t convince them of the folly of this decision. The seduction was complete.

So what happened? In the six months immediately after the launch, very few systems were sold. Their only orders came from existing customers where reps had strong, long-term relationships with key decision makers. Within two years the company quietly exited this market niche because it was too costly to penetrate.

The lure of low-hanging fruit never completely goes away. The chance to make easy money is just too seductive.

I still have to caution myself when I encounter these opportunities. The worst thing about them is the wasted time that could have spent with prospects where my chances of winning were much higher.

Lessons Learned

1. In most cases, you can’t get into a sales process late and expect to win. If your competitor already has a strong relationship with the customer, they’re in the driver’s seat. They’ve likely already established decision criteria that only their company can meet.

2. Be willing to ask tough questions. If your new prospect is ready to buy, make sure you ask them:

- Who else are you looking at?

- Has your company done business with these companies before?

- Why would you consider switching?

If your prospects express strong dissatisfaction with a competitor, you might have a real opportunity. But if they’re just looking around, be wary of investing too much of your time and company’s resources trying to get the business.

3. Your best prospects will be those companies where you already have an established relationship OR where you get in early, before customers are making a decision. In the latter case, by uncovering and developing account needs, you’ll build the strong relationship you need to win the order when they’re ready to make a change.

Jill Konrath, author of Selling to Big  Companies, is a recognized sales strategist in the highly competitive business-to-business  market. A popular speaker at sales meetings, she helps her clients crack into  corporate accounts, speed up their sales cycle and generate demand for their offering.  Visit her website http://www.sellingtobigcompanies.com

January 7, 2010

Guest Article: “Send Me a Proposal,” by Chris Lytle

Filed under: Closing Sales,sales,selling,time management — Paul McCord @ 12:50 pm
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“Send Me a Proposal”
By Chris Lytle

Wow, they must be serious — they want to see a proposal. You’ll think differently after you check out this advice.

Here are four words you really don’t want to hear: “Send me a proposal.”

If you have made a good presentation and the prospect has a problem you can solve, then you want the prospect to write you a check. That would be a better outcome than going back to your desk and writing a proposal, wouldn’t it?

Too many salespeople stop selling as soon as a prospect says, “Send me a proposal.” They take it is a buying signal and believe they have had a “great call.” Whenever a salesperson tells me, it was a “great call,” I know instantly that he didn’t get an order.

“Send me a proposal” is either a buying signal or a stall. In either case, a prospect’s saying those four words is not a reason to abort the conversation, pack up your briefcase and drive back to your office. Not without asking a few more questions.

How I saved myself from a writing assignment
I sell sales training. I am on the phone with a person I haven’t done business with for ten years. I have just shown him my latest plan for developing his team of salespeople. He is excited about The Automatic Sales Improvement Process I have just presented to him. It’s a way for his sales managers to run more powerful sales meetings. His top sales guy is on the conference call and is also supportive.

I should add that it’s a $4860 decision, which in this prospect’s world is relatively minor.

But then, my prospect says, “Send me a proposal on this.”

“That’s not a problem,” I said. “I can lay out the terms and conditions in writing. You have seen everything I offer. Do you think it will help?”

“Yes, it definitely gives us some consistency in developing our team.”

“And you have, or can find, the money?” I asked.

“If you can give me a couple of payments in the $1,900 range, I can keep this off the corporate radar. I can sign off on it.”

“Then, do you need a proposal or should I just send an invoice?” I asked.

“Send the invoice. We’ll go ahead with it,” he said.

With three more questions, I saved myself another writing assignment, solved my prospect’s problem and closed a sale.

Have you ever written a proposal you didn’t have to write? Worse yet, have you ever worked for hours on a proposal and, then, had the prospect quit taking your calls or responding to your e-mails?

“Send me a proposal” are four words that you don’t want to hear. If you do hear them, ask enough questions so you know what they really mean.

The one that got away
I believe you learn as much from your failures as your successes. Most sales trainers don’t want to admit they don’t close them all. Let me share this failure and see if you can relate.

I guess I shocked a group of prospects recently. In the middle of a conference call, I said to them, “I give up.” They were putting up a lot resistance to what I was proposing. There were three of them and I could feel that I was merely starting to argue instead of selling or solving their problem.

“Uncle,” I said. It’s okay if you don’t want to buy this. I give up.”

It is interesting to observe what happens when you reject a prospect before they reject you. One person on the call told me I couldn’t quit, thus starting a new argument. I opted out. I felt bad that I couldn’t convince them and good that I stopped trying to force the issue.

That morning, I had called another person who was “too busy” to talk to me even though we had a calendar appointment. “I understand,’ I said. “Do you want me to quit calling you completely? It is not my intent to bother you or waste your time.” This prospect “opted in” and we have another calendar meeting in a week.

Pursuing someone who doesn’t want to be pursued is stalking. I think there are laws about that.

Have you ever rejected a prospect before they rejected you?

Have you ever asked a prospect if they wanted to “opt out” of the process?

You don’t have to close every deal to be successful. If a deal is not right for both of you, it’s okay to walk away.

Chris Lytle is a Chicago-based information entrepreneur who has cracked the code on delivering sales development ideas that move the needle. He would be happy to discuss The Automatic Sales Improvement Process with you. Call him at 773-278-2728. Or visit his site

October 30, 2009

Guest Article: “Ten Secrets of Persuasion,” by Nido Qubein

Filed under: Closing Sales,Handling questions,Persuasion,sales,selling — Paul McCord @ 10:14 am
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Ten Secrets of Persuasion
by Nido Qubein

Do you want to boost your selling power?  Then, add power to your persuasion.

But how can you add power to our persuasion?  How can you become more effective at persuading your customers to buy?

Let’s look at the way the skilled professionals put power into their ability to persuade.

Let me share with you ten secrets I’ve learned from some of the most persuasive salespeople in America — ten ways to add power to your persuasion.  I call them the 10 P’s of persuasion.

(1) Be positive.

One of the most successful insurance salesmen in America is a country fellow from South Georgia, who says, “You can no more sell something you don’t believe in, than you can come back from some place you ain’t been.”

Successful salespeople are positive people.

They have positive mental attitudes about themselves, the companies they represent, the products or services they’re selling, the prospects they’re attempting to persuade, the country they live in.  They’re positive about everything.

Enthusiasm is contagious.  When you’re excited about life and the work you’re doing, you can persuade with power, because you can get other people excited.

(2) Prospect. 

Successful salespeople have learned to direct their persuasive power toward people who have the resources to buy and have good reasons to buy what they are selling.

Professional salespeople pinpoint prospects who are likely to provide long-term profitability.  They analyze the possibilities for cross-selling.  They know that it takes an average of three calls to cross-sell an existing customer but seven to sell to a new customer.

In short, the powerful persuader targets all efforts at the person who has the resources, the motivation, and the authority to buy, and the potential for profitable repeat sales.

(3) Prepare. 

Red Motley, who started Parade magazine, said that the average salesperson will work like crazy to get an appointment, then blow the opportunity with a poor presentation after the decision-maker has agreed to the interview.

You don’t make sales to busy people by rambling on for 40 minutes about features and benefits.  Usually, after such disjointed presentations, neither the salesperson nor the prospect can summarize what’s just been said. 

Professional salespeople always do their homework.  They know that the better they’re prepared, the more persuasive they’ll be when they walk in to make a presentation. 

They research to find out everything they need to know about the prospect.  They plan what they will show and what they will say.  And they practice, practice, practice.
 
(4) Perform. 

Amateur salespeople complain furiously when they are beaten out by a competitor.  How could that customer buy that overpriced, poor-quality product? He must be an idiot!

The customer was no idiot.  The complainer was just outperformed by a more competitive salesperson. 

Remember: People don’t buy; they’re sold.  In fact, nothing is ever bought.  Everything has to be sold.  If you don’t make a strong presentation, you can’t persuade your prospect to buy.

Powerful persuaders are like stage actors playing to a full house.  They are artists at making their presentations.  They’re entertaining and informative to watch and hear.

To succeed in business, you have to make every second of every minute of your “action time” count.

(5) Be perceptive. 

Powerful persuaders are alert to everything that happens during a sales interview. 

They are not preoccupied with personal problems, with airline schedules, or even with the next call they are going to make.  They know that reaching a sales goal always begins with making the sale at hand.

Powerful persuaders tune into their prospects and look for the motivating forces in the life of each.  Once they discover that motivating force, they play to the motivation.

To add power to your persuasion, learn to read your prospects and to discover the motivations they have to buy or not to buy.

(6) Probe.

Average salespeople do a lot of talking.  They can give you a 30-minute speech on any subject you want to name.

That’s why silence is so threatening to most salespeople.  The instant a prospect pauses to take a breath, the amateur will jump in with a sales spiel, just to break the silence.

But powerful persuaders use questions to diagnose the needs and concerns of a prospect much as a skilled physician uses them to diagnose the problems of a patient.

They become masters at asking penetrating questions, and they use those questions to draw prospects into the selling process.
 
(7) Personalize.

The most powerful word in selling is you.

The emphasis on you marks the difference between manipulative and non-manipulative selling.

Manipulative selling is self-centered.  It focuses on what the salesperson wants and needs.

Non-manipulative selling is client-centered.  It focuses on the needs and desires of the prospect.

A person who is looking at the business proposition you are offering wants to know just one thing: What’s in it for me?

If you want to add power to your persuasion, personalize every part of your presentation to meet your prospect’s own personal needs and wants.

(8) Please. 

Powerful persuaders seek to close sales by pleasing their clients.  When prospects become excited about the idea of owning what you’re selling, they become customers.

Professional salespeople know that they can’t force their prospects to buy.  Their challenge is to make them want to buy.  So they seek to please them in so many ways that they create the desire to buy.

(9) Prove.

Salespeople with selling savvy don’t make statements they can’t back up with facts. 

And they don’t expect their clients to accept at face value everything they say.  They are always prepared to prove every claim they make — to back up those claims with hard data, with test results, and with performance records.

One of the best ways to persuade by proving is to give proof statements from people who are happy with your products or services.  Third-party endorsements go a long way in building credibility for your claims, and for your products.

Facts and testimonials are very persuasive.  Learn to use them, and become a powerful persuader.

(10) Persist.

Call on good prospects as many times as it takes to sell them.  About 80% of sales are made on the fifth call or later.  Yet studies have shown that:

·  50% of America’s salespeople call on a prospect one time, and quit.
·  18% call on a prospect twice, and give up.
·  7% call three times, and call it quits.
·  5% call on a prospect four times before quitting.
·  Only 20% call on a prospect five or more times before they quit.

It’s that 20% who close 80% of the sales in America.

You don’t have to become a dynamic personality to sell.  You don’t have to put pressure on people, or out-talk people to sell. 

The most effective thing you can do is to apply your own selling savvy to these ten ways to add strength to your persuasion.

Learn how to persuade more effectively and you will boost your selling power.

Nido Qubein is president of High Point University, an accredited undergraduate and graduate institution with 3,000 students from 50 countries and 44 states. He has written numerous books and recorded scores of audio and video learning programs including a bestseller on effective communication published by Nightingale-Conant and Berkley. Qubein’s business  savvy led him to help start a bank in 1986 and today he serves on the board and executive committee of a Fortune 500 financial corporation with 115 billion-dollars in assets and 25,000 employees. He is also chairman of Great Harvest Bread Company with 218 stores in 42 states. He serves on the boards of several national organizations including the La-Z-Boy Corporation, one of the world’s largest and most recognized furniture retailers. Learn more about Nido Qubein at www.nidoqubein.com

October 1, 2009

Guest Article: “Thoughts about the WIIFM,” by Jonathan Farrington

Filed under: Client Relationships,Closing Sales,sales,selling — Paul McCord @ 8:02 am
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Thoughts about WIIFM
by Jonathan Farrington

When we agree to an idea or proposal, it’s because there’s something in it for us. It’s hard to influence people who can’t see what’s in it for them. Sounds one-sided, but it is true. Call it self-interest, selfishness or whatever. It is only human nature to ask, ‘What am I getting from this?’

People will say yes to your ideas if they meet their needs or match their view of life in the following areas:

• Principles and values
• Beliefs and opinions
• Needs and wants

So Give People What They Want & Need:

People agree to ideas and suggestions that match their needs or views of life. Underpinning all our lives are certain principles and values that we hold to be true. These become guidance for how we conduct our lives. They influence and mould our behaviour. They can differ greatly from person to person and successful influencers always take principles and values into account.

But how?
• Notice what principles and values drive other people
• Ask questions and invite comment and reaction
• Check with those who know them well

Some examples of principles:

‘Integrity and fairness are an integral part of business dealings.’
‘I think that older people deserve courtesy and consideration.’
‘Moral behaviour is part of the fabric of daily life.’

It would be unproductive to spend time attempting to dislodge these deep-seated principles. Instead, harness them to add leverage to your suggestions.

Beliefs & Opinions:

Beliefs and opinions can be transient or short-term. Remember when you used to believe in Father Christmas, the Tooth Fairy, giants and witches? Proof can easily dislodge a belief. So too can time.

An early step on the road to influencing others may include having to change lingering beliefs or convictions before you can proceed further.

‘I think that BubbleClean washing machines break down more often than the Tumblingsystem range.’
‘I think that all politicians are corrupt.’
‘I never make decisions on the 13th.’

Each of these beliefs can be dealt with by logical questioning or providing proof or data.

Needs & Necessities:

These are fundamental requirements – they have to be met if you are to influence others. Typical needs include: reliability, security, achieving a deadline, meeting a budget, keeping up to date.

‘Because of increasing competition, it is essential that we maintain an image and at the same time keep up to date.’
‘My team members are under great pressure, so it important to maintain their morale.’
‘The system must not only be reliable but secure, as well.’

Having uncovered needs, you may have to mould or reshape your ideas to dovetail with the requirements of others. Often, people have a hierarchy of needs, so it may be important to discover and use this:

‘Which is most important to you – reliability or security?’

Wants & Wishes:

Wants and wishes are not essentials, just a wish list: ‘Wouldn’t it be lovely … if only’. But their fulfilment can be the cherry on your influencing trifle, placed on top with a flourish, after the other person has agreed to your proposal.

Depends What’s On Offer:

Question: How will your suggestions benefit the other person?

The person or people you are influencing will interpret the benefits of your suggestions in different ways. Some will be interested in the features – the fine details, the nitty gritty of ideas. Others will say ‘How will I benefit?’ Others will seek out the advantages of proposals – how the benefits are different.

Features, Benefits & Advantages:

No doubt you are familiar with the differences between features, benefits and advantages, but it is worth re-iterating.

Features:

These are built-in aspects of your idea or suggestion – timing, costs, resources etc. They will remain locked up in your idea whether the other person agrees or not.

Benefits:

These are far more important than the features of your proposal. They translate boring old features into exciting statements which show clearly how others will gain.

‘This new hardware is made in Germany (feature) which means that we will save time and money on spare parts (benefit).’

Advantages:

These are comparative benefits e.g. – increased revenue, greater savings, and faster turn-around.

In Summary: The Benefit Balance Sheet

Most people do not agree whole-heartedly to an idea. There is usually something that niggles, however well you’ve addressed their concerns.

In the end, when we finally say yes to a proposal, it is because the benefits outweigh any disadvantages.

As you plan and prepare your influencing case, list all the benefits and advantages of your suggestions.

Use them to tip the balance in favour of yes.

 

Jonathan Farrington is a globally recognized business coach, mentor, author and sales strategist, who has guided hundreds of companies and thousands of individuals around the world towards optimum performance levels. He is Chairman of The Sales Corporation, CEO of Top Sales Associates and Senior Partner at The JF Consultancy based in London and Paris and the author of the Jonathan Farrington’s Blog for sales leaders at http://www.thejfblogit.co.uk.  Best of all, like most of my guest authors, he’s a good friend of mine with a sharp mind and a great deal of sales and sales management wisdom.

May 9, 2009

Book Review: The One Minute Closer: Time-Tested, No-Fail Strategies for Clinching Every Sale

Filed under: Book Reviews,Closing Sales,sales,selling,trust — Paul McCord @ 2:47 pm
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one minute closerIf you love old school manipulative selling techniques (you know the ones, those that have given salespeople a reputation on par with thieves, ambulance chasers, and snakes), you’ll love The One Minute Closer: Time-Tested, No-Fail Strategies for Clinching Every Sale (Business Plus:  2008), by James W Pickens and Joseph L Matheny.

Seldom do I post a review of a book that I don’t find to be at least somewhat helpful, but The One Minute Closer is so bad, so destructive to the selling profession, and such a waste of money, that I believe I would be doing a disservice not letting readers know why they should avoid wasting their money and their time on this dreadful piece of trash.

According to the authors, The One Minute Closer is designed to relate the wisdom of over 50 ‘master closers’ from around the world that will teach salespeople the closing techniques that will turn them into master closers also. 

In fact, what Pickens and Matheny have done is write a small book on how to be as unethical in sales as possible.  This is a master course in deception, manipulation, lying, and impersonating sincerity.  Despite the author’s claims, it is doubtful that many of the supposed ‘master closes’ presented would do anything more than alienate prospects at best and get you thrown out on your ear at worse. 

The One Minute Closer is chock-full of wisdom such as

  • “when the master closer asks his customer to purchase, he will intentionally lower his head slightly and get a few degrees below the eye level of his customer.  Then as the customer considers his response, the closer will slowly bring his head up, almost unnoticeably, so his eyes are on the same level as the customer’s.  Then, right at the exact second  when the customer starts to make a sound, the closer will move his eye level up a few degrees above the customer’s eye level.  At that point, he will keep his head and eyes steady.  This very slight head and eye movement is magic.  What it does to the customer is surprising.  The customer, completely unaware of what the closer is doing, will automatically raise his head and eyes to meet the closer’s.  This upward physical movement actually encourages the customer to give a positive response.  This secret closing technique works, but the master closer has to be very subtle and deliberate in his movement.  There can’t be any sudden movement that might alert the customer.”
  • The “one dollar vs. one-hundred dollar close.  In this close when your customer says they can’t make a decision, take out a one dollar bill and a one-hundred dollar bill and ask which one the customer would like to have.  Of course, they’ll say the one-hundred dollar bill.  You then say to your customer, “Mr Customer, don’t ever tell me again that you can’t make a decision, because you just did.”
  • The “what would Jesus do” close.  You use this close when your customer “is a Sunday go to meeting” type (throughout the book this level of respect for customers is demonstrated).  You acknowledge that you know he is a fine Christian and state that you understand that he wants to be like Jesus, just as every good Christian does.  You then tell the customer that you’ll give him your product or service free if he can show you anywhere in the Bible where Jesus said, “let me first ask my friend,” or “let me first ask my accountant,” or “I have to think about it.”  You point out that Jesus never had to hesitate to make a decision on his own.  According to the authors, after delivering this close, “The customer is stunned.  The master closer has made such a strong and truthful point, the customer doesn’t know what to say.”

The above is just a small taste of the book’s BS.  Sometimes when reading the book it is difficult to tell whether the authors are serious or are having a good laugh at how gullible some salespeople might be.  If it weren’t so serious, this book would be hilarious. 

This isn’t to say, however, that the book doesn’t have a small bit of useful information.  It does.  It’s just that the majority of the useful information is so basic and so intuitively obvious that it would be classified as common knowledge, such as ‘treat evey customer like a millionaire’ and ‘it’s difficult to dislike people who like you.’

Whatever you do, save your money, don’t buy this one.

May 4, 2009

Book Review: Let’s Get Real or Let’s Not Play, by Mahan Khalsa and Randy Illig

Filed under: Book Reviews,Closing Sales,Sales Process,selling — Paul McCord @ 10:09 am
Tags: , , , ,

lets-get-real-2The key to success in sales is, according to Mahan Khalsa and Randy Illig, authors of Let’s Get Real or Let’s Not Play: Transforming the Buyer/Seller Relationship (Portfolio: 2008), helping the client reach their goals, that is, putting the client’s success first.

Nice, but hardly a novel sentiment.

We’ve all read dozens upon dozens of books telling us that we must put the client first.  Nothing new here. 

The problem with all those other books is they haven’t given us a workable way to deal with the unspoken but paramount issue separating clients and sellers and preventing us from truly putting our client first—fear.  The client’s fear of being taken advantage of and our fear of losing a sale. 

Creating a way, a path, for us to work with our clients in a format that eliminates the ingrained fears of our clients and ourselves is the primary contribution of Let’s Get Real or Let’s Not Play.

The authors begin their journey in creating a process that will allow us as sellers to really seek our client’s success first and foremost by outlining their 5 key beliefs:

  1. Consultants (sellers) and Clients Want the Same Thing.
  2. Intent Counts More than Technique
  3. Solutions Have No Inherent Value
  4. Methodology Matters
  5. World-class Inquiry Precedes World-class Advocacy

The authors argue that these five key beliefs set the groundwork for a process that will allow sellers to deal with prospects and clients in an honest, straightforward manner where we can work with them to really discover their issues and needs, gather the hard information we need to create a solution that puts our client’s success above all else, and we can do these without the fear of wasting our time and resources pursuing non-business.

Khalsa and Illig devote almost half of the book to discussing how to qualify an opportunity because the qualification process sets the stage for remainder of the process.  As sellers, we must make sure that we a pursuing a legitimate business opportunity.  We cannot afford to waste our time and energy pursuing non-business.  Consequently, we have to qualify based on Opportunity (is it worth pursuing); Time (reasonable and adequate); People (who does what and is it the right mix); Money (can the client afford it); and Decision Process (who, what, when, and how decisions are made).

Exploring each of these areas reveals whether or not we should go forward.  Naturally, getting a green light in each area means we go forward.  A red light in any area means there isn’t a viable business opportunity now.  The real key is looking out for and understanding how to handle yellow lights—situations, questions, and issues that must be fully and honestly investigated to determine whether they are actually red lights or can be clarified into green lights.

The last half of the book is dedicated primarily to discussing how, when and where to present the solution proposal.  At the crux of the proposal is its purpose—to enable a decision.  Everything has lead up to this, the decision enabling meeting.  The authors walk us through the process of creating a meeting plan that leads naturally to making the purchase commitment.  Although useful and well laid out, I found this part of the book to be less compelling than the first half that dealt with qualifying.

The process Khalsa and Illig layout is thorough and workable if not seeming a bit cumbersome at times (the “Quick Reference Guide” in the appendix 16 pages long, hardly ‘quick’).  It does, however, address the fear issues that keep sellers and clients from working together to clarify and address core issues with which the client is struggling. 

Designed for and well worth the read of any salesperson or sales leader engaged in the complex sale, the book is also worthwhile for salespeople and managers engaged in any relationship driven sale, even for those engaged in consumer sales as many of the observations are applicable in numerous sales environments.

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