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Do Your Selling Strategies Work Against You? ……………………………………….. 1 I’m Frustrated… …………………………………………………………………………… 2 The Sandler® Philosophy ………………………………………………………………… 3 The Buyer-Seller Dance – Conflicting Strategies in the Sales Arena ……………….. 4 The Salesperson’s Traditional Strategy for Developing Business Opportunities The Prospect’s Strategy for Controlling Buying Opportunities What Happens When the Two Strategies Collide?
What I learned and Action Steps I Plan to Take ………………………………………. 7 The Sandler Selling System® Methodology ...…………………………………………. 9 Establishing the Relationship Qualifying the Opportunity Closing the Sale
What I learned and Action Steps I Plan to Take ………………………………………. 13 Establishing the Relationship—Bonding and Rapport ……………………………….. 15 Developing a Comfortable Environment within which to do business What do we have in common? Communication is the key The OK/Not-OK Principle Keeping Your Prospect OK Active Listening—Tying the Elements Together Methods for Reflecting the Speaker’s Message
What I learned and Action Steps I Plan to Take ………………………………………. 22 Establishing the Relationship—The Up-Front Contract ………………………………. 23 Adding Control and Predictability to Your Sales Call Elements of an Up-Front Contract Up-Front Contract Worksheet Maintaining Control with Up-Front Contracts Can You “C” the Benefits of Up-Front Contracts?
What I learned and Action Steps I Plan to Take ………………………………………. 31 Questioning Strategies …………………………………………………………………… 33 Reversing—Uncovering the Real Question ……………………………………………. 34 Dealing with Stalls, Objections, and other Put-Offs …………………………………… 35
Table of Contents (cont’d.) Reversing—for Stall, Objection, and Put-off Statements …………………………….. 36 Reversing—for Evasive Answers and Wishy-Washy Statements …………………… 38 What I learned and Action Steps I Plan to Take ………………………………………. 40 Negative Reverse Selling®—First Impressions Can be Deceiving…………………… 41 The Pendulum Theory What is Negative Reverse Selling? Negative Reverse Selling In Action Behaviors to Avoid Examples of Negative Reverse Selling Applying Negative Reverse Selling
What I learned and Action Steps I Plan to Take …….…………………………………. 54 Qualifying—Pain …………….…………………………………………………………….. 55 Establishing Reasons to Do Business Identifying the Problem—A Starting Point The Pain Puzzle Problem-Finder Worksheet Helping the Prospect Discover Reasons to Do Business Your Problem Awareness Questions Digging Deeper Into the Problem Helping Prospects Discover the Reasons for Their Problems Your Presumptive Questions Confirmation and Buy-In Uncover the Impact of the Problem Pain Review—Tying It Up In One Neat Package
What I learned and Action Steps I Plan to Take ………………………………………. 68 Qualifying—Budget ……………………………………………………………………….. 69 Uncovering the Prospect’s Investment Expectations or Limitations You’ll Get What You Ask For Dealing with Financial Issues Before They Surface as Objections Strategies for Identifying Budget Numbers Budget Review
What I learned and Action Steps I Plan to Take ………………………………………. 77
Table of Contents (cont’d.) Qualifying—Decision ……………………………………………………………………... 79 Identifying the Process by Which the Prospect Will Make a Buying Decision The Newspaper Story Approach Starting Your Information Gathering Caution—What Should You Do? Decision Review.
What I learned and Action Steps I Plan to Take ………………………………………. 84 The Prospect Is Qualified, Now What? ……………………...…………………………. 85 Potential Roadblocks for Closing the Sale Example of the Up-Front Contract Elements of the Up-Front Contract Up-Front Contract Worksheet
What I learned and Action Steps I Plan to Take ………………………………………. 91 Closing—Fulfillment …………………………………………………...…………………. 93 Close the Sale or Close the File Structure for Delivering Your Fulfillment Presentation Review Present Confirm Close
What I learned and Action Steps I Plan to Take ………………………………………. 99 Closing—Post-Sell, Part 1 Ensure the Sale ………………………………………….…… 101 What I learned and Action Steps I Plan to Take ………………………………………. 104 Closing—Post-Sell, Part 2 Generating Referrals from New Customers …...…………….…. 105 What I learned and Action Steps I Plan to Take ………………………………………. 108
Improving Your BAT-ing Average—Elements of Success……………………………. 109 The Success Triangle Attitude What Really Matters? Change Your Outlook—Change the Outcome Developing Your Outlook Supporting Beliefs Judgments Actions Behaviors Goals Developing S M A R T E R Goals Action Planning Technique Technique = Strategies + Tactics Synergy = Success
What I learned and Action Steps I Plan to Take ………………………………………. 127 Identity/Role (I/R) Theory—Who Are You? ......................……………………………. 129 Your Role-less Self Identity and Roles—the Dual Nature of Our Lives I/R Confusion What Your “R” is Not Who You “I” Trapped in Your Comfort Zone Are You Trapped in Your Comfort Zone? Breaking Through Your Comfort Zone—The New You Attitude/Behavior Journal
What I learned and Action Steps I Plan to Take ………………………………………. 140 The Sandler Selling System Methodology …….………………………………………. 141 Follow Up and Follow Through ………………………………………………………….. 143
The Sandler Philosophy Salespeople are professionals. Sales calls with prospects and customers should be
considered a business meeting among equals—an honest, non-manipulative exchange of information.
The prospect must qualify for the business professional’s time and efforts. Just as prospects have criteria with which to decide from whom to buy, sales professionals must have criteria with which to decide where and with whom to invest their time.
Developing a business opportunity should not be hysterical activity. It must be done in a systematic manner that serves the best interest of both parties. It must be repeatable and multipliable.
Some prospects won’t have a strong enough reason to do business with you. Some won’t pay your prices or fees. Some can’t or won’t make a decision in a reasonable manner or time frame to make it worth your while to pursue. In other words, some won’t qualify for your time.
Stalls and objections should not be part of the selling process. It is the sales professional’s responsibility to introduce, early in the selling process, the elements around which stalls and objections ultimately develop and eliminate them before they become roadblocks to completing a sale.
Controlling the selling process is a function of asking the appropriate questions, at the appropriate time, to the appropriate people and obtaining the prospect’s commitment. Wishing and hoping is not part of the process.
There should be a start and finish to every selling opportunity and the amount of time between those two points must enable the sales professional to reach company and personal goals. Chasing an opportunity for however long it takes to eventually close may feed your ego, but it won’t help you feed your family.
The Buyer-Seller Dance Conflicting Strategies in the Sales Arena
The Salesperson’s Traditional Strategy for Developing Business Opportunities
Fact Finding Needs Analysis
Job Spec
Demonstration Presentation
Proposal Review
Commitment Close
Contract
Put-Offs Stalls &
Objections Think-It-Over
Follow-Up Track Down
Keep In Touch
Determine the scope of the project, the prospect’s needs, wants, desires, goals, and other qualifying elements—quantity, frequency, delivery, size, color, etc.
Present solution to prospect’s needs—Presentation, demonstration, or proposal review. Highlight specific features, link benefits to features, establish added value.
Attempt to obtain prospect’s commitment and a buying decision.
Handle any concerns or objections voiced by the prospect and deal with stall tactics.
Run Silent, Run Deep The Sandler Selling System divides the selling process into three stages: Establishing the Relationship, Qualifying the Opportunity, and Closing the Sale.
Active listening is the process of reflecting back to the speaker the message you heard in order to confirm or correct your understanding. Active listening not only facilitates effective communications, it also helps enhance rapport.
Prospect: Minimizing equipment down time is our primary goal. When we have to take equipment off line for maintenance, it does more than just disrupt the production schedule. Raw materials start to back up at our warehouse facilities and I have warehouse managers complaining. And, if the line is down for any length of time, our ability to fill orders is impacted and then I have the VP of Sales breathing down my neck.
Restatement Example: Salesperson: So, what I think I heard is that your primary goal is to minimize equipment down time so you don’t disrupt the production schedule and negatively impact your ability to fill orders. I can imagine having warehouse managers complaining and the VP of Sales breathing down your neck is not a comfortable position to be in. Did I miss anything?
Paraphrasing Example: Salesperson: So, the goal of keeping equipment down time to a minimum is to keep your production on schedule and the warehouse managers and the VP of Sales off your back. Is that correct?
Establishing the Relationship— The Up-Front Contract: Adding Control and Predictability to Your Sales Call
Has this happened to you?
• You finally obtained the appointment. You anticipate meeting with the prospect and asking the questions you painstakingly prepared in order to qualify the opportunity. You arrive at the appointment and before you can get two words out, the prospect hits you with, “Okay, show me whatcha got.”
• You invest time and energy gathering information, working up prices, and putting together your presentation which you deliver in a competent, professional manner. You believe that you are going to get the sale, or at the very least, obtain a buying decision. Instead, you get one objection after another, stalls, put-offs, and finally, you leave with nothing more than the prospect’s promise to “think-it-over.”
What is your typical “advance agreement” for an initial appointment with a new prospect?
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•
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What is your typical “advance agreement” for a “closing” appointment?
An Up-Front Contract is simply an agreement between you and the prospect (or customer) about what will happen next. “Next” is usually a subsequent contact—perhaps, a phone conversation or face-to-face meeting. Both parties should agree in advance to the ‘what,’ ‘why,’ ‘where,’ ‘when,’ and ‘how’ of the contact.
Objective—What specifically do you want to accomplish during the meeting?
Time Considerations—How much time will it take?
Prospect’s Role—What must the prospect do (before and) during the interaction so objectives can be met?
Salesperson’s Role—What must you do (before and) during the interaction so objectives can be met?
Outcome—What decision(s) will be made or conclusion(s) reached at the end of the interaction?
No Wishy-Washy Terms.
You can’t blame prospects for doing something you didn’t tell them they couldn’t do.
Salesperson: Bill, based on what you’ve told me so far, I believe I can help. I’m not sure if what we’ve done for other companies facing the same challenge would work as well for you since I don’t have all the specifics of your situation. But, if it would work, would it make sense to find that out? Bill: Well, I believe so. Salesperson: You’re probably right. Why don’t you pick a day to invite me over when we can invest an hour with each other and determine if there’s a fit. If that make sense, I’ll be able to determine if what we’ve done for other companies would work in your world. During the meeting, it would be helpful if you could provide me with some of the details about __________ and perhaps describe a specific example where__________. Would you be comfortable doing that when we get together? Bill: I suppose I can do that. Salesperson: I appreciate that. Then, if there is a fit, I can explain why I believe there is and how we would address your situation. Does that make sense to you? Bill: Sure. Salesperson: It makes sense to me too. I’m sure you’ll have some questions for me about __________, which I’ll do my best to answer. After which, you can tell me if you even want the kind of help we provide. And, if you don’t, that’s okay. On the other hand, if you do, we’ll have to talk further about __________. Perhaps, we’d have to schedule another time to do that. But, let’s not jump too far ahead. Why don’t we first see if there’s a fit, then you can tell me if you want to take the next step? Are you okay with that? Bill: Sure, let’s do that.
Salesperson: So, what day would you like to invite me over? Remember, we’ll need an hour. And, by the end of the meeting, we’ll know if it’s “over,” or if we need to schedule another meeting to discuss the specifics of moving forward. Okay? Bill: Okay. How about Tuesday at 10:30? Salesperson: Is that AM or PM? Bill: That’s AM. Salesperson: Fine. I’m putting that in my schedule as we speak. I’ll see you on Tuesday at 10:30 in the morning.
Reversing is a questioning strategy that will help you avoid mind reading and get beyond the smoke-screen questions. This is accomplished by answering the prospect’s question with a question. It puts the ball back in the prospect’s court.
Some Reverses include:
• Why do you ask?
• Why is that important?
• What are you hoping I’ll tell you?
• Why did you bring that up now?
Precede your questions with softening statements.
• That’s a good question. And, you’re asking me that because…?
• I’m glad you asked me that. What are you hoping I’ll tell you?
• Many people ask me that. And that’s important to you because…?
• That’s an interesting question. Why do you ask? (What brought that up?)
• Good point. And, you brought that up now because…?
It often takes three or more Reverses to get to the prospect’s real question.
Negative Reverse Selling— First Impressions Can Be Deceiving
Rate each scenario on a scale of 1 to 5:
1 = Least favorable, most difficult to close; 5 = Most favorable, least difficult to close.
Briefly describe your typical reaction to each type of prospect.
SCENARIO RATING
1. I appreciate your persistence, but we’ve been working with the same company for the last few years and we’re happy. I can’t see any reason to consider making any changes.
2. I’m glad you could come in today. As you know, we’ve been thinking about upgrading our equipment for some time. Your equipment looks quite interesting. I’ve looked at a lot of literature, and your equipment stacks up very well against your competition. It’s quite possible that we’ll end up doing business.
Negative Reverse Selling— First Impressions Can Be Deceiving (cont’d)
Rate each scenario on a scale of 1 to 5:
1 = Least favorable, most difficult to close; 5 = Most favorable, least difficult to close.
Briefly describe your typical reaction to each type of prospect.
SCENARIO RATING
3. I’m glad we could get together. Joe has told me some good things about you and your company. It sounds like you’re the one to help us get this project off the ground. I’m eager to hear what you can do for us.
Relate your prospect’s buying position to a pendulum: A swing to the right represents a positive or favorable reaction or position; a swing to the left represents a negative or unfavorable reaction or position. A motionless pendulum represents a neutral reaction or position. Which position is the most dangerous?
Definition: Negative Reverse Selling is the strategy of exhibiting a behavior, opposite—in words and actions—to what your prospect is accustomed. A Lesson Learned from an Old Angler
1. You must agree that being able to increase production through-put while decreasing the reject rates would be a significant benefit to your company.
• Increasing production through-put while at the same time decreasing reject rates wouldn’t be a worthwhile initiative to investigate?
2. Increasing your coverage and reducing your deductible costs without raising your premium is something I’m sure you’d want to take a look at.
• How to extend coverage and reduce the deductible amount at a premium equal to, or, perhaps, even less than what you’re now paying is not something you’d invest the time to discuss?
3. Your requirements are rather stringent, but we are absolutely up to the task.
• We are very good at what we do. However, reaching the benchmarks you’ve established will be somewhat of a challenge.
For each “push” statement, write a corresponding Strip-Line or “pull” statement or question. Extending your warranty period an additional year should make you comfortable. We should schedule time to discuss how my company can help you grow your client base without increasing acquisition costs. When you examine our track record and hear what our clients have to say about us, I’m sure you’ll be open to doing business.
1. Underline the salesperson’s Negative Reverse (Strip-Line) statements and
questions. 2. Indicate the Prospect’s position (+ = Positive; N = Neutral; — = Negative) as the
encounter progresses.
Prospect: I don’t know why you wasted your time coming by today. The last order I placed with you was so badly handled I’m surprised you had the nerve to show up. You shipped wrong items. And, the items you did get right, you shipped the wrong quantities. It was a nightmare straightening out the billing. There’s no way we’re going through that again.
Salesman: You shouldn’t. If I were in your shoes, I wouldn’t even do business with me.
Prospect: I’m glad you agree.
Salesman: I’m sure you’ve already made up your mind that if we ever did business again, you would have the exact same difficulties, right?
Prospect: Well, I don’t know if I’ve actually made that decision.
Salesman: I appreciate that. But, you probably should have. My guess is that even if I explained to you the steps we’ve taken to make sure the problem doesn’t reoccur, you still wouldn’t consider doing business again. Not now…probably never!
Prospect: I’m not sure I would say never.
Salesman: Oh, what would you say?
Prospect: I’d have to be convinced.
Salesman: I probably couldn’t do that.
Prospect: Maybe you can’t. It’s up to you whether or not you want to try.
Salesman: Let’s suppose I did try. What would you have to see or hear to be comfortable to do business again?”
Prospect: Well, good question. You’d have to prove to me that.....
Positive Prospect: I’m glad we could get together. Joe has told me some good things about you and your company. It sounds like you’re the one to help us get this project off the ground. I’m eager to hear what you can do for us. Salesperson: I appreciate your enthusiasm, but I suspect Joe says nice things about everybody. What we did for Joe’s company may be very different from what you need. So, we may not be the perfect match. Neutral Prospect: I’m glad you could come in today. As you know, we’ve been thinking about upgrading our equipment for some time now. Your equipment looks quite interesting. I’ve looked at a lot of literature, and your equipment stacks up very well against your competition. I think we may do business. Salesperson: I appreciate you telling me that. I had come to the conclusion that I’d never get an order from your company. I found that companies that are always reading literature, studying the specs, and comparing equipment rarely get around to actually making a buying decision. I figured that’s what was happening here. Negative Prospect: I appreciate your persistence, but we’ve been working with the same company for the last few years and we’re happy. I can’t see any reason to consider making any changes. Salesperson: I appreciate your candor. So, I think what I’m hearing is that even if my company could provide you with some service that you’re not receiving from your current supplier—service that had a direct positive impact on your bottom line—you wouldn’t even want to know about it. Is that correct?
Applying Negative Reverse Selling Briefly describe a positive prospect or customer you have encountered. What might you say or do to keep the prospect positive?
Applying Negative Reverse Selling (cont’d.) Briefly describe a neutral prospect or customer you have encountered. What might you say or do to keep the prospect moving?
Applying Negative Reverse Selling (cont’d.) Briefly describe a negative prospect or customer you have encountered. What might you say or do to move the prospect in the positive direction?
Establishing Reasons to Do Business Qualifying Your Prospects The objective of the first part of the sales call is to understand not only what prospects want, but why they want it. Taking the time to learn this information not only allows you to determine what a “best-fit” solution would be, but also distinguishes you from other salespeople who are all too eager to tell their story. To qualify your prospect, you will need answers to the following questions:
What, specifically is the prospect trying to accomplish? Why? Why now?
What happens if the prospect does nothing (or continues with their existing supplier/provider)?
Has the prospect worked with another supplier/provider in the past? Who?
Why is the prospect considering your company?
Why would the prospect buy from your company rather than one of your competitors?
Does the prospect value what your company “brings to the table” that other companies don’t?
What would the prospect lose by not placing the business with you?
What specifically would put you “in the running”?
What would take you “out of the running”?
Prospects buy for their reasons, not the salesperson’s reasons.
Taking too much time to process orders and correct mistakes
Efficiency
Orders processed quickly and accurately
Pain Indicator: The prospect’s recognition or admission of a problem, concern, fear, or unattained goal that can be addressed by your product or service.
What are the Pain Indicators for your product or service?
The problem the prospect brings you is never the real problem.
Many Prospects Are Not Aware of Their Problems Psychologists suggest that people are more likely to take action to avoid pain than they are to gain pleasure. So, the first step is to convert the features and benefits (the pleasure elements) of your product/service to something more painful—the problems (negative consequences) of not having the features and benefits.
Product: Raw materials acquisition and management software for manufacturers.
“Just-in-time” inventory control gets inventory there when it’s needed, thereby reducing warehouse space requirements and inventory carrying costs.
Tying up money and warehouse space with inventory that won’t be used for months.
Service: Result-focused marketing and advertising campaigns.
Develop and implement marketing and advertising campaigns designed to accomplish a specific measurable goal which allows you to determine the effectiveness of the campaign.
Wasting money on unique and visually appealing advertising programs that don’t increase sales or revenues.
Product: Custom order-entry software for fulfillment centers.
Fast and efficient one-step data entry to create original order documents, warehouse selection and packing slips, shipping labels, and accounting department billing documents.
Wasting time and increasing the opportunity for errors by inputting the same information several times for each order processed.
People don’t buy features and benefits, they buy ways to avoid or overcome pain.
Helping the Prospect Discover Reasons to Do Business
Once you have identified potential reasons for prospects to do business with you, you can help them “discover” those reasons by asking Problem Awareness questions to “test the waters” as to how relevant and important those reasons might be to them.
Problem Awareness Questions from the sample Problem Finder Worksheet:
Manufacturers often tell me a major concern is tying up money and warehouse space with raw material inventories they won’t be using for months. To what degree is that a concern for you?
I’m often asked by people who are striving for efficiency and accuracy if our software program would eliminate the need to input the same information multiple times for each order…which of course, is a waste of time and increases the possibilities for errors. How much of a concern is that for you?
Many organizations have spent a great deal of money on marketing and advertising campaigns that were quite unique and memorable but did very little to drive sales at the store level. Would a critical analysis of your advertising campaigns reveal the same?
Questions like these will help you get the conversation started. If the prospect responds positively to your questions, you would follow with “Why is that?” “How is that important?” and “What impact might that have?” and other similar questions. This will keep the conversation focused on the prospects and their needs and perceptions.
Helping Prospects Discover the Reasons for Their Problems
Once the problems has been fully defined and you’ve decided the prospect is committed to dealing with it, it’s time to explore, and help the prospect discover, the underlying reasons for the problem. You accomplish this by asking presumptive questions.
Examples from previous problem scenarios:
Just-in-time Inventory Control System
When you met with your management team to discuss setting up a production-coordinated inventory control system that would identify both optimum order quantities and order lead times, what was the outcome?
One-step Data Entry System
When you recognized that having several people enter the same data was not only a duplication of effort and a waste of time, but was the likely cause of the frequent errors, what conclusions did you arrive at regarding your current order entry program?
Goal-centered Marketing/Advertising
When you analyzed the campaign to determine whether it was the targeted audience, the message, or the visual presentation that was most responsible for the poor result, what did you determine?
What is the value of asking presumptive questions?
Salesperson: John, when you and your management team analyzed the carrying costs of excess inventory and the costs of temporary warehouse space to determine how badly it cut into bottom-line profits, how significant was the number you came up with?
Prospect: Actually, we haven’t done that.
Salesperson: That’s not unusual…most companies haven’t. Typically, that’s the first thing we do when we begin to work with a new client. Would there be any value to first determine that number before we talk about implementing an inventory acquisition and management program?
Prospect: Definitely.
Salesperson: And the value would be…?
Prospect: It would give us a baseline to weigh alternatives and, I suppose, measure future improvement.
Salesperson: That makes sense to me. Should we talk about what it will take to get that done?
Prospect: That sounds like a good place to start.
Buy-In Questions
• Is that something that would be worthwhile doing? Why is that?
• Would it make sense to do that? The reasons being…?
• Is that something you’d want me to help you accomplish? Because…?
The value may be expressed in tangible terms—sales, revenue, profits, time, productivity—or less tangible terms—sense of accomplishment, peace of mind, comfort level, recognition.
Example from previous “Inventory Control” problem
Suppose we developed an inventory control program that would enable you to coordinate orders and deliveries with your production schedule and minimize the need to warehouse raw materials for lengthy periods,
…what value would that provide for the company?
Followed by:
What would that mean to you?
What would that allow you to do?
These questions allow the prospect to paint a picture of their situation with the problem eliminated—gap bridged—by your product/service.
What is the real value for you and the prospect to identify the Impact?
Salesperson: So, John, let me make sure I have an accurate picture of the situation. There are two conditions you’re most concerned about. One, you’ve got production run delays because you’re waiting on raw material to arrive. Two, you have plenty of raw materials in the warehouse, but no production runs scheduled. Both of those conditions cause problems and have various associated costs which eat into the bottom line. Is that substantially the picture?
Prospect: I’d say that’s accurate.
Salesperson: I believe what we discovered is that being able to coordinate order quantity and timing with production schedules, so the required amount of materials arrive at the appropriate times, would eliminate the carrying costs of excess inventory as well as the additional warehousing costs. And, that’s the situation you’re hoping we would be able to create for you. Is that correct?
Uncovering the Prospect’s Investment Expectations or Limitations
Uncovering Relevant Financial Matters
Before you begin to work on presentations and proposals, you must learn the prospect’s expectations or limitations in regard to price/costs/fees associated with the product or service you might ultimately present.
You should be able to answer to the following questions:
Is money currently available? (If it isn’t, when will it be available?)
What part does price and/or terms play in the final buying decision?
Must the prospect buy from the “cheapest” supplier or lowest bidder?
Under what circumstances would the prospect not buy strictly on price?
Are there any investment limitations?
Does the prospect have any expectations regarding the investment? (If so, what are they?)
How will the size of previous investments for the same or similar products/services influence the amount invested for the current purchase?
The prospect must be willing and able to make the necessary investment.
Strategies for Identifying Budget Numbers (cont’d.)
Additional Strategies—Third-Party Stories
If the prospect has not yet identified a budget number or is reluctant to reveal it, you can use one of the following strategies preceded by a softening statement.
Softening Statements
That’s not unusual.
That shouldn’t be a problem.
I wasn’t sure you had numbers put together yet.
Third-Party Story
We recently completed a network integration project almost identical in scope to the one we are discussing. That company invested just a bit over $28K. Do you suppose that when you get your budget numbers finalized, it will accommodate a similar size investment?
If the prospect is reluctant to answer or replies with “no,” ask one of the following:
Off the record, what were you hoping the number would be?
Is there a number you can’t exceed or a range you need to stay within?
Strategies for Identifying Budget Numbers (cont’d.)
Additional Strategies—Bracketing
Bracketing frames the cost of your product or service within a range a bit lower and somewhat higher than the expected cost of your product or service. It’s a no-pressure, non-threatening way to test the waters and home in on a budget number.
Bracketing
Typically when we design a recycling installation to handle the volume of solvents your facility uses, we find that the investment for the equipment typically runs between $18,000 and $25,000—depending on the degree of automation and capacity. Does the investment you’d be willing to make fall within that range?
If the prospect replies affirmatively, home in on the budget by asking:
Would you say it’s closer to the $18,000 end of the range or the $25,000 end?
Salesperson: So, if I were to put together an inventory acquisition and management program to coordinate order quantity and frequency with production scheduling, I’d have somewhere between $25,000 and $35,000 to work with for both development and implementation. Is that correct?
Prospect: That’s correct.
Salesperson: And, those are realistic numbers?
Prospect: Yes, those are numbers you can work with.
Does the information you now obtain about your prospect’s decision-making process pass the newspaper story test? A good newspaper story reveals the following information:
STORY ELEMENT CORRESPONDING DECISION PROCESS ELEMENT
Salesperson: John, are you okay if I quickly recap what we’ve covered so far and make sure we’re both on the same page?
Prospect: Sure.
Salesperson: We discussed inventory ordering and warehousing in relation to production scheduling and the problems that result when all are not coordinated. You shared with me that there is between $25-35,000 available to implement a system that can bring those elements into alignment. As I understand, there are three people involved in making the decision to undertake such a project—you, Tom, who I spoke with yesterday, and Bill, with whom I initially met. You’re looking for a pay-back period of two years or less. You’ll need to see a software simulation using some historical numbers and you’d like to see verifiable cost-saving numbers using current data. At that point, you will give it thumbs-up or thumbs-down. And, you’d like to make this decision in the next 30 days. I understand that you previously met with another company, but you’ve already ruled them out based on a previous experience. So, my company is the only one left in the game. What did I leave out?
If you have uncovered pain; the prospect is willing and able to make the necessary investments; you are willing to participate in the prospect’s decision process and can fulfill the requirements of that process, then it’s time to close.
When you uncover all the elements of the prospect’s decision process, it is likely that you will uncover one or more potential roadblocks to eventually closing the sale. If you can’t remove the roadblocks, the prospect is disqualified and it’s time to move on to more viable opportunities.
What are some of the roadblocks you have encountered in the past?
The Closing Appointment Salesperson: When we get together next Tuesday, I’ll need 90 minutes to review my proposal and leave time for questions. And, both Tom and Bill will need to be there also. Will you be able to schedule 90 minutes of uninterrupted time for everyone?
John: I’ll make sure we have the time
Salesperson: I’ll be prepared to go over all the details of our proposal and explain how it specifically addresses the issues we’ve identified. I’m sure you’ll have a number of questions for me, including how we will time shipments to maintain inventory levels appropriate to the production schedule. And, I’ll do my best to answer them.
John: That sounds fine.
Salesperson: John, at the conclusion of my presentation, if you, Tom, and Bill don’t feel that my proposal is a best-fit for your project, would you be comfortable telling me that? You won’t have to sugarcoat it…you can just say, “No thanks.”
John: Yes, we can do that.
Salesperson: As I recall, you want to get this project moving right away. So, if you, Tom, and Bill feel that what I propose is a best-fit and you’re comfortable with my answers to your questions, will you be prepared to move forward with a contract?
John: Yes. We’ll give you the thumbs up or thumbs down at the conclusion of our meeting. If it’s thumbs up, we’re prepared to complete a contract.
Salesperson: I appreciate that and look forward to the meeting. One last question…can you think of anything that might come up between now and Tuesday that would prevent you making your decision?
John: No. As you said, we’re eager to get this project moving.
Salesperson: That’s fine. I’ve scheduled Tuesday from 10 to 11:30. I’ll see you then.
• Up-Front Contract – Has anything changed? Are all players present? Are expectations still intact? Will a decision be made at the conclusion of the presentation?
• Pain – Is the importance of and commitment to dealing with the concerns, issues, problems, goals, etc. still intact? Has anything changed? Does the change alter the requirements of the solution?
• Budget – Is the prospect still willing and able to invest the amount of money previously identified?
• Decision Process – Has anything changed in regard to what the prospect needs to see, hear, or experience in order to make a decision?
• Address any Changes – If anything has changed, deal with it before proceeding with the presentation. If circumstances have changed, and the result of the change is not mutually beneficial to both parties, you may have to reschedule the presentation.
Start with the Most Important Aspect of the Pain – Review the key issues surrounding the prospect’s pain and ask the prospect which issue he or she would like you to cover first.
Obtain the Prospect’s Verification – After you have covered an issue, ask the prospect if he or she is completely comfortable with your approach to the issue. If the answer is “yes,” you can move to the next issue. However, if the prospect is not completely comfortable, you must discover why and what the prospect was hoping to hear that would have made him or her completely comfortable.
When the prospect is completely comfortable with the current issue, ask which issue he or she would like you to cover next and repeat the process.
0 -- File Closed Salesperson: Mr. Jones, I realize we do have a few more things to go over, but I’d like to ask you a question. Based on what we’ve covered so far…on a scale of 0 to 10, where 0 means that you’ve already made up your mind that my product is not what you want, and 10 means you’ve decided that it is…and in a moment or two you’ll be signing a contract…where are you? Possible Responses
Prospect responds with a number less than 5
Salesperson: I appreciate you telling me that. I’d guess with such a low number, there’s no way you could get to 10. Am I correct?
Prospect responds with a number from 5 to 7
Continue with your presentation and then ask the “0 to 10” question again.
Prospect responds with an 8 or 9
Salesperson: I appreciate that. Let me ask you…What do you need to see or hear to get to 10?
Continue your presentation and measuring the prospect’s temperature until the prospect is a “10.” You may not have to cover all the points of the prospect’s Pain.
Bill, I look forward to working with your company. There is one thing I want to revisit just to make sure it doesn’t become a problem down the road. We discussed the fact that your lab technicians would have to participate in six to eight hours of training. You mentioned that they always complain about devoting any time to equipment training when it’s not equipment they requested. Is the inevitable grumbling from the technicians going to cause you to have second-thoughts about purchasing the equipment?
If the buyer reassures you the there won’t be any second-thoughts—
Reconfirm the buyer’s commitment
So, I think what I’m hearing is that I can process this purchase order without any concern that you’ll call me tomorrow and ask me to put it on hold while you quell the revolt in the lab. Is that correct?
If the buyer acknowledges having some second-thoughts, deal with them immediately. If appropriate—
Suggest a way to curb the buyer’s doubts and then ask for reconfirmation
I suppose I can understand the techs feelings about the training interrupting their lab time. After all, they have work to do and deadlines to meet. Suppose we arrange for the training on three different days during the week, at different times during the day. Then, each tech could pick a training time that would least affect his or her lab duties. Would that make it more acceptable for them and easier for you to get their support?
Following a positive response from the buyer—
Let me make sure I have this right. If we make arrangements for three training sessions on the days and at the times you select, I can rest assured that you won’t call to tell me to hold the order. Is that what we’re agreeing to?
Salesperson: John, I appreciate the business and look forward to working with you and your company. Before I leave, maybe you can help me with something. I believe you said you’ve been involved in this industry for almost twenty years. Is that correct?
New Client: That’s right.
Salesperson: I suspect that over the last twenty years you’ve developed relationships with a number of other business owners, not only in the plastics molding industry, but in other industries as well. Would that be a fair statement?
New Client: Certainly.
Salesperson: And, there are probably some competitors who you would consider “friendly” competitors. Is that right?
New Client: I suppose so.
Salesperson: Well then, here is how you may be able to help. If you were to pick one or two people from the group of people we just mentioned—other business owners in this industry, owners of businesses in other industries, a friendly competitor—who might have an interest in implementing an inventory control system similar to what we will be establishing for you, who would you pick?
New Client: I suppose I’d pick Mike Thompson. He owns Thompson Engineering. I’ve know Mike for almost twenty years. I’m sure managing production materials is as important to him as it is to us.
Salesperson: I appreciate the information. I’ll call Mike. Are you okay if I mention that his name came up during our conversation?
Improving Your BAT-ing Average Elements of Success
Indicate which of the following has the greatest impact on your ultimate selling success. In the space provided, provide a brief explanation for your choice.
Your
choice
1. Your attitude and outlook about what is possible and what you can accomplish.
2. The goals and action plans you develop and implement.
3. The selling strategies and techniques you employ.
Imagine yourself in the following situation and record your reaction in the boxes below. You have just been assigned the sales quota for the next quarter. It’s significantly higher than the one for the present quarter, which is already a significant challenge for you and other sales team members. The veteran salespeople are vehemently complaining to the sales manager about the new quota: “Don’t you know how tough it is out there? The competition is practically giving their stuff away and you expect us to hold our prices and sell more. When was the last time you had a dose of the real world?” Based on the information provided, what is your reaction to the new quota? •
• Do your reactions reflect an outlook of [ ] possibility or [ ] limitation? What are your expectations about achieving the quota? • • Are your expectations [ ] positive or [ ] negative?
Your outlook is supported and reinforced by beliefs. Identify possible beliefs to support your outlook from the previous example. Beliefs that support my outlook: •
Judgments about appropriate actions are shaped by your beliefs. Identify possible judgments about appropriate strategies and behaviors based on your beliefs described in the previous example. Judgments I make as a result of my beliefs: • • • •
Following through with the previous example, list the actions you would take or actions you would not take as a result of your judgments. Actions I’m likely to take: •
Each of us has an inner self, our self-image or Identity, and an outer self made up of the many Roles we take on in the course of our lives. Although your self-image and your roles are separate, they affect each other powerfully. Your self-image—your Identity—has a bearing on how well you perform your roles, and your Role performance affects how you value your Identity.