Don't you just get hopping mad every time you give a kick-ass sales presentation -- and yet your prospect simply won't buy a thing from you? Do you feel paralyzed by the fear of rejection every time you have to ask that "cruel" prospect for the sale? Does your ego get clobbered out of shape whenever your prospect tells you, "No?"
Well, then it's time to unleash your delicious revenge on those merciless prospects that have been making your life a living hell. It's time to deploy the most vicious, diabolical tactics you can find -- turn the tables on them, and make them tremble like the squirming wimps that they are ...
Whew ... okay, now that we've gotten your pent-up angst out of the way, let's talk about the core of your torment -- that thing that strikes the most fear into the hearts of salespeople everywhere -- that is, closing the sale.
No, we're not going to talk about those stale, worn-out closes that every salesman and his dog have used for ages. Those hackneyed closes insult the intelligence of your prospect. What I'm about to show you is radically different -- so brace yourself for an explosive nitro boost to your sales earnings.
Let me ask you a question:
If I could show you a way that you can double or triple your sales closing
rate -- and teach you how to sell 50% to 100% of all prospects that you come in contact with -- are you willing to spend an entertaining 63 minutes to learn it?
If you answered No, then you're either perfectly satisfied with the amount of money you're making -- or you're just not interested in achieving a 6-figure income through sales. Or perhaps you don't believe it could happen to you. If that's the case, then please stop reading this article right now. This is not for you.
If you answered Yes, then go ahead and read the rest of this article. Do not simply skim over it, or skip around from section to section -- but read it word for word. You're really going to enjoy this eye-opening information. You won't want to miss a thing.
WANTED: Salespeople Who Want to Be Among the Top 4% Highest-Paid Sales Professionals
I've got good news and bad news for you ...
First, the bad news:
FACT: In a typical sales encounter, 80% of prospects will say, "No" to your sales offer. During tough economic times, this can be as high as 90% or even 95%. (I'll bet you already know this from experience, don't you?)
Now the good news:
Have you ever come across those rare salespeople who sell phenomenally well even during the worst economic times -- even while doing business in highly competitive markets -- and even when the price of their product is well above their competitors' prices?
Those super salespeople sell like crazy -- rain or shine -- and there's no such thing as a "slow day" -- or a slow week or month for them. And what's more -- they make it look easy. You know why? Because it is easy -- if you know how.
Now listen closely -- selling will become easy for you, too, after I show you a few tiny adjustments in the way you sell. You'll be able to easily close a high percentage of your prospects without the struggle, frustration and rejection that you used to experience.
For further Brian Tracy : 24 Techniques for Closing the Salesplease go to http://www.24techniquesforclosingthesale.com/
Brian Tracy : 24 Techniques for Closing the Sales
Discover 3 Script Tips That Top Salesman Won't Share
Getting into a sales role can be tough. Whether you have a college degree, formal sales training, or are just brand new on the job you might think that the veterans would provide some guidance. After all they have served their time in the trenches, struggled with numerous prospects; surely they will welcome you and share their best methods, right?
Sadly most salesmen believe someone should "pay their dues". They want you to struggle just like they did and they don't even care if you last a year or a few days. They might have dozens of awards in their office, but I can share with you, you don't want to be them. Those who aren't willing to share don't have the confidence that you need to be a REAL top sales professional. I am not talking about the guy or gal who makes a few hundred grand a year; I am referring to the sales professionals who make a 7-figure net income.
Getting to the top of your industry doesn't mean chasing awards or grinding out thousands of cold calls until you "figure it out". To have smashing sales, I invite you to discover the 3 tips below. It should save you time on your way to the top as these same tips have helped me have a seven figure net income for over 20 years in a row.
Stop Selling - No one likes to be sold to. It's a myth that you can sell "ice to Eskimos" (what they don't tell you is that they sell them in the Summer time). Instead of selling people on your offering look to find a match for your offering and the prospects needs. Transform those tired sales scripts into interest piquing questions and watch your sales grow.
Get Out Of the Business - Too many sales professionals get stuck "in" the business of selling. They waste time on reports, faxing and numerous activities that aren't money making. Focus your time on your highest dollar activities (usually calls, marketing, and meeting with prospects). Everything else you should delegate. Even when you are brand new, try to find someone you can share your faxing/paperwork activities with and you will have a full time assistant in no-time.
Don't Decide for Prospects - Don't try to force a prospect into what you have to offer. Offer your prospects options and let them decide what is best. This applies to selling insurance, real estate, copiers and pretty much anything. Give them options where you win on both and they will feel like they made the decision!
The less you "sell", the more you concentrate on your $1,000/hr work, and the clearer options you provide for your prospects the more sales you will generate. Simply putting these 3 items into action on a daily basis will have your office filled with awards in no time (even though you won't care about them).
Get the shortcut to dominating your industry and selling more in my free 5 day (yes you can skip ahead) sales conversion course. I will share with you interest piquing questions to get you doubling your sales in less than 1 week - www.QuestionsThatSell.com
Todd Bates is a national Marketing and Business coach. Through his programs, such as Todd Bates Systems, he shares innovative systems to help businesses owners and sales professionals dramatically grow their sales.
His systems cover a broad base from sales conversion to marketing on a budget. The strategies that he shares have enabled him to net over 1 million dollars a year since the age of 24.
Article Source: http://EzineArticles.com/?expert=Todd_T_Bates
Are You A Top Salesperson? - 7 Barriers to Becoming A Top Salesman - Part 1
One of the biggest reasons that people never become a top salesman or top closer is that they try too hard at the wrong things. Believe it or not, being a great closer is not about how many sales books you've memorized or how many sales trainings or seminars you've attended. It's about selling yourself. People buy you just as much as they buy the product you're selling.
Barrier 1 - Sounding Like You're Reading A Script
The worst offenders of these are telemarketers. Many telemarketers have poor reading skills and sound as if they are reading a script. And because of that, many people don't buy. Because those "readers" sound so mechanical, many companies have started to use recorded messages on the other end of the line. It saves money and the voice over the phone sounds much better and more professional. If you read a script, make sure it sounds as if you're having a conversation, otherwise you'll never sell anybody.
Barrier 2 - Not Developing Rapport
It's human nature to want to buy from someone you like or have a good feeling about. Too many salespeople don't understand the psychology of people and go straight for the sale without warming up a potential buyer. If you don't take the time to develop some sort of connection with your prospect, you will never get the sale - because they won't like you enough to buy from you. Know this, people buy you first, and the product second. Tony Robbins sums it up brilliantly, "People like people like themselves." The easiest way to connect is to ask questions. It gets people talking.
Barrier 3 - Using Sales Tactics Versus Sales Technique
Sales trainers who still use sales books from 30+ years ago still teach sales tricks and tactics instead of sales technique. In the 21st century, the "Old School" phrases like, "I can appreciate that Mrs. Jones" or "feel, felt, found" hardly work anymore because everybody's heard them a million times. A prospect's antenna immediately goes up (and so do their defenses), alerting them that a sales pitch is coming. If you're using outdated sales tactics and phrases, find a way to update them for today. Sales isn't about pat responses or rebuttals to objections people raise. It's about being a skillful listener and using proper sales technique.
Barrier 4 - Going for the Close Too Soon
Some salespeople go for the money or as we like to call it "going for the jugular" too soon. People will generally give you an indication when it's the right time to go for the close. Do it too soon and you risk alienating them and losing the sale. Patience is the key. Let them lead you. Pay attention to their demeanor and attitude. When they relax and let down their guard, that is the time to move for the close.
Be sure to read Part 2 of "7 Barriers to Becoming A Top Salesman" where I reveal the final 3 barriers and how to solve them. http://www.getprospectstocallyou.com/7-Barriers-pt2.html
Brought to you by C. Monroe Alexander, sales and lead generation coach.
Article Source: http://EzineArticles.com/?expert=C._Monroe_Alexander
How I Became Top Salesman
I Still Love You
How many ways are there to express your appreciation and show your customers you love 'em? That's up to you. Just as Paul Simon suggested that there are "50 ways to leave your lover," there are countless ways to show your sincerity to the relationship. Let's consider a few: a simple phone call, a note on their invoice or delivery box, a delivery of balloons, cookies, chocolates, a fruit basket, a lottery ticket, a corporate treat (logo'ed pens, hats, shirts, note pads, golf balls, etc.) a gift certificate for two at an upscale restaurant, a copy of this book, (yes, that was a pitch, I couldn't resist!) or any other publication or magazine, tickets to a sporting or community event, the list goes on. Highlight any that may have triggered some ideas to pursue with your customers. "We love you and appreciate your business" should show in your every deed, because business usually stays where it's appreciated.
Read More..Ten Follow-Up Letters
Don't underestimate the power of the humble thank-you note. Thank-you notes clearly indicate to the recipients that you've made an effort to think about them and thank them for their support. Consider the last time you received a handwritten invitation or note of thanks. Feels good, doesn't it? You can use thank-you notes for a variety of occasions. They confirm your commitment and help solidify your business relationship, making it more difficult for your competitors to replace you. Use handwritten notes for just about any situation or occasion. I offer you these ten suggestions for follow-up notes. Feel free to modify or tailor these notes to your specific situation. I offer these as guidelines only.
- After a purchase. Thank you for giving me the opportunity of providing you with the benefits of our product. I am confident that you will be happy with your investment and I will endeavor to offer excellent follow-up service. I do appreciate your support.
- A first meeting. Thank you for taking the time to meet with me. I enjoyed our visit and the opportunity to learn more about your business. I look forward to our next meeting.
- Telephone contact. Thank you for taking the time to chat with me on the telephone.You'll soon receive all the information we discussed. I look forward to following up with you next week to discuss the details of our proposal and the possibility of a win-win agreement.
- After a presentation/demonstration. Thank you for the opportunity to showcase our products and services to you (and to your committee). My presentation highlighted the key benefits of our product and outlined the mutual benefits of an association of our firms. I look forward to our follow-up meeting next Wednesday at 2:30 PM. See you then.
- A turndown or they buy from someone else. Thank you for taking the time to analyze my proposal. I regret being unable, at this time, to demonstrate our capabilities. However, we are constantly responding to our customers' expectations and to new trends, developments, and changes in our industry. Thus, I will keep in touch with the hope that in the near future we will be able to do business. This classy tactic clearly shows your professionalism and encourages the customer to seriously consider you for next time. A great tactic to become #2.
- A gatekeeper. Thank you for providing me with the opportunity to meet with Mr. Smith. Our meeting was productive and there may be an opportunity for our companies to do business. I will let you know how things work out.
- A referral. Thank you for the valuable referral. I look forward to meeting with Ms. Jones. You can rest assured that I will exercise the same level of professionalism that I have with you. I will let you know how things work out.
- A turndown but they offer to give a referral. Thank you for your generous offer to provide me with a referral. I am saddened to hear your immediate plans do not include us but I will keep you posted on new services that may benefit you.
- An anniversary. Thank you. It's with pleasure that I send this note on the one-year anniversary of your patronage. Your support is appreciated—clients like you contribute to our success. I have enclosed an update on our latest advancements and I'll give you a call next week to discuss them further.
- A cold call. Thank you for making the time to chat with me when I visited your office recently. I learned a great deal about your business needs and expectations. I look forward to following up with your people next week. I'll stay in touch.
Follow these six suggestions to maximize the impact of your note:
- Handwritten. Personalize it with your own handwriting. If your penmanship is sloppy, write slower.
- Don't use company letterhead. Buy some nice stationary that doesn't scream "business letter." It must be a personal gesture.
- Handwrite the envelope too. Personalize the whole package.
- Buy stamps. Use a stamp. Don't put it through a mailing machine. A typed envelope with a corporate stamp on it takes away from the personal touch. It also looks lazy.
- Include your business card. It clearly indicates who this note is from. A handwritten note simply signed by you may cause confusion or uncertainty as to the sender. Your customer may not know you all that well—yet.
- Don't expect a response. Although it may seem your efforts have gone unnoticed, your customers do appreciate it. In these busy times, customers simply don't have time to pick up the phone and thank you. I once sent a note and heard nothing back but the next time I made a call my note was displayed on her credenza.
Business will stay where it's appreciated.
Ask: How have I demonstrated my appreciation?
Read More..
Follow-Up: You Never Call or Write Anymore
Have you ever heard that line? I have. Your parents and friends sometimes say it to you, but your customers have a different way of saying it. Customers complain with their feet; they walk. If a customer ever says it or suggests it, you had better pay attention. It could be the death knell for your relationship.
Effective follow-up after confirmation and successful negotiation means going that little bit extra for your customer. The little things often move a relationship forward. The result is a win-win-win-win. The win for you is anchoring a solid client, a source of referrals, and second-selling opportunities within an existing account. When we treat our customers with respect and appreciation we feel good about ourselves. At the same time, our customers feel good about working with us. A long-term business relationship is forged.
It's a fact that customers will forget you within 27 days. Your parents might even forget you every couple of months. You have worked hard through Steps #1 to #9 and now it's time to use all your resources and tools to protect your newly acquired asset. You must build a fortress of loyalty to keep the watchful eye of your competitors out. I have often said that getting the first sale is easy. It's getting the repeat orders that truly validates your performance as a sales entrepreneur.
Keeping your customer happy and satisfied requires conscious effort. It is part of the ongoing process of assessment, feedback, and reassessment that makes you continually responsive to your customer. It's difficult to coordinate the pursuit of new customers while servicing and growing existing accounts. I think this anonymous quote says it well: "A relationship will deteriorate over time. A natural tendency of any relationship (business or marriage) is toward erosion of sensitivity and attentiveness. It requires a solid effort against the forces of decline." A powerful statement indeed.
Follow this reading to continue:
Ten Follow-Up Letters
I Still Love You
Customers Don't Shoot the Messenger
We no longer live in times where they behead the messenger, although I'm sure that on occasions customers are tempted. In the eyes of customers, the salesperson is ultimately responsible for seeing that the product or service is delivered when promised. If problems arise when filling an order (and this is not unusual), customers should be informed promptly. The progress of the order or any possible back orders should also be monitored and communicated to the customer so that if something goes wrong alternative arrangements can be made. Customers may not jump for joy at the news, but they will certainly appreciate the opportunity to take corrective action.
Customers can become disgruntled for a number of reasons, most of which turn out to be minor when handled properly, tactfully, and in a timely manner. Dealing with panic-stricken customers demanding instant satisfaction can be an emotionally draining exercise. These intolerable nuisances, if left unresolved, can easily and quickly escalate into a mountainous catastrophe. Unfortunately, human beings tend to focus on the negative—what went wrong versus what went right. Your phone call will go a long way to prevent the proverbial poop from hitting the fan. Be the bearer of bad news before your customers call you. When you call they will be easier to manage, but when they call it's too late—they're in no mood to listen to your blamefest.
Monitoring order processing and other after-sales activity is critical to developing a partnership. A Purchasing Magazine study indicated that failure to follow through after the sale was the second-biggest complaint of buyers. What was the first one? Talking too much.
Many specific activities are essential to ensure customer loyalty and satisfaction. Sales entrepreneurs must be jugglers. Continue to build trust, monitor proper usage, assist in servicing the account, and provide expert guidance and assistance. Adopting an empathetic attitude to a real or imaginary problem cannot be overemphasized.
My People Need to Talk to Your People
All parties must understand their roles and responsibilities and work in harmony for a smooth implementation. It's a good idea for both you and your customer to identify all parties involved in the implementation: "This is what I'll do, within this time frame, and these are the people to involve." Parties involved may include management, operations, accounting, manufacturing, engineering, shipping/receiving, inventory control, technical people, delivery people, and so on. You can't do it alone, so draw on the strengths of your internal customers and your customer's people to ensure a smooth, speedy, hassle-free implementation. With all parties working in harmony, the story of these four people becomes a reality:
This is the story of four people: Everybody, Anybody, Somebody, and Nobody. There was an important job to be done and Nobody was sure that Anybody would do it but instead Somebody did it. Nobody got angry because it was Anybody's job. There was no need for Nobody to blame Anybody—Somebody did the job Anybody could have done. Nobody made excuses but Everybody was satisfied.
Communication at the best of times is fraught with uncertainty, biases, and individual perceptions. Effective communication is a topic onto its own. Poor communication often results in costly oversights and mistakes. Communication is a very delicate, fragile process. As responsible sales entrepreneurs, we need to ensure an effective exchange of information.
For larger, more sophisticated deals, I suggest both parties safeguard themselves against the normal pitfalls of communication and consider drafting a letter of intent or a letter of agreement. I don't mean a legal document that requires hiring a lawyer at $50 for every three minutes, I simply mean putting a letter together on your company letterhead outlining the logistics of the deal. Who is doing what and by when? You and your customer can review it for accuracy and completeness, signing your respective copies.
Part of your responsibilities also include avoiding, or at least minimizing, user error. To do so you must evaluate your customer's abilities, technical or otherwise, and recommend training if necessary. Research suggests that up to 30% of the time customers are wrong. Reported product and service problems resulted from customer error, product misuse, or failure to read the instructions. Customers do screw up, but as professionals we have to allow them to maintain dignity. It takes a strong attitude to let certain things go while biting your tongue. You must also make your customer aware of the break-in period, the time required to fully appreciate the benefits of your product or service. This may not be apparent initially. True happiness will only come once everyone is using your product correctly.
Create an action plan.
Ask: What are my implementation strategies?
Action Plan: Implementation
Congratulations on your successful negotiation. The customer said yes, you reached a win-win-win-win agreement, and now it's time to take action. This is what you have been working so hard to achieve, the opportunity to showcase your company and your product, and to deliver on all the benefits and promises you presented earlier. However, in many ways, your job is just beginning. Just as in a marriage the, "I do" should be, "I will do."Your customers have high expectations—don't let them down. In fact, the more they spend, the higher their expectations. People expect their purchases to be perfect and hassle-free.
Surprisingly, the details of an effective action plan are often overlooked in the euphoria of finally anchoring the deal. Nevertheless, your role now is to quarterback all the activities necessary for a smooth, seamless implementation rather than race to the car, dig out a calculator and excitedly work out your commission and/or bonus. It's important that you identify and delegate responsibilities to ensure a timely, hassle-free delivery of your solution. A big part of what your customer just purchased is peace of mind about a worry-free delivery. Customers need to feel they have made a wise, intelligent investment. Initially they may feel a little uneasy, insecure about their decision. After all, you have convinced them to embrace change.
In this section you will read:
My People Need to Talk to Your People
Customers Don't Shoot the Messenger
Low of 10 Options
A few years ago I had the pleasure of hearing Jim Rohn, an international motivational speaker, speak at a sales conference in Calgary. One of his many suggestions was to be guided in life, and in sales, by the Law of Ten Options. His point is this: with a cancellation or postponement of an event, there are always ten other options—ten alternatives to consider. For example: if you and your spouse had planned an evening out with the Jones but at the last minute they gracefully declined due to sickness, you now have ten options to consider—go see a movie, see a play, visit other friends, clean the garage, read a book and so on. All is not lost because of a sudden change in plans. The first five or six options may present themselves quite readily, whereas the final three or four may require some creative thinking—perhaps even some alternatives outside your comfort zone. It works well. My wife and I often discuss our ten options and frequently come up with options that are as enjoyable or more enjoyable than the original cancelled event.
Rohn's law can be applied to all situations and it can be particularly useful in pursuing the spirit of creative negotiation. Have some fun with it. Anyone with teenagers will immediately understand how effective it can be—teenagers exercise the Law of Ten Options on a daily basis.
Negotiation is not a game with a single objective but rather one step in building effective long-term relationships. It is only one of the ten steps in your Sequential Model but it can be the pivotal point in your relationship and your success. During negotiation you forge an agreement—like taking the relationship from a courtship to a marriage. "Will you marry me?" may not be your actual request but your final confirmation (the five magic words) certainly suggests the commitment and responsibilities of a marriage.
One of the surest ways to successful negotiation is to be well prepared. It's essential, but planning is often overlooked in the excitement of approaching the finish line. It's like training and conditioning to run a marathon but then running out of steam at the 24-mile mark. So many salespeople come close to the finish line but fail to complete the race because of a lack of training and preparation. We cannot afford to ignore the dire consequences of inadequate preparation. Planning is not an isolated step of your Sequential Model but is a prerequisite to successful graduation of each and every step—including creative negotiation.
The skills outlined in this chapter will help you to build confidence and reach your business and personal objectives. Understand not only how to negotiate, but when. Review the five principles regularly and continue to fuel your confidence to not only run a good marathon, but to finish it.
Language of Negotiation
The following terms should become part of every sales entrepreneur's vocabulary.
- Concessions. Giving in to a customer's request without asking for anything in return. Concessions are central to creative negotiation. They are the backbone to a mutually accepted outcome as they acknowledge the other party and communicate sensitivity to his or her issues and demands. Initial concessions can be effective—they communicate that you are willing and that your intentions are honorable. Many authors suggest that negotiation involves a "progression of concessions." Once again, your min-max points must be clearly defined prior to giving concessions. Know your parameters and don't give away the farm. Begin the negotiation by offering small concessions. Concede the items or issues to which you attach little importance. The sooner you demonstrate your willingness to negotiate, the sooner the customer will respond in kind. Don't give away big concessions too early. Use them to respond to a customer's concession or to secure the deal: "Can we confirm the deal, if I give you XX?" However, you need to draw the line when your min-point is being compromised.
- Trade-Offs. Give customers what they want in return for something of comparable value. Value is perception. The item may not be equal in monetary terms, but it may be equal in perceived value. As you've heard before, "One man's garbage is another man's treasure." Once again, know your must-have issues and your min-max points before determining what you are willing to trade. The power of trade-offs is enormous and can have a tremendous impact on your productivity. By asking for a trade-off you elevate the value of your concession. It also stops the grinding process. Marry your concession to a trade-off, otherwise your customer will continue to make demands. You might as well say, "Sure, here you go, it's yours for the asking." A confident negotiator exercises give (concessions) and take (trade-offs) throughout the negotiation process, moving the dialogue toward a win-win-win-win solution. However, the rule of thumb is to stay flexible—there is always a way.
- Walk-Point. The point where you walk away from the deal because your minimum must-have issues are not being met. If through trade-offs and concessions you are unable to reach an agreement that satisfies your predetermined parameters, your only option may be to walk. However, walking may only be a temporary solution. Both parties may be receptive to a recess, a cooling-off period. In the interest of an agreement, you may both agree to revisit your parameters and get together again tomorrow, next week, or next month. Although both parties may privately wish there were some way to get back together, they usually don't know how to arrange a reconciliation. Open and honest communication, coupled with an attitude of win-win-win-win, is your key to avoiding an impass.
- Impass/Deadlock. Where communication no longer moves the agreement forward and conversation seems to go in circles. There is nothing wrong with deadlock—either party has the right to prefer no deal to one that falls short of their min-point. How do we break an impass? Change the negotiators, change the parameters, call a third party to mediate, change the shape of money (larger deposit, different terms, cash versus credit), or consider changing venues. These tactics can help create a climate in which new alternatives can be developed. There is always a way.
- Agree to Disagree. Both parties may agree to disagree rather than reaching an agreement that compromises both parties, leaving each resentful and disappointed. If your agreement is undermined you may lack the commitment necessary to carry it out. Once again, this could be a temporary situation. Negotiation might be better served two or three months down the road. This tactic can be effective in personal relationships as well. It can even work with your spouse!
- Confessions. Not only are confessions good for the soul, but they can be a good tactic for negotiators. Confessing— telling all you know, revealing your motives and needs—can be a good way to gain empathy. People tend to be more charitable to someone who tells all. You also demonstrate honesty and a sincere desire to do business. However, no need to share your personal net worth or your most recent sexual fantasy.
Principle #4: Negotiate Price, Don't Sell It
Is price the most important aspect of the sale? No. Never has been, never will be. Customers have never based their buying decisions solely on price and I doubt they ever will. However, salespeople convince themselves that price is the number one motivator to purchase. Studies show that salespeople bring up price before the customer does 60% of the time. Why? I'm not sure but I suppose salespeople feel obligated to bring it up, or perhaps they have been trained to do so. It could even be lack of confidence or corporate self-esteem.
Many salespeople violate the sales process by introducing price too soon. Ideally, price should not be discussed until after your initial confirmation. During the call you need to focus on selling value and benefits to the customer. Don't mention price unless the customer asks or you are negotiating. I realize this concept may seem somewhat manipulative and irresponsible, but it isn't. I have confirmed several deals without the customer or me mentioning price. I think it's part of the rapport and trust issue I spoke of earlier. If a customer trusts you and feels comfortable with you, price is not an important issue. There is an implied understanding that your price will be competitive, otherwise you wouldn't be in business.
By shifting the conversation to price prior to initial confirmation, the salesperson has invited the customer to openly challenge the price. Some salespeople are convinced the customer's mandate is to hammer the salesperson into submission, finally succumbing to a rock-bottom price. Classic tactic of a C account. How to negotiate against price and discount pressure is a common challenge among sales professionals. You've probably heard it before, "Your price is too high. You'll just have to do better," or "It's a competitive market. Your competitors can beat that price," or "You'll have to show more flexibility on your discounting," and so it goes. When salespeople concede too quickly in these situations they not only reduce profitability, but also devalue their customers' perceptions of the product or service. Don't respond by asking, "What's the price they're offering you?" or "What price do I have to beat?" This is a common mistake because it shifts the focus to pure price and discount levels. Experienced negotiators shift the focus to value comparisons versus price comparisons.
When dealing with the price issue, be guided by knowing your min-max points. If you have price or discount flexibility, do not give it all away at once. Instead, concede slowly and reluctantly. Also, consider trading price concessions for major commitments. It could sound like this: "If I give you X price, will you give me net 10-day terms (or COD terms)?" If the customer is insistent on a discounted price don't hesitate to ask for something from them that makes the deal a win-win-win-win.
Acknowledge the customer's curiosity about price, but don't get sucked into a price debate prior to initial confirmation. For example, when you ask for their business using the five magic words in, your customers may inquire about your price. Simply say, "Yes, I'm sure we both recognize that price is important, but at this point can we agree to do business together based on the benefits discussed, as long as I can give you a competitive price?" If the customer says yes to your initial confirmation, you now have a willing party with whom to negotiate. Consider the initial confirmation as a conditional sale; conditional upon working out terms and conditions supported by a competitive price. What salespeople need to realize is that if a fair price cannot be worked out then there is no deal. Final confirmation is conditional upon successful negotiation. However, don't negotiate all aspects of the deal and then focus separately on price. Make sure price or discount is part of the whole package, not a separate negotiation.
During negotiation be cognizant of your customer's behavioral style, and adapt. If you are selling to a Director and she wants to know the price prior to initial confirmation, I would be inclined to acknowledge the request and offer a price range. Don't be exact with your answer.
Principle #5: Negotiate the Issues, not the Personalities
Often, what causes you to become frustrated or angry in a negotiation is not the topic or issue, but your customer's personality traits. By putting emotional distance between yourself and the negotiation you gain a tremendous advantage. Negotiations often unleash emotions that short-circuit rational processes. We sometimes abandon our carefully designed strategy and resort to a flight or fight response. The key to effective, win-win negotiation is to react unemotionally.
From time to time you may find yourself dealing with an individual you do not particularly care for. Chances are you wouldn't invite him to go camping with you, but he may represent an A account and a sizeable business opportunity. Experienced negotiators understand that professionalism requires the ability to distance oneself from any emotional distractions. These may include biases, perceptions, values, fear of being exploited, egos, feelings, moods, stress, and so on. Parties can get too caught up in the emotions of negotiation. They become too close to the deal and overlook important facts that may help move the deal forward. In spite of all your efforts to build a personal relationship you may find yourself dealing with just a corporate relationship. You can both still benefit by simply doing business together and nothing else. Don't entangle relationship challenges within the negotiating process.
For most salespeople, the major barrier is simply the fear of negotiation. The very thought sends paralyzing shivers up their spines. The toughest hurdle is learning to be confident enough to stand up to the challenge. This means developing the ability to comfortably express a position without hurting anyone or being hurt. Many people find the straightforward, aggressive, business dialogue of negotiation intimidating. It's the same challenge with confirming: the fear of rejection or perhaps sounding too aggressive. Our natural human tendencies prevail—in our adolescent years we were taught that it was polite not to ask for things and never to be confrontational.
The best approach to dealing with the emotional aspect of negotiation is the pause button. Pushing the pause button means putting the negotiation on hold while you take a break to reevaluate the situation. This may be for a few minutes or an hour or after you have slept on it. Michael and Mini Donaldson offer this explanation in their book, Negotiation for Dummies:
Knowing when and how to push the pause button not only endows you with an aura of composure and confidence, but also gives you control over all the critical points of the negotiation.
They go on to say:
No single skill can be as helpful to you as the pause button in any situation laden with heavy emotional overtones. Almost by definition, you cannot fully prepare ahead of time for these situations. Your judicious use of the pause button can compensate. Pushing the pause button produces better results... or at least results that you feel better about.
The message is clear: don't be afraid to utilize your pause button. Use it to re-evaluate your position. Perhaps in the interest of flexibility it can become an opportunity to reconsider your must-have issues and your min-max points. Remember, with two willing parties, there is always a way.
Five Principles of Creative Negotiation
Dealing with conflict and differences is rarely an easy task. Barriers to creative negotiation can be numerous and are often the saboteurs of a potential sale. Remember: your goal is to reach win-win-win-win settlements with qualified customers. To that end, I offer these five principles of creative sales negotiation:
Principle #1: Attitude First
Are you a good negotiator? Your answer reflects your level of confidence in your negotiation skills. Creating a positive mindset involves basic attitudinal characteristics, which become the building blocks for successful negotiation. Attitudes and skills must work in harmony. Attitudinal characteristics of negotiation include self-awareness, self-belief, and an openness to other viewpoints. Salespeople frequently overlook the importance of preparing themselves mentally. Attitude—how we deal with others when negotiating—drives the relationship. Develop a win-win-win-win attitude toward negotiation, and don't be satisfied until all parties are pleased with the solution.
Principle #2: Planning and Preparation
For many of us, planning is boring and tedious, easily put off in favor of leaping into action quickly. However, devoting insufficient time to planning frequently results in failure to negotiate a mutually beneficial agreement, and raises feelings of hostility and frustration.
The cornerstone to effective, creative negotiation is a carefully designed blueprint outlining specifically desired results for both you and your customer. The first step is to clearly articulate your position—know what your objectives are. Know the issues that are not negotiable and the issues that are negotiable. I refer to them as your "must-have" and "nice-to-have" issues. Must-have issues are predetermined prior to negotiation and are essential to a satisfactory agreement. They are simply not negotiable. Your nice-to-have issues are negotiable. Although they would be nice to have, they are not essential to the agreement. They are issues you are prepared to concede or use as trade-offs in the interest of concluding the agreement or maintaining the relationship.
Your window of flexibility is guided by your predetermined min-max points—min being your lowest acceptable point and max being your best, most ideal position. So, in the interests of creative negotiation, each of your must-have issues should be accompanied by a window of flexibility—your min-max points. Let's look at the example below.
As a sales entrepreneur, your must-have issue is making a profit. To do this, you are guided by the flexibility of your predetermined min-max points. As in Figure 10.1, the ideal situation is a max-point of $150 whereas your min-point is $100. Any price lower than your min-point is unacceptable—you may have to entertain other avenues, such as concessions or tradeoffs, to secure the deal. The wider the spread between your min-max points, the more flexibility you have to negotiate. Otherwise, you may become too rigid and inflexible, deadlocking the negotiation. In terms of your nice-to-have issues, I suggest there are no min-max points. These issues are subject to negotiation and may be used as concessions to advance the deal. The key to creative negotiation is knowing your parameters prior to negotiation. Whenever possible, plan your strategy beforehand. It's tough to negotiate creatively if you don't know the parameters of your destination. In creative negotiation, those who ask for more typically get more ... and those with low targets typically underachieve.
Also, consider whether negotiation is appropriate at all. It may be a C account or a C opportunity. In some sales situations negotiation can take place spontaneously, so be aware of the status of the opportunity: A, B, or C. You may have to respond on the fly so be sure to have the complete account file with you at the call for quick reference to previous discussions.
The second step in negotiation planning is to define the issues worthy of negotiation. Refer to all your notes and assemble all the issues, yours and your customer's, into a comprehensive list. Some issues may have been resolved prior to the negotiation, which is fine, but be sure to identify any outstanding issues. It can be frustrating and costly—in terms of time and success—if the customer calls you just prior to inking the deal with an unresolved issue. After the issues are assembled, the next step is to prioritize them. By sharing the list with your customer, you continue to build trust and confidence as you work through it together. Extract relevant information from your notes to enhance your position. A comment in your notes from six months ago may be a valuable piece of information. Salespeople often compensate for inadequate planning by conceding more than necessary. This shortcut can be very costly.
Sales entrepreneurs cannot afford to be quick and clever during the give and take of negotiation. Planning increases your negotiation success substantially and helps you achieve solutions that you never thought possible. Invest the time and energy (during janitorial hours) to prepare a strategy in line with your customer's behavioral style. Your strategy will help you relax, face fewer unknowns, and reduce stress.
Principle #3: Know the Lingo
The negotiation arena has a language of its own. I have seen many negotiation sessions fail simply due to not understanding the language of negotiation. My objective here is not to provide you with an in-depth study of all the nuances of negotiation but to create a mindset, an awareness, and an overview of the logistics of creative sales negotiation. I suggest you augment your negotiation skills and confidence by considering other publications on the subject. Consider this chapter as your springboard to further study.
When Do We Negotiate?
Almost anything can be negotiated with the application of sound principles. The biggest misunderstanding is not so much how to negotiate, but when. Salespeople eager to do the deal often initiate premature negotiation, trying to negotiate before the time is right.
So, when is the best time to negotiate? In the majority of sales situations, salespeople attempt to enter into negotiation before the customer has agreed to do business. There is a better, more productive approach.
Sales professionals engage in negotiation when a customer has expressed an interest to do business. We negotiate after the confirmation step, after the customer has agreed to do business with you.
Upon initial reflection this concept may seem bizarre and contrary to traditional sales techniques, but that's only because you've done it that way for years. Although it may have worked for you in the past, it's not a very smooth or fluid approach.
Confirmation has two aspects: initial confirmation, where the customer is in agreement and willingly moves into the negotiation phase; and final confirmation, where the customer has accepted all the terms and conditions of your solution, including price. Initial confirmation may sound like this: "If we can work out a competitive price, may I have your business?" If the customer is in agreement, you now have earned the right to negotiate. It's much easier to negotiate terms, conditions, and price once you have a willing party. Your next step is final confirmation: "Now that we have agreed on a competitive price may I have your business?" It doesn't need to get any more complicated than that.
In our two-day sales negotiation seminar, salespeople are often shocked to learn that price should not be part of the sale. It's a separate discussion that takes place as part of negotiating final confirmation. It's no different than buying a house. You decide on location, size, number of bedrooms, and other features. After you pick a home you make an offer, which means you are now negotiating. The offer goes back and forth as both parties negotiate all the details, including price. In most cases the negotiating goes smoothly because there are two willing parties, a seller and a buyer. Use the same advantage in sales, by using your Sequential Model to create a willing buyer.
Negotiate after initial confirmation.
Ask: Have I earned the right to negotiate?
Now it's in each party's best interests to negotiate a win-win-win-win solution. The four winners are your customer and his or her company, and you and your company. With two willing parties there is always a way, in spite of initial barriers and disagreements. Details can be worked out when both parties are motivated to do so. If not, details can easily undermine a possible solution. It's not a good deal if one of the four wins is missing or compromised. The idea is to reach mutually beneficial agreements that resolve inconveniences or dissatisfaction and solidify long-term relationships.
Trust plays a major role in successful negotiation. Although there is no guarantee that trust will lead to collaboration, mistrust will inhibit collaboration. When people trust one another, they are more likely to communicate openly and honestly. In contrast, if people do not trust you they are more likely to withdraw and be less cooperative. Acting in a trusting manner throughout the relationship serves as an invitation to others to be trustworthy, especially if your trusting manner is consistent. Each negotiator must believe that both parties choose to behave in a cooperative manner. Trust is not a one-time, singular event. It is established over time by demonstrating professionalism, honesty, integrity, consistency, and cooperation and by following through on promises and commitments. Cooperative behavior is a signal of honesty, openness, and a shared commitment to a joint solution. Take advantage of the trust engineered throughout the first seven steps of the model. Remember, people judge us by our actions, not by our intentions.
Approaches to negotiation tend to reflect personal experiences, biases, and perceptions of the individuals involved. They are often reflected in one of two ways: flight or fight. People who take the flight approach are uncomfortable with conflict and try to avoid possible rejection, frustration, and anger associated with negotiation. They become masters at avoidance and readily prefer to take flight rather than experience any degree of conflict. Relaters tend to take the flight approach.
The fight approach is supported by a mindset of, "Only the strong survive," and "Do unto others before they do unto you." Directors tend to favor this approach. It's a classic win-lose scenario. Bargaining and compromise are two components of fight. Bargaining is where you have a predetermined position and you haggle back and forth, working hard, grinding your opponent down. You pursue this approach until you are victorious. Compromise occurs when both sides give in and split the difference, settling for half a loaf. Compromise may satisfy both parties, but only to a limited extent. Of course, half a loaf in a highly competitive arena may be viewed as better than none but if it becomes normal practice the results may be less than desirable for both sides.
A more effective approach, one that fosters long-term relationships, is creative negotiation. Creative negotiation is defined as: "Both parties seek to resolve their differences by working synergistically to create a higher quality, value-added solution. Both parties acknowledge the need to reach agreement, working amicably and creatively toward a solution that satisfies each."
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Creative Negotiation: There is Always a Way
Children are accomplished negotiators. If they need extra allowance, a later bedtime, a sleepover, they usually get it. Children can be relentless in their pursuit of what they want. Familiarity gives them the advantage of knowing what parental hot-buttons to push. They are the best examples of ideal negotiators. Then they grow up and abandon the natural negotiating talents they learned instinctively.
Like selling, negotiation is something we use in every facet of our lives. I am often entertained just watching my three teenagers negotiate the use of one car. Amazingly, it usually works out. I think most of us are better negotiators than we give ourselves credit for. Negotiation is one of those transparent, interpersonal skills we use unconsciously. Negotiation is really a relationship skill used by people to deal with their conflicts and differences. Throughout this chapter, my goal is to leverage existing negotiation skills to build confidence and an awareness of long-forgotten negotiation principles and tactics.
Unfortunately, the very thought of negotiation conveys negative connotations, striking fear in the souls of most salespeople. Often the outcome of negotiation leaves people feeling dissatisfied, worn out, or alienated. A win-lose mindset has prevailed for decades. The negotiator (customer or salesperson) attempts to win important concessions and thus triumph over the opponent. It resembles the outcome of most sports: winner-loser. Not all successful salespeople are good negotiators. Most salespeople are not adequately trained in the art of negotiation and don't understand its many nuances. The necessary traits for successful negotiation vary somewhat, but some characteristics are universal, including patience, persistence, stamina, and confidence. Each negotiation is situational, with both sides discussing the points over which disagreement exists. In reality, no single negotiation session covers exactly the same issues or demands.
The modul of Creative Negotiation:
When Do We Negotiate?
Five Principles of Creative Negotiation
Language of Negotiation
Low of 10 Options
Be #2
When it comes time to confirm, you will certainly encounter customers who say no, and mean no. Don't despair. An excellent alternative plan is to have your customers place a small order with you. Tell them you are not expecting them to make a wholesale change in suppliers, but ask them to place a small order to test you out. The proof is in the pudding. It's okay to be #2, just ask the people at AVIS Rent-a-Car. If you are successful at getting and delivering a few small orders, it won't be long before you build up to getting the lion's share of their business. Chances are your unsuspecting competitor won't know what happened until it's too late. I have personally converted several accounts from a no to a know to a yes by using this strategy. Customers can be creatures of habit and usually go with what's been tested and proven. Your #2 strategy provides an opportunity to showcase your stuff while building confidence and trust in you. Remember, the fifth pillar of success is Patient yet Persistent (Chapter 2). Quiet persistence, coupled with patience, ultimately pay off handsomely with the reward of becoming their #1 supplier.
Always act like a professional. Don't take the customer's rejection personally. Recognize it as a business decision based on circumstances you may be unaware of. Be grateful for the opportunity to meet and discuss the possibility of doing business. The professional handling of a no sale situation actually helps build a sound relationship by developing a spirit of professionalism and persistence. The customer will be much more receptive to a #2 strategy if you handle the no sale situation professionally. Remember, if you can't make a sale, make a friend.
One of the greatest pleasures of selling is the adrenaline rush and elation when the customer says, "Yes, let's do business." This is the moment of yes. There have been many private dances in customer's parking lots, clenched fists pumping through the air accompanied by triumphant shouts of, "Yesss!" and smiles that make dentists proud. Confirming the sale is the pinnacle of achievement—all your efforts have paid a handsome return. Unquestionably, the greatest thrill for a sales entrepreneur is the moment of yes when the customer agrees to buy from you in the interest of a honest, mutually beneficial solution.
Become comfortable with using the five magic words and make them part of your professional equity. Confirming with these five words communicates confidence and offers a refreshing change for the customer. Another tremendous advantage is that this approach is universal—the same five words can be used regardless of what you are selling. Big-ticket items, long sales cycles, short sales cycles, a product or service, it doesn't matter—the five words must be applied to every possible sales scenario. Sales entrepreneurs understand that the power of asking is what ultimately separates a professional salesperson from a professional conversationalist.
Doubling Your Close Ratio
Recall that approximately 80% of purchases occur after the order has been requested five times and yet only 10% of salespeople ask five times before quitting. Likewise, 40% of salespeople ask only once, then quit. These 40% quit for a variety of reasons: impatience, the craving for instant gratification, poor follow-up, no time-management system, or just simple laziness. There is no doubt that these statistics are shocking, but customers are the victims of these lackluster performances on a daily basis.
Imagine having to confirm five times before you get a yes. That means, on average, there are four knows before a yes. That's a lot of work! Some authors suggest selling is a numbers game: talk to ten people, get five presentations, close two deals. That sounds like a lot of work—not selling very smart. It bears out the fact that the average close ratio is only 20%. That means, on average, salespeople close only two out of ten potential opportunities. Funny, I always thought selling was about people, not a game with winners, losers, and average, mediocre performances. Don't fall victim to the numbers game, condemning your career to a life of mediocrity. Don't measure your success against the masses. By comparing yourself against the averages, you only fuel a false sense of productivity. I say set your own standards. Don't take pride in being average—it's too easy and not very satisfying.
Remember that confirming is not an event but a process that begins within minutes of meeting the customer. Customers are very quick to pass judgment, wasting no time deciding if you are likable and trustworthy. The first step to doubling your close ratio is to ensure the first six steps of your sequential model have been completed to the customer's satisfaction.
Hence, if close ratios are a meager 20% that means the customers' ratio is 80%. Ouch! Customers are closing more often than we are. They sell us on the concept of not doing business with them. They offer a multitude of excuses, objections, and justifications all in the interest of selling us their "no." The problem is we are too quick to accept their rejection and with a bruised ego return to the adult day-care center to lick our wounds and seek support. Sound familiar?
So, what is a good close ratio? I would suggest that as a sales entrepreneur your target should be no less than 40–50%. That means if you approach ten potential customers, ones with a need and a bag of money, you should confirm at least four to five. Sound daunting? It isn't. Some top-notch sales entrepreneurs are confirming up to 75% of potential customers.
Start by evaluating your current ratio. Track it for a month or two and reality will quickly reveal itself. It may not be as high as you think it is. If yours is higher than 20%, congratulations, you are in the minority. But I will remind you, your objective is 40–50%. Proper execution of your Sequential Model will certainly contribute to doubling your current close ratio. It simply means building rapport and trust as you navigate through the first six steps of your model coupled with the confidence to ask for their business. Customers expect to be asked; don't disappoint them. They get irritated by reps who fail to complete the sales call with no direct close. You represent a solution to their needs, so the only outstanding issue is to ask them. If you don't someone else will—and be rewarded with a bag of money. Hence, taking your close ratio to 40% is not an impossible, arduous objective.
However, I caution you, don't strive to achieve a 100% confirmation ratio. Not only will it never happen, you don't want 100%. You couldn't handle it. You're already time-starved with what you have. Free up time by firing C accounts (and C activities) and increase productivity by doubling your confirmation ratio on A and B opportunities. If a 100% confirmation ratio is your goal, then work at McDonalds or Burger King. Everyone who walks in buys something. When was the last time you heard this conversation in McDonald's:
"May I help you?"
"Oh, no thanks, just looking."
My point is this: Achieving a confirmation ratio of 50% is hard work, and yet it can be very rewarding. Success is hard work. A job that has a 100% confirmation ratio generally pays minimum wage.
Nine Tips for Confirming the Sale
- Ask a confirming question only after you have effectively bridged a minimum of two appropriate features to benefits.
- Help people make buying decisions by pointing out how your value-added solution will benefit their business.
- Highlight how the benefits outweigh the costs; create value.
- Successful confirmation isn't an isolated tactic, it's creating value throughout the Sequential Model.
- If you can't confirm, you didn't successfully complete a prior step—planning, discovery, or presenting a creative, value-added solution.
- Before asking for a decision, expect customers to say yes—mentally picture them saying it.
- When you ask people for a buying decision, be quiet until they respond.
- A confirming question asks for a decision. A trial close such as, "What do you think of my presentation so far?" calls for an opinion.
- If you can't make a sale, make a friend.
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When to Confirm
When does one confirm the sale? When have you earned the right to ask this most feared and sacred question? The answer remains elusive, subject to broad interpretation, often founded on your interpretation of perceived buying signals. The majority of sales literature suggests confirming, "When the prospect is ready and communicates a buying signal," or, "When the buyer appears ready." I have always marvelled at the ambiguity in terms of when to confirm. Several authors suggest that you rely on little more than your own perception of body language and discrete buying signals to interpret when they're ready to buy. Unless body language or buying signals are very obvious, you run the risk of misinterpreting the customer's nonverbal communication. I agree that body language is a powerful component of the communication model, but not as the sole method of interpreting when to close. Everyone is different, just as behavioral flexibility suggests, each individual has a unique body-language style (Chapter 6). Socializers adapt their body language differently from Directors but they could be thinking the same thing. I don't think that we can apply a universal set of standards to effectively and accurately interpret body language.
When discussing body language at my seminars, I often notice a participant leaning back in his or her chair with arms folded. I ask the participant not to move and point out their posture to the class. The class usually agrees that the school of body language would have us interpret that posture as detached, uninterested, and guarded. I then validate my theory by asking the participant with folded arms, "Are you comfortable?" The answer, not surprisingly, is usually, "Yes." My suggestion is not to concern yourself with body language unless it's obvious or unless there is a drastic change during the sales call. Let your customer be comfortable without interpreting posture as a negative buying signal. The only real body language that I respond to is if my customer gets up and leaves the office. Then I clue in that perhaps the call isn't going as well as I'd hoped.
So, when do you confirm the sale? Confirm the sale when you have successfully bridged a minimum of two features to benefits. You have now earned the right to ask. One bridged benefit is usually not enough to convince them to buy, which is why I suggest a minimum of two. If the customer says yes, that's great. Go to Step #8. If they say know, then go back to feature fishing and continue to bridge. As we can appreciate, each customer is different. Some only require two benefits to confirm, others may require several. Once again, customers may simply need to know more before they say yes.
Three Ingredients of a Yes
Just as a good fire needs three ingredients to burn, so does a successful confirmation. Take away any one of the three ingredients and you have no fire, no sale. The three ingredients of a Yes are: rapport, trust, and the power of asking. Just as with the five rights of passage in our definition of selling, you can't take away or fail to establish any one of the three. Unfortunately, many salespeople create rapport and trust comfortably, but fail to ask a direct, honest, confirming question. Sometimes they do ask, but have failed to first create rapport or trust. Would a customer give you a bag of money if he trusted you but you failed to ask? Not likely. Would he say yes if he didn't like you or trust you? Not likely. It's all part of engineering commitment. You start confirming the sale the second you come in contact, by telephone or otherwise, with your potential customer.
I find it amusing to hear the different excuses as to why a customer didn't buy. Sales representatives are the best "fire-dancers" on the planet. Each probably has 50 excuses, all conveniently memorized, and of course none blame themselves. During my years as a sales manager, I could have written a book on. "The reasons why I didn't get the sale." No doubt it would have challenged David Chilton's book, The Wealthy Barber, as an international all-time best seller. I offer only one reason why a salesperson didn't get the sale and ended up in second place. My reason doesn't make me popular but it's inarguable: "You didn't get the business because you were outsold." Pure and simple. Strip away all the excuses and that's what's left. The customer had a need and a bag of money and decided to give it to your competitor. Why? Your competitor probably offered a better, value-added solution having asked, better, smarter questions.