The goal of this book is to share with you both a
philosophy about selling as well as strategies and
tactics that will help you influence buyers into buying
from you. Do not leap to the c
onclusion that the word
influence implies manipulation; that’s not at all what
I mean. Selling is about sharing! Share what you
know about what you have to offer with others in
such a way that they see the value of buying from
you.
The goal of this book is to share with you both a
philosophy about selling as well as strategies and
tactics that will help you influence buyers into buying
from you. Do not leap to the c
onclusion that the word
influence implies manipulation; that’s not at all what
I mean. Selling is about sharing! Share what you
know about what you have to offer with others in
such a way that they see the value of buying from
you.
The goal of this book is to share with you both a
philosophy about selling as well as strategies and
tactics that will help you influence buyers into buying
from you. Do not leap to the c
onclusion that the word
influence implies manipulation; that’s not at all what
I mean. Selling is about sharing! Share what you
know about what you have to offer with others in
such a way that they see the value of buying from
you.
All Rights Reserved. No part of this publication may be produced in any form or by any means, mechanical or electronic, including photocopy and recording, or by any information storage and retrieval system, without the permission in writing from the author or publisher; exceptions are made for brief excerpts used in published reviews.
1hls publlcaLlon ls deslgned Lo provlde accuraLe and auLhorlLaLlve lnformaLlon ln regard Lo Lhe sub[ecL maLLer covered. lL ls sold wlLh Lhe undersLandlng LhaL Lhe publlsher ls noL engaged ln renderlng legal, accounLlng, or oLher professlonal servlces. lf legal advlce or oLher experL asslsLance ls requlred, Lhe servlces of a compeLenL professlonal should be soughL.
1hls Selllnger Croup ubllcaLlon LdlLlon ls publlshed by vlcLor AnLonlo, Selllnger Croup 11770 Paynes 8rldge 8oad , SulLe 203-301 AlphareLLa, Ceorgla 30004 www.SelllngerCroup.com www.vlcLorAnLonlo.com
rlnLed ln Lhe unlLed SLaLes of Amerlca llrsL rlnLlng: May 2012
To all those out there trying to close a deal, I salute you! You are the economic pistons that fuel this economy engine we call capitalism.
CONTENTS DEDICATION i WORDS OF PRAISE FOR xii PREFACE xiv ACKNOWLEDGMENTS xviii CHAPTER 1. MAKE THE COMMITMENT 1 #1: Why Are You in Sales? 1 #2: Quantifying the Goal 2 #3: Dark Days of Selling 3 #4: Know Your Target 5 #5: Data Mining 6 #6: Sketch Your Prospect 7 #7: Are You B2B or B2C? 8 #8: Law of Sales Attraction 9 #9: Knowing Your Product or Service 10 CHAPTER 2. PRESENTING FEATURES AND BENEFITS 11 #10: Building Credibility 11 #11: The I Dont Know Rule 12 #12: Features and Benefits 13 #13: Know Thy Competition 15 #14: Creating Value 16 #15: Sales Integrity 17 #16: Why Listening Works 17 #17: Open-Ended & Closed-Ended Questions 18 #18: Interview, Not an Investigation 19 CHAPTER 3.
vl HOW TO SELL WITHOUT SELLING 21 #19: Active and Passive Listening 21 #20: Youre Not Selling, Youre Helping 23 #21: Seek to Understand First 25 #22: Find Reasons Not to Sell 26 #23: Sell Steak and the Sizzle 27 #24: Never Get Caught Selling 28 #25: The Six Stages of Selling 29 #26: Stage 1 - Prospecting 30 #27: Stage 2 Qualification 30 CHAPTER 4. CLOSING THE SALE 33 #28: Stage 3 Investigative 33 #29: Stage 4 Presentation 33 #30: Stage 5 Pricing 34 #31: Stage 6 Closing 34 #32: The Sales Funnel 35 #33: Calculating Your Closing Rate 36 #34: The Rule of Thirds 37 #35: Five Reasons Prospect Dont Buy 38 #36: When the Prospect Says They Dont Have the Money 39 CHAPTER 5. BRIDGING THE SALES GAP 41 #37: When the Prospect Says They Dont Have the Time 41 #38: When the Prospect Says They Dont Have the Need 42 #39: When the Prospect Doesnt Have a Sense of Urgency 44 #40: Building Trust When There is No Trust 46 #41: Crossing the Sales Gaps 47 #42: Theyre Rejecting the Offer, Not You 48 #43: Principle of Least Interest Effect 49 #44: Make the Client Discontent 50 #45: Long Sales Cycle versus Short Sales Cycle 51
CHAPTER 6. THE LONG AND SHORT OF THE SALES CYCLE 53 #46: Measuring Your Sales Cycle 53 #47: I Have to Speak with My X 54 #48: Send Me Your Information 55 #49: Thats Too Expensive or Thats Too Much Money 56 #50: Displaying Your Products 57 #51: Influence versus Manipulation 58 #52: The Primacy Effect 59 #53: The Recency Effect 60 #54: Presentation Sequence 60 CHAPTER 7. THE MINDSET OF PROSPECTS 61 #55: Pricing Option 61 #56: Social Proof 61 #57: Salting the Jar (Another Example of Social Proof) 62 #58: Rule of Consistency 63 #59: How Telemarketers Use Consistency 63 #60 Sales Truth Serum How to Get Accurate Information 64 #61: Sales Attention Grabbers 66 #62: Price Options 66 #63: I Dont Know! 67 CHAPTER 8. THE VALUE OF MONEY 69 #64: Reducing Your Sales Cycle 69 #65: The Alternative Close 70 #66: Verbal Packaging 70 #67: Sequence Your Offer 71 #68: Building Instant Credibility 72 #69: Relative Value of Money 72 #70: Customer Orientation 73
vlll
#71: Sunk Cost Fallacy 74 #72: Customers Lie 75 CHAPTER 9. ASSESSING THE SITUATION 77 #73: Prospecting 77 #74: Prospecting via Cold Calling 77 #75: Prospecting via Inquiry 78 #76: Prospecting via Referral 78 #77: No Pain, No Sales Gain 79 #78: Lowering Resistance, Then Raising Acceptance 80 #79: Situation Questions 81 #80: Verbal Gifting: The Ultimate Rapport Builder 83 #81: Trouble Questions 88 CHAPTER 10. PRESENTING THE PRICE 90 #82: Dont React or Act 90 #83: The Psychology of ConsistencyAgain! 91 #84: Amplify Questions 93 #85: Rule of Association 94 #86: Reward Questions 96 #87: Tie-Down 98 #88: Tie-Down in a Small Simple Sale 99 #89: Tie-Downs in Large Complex Sales 100 #90: Price Distortion The Magnifying Effect 102 CHAPTER 11. RULES OF PERSUASION 104 #91: The Discount Deception 104 #92: Nodding: Pumping the Prospect for Information 106 #93: Rule of Liking 108 #94: Rule of Reciprocity 108 #95: The Endowment Effect 108 #96: Foot-In-The-Door 110
#97: Finding the Dominant Buying Motive 111 #98: Reversing Field - Building Rapport and Credibility 112 #99: When to Consolidate or Partition Your Prices 115 APPENDIX A: RESOURCES 118 OTHER BOOKS BY VICTOR ANTONIO 118 APPENDIX B: WORKSHEETS 119 COMMITMENT EXERCISE 119 ABOUT THE AUTHOR 122
x
WORDS OF PRAISE FOR Selling Aint HardWhen You Know How "I unequivocally recommend your program to anyone interested in improving their approach. They would not gain a mere inch, but several miles over the competition, we certainly have." -Victor Lue-Yat, CEO - DocuGreen.com "Based on the info presented [at the seminar], at some point in the near future Victor Antonio will be the premier sales trainer in the country and beyond. I have heard so many great things about you,...and they're all true!" -Leon Meir, Sr.Business Advisor - PrimePay.com "...there is this light that shines in your eyes and this genuine smile that breaks through and says 'Im your friend, I have what you need, and I will help you'. Thanks again. You have affected my life in a very positive way, and I am grateful! Thank You." -David G. Figueroa, Manager - Intel Corporation
"Your presentation on Cold Calling Success made such a good impression on me, that I actually used some of your cold calling methods to get a meeting at the conference." -Jennifer C. Friday, Ph.D., The Friday Consulting Group, LLC.
PREFACE There are a lot of misconceptions regarding the profession of selling. The stereotype of a salesperson is likened to someone who is always looking to sell you something you dont need or want. If youve ever watched the movie Glengarry Glen Ross, you come away with a very dim view of what salespeople are and an even lesser opinion of their moral code and conduct. If you watched or read Arthur Millers Death of a Salesman youd swear that companies are set up to suck the life out of salespeople and when theyre best years of selling are over, theyre discarded without regard upon the emaciated heap of used up salespeople. Next! I often receive emails from my readers or folks whove visited my website asking a wide range of questions that leads me to believe that selling is truly a much maligned and misunderstood profession. Heres a sample of the types of questions and comments Ive received.
1) Are salespeople born with the natural talents to sell or are they created? In other words, is it nature or nurture that determines a good salesperson? 2) Is it possible for an introvert to sell? The assumption here is that you need to be a fast-talking, slick salesperson to being successful in sales. 3) I could never go into sales. I hate selling because I dont like pressuring people to buy. Let me answer these questions succinctly: 1) No one is born a great salesperson. The best salespeople are nurture over time molded by success and failure. 2) Dont confuse the gift-of-gab with selling. Talking and selling are worlds apart. The best salespeople in my humble opinion are those that listen more then they talk, know more they show and follow through on customer commitments. Introverts can sell and in many cases, better than an extrovert. 3) Pressuring people to buy is a short-term recipe for long-term failure. No one likes to be pressured. With the advent of the Internet and access to product information, consumers are no longer at a disadvantage. In fact, oftentimes the consumer knows
xvl more about the product or service than the salesperson. Today selling is more about influencing people rather than brow beating them to sign an order. The goal of this book is to share with you both a philosophy about selling as well as strategies and tactics that will help you influence buyers into buying from you. Do not leap to the conclusion that the word influence implies manipulation; thats not at all what I mean. Selling is about sharing! Share what you know about what you have to offer with others in such a way that they see the value of buying from you. The second goal of this book aims at giving you the reader a solid foundation, especially if youre just starting out in sales. Even if youve been in the sales game for many years, Ive included some recent studies and findings relating to consumer behavior that you may find insightful. Lastly, I hope that you will dog-ear many pages in this book so that you can constantly refer back to it when you find yourself in an indecisive situation. Even the best-of-the-best still need a constant reminder of what constitutes great sales skills. Learning never ends. This book will either be the beginning of your learning process or a continuation
with additional tools, tips and tactics that you can use to supplement your already stocked sales toolkit. With all of that said, I hope you enjoy this book as much as Ive enjoyed writing it. And remember, selling aint hard, when you know how!
ACKNOWLEDGMENTS
To my first sales mentor Jose Santana who took me, a nave young man, by the hand and showed him how to sell with integrity and a willingness to always keep the best interest of the customer in mind. Words cannot adequately describe how much you taught me and how your words and actions still guide my actions even today.
CHAPTER 1. MAKE THE COMMITMENT
"#$ %&' ()* +,- ./ 012*34 Suppose someone stopped you, dead in your tracks, while making a sales presentation, and asked you the question, Why are you in sales? How would you answer? Id like you to think about that for a moment because its a very important question. In fact, I will go out on a limb and say that the very answer to this question will indicate whether or not youll be successful in the sales profession. Many who answer this question will say, Money, thats the reason Im in sales. Which still begs the question: What will money get you? Here are some benefits of having money: financial freedom, worry- free living, more time with family, sending the kids to the best schools, buying that new car or house youve always wanted, or retiring early. Can you think of any others? Selllng Aln'L Pard.When ?ou know Pow!
2 The more tangible and real you make your reasons for being in sales, the more likely you are to stay motivated and sell better. Id like you to give this question some serious thought: Why am I in Sales? Write down the why that drives you. "5$ 6-1/7.8'./9 7&* :,12 Writing down goals is fine, but it is more effective to write down specifically what you want and what it will take to get it. For example, if you want to buy a $30,000 car with cash, then write that down. Now, lets assume your average sale is $1,000 and you make a commission of $200 for each sale. Well, that means youd have to make 180 sales ($36,000 divided by $200) in order to earn that much money. One hundred and eighty sales sounds like a lot; however, when you divide by 12 months in 1 year, that means you have to make 15 (180 divided by 12) sales each month (or 4 sales per week) to meet your goal. You now know how hard (or easy, depending on your perspective) youll have to work to get that new car. Now it doesnt have to be a car. It could be having enough money in the bank to put your children through college. Or maybe you want to pay off your Make Lhe CommlLmenL
new house. Whatever the goal, quantify what it will take in terms of sales to make it happen. Assign your goal a time frame. Dont just say, I want a new car eventually. Not good enough! Give yourself a deadline. When you give yourself a target date, you automatically create a sense of urgency. Failing to do so will only result in moving the date out in order to alleviate any pressure you may put on yourself. No deadline leads to complacency. It has been said that a dream is a goal with a deadline, and I wholeheartedly agree. Lastly, I want you to find someone in your life who you respect greatly. Share your goal with that person. Then have that person witness your commitment statement. Studies have shown when we know were being watched by someone we respect, we are more likely to act consistent with what we believe, and what we said we would do. You will find a helpful worksheet located in the Appendix. ";$ <1)= <1'3 ,8 0*22./9 The reason for writing down tangible goals when looking forward will become evident during those dark days of selling (and there will be some). Therell be days when your sales numbers are not what you expected them to be and when you dont want to pick Selllng Aln'L Pard.When ?ou know Pow!
4 up the phone to make that next phone call. Therell be days when every deal that was done becomes undone. There will also be days when you dont feel like making the sales pitch or even taking the time to write up a proposal to send to your prospect. There will be low-tide days where you cant seem to surf your way out and catch a sales wave. At those moments of personal anxiety, you will question the sanity of being in sales. Therefore, reminding yourself of your long-term objectives will come in handy. I once heard the saying, Obstacles are those things you see when you take your eye off the goal. If thats the case, then the day-to-day challenges of selling can be gratifying because you know it is part of the success process. Every day brings you one step closer to your goal. Each day your challenge will be to overcome, avoid, or jump over any obstacle in your path. Your strength to stay the course will depend on your ability to call to mind the reason or reasons for why youre in sales. If you know the long-term goal and you can see it with clarity, even when things have gone wrong in your day-to-day, then summon that vision of tomorrow in your mind. Use it as a reminder that each Make Lhe CommlLmenL
obstacle resolved brings you that much closer to your goal. ">$ ?/,@ +,-) A1)9*7 Many times Ive asked this question to salespeople: Whos your target market? Judging by the answer I receive, I can separate quite effortlessly those whove been in sales for a long time and have experience versus those who are just starting. The answer to this key question is an immediate tell-tale sign of how much a person knows about selling. Nine out of the ten times Ive asked this question, the response has been, Anybody that will buy! Reality check: you cant sell to everybody. Its not only impossible, its improbable. Not everyone you approach will need or want your product or service. When you talk to someone who doesnt know who theyre selling to and you find out theyre not having any luck, youll often hear the excuse No ones buying. Thats a lie, or at best, a poor excuse! Someone is always buying! The reason no one is buying may be because theyre simply selling to the wrong target market. They can have the best product in the world with all the bells Selllng Aln'L Pard.When ?ou know Pow!
6 and whistles a customer could hope for, but if theyre selling it to the wrong target market, their chances of success are not very good. You can have the best snow making machine in the marketplace, but if you try selling to an Eskimo in the dead of winter you will find that, No ones buying. Why? Its a great product, but the target market is wrong. Often, people fail in sales because they havent taken the time to stop and think about who they should be selling to. Many learn about the product they have to sell, get a list of prospects or leads, and then try to close a sale. When that fails, they blame themselves, the market, or the product. Heres the answer to the question, How can I sell more? In order to sell successfully, you have to find the people that need your product or service. The first order of business is learning specifically beforehand who it is. Ask yourself, Who will buy my product? "B$ <171 C././9 Another good question to ask is, Who has purchased my product, or a similar type of product, in the past? The best place to look for the answer is with the people who made purchases in the past. Take a close look at whos bought and what theyve purchased. If you begin to analyze these clients, some Make Lhe CommlLmenL
commonalities and consistent characteristics will become more apparent. Its also good to keep in mind one rule of thumb; its six times easier to keep a client than it is to go out and get one. The main thing to remember is people who purchased from you and were satisfied in the past have a high likelihood to buy from you again. Its easier to sell again than it is to go out and convince someone to buy from you in the first place. "D$ 0=*7E& +,-) F),3G*E7 What Id like you to do now is to become a sales sketch artist. Create a profile of your ideal suspect (i.e., client or buyer), and remember that every detail is important. The more you define the buyer, the more efficient youll be at targeting the right suspects. Im going to challenge you to come up with at least ten characteristics of your ideal suspect. The last five will be the most difficult, which will force you to really think about the prospect youre selling to. Nonetheless, I have confidence in you and know you can do it. The more you know about your prospect, the more youll be able to influence and persuade. Selllng Aln'L Pard.When ?ou know Pow!
8 "H$ ()* +,- I5I ,) I5J4 One of the big questions you have to ask yourself is, Are you a B2B or B2C oriented salesperson? If youre a business selling to another business, this is referred to as B2B or Business-to-Business. Knowing your target market (i.e., company profile) will allow you to focus on those businesses that are likely to buy from you. Typically, in a B2B selling youll want to know: What type of Industry do you sell to? What are the companys annual sales? How many employees does the company have? Where is the company located geographically? Who are the decision makers (e.g., titles)? What products are they currently using? If youre a business selling to a person or consumer directly, this is referred to as B2C or Business-to- Consumer. In this scenario, to sell more effectively, you want to know the typical customer profile. Youll want to know things like: Are they married or single? How many kids do they have? What is their annual income? Make Lhe CommlLmenL
Do they own a home? Are they dissatisfied with what they have or own? "K$ L1@ ,8 012*3 (77)1E7.,/ Knowing who to sell to will save you a lot of time because you wont be spending time on clients who will never buy from you. Secondly, youll be able to detect which sales approach is best to insure the sale. Thirdly, when you understand who youre selling to and the best approach to use, your closing rate will increase proportionally, thereby making you more money. Additionally, because of your success, your self-esteem will rise and confidence in your ability will grow. Even if you are not consciously aware of it, others around you will take notice. Successful people love to be around other successful people. This is where the Law of Attraction begins to manifest. Youve succeeded at all the things youve been working so hard to accomplish, and others are now attracted to your sales success. You begin to widen your network of people, which, in turn, leads to opportunities, much greater than what your mind can currently imagine. Selllng Aln'L Pard.When ?ou know Pow!
10 "M$ ?/,@./9 +,-) F),N-E7 ,) 0*)O.E* The best method and fastest way to gain product knowledge is to read or watch as much as you can about the product. Devour product information. First, memorize the important features of your product. Then, develop benefit statements (i.e., what it will do for the prospect) for each feature your product has to offer. Finally, to really build your knowledge base, list every possible question a potential prospect may ask about your product. Your job as a salesperson is to be able to answer these feature questions, and then add a benefit statement. Prospects want to feel comfortable about their decision to purchase. The best way to reduce buying anxiety is to demonstrate your competence by recommending the best product for them to buy. But in order for them to believe you or take your advice, they have to see you as an expertsomeone who knows what they are talking about. Sometimes, selling is simply a transfer of confidence. If prospects feel confident that youre providing them with the best solution for their need, and they believe you, theyll buy from you!
CHAPTER 2. PRESENTING FEATURES AND BENEFITS
"#P$ I-.2N./9 J)*N.Q.2.7' Nothing will undermine your credibility faster in front of a potential client than your inability to articulate what you have to offer or your inability to answer the most fundamental questions about the product or service you offer. When a client sets aside time to speak with you about your product, and you dont know the answers to fundamental questions about the product or how it can best serve the client, then youve wasted your time. Even worse, youve wasted the prospects time, and that is inexcusable! Your goal as a salesperson should be to dedicate yourself to learning as much as you can about your product. Then, find ways to demonstrate to the client how your product stands head and shoulders above the competition. In other words, dont let the prospect Selllng Aln'L Pard.When ?ou know Pow!
12 be smarter than you. If you know your products inside out it will show when you discuss them with the prospect. One of the fastest ways to build credibility is by demonstrating your expertise or mastery of what youre selling, and showing the prospects how your product will help them become more successful. "##$ A&* RS <,/T7 ?/,@U V-2* You often hear sales trainers say that theres nothing wrong with answering a prospects question by stating, I dont know the answer to that, but Ill find out and get back to you. I generally agree, but I would add the caveat that although its alright to say, I dont know, too many I dont knows will lose the sale. How many are too many? Well, use the 30-minute I dont know rule. If you say I dont know more than once every 30 minutes, then youre not doing so well. Therefore, the only way to prepare for a meeting with a prospect and not get caught saying, I dont know is to practice, practice, practice. So, heres what I want you to do. List at least five questions your prospect is more than likely to ask you about your product. I realize there could be more than five, but lets focus on the first five likely questions. resenLlng leaLures and 8eneflLs
Then, write how you would respond to the product or service question posed by the prospect. Write out your responses and study what youre going to say until it feels comfortable. Practicing the responses aloud is important. The reality is, sometimes what we write on paper doesnt translate well when spoken aloud, and may not communicate our exact meaning. Therefore, keep playing with the words until it feels comfortable to you and sounds natural. "#5$ W*17-)*3 1/N I*/*8.73 Earlier, I mentioned the use of features and benefits as it pertained to your product and how it would help your potential customer or client. I think it is important to review what a feature is, what purpose it serves in the sales process, and how tying a benefit(s) to each feature will help you sell more. First, let me define both terms so that you and I are on the same page: Feature: a particular characteristic your product has or your service has to offer Benefit: how a particular characteristic will help solve a prospects problem or issue Ive listened to presentations where after the first 10 minutes, Ive felt totally lost. I didnt understand Selllng Aln'L Pard.When ?ou know Pow!
14 because all the features were being thrown at me, along with technical or industry jargon. When a buyer is overwhelmed or confused about what is being offered, he or she will invariably choose not to make a buying decision at all. The psychological term that applies here is risk aversion. People seek to avoid things that they perceive as having too much risk. As a salesperson, one of the assumptions you should always make when delivering a sales presentation or pitch is that the prospect knows little to nothing about what you are selling or how it would be of benefit. If a salesperson tells you a computer has dual process capabilities, hes describing a feature that helps the computer run fast. Then, if the salesperson explains how youll be able to download movies in seconds, instead of hours, hes letting you know the benefit The best salespeople know they need to describe their products features and immediately tie them directly to benefits. Another exercise Id like you to try is to create your own featurebenefit table. Start by listing (in the left-hand column) all the features your product or service has to offer. Then, in the right-hand column, tie each feature to a benefit(s). This exercise will force you to think really hard about all the possible benefits your product or service offers. This will help you maximize every sales opportunity and influence the buyers perception in your favor. resenLlng leaLures and 8eneflLs
"#;$ ?/,@ A&' J,XG*7.7.,/ The Internet has commoditized information (i.e., can get it cheap), democratized it (i.e., available to anyone), and made it ubiquitous (i.e., available anywhere). Todays prospect is more informed than ever when it comes to the available options in the marketplace. No longer do they have to buy your product when with a simple click of the mouse they can locate a multitude of others, often at a better price. These days, its not enough to study your product only. If you want to be the best amongst the best in selling, you have to know what your competitors are offering as well. The first step in keeping current with the changes is to list your top three to five competitors for the product or service youre offering. In any market space, at least three companies always dominate. The next step is to collect information on these companies as it relates to your product offering. One of the best ways to do this is by periodically visiting your competitors website and monitoring the updates (e.g., new product release, press releases about changes, etc.). Then, create a comparative table that lists all your product features alongside your competitors. This will help you see where your product strengths and weaknesses lie. Understanding the weakness of your product is equally important to understanding your products strength. Having this type of information prior to Selllng Aln'L Pard.When ?ou know Pow!
16 meeting with a prospect will insure that you wont get caught off guard if a competitor is thrown into the sales mix. Demonstrating to a prospect that youve looked at other companies and you offer the best of the best, will make it that much easier for the prospect to decide in your favor. "#>$ J)*17./9 Y12-* Im convinced that over the long run, unscrupulous salespeople get theirs in the end and wind up unhappy. Wishful thinking on my part, you say? It could be, although Id rather build a sales business honestly and slowly than having to worry about eventually being caught. The philosopher, Ayn Rand, had a simple equation when it came to dealing with clients, friends, and family. Rand believed that all partnerships and relationships should be a value for value proposition. In other words, if you offer value, you should expect value in return. When the other person or party ceases to reciprocate with value, then the proposition is no longer valid, and you have every right to terminate the relationship. When you sell, you need to offer the customer value. Not only does that value come in the form of a product or service, but includes the value that you, the salesperson, bring to the relationship. resenLlng leaLures and 8eneflLs
"#B$ 012*3 S/7*9).7' In todays hypercompetitive market, differentiation is becoming more difficult. The salesperson becomes the differentiator for a company, bringing a complimentary value to the products and services offered. Dont cheapen that value by trying to take shortcuts and misrepresenting your goods. Create value by selling product value and your personal value and commitment to helping your client succeed. More often than not, you, the salesperson, are the differentiator when it comes time for the client to make a buying decision. "#D$ %&' L.37*/./9 %,)=3 Have you ever been in a conversation where you catch yourself mentally wandering off as the person is speaking? Weve all been there. The reason we have a hard time listening to others is because the average person has a speaking rate of 120 words per minute, but our brain can only process 600 or more words per minute. In other words, our brain is processing faster than the other person can speak, which is why our brains wander. In selling, you have to discipline yourself to stay focused and on task when meeting with a potential client. In a meeting with a client, your task is to Selllng Aln'L Pard.When ?ou know Pow!
18 uncover the hidden needs and wants of the customer. You can do this by learning how to ask a good question. Socrates, the philosopher, used to irritate other scholars because it seemed he was always asking questions and never answering any. This strategy, often referred to as the Socratic Dialogue, implies that you ask more questions than you answer. When visiting a customer, keep this paradigm in mind. You are there to ask questions, not talk about yourself. Sure, you should answer questions when the customer does ask, but for every question he or she asks, you need to begin an internal dialogue. Ask yourself the following questions: Why did he ask that question?, Is there more to the question than I can see? or Why was that question so important to him? "#H$ ZG*/[\/N*N ] J2,3*N[\/N*N 6-*37.,/3 There are two types of questions you can ask: open- ended and closed-ended. A closed-ended question can be answered with a word or two. An open-ended question requires an explanation in order for it to be answered. Examples of closed-ended questions would include: Whats your companys name? and How long have you been in business? Examples of open- ended questions are Could you explain how your resenLlng leaLures and 8eneflLs
decision-making process works? and How would you describe your relationship with your current vendor? As you can see, an open-ended questioning approach really opens up the conversation for free-flowing dialogue. Listening to the clients response, for each open-ended question, will help you discover the clients true needs. Be a detective. Each loaded response provides you with rich insight. It may also lead your line of questioning to more avenues, which you previously may not have considered. Open-ended questions help you develop rapport faster with the client by creating a conversational environment that sets a relaxed tone. "#K$ S/7*)O.*@^ _,7 1/ S/O*37.917.,/ One warning: A series of closed-ended questions may make the client feel you are interrogating him, by smacking him with questions and pumping him for information. Dont be afraid to ask one more question if thats what you need to do in order to better understand the prospects needs. Theres nothing worse than leaving a meeting not closely understanding the clients needs and desires. It is better to ask a stupid question at the meeting than to leave, to work on a proposal or make a presentation that is way off. Selllng Aln'L Pard.When ?ou know Pow!
20 Remember, use closed-ended questions to get confirmation and to control the conversation. Use open-ended question to get the prospect to talk and give you information. The more information and confirmation you have, the more effective your sales presentation is going to be once its your turn to talk.
CHAPTER 3. HOW TO SELL WITHOUT SELLING
"#M$ (E7.O* 1/N F133.O* L.37*/./9 Weve all heard the saying, God gave us two ears and one mouth, so that we can listen twice as much as we talk. Learning to listen is a challenge. We are often overcome by the need to share our opinions too much. For some reason, it makes us feel good about ourselves when were doing the talking. Over the years Ive learned, that the key to successful relationships, professional or personal, is communication. Id like to say that communication is divided equally into 50% speaking and 50% listening. However, Im more inclined to go with a 20:80 speaking to listening ratio. It takes time and practice to learn how to listen. For some people, especially introverts, it may come easily. However, most salespeople are extroverts; they love to talk. Dont let Selllng Aln'L Pard.When ?ou know Pow!
22 them deny it! Keeping quiet is a non-verbal form of torture for many salespeople. Youll often hear about two types of listening styles: Passive and Active. Passive listening is the art of keeping quiet and listening to what the client has to say. Active listening is when you restate questions or ask for clarifications while having a conversation with a client. Active questions can look something like this: 1. So let me ask this another way, if you? 2. So if I hear you correctly what youre telling me is? In either case, the active questions can be either open or closed-ended, depending on what answer youre looking for. If you need to find out more information, choosing an open-ended active question would be best. An example of an open-ended active question would be: Would you mind going over again, the specific steps for how the decision-making process works, just so Im clear? Notice that Im asking for clarification using an open-ended question. A closed-ended active question is great for confirming specific information that you need to have Pow Lo Sell WlLhouL Selllng
in order to help you close the sale. An example of a closed-ended active question could go like this: So youre telling me a decision will be made by the end of the month? Note that Im looking for a one-word answer, yes or no. If I asked, Based on what youve told me, your budget is in the neighborhood of $250,000? Again, Im looking for confirmation on budget so Ill know what my limitations are when presenting a proposal. This combination of asking the right questions and knowing how to listen is a skill that you must develop. It takes time and patience. Many salespeople wing it when they go into a meeting with a client. If youre new to the game of selling, this is not the best approach. Its the lazy approach. In the end, youll wind up wasting time for both of you. "5P$ +,-T)* _,7 0*22./9^ +,-T)* `*2G./9 Sales is not an easy profession to be in. It is often viewed with disdain and considered the necessary evil. But without sales, there is no company. Without the company, there are no employees or jobs. Without jobs, families would have a hard time feeding, clothing, and sending their kids off to college in order to start careers. Selllng Aln'L Pard.When ?ou know Pow!
24 Remember, you are more than just a salesperson. You are part of an empowerment machine that makes this world work! Sometimes, in the midst of trying to set a meeting or close a sale, its easy to forget how valuable your profession is to the survival of everyone who benefits from what you have to sell. What if you shifted your mindset? Instead of seeing yourself as a salesperson, see yourself as an enabler, helping others become successful. What if you see yourself and the product or service you sell as an empowerment tool, helping companies grow? How much more motivated would you be, if you simply viewed selling as helping others? That is exactly what you are doing! When you pick up the phone to set up a meeting with a prospect view yourself through a prism. Instead of seeing yourself as someone trying to sell something, see yourself calling on a friend to help them solve a problem they might be having. This shift in perspective will change how you speak to your prospect and the types of questions youll ask. Your attitude will shift from trying to make a sale to helping someone who may need your product. This approach creates a new perception. Beyond seeing you as a salesperson, you will also be seen as a trusted advisor or consultant. Pow Lo Sell WlLhouL Selllng
You will have transmitted a genuine sense of caring to the prospect. Youre there to make a friend first, and if appropriate, a sale second. In sales, we all know people will buy from people they know, like, and trust. "5#$ 0**= 7, a/N*)371/N W.)37 In sales, as the old adage goes, one should first seek to understand before seeking to be understood. What does that mean? It means that before you start selling yourself, your company, or your product, find out if they have a problem or need that your product can solve. You can do this by asking key questions, open- ended and closed-ended, to discover whether or not your prospect is in need of your product. The key to building a trusting relationship with a prospect is by demonstrating that you have the knowledge and experience to help them solve their problems or help them with their needs. Let me take a moment and define the difference between a problem and a need. A Problem: Having trouble with an existing product or service. A Need: Theyd like to improve their performance and are looking for a solution. Selllng Aln'L Pard.When ?ou know Pow!
26 Keep in mind here, seeking to understand has nothing to do with selling by itself Seeking to understand is taking an objective view of the prospects situation, and determining whether or not its worth your time, in offering a solution. If, in the course of your conversation, it becomes apparent there isnt a need or problem or a product fit, its alright to acknowledge that fact. Read that again. Its alright to acknowledge the fact that there isnt a problem, need, or fit. "55$ W./N V*13,/3 _,7 7, 0*22 Shift your mindset from looking to make a sale to looking to see if there is a problem, need, or fit. The faster you can uncover the reality of the situation (e.g., product, need, or fit), the quicker you can make the determination to either a) pursue the opportunity or b) walk away. Take this one step further. Look for reasons why the prospect wouldnt be a good client, or why your product is not good for the prospect. This might seem counterintuitive, but it makes complete sense. By looking for reasons NOT to sell, the prospect creates the following: a) You remain more objective and/or emotionally detached from making the sale. b) Prospects will sense this objectivity and will engage you in more direct discussion. Pow Lo Sell WlLhouL Selllng
By removing the emotional component of wanting to sell and replacing it with a sincere interest of wanting to help, if its a fit, youve now positioned yourself mentally to be in control of the sales process. Instead of hoping your prospect is interested in your product, your mindset is now one of, Does this make sense? "5;$ 0*22 07*1= 1/N 7&* 0.bb2* I often hear the phrases, People buy emotionally, or Selling is the transference of emotion from you to the prospect. Ive been around salespeople who muster up false enthusiasm before seeing a prospect, thinking that their enthusiasm will rub off on the prospect. They circumvent any logical thought process the prospect might have for not buying. Their motto is sell the sizzle; whether or not its the best steak really doesnt matter. You can fool some of the prospects some of the time, but you cant fool them all the time. Selling with only enthusiasm shows a lack of respect for the prospects intellect (i.e., capacity to make sound decisions). This is exactly why salespeople are despised and not trusted. I am not advocating that you sell like a mindless automaton, with your sensitivity and enthusiasm knob turned down to zero. What I am advocating is to keep your enthusiasm in check until (and only until) you Selllng Aln'L Pard.When ?ou know Pow!
28 have asked the prospect enough to determine that there is a problem, need, or fit for your product. At that precise moment, you can get excited and make your product pitch with enthusiasm. True enthusiasm, on your side, comes from knowing that you can help someone else. Youre not selling, youre helping. True enthusiasm, from your prospect, comes from knowing that you have the product theyve been looking for and it fits. "5>$ _*O*) :*7 J1-9&7 0*22./9 Sooner or later, youll hear a prospect say to you, Youre just trying to sell me! I want you to practice responding to this allegation by committing the following phrase to memory: !"#$ &#'()*+,- ./ 0'1 2( 2 (23*()*#('4 5( ,' (*33$ 67, 3*, .* 1* +3*2#- 8 9533 '43/ ,#/ ,' (*33 /'7- 5: 24; '43/ 5:- 9* 1',< 1*35*=* ./ )#';7+, >'# (*#=5+*? 9533 1*4*:5, /'7$ @'*( ,<2, ('74; 23#5A<, ,' /'7BC The above response has three important components Id like to highlight: 1. First, I didnt deny that Id like to make a sale. Any statement to the contrary would be disingenuous. Pow Lo Sell WlLhouL Selllng
2. Second, I established that I only wanted to sell the prospect something if it would be of benefit to him. The implication here is that if it is not, then no harm, no foul, no sale, and thats alright. 3. Lastly, when I ask, Does that sound alright to you? I am asking for permission to continue our conversation with this new understanding of mutual benefit. The sum of the statement lets the prospect know that your intentions are clear, forthright, and respectful. This mindset will become second nature to you with practice, and the constant self reminder that youre not selling, youre trying to help. Pretend for a moment that your prospect has just made the statement, Youre just trying to sell me! What would you say and how would you say it? "5B$ A&* 0.c 0719*3 ,8 0*22./9 After having studied many sales training systems and reading countless sales books on the market, there seems to be a general consensus. There are at least six stages of selling: Prospecting, Qualification, Investigation, Presentation, Pricing, and Closing. In order to be an effective salesperson, youll have to master each of these stages independently. Each stage is critical, providing the momentum to get to the next Selllng Aln'L Pard.When ?ou know Pow!
30 stage, before finagling and closing a deal. Typically, salespeople who struggle arent strong in at least one of these stages. Identify where you believe yourself to be weak and begin to take the necessary action to improve. "5D$ 0719* # [ F),3G*E7./9 You have to know where the fish are biting to be successful. Begin by identifying a target market and then contact those potential prospects to set up a meeting to discuss your product or service. Earlier, you were asked to describe specific characteristics of your ideal prospect. You were also asked to define yourself as B2B or B2C, and provide a sketch of your ideal prospect. Doing all of the above will help you narrow your selection, and focus on those prospects who are most likely to buy from you. "5H$ 0719* 5 d 6-12.8.E17.,/ Now that youve identified the market youre targeting, the next step is to weed out potential buyers versus non-buyers, or at a minimum, prioritize potential buyers. The sooner you can uncover whether or not the identified prospect needs your product or service, will make a decision to buy, and has the financial resources to make the purchase, the more effective youll be at selling. Here is where Pow Lo Sell WlLhouL Selllng
asking closed-ended questions (i.e., getting confirmation) will really come in handy. It will help to uncover whether or not the prospect is in a position to make a purchasing decision. Selllng Aln'L Pard.When ?ou know Pow!
32
CHAPTER 4. CLOSING THE SALE
"5K$ 0719* ; d S/O*37.917.O* Once youve qualified the prospect as a true potential buyer, its time to have a more in-depth discussion about their needs and your ability to offer a solution. At this stage, your goal is to ask key open-ended questions that will further substantiate the prospect has a need, and that your solution is a good fit. Its worth noting that up to this point you still havent presented your product offering. The key to the investigative stage is to uncover as many needs as you can by asking a lot of open-ended questions. Then, when you present your product, you can gear the presentation to answer the prospects needs or concerns. "5M$ 0719* > d F)*3*/717.,/ Having understood your prospects needs and concerns, you are now ready to talk about how your product or service can help the prospect. Each point Selllng Aln'L Pard.When ?ou know Pow!
34 you make in your presentation should be aimed at answering: a) a prospects concern; b) informing the prospect of things he may not be aware of; and c) addressing any unvoiced concerns (i.e., concerns or needs that the prospect did or may not want to voice aloud). The presentation should highlight product features, but should stay focused on how it translates into a benefit for the prospect. Remember, features tell, benefits sell. ";P$ 0719* B d F).E./9 When all is said and done, it will come down to pricing or simply, How much? The presentation stage is about creating value; the pricing is about proposal, a value proposition. If in the presentation stage youve made your case that the prospect would be better off exchanging his money for your product, then youve done your sales job well. ";#$ 0719* D d J2,3./9 The final stage is the close or obtaining a commitment. Heres where the proverbial pen meets the paper. If youve sold well, the prospect will sign on the dotted line and the deal is sealed. There are numerous ways to ask for the order. Here are just a few: Closlng Lhe Sale Mr. Prospect, where do we go from here? Mr. Prospect, can you see any reason why we should sign you up? Mr. Prospect, based on what youre telling me, lets go ahead and get the process started. Asking for the order is the key. Too often, salespeople hesitate to ask for the order for fear of rejection. Theres only one thing worse than rejection in sellingnot asking for the order that couldve been yours if you simply had asked. Remember, ask! Your prospects expect you to ask for the order. Dont disappoint them by not doing so. ";5$ A&* 012*3 W-//*2 There you have it, the six stages of selling. The best way to visualize this six-step process is to imagine a vertical funnel with the wide part at the top and the narrow spout at the bottom. The sales process starts by pouring sales leads or prospects into the funnel. As the prospects move through the funnel, they are then qualified before proceeding to the next stage: investigation. Those who dont qualify are removed from the funnel. Having been qualified, the prospect moves through to the next stage in the funnel, the investigation, where specific questions are asked, before proceeding to the presentation and pricing Selllng Aln'L Pard.When ?ou know Pow!
36 stage. Lastly, if you can close the deal, you now have a client (i.e., a prospect who bought from you becomes a client) coming out of the bottom of the narrow funnel. How many prospects you convert into clients is called your conversion rate or closing rate. Each phase of the sales funnel is critical, but none is more critical than qualifying your prospects up front. This phase insures that you dont waste time trying to sell to someone who isnt going to buy your product. ";;$ J12E-217./9 +,-) J2,3./9 V17* In sales, the name of the game, is to start with many qualified prospects. As you move them through your sales stages (or funnel), youll still have a handful that will come out of the bottom funnel, buy from you, and be able to measure your effectiveness. In selling, this is referred to as your closing rate. If for example you had 10 prospects you were trying to sell to, and after having gone through the selling stages, only 1 buys, then your closing ratio or percentage is 10% (1 divided 10 ! 100%). If 2 out of 10 bought, then your closing percentage is 20%. Note that in selling, there is no standard close rate or good close rate since it varies from industry-to-industry. For instance, a 10% close rate may be bad if youre selling a low commission ticket item ($100 printer), Closlng Lhe Sale but it would be great if you were selling a large ticket item ($500,000 printer). ";>$ A&* V-2* ,8 A&.)N3 Often, in selling, it is easy to get discouraged when a big sale that you thought was in the bank doesnt go through. You can get frustrated when some prospects see the value immediately, while others simply do not. Having said that, heres something you should keep in mind. In sales, theres a general rule of thirds, which states one third of the qualified prospects who agree to see and hear you proposal will see the value immediately and buy from you. Well call this group Buyers. Theres another one third who are qualified prospects; they simply require you to understand their needs and show them how your product or service will benefit them. Well call this group the Evaluators. If you do it right, theyll buy. If you dont, they wont. Finally, there is the last of the one third of qualified prospects, who no matter how much you show them the benefits of your product or service , will never make a decision to buy, or will simply reject your offer outright. Well call this group the Wasters as in time wasters. Selllng Aln'L Pard.When ?ou know Pow!
38 A rookie mistake is to keep going back to a prospect who wont buy,a waster in disguise. Learn to categorize your prospects into three major categories: Likely to buy (Buyer), May buy (Evaluator), and Will never buy (Waster). Sales is a numbers game in the sense that the more Buyers and Evaluators you talk to, the more likely you are to earn higher commissions. Dont get bogged down talking to a Waster who continually says, Well let me think about it. I need more information. Let me talk to your existing clients?,and on and on. The faster you can identify a Waster, the more time youll have for Buyers and Evaluators. ";B$ W.O* V*13,/3 F),3G*E7 <,/T7 I-' Think back to the last time you tried to close someone on a say, or simply requested something from someone and the answer was a polite No. Maybe at the time you didnt know why, but if you really give it some deep thought, you might conclude that they may have said no for one of the following five reasons: 1. No Money 2. No Time 3. No Need (or No Interest) 4. No Urgency 5. No Trust Closlng Lhe Sale An acronym is one good way to remember these five reasons. I came up with: MT. NUT, which stands for (M)oney, (T)ime, (N)eed, (U)rgency, and (T)rust. Every sale you fail to close in your sales lifetime can be categorized under one or more of these five reasons. Its imperative that you memorize these five reasons so when youre face to face with a prospect who doesnt seem to be moving in your direction, you can look for signs of one or more of these reasons. ";D$ %&*/ 7&* F),3G*E7 01'3 A&*' <,/T7 `1O* 7&* C,/*' Im going to venture and guess that 95% (Im being conservative) of all the prospects who say they wont buy because of money are using money as an excuse to back out of the deal. If someone wants something really badly, they always find a way to come up with the money or some creative way of financing the purchase. When a prospect uses a false reason for not buying, this is referred to as a stall. Stalls are how a prospect indirectly communicates to you, the salesperson. They let you know that, until they receive more information, something about the item makes them feel unsure or unwilling to commit to the purchase. Selllng Aln'L Pard.When ?ou know Pow!
40 You, as a salesperson, must learn how to vet these stalls by asking key questions that remove the initial stall. A good way to find out whether or not money is really the issue is to ask a What if question. It goes something like this: !8: 8 +24 (<'9 /'7 <'9 /'7 +24 2::'#; ,<5( 5,*. '# (7AA*(, 2 +#*2,5=* 92/ ': :5424+54A ,<5( 5,*.- 5( ,<*#* 24/ ',<*# #*2('4 9</ /'7 9'73;4D, 924, ,' A' 2<*2; 24; )7#+<2(* ,<* 5,*. ,';2/BC At this point, the prospect has to come clean. If money is the real issue, then he or she will request that you show him or her some options. If the prospect was being insincere (e.g., using money as an excuse to not buy), he or she will more than likely you give you the real reason for why he or she wont make the purchase.
CHAPTER 5. BRIDGING THE SALES GAP
";H$ %&*/ 7&* F),3G*E7 01'3 A&*' <,/T7 `1O* 7&* A.X* A prospect may tell you the reason they wont buy from you at this moment is because they simply dont have the time to invest in implementing, using, or learning about your product. Ive had prospects tell me the reason they wont buy my product is because it takes too long to install or it takes too long to learn how to efficiently use it. The best way to handle this stall is to test the prospects knowledge of efficiency and utilization. For example, if youre selling a prospect a product that will help him or her save one hour a day, any sane person would be interested in finding out more. !"#$ &#'()*+,- . /0'1 ,23, 4'5 6375* ,89* 30: ,23, ,89* 8( 9'0*4$ .; . +30 (2'1 4'5 2'1 ,28( )#':5+, 1877 0', '074 (36* 4'5 9'0*4- <5, 1877 =86* 4'5 9'#* ,89* Selllng Aln'L Pard.When ?ou know Pow!
42 ,' :' ',2*# ,280=(- 1'57: 8, <* 1'#,2 ()*0:80= ,*0 9805,*( '; 4'5# ,89*- /0'180= . +30 (36* 4'5 30 2'5# 3 :34>? Notice again that my question is aimed at vetting the prospect by asking him a question to see whether or not his time excuse is a real excuse, or just a stall tactic. Any sane person would at least be willing to listen to such a proposal, if theyre being sincere. A prospect who responds by saying that it is not worth ten minutes of his time to learn how he can save an hour is being disingenuous, indicating that it might be time to move on to another prospect. ";K$ %&*/ 7&* F),3G*E7 01'3 A&*' <,/T7 `1O* 7&* _**N A prospect who tells you he doesnt need your product is either telling the truth or is unaware of what needs he really has. The latter may sound like an odd statement, but in the majority of cases, youll find in selling that many prospects simply dont know what they need. The goal of any salesperson is to show prospects how much they need to use their product in order to save time or money. It may require that you demonstrate 8rldglng Lhe Sales Cap
how, by not using your product, it is costing them time, money, or anything else of value. Lets say, for example, that you are selling facial crmes that give the face more vibrancy and elasticity, making clients look younger than they really are. A prospect might say that he doesnt need to look younger; he finds his appearance fine the way it is. This is a classic situation of no need. The key here is to develop a need where one is not present. You can use many strategies to appeal to time, money, or even ego. You can remind the prospect that: Appearance over time changes even without us really noticing. Studies have shown that younger-looking people tend to get hired faster than people who are in their late 40s and up. The crme can be used to prevent wrinkles or skin damage from appearing before their time. Whatever your tactic, the aim is to create a need for your product by giving the prospect reasons why they should buy from you. Selllng Aln'L Pard.When ?ou know Pow!
44 ";M$ %&*/ 7&* F),3G*E7 <,*3/T7 `1O* 1 0*/3* ,8 a)9*/E' You must, I repeat, you must create a sense of urgency, or the prospect will simply not take action. A sense of urgency is created when you can convince the prospect that delaying the purchase of your product will in some way be detrimental to the prospect. For example, if your product is designed to save the prospect time, highlight how much time he or she is wasting (loss of productivity) by not using your product. If money is the fulcrum, then translate the amount of lost time into how much money he or she is losing. Urgency is created by using reasons for buying your product as momentum. Each reason you give for buying your product should have a cumulative effect. Think of a weight scale. On one side of the scale you have this big weight that says, No sale. This is the prospects current mindset toward your product. Now, imagine that on the other side of the scale you begin to add weights (i.e., reasons) for why it is imperative that the prospect buy. Each weight is a tangible reason for why the prospect should buy. The more weight (reasons) the more likely the scale will rule your way where it reads, Ready to buy. 8rldglng Lhe Sales Cap
A good strategy for creating urgency is to do a Where are we now? and What if? scenario with the prospect. Mr. Prospect, how are you currently doing this task today? The prospect will then proceed to tell you, and as he explains, listen carefully for where your product might be able to help make his situation better. Mr. Prospect, based on what youve described, I can see that you may be unaware of how much time or money youre losing (i.e., what its really costing you). Allow me to show you where I believe we can help you save time (or money). At this point, you begin to lay out all the ways the prospect is losing money or time. Each reason is aimed at creating awareness of the problem with the resulting effect being a sense of urgency to resolve the situation. By identifying and highlighting how the prospect is losing money or time, you are driving home the point more and more, causing the prospect to understand and realize the pain of his position. Pain is a great motivator. In fact, I will say that pain is the motor that drives urgency. So the more pain you create, the greater the sense of urgency. Selllng Aln'L Pard.When ?ou know Pow!
46 ">P$ I-.2N./9 A)-37 %&*/ A&*)* .3 _, A)-37 Trust is usually developed over time, but what happens when you dont have the luxury of time? When you meet a prospect for the first time who promised to give you 10 minutes of his time, how can you create trust with such a short window of time? There are two effective ways of creating instant trust. Demonstrate expertise, as well as unsuspecting honesty. Demonstrating expertise really needs no explanation other than to say people respect people who know more than they do and can help them solve their problems. You cant tell someone youre an expert. The most effective way to demonstrate expertise is in how you ask questions, and more importantly, the quality of questions youre asking. What you ask tells the prospect immediately about how much you know your product or their problems. Being unsuspectingly honest is telling the prospect something he doesnt expect to hear from a salesperson (e.g., product weakness). Admitting to your prospect what youre product cant do is just as potent as telling your prospect what it can do. Imagine walking up to a car lot to buy a car and the salesperson says something like 8rldglng Lhe Sales Cap
Many people are drawn to this car for its looks, but given its maintenance track record, I wouldnt recommend it to someone who is looking for a reliable car. Your immediate reaction might be one of disbelief! After the shock has worn off, you feel a sense of trust develop. Who else but a trustworthy salesperson would be so brazen and forthright as to tell you NOT to buy something? Learn to build trust quickly by demonstrating expertise and unsuspecting honesty! ">#$ J),33./9 7&* 012*3 :1G3 In order to get anyone to buy your product or at a minimum get them to consider your product, you have to get them to cross over three mental sales gaps. The first sales gap is Awareness. A prospect has to be aware that he or she has a problem. This may not be as obvious as it sounds. Sometimes, the prospect isnt aware of a situation that may be costing him time or money. Step one is to create awareness by identifying the problem for the prospect. The next phase of the selling process is what I call crossing the Urgency Gap. Once the problem has been brought to the prospects attention, it doesnt necessarily mean hell act on it. In other words, he may have a need or a problem that must be resolved, Selllng Aln'L Pard.When ?ou know Pow!
48 but hes not in a hurry or rush to do it right now. This is where a good salesperson can come in and create a sense of Urgency by showing the prospect how much he is missing out on or losing by not having your product. Lastly, even if the prospect is aware of the problem and acknowledges that something has to be done (e.g., a sense of urgency), he still needs to cross the Solutions Gap. The solutions gap is where you demonstrate, to your prospect that you have the solution to solve the prospects problem. Stated another way, youve made the prospect aware of a need, and the prospect acknowledges the urgency of the need. The only question remaining is do you have the right product or service to satisfy this newly discovered, urgent need? During this last phase, you take the time to present your product and how it can resolve your prospects urgent needs. ">5$ A&*'T)* V*e*E7./9 7&* Z88*)^ _,7 +,- Consider the following scenario: Youre walking down the street and you see someone fall. You walk over and extend your hand, to help them get up. They refuse to take your hand, so you withdraw your hand, and keep walking. Heres my question to you: Since your help was rejected, do you walk away feeling bad? Your answer should obviously be no. You saw 8rldglng Lhe Sales Cap
someone fall. You assessed the situation and decided they needed the help that you could provide. The persons refusal had nothing to do with your intentions. Your intentions were good, so there is no reason to feel bad at all. This is how you should view selling. If your intentions are good (i.e., wanting to help, not sell), and someone refuses your help, theres no reason to walk away from the prospect feeling bad. Selling is all about good intentions in helping prospects achieve their goals by helping them solve their problems or fill their needs. All you can do as a salesperson, and all that is expected of you, is that you get in front of the prospect, uncover a need, and offer them a helping hand. If they refuse, just remember, theyre not rejecting youonly your intention in wanting to help. Oddly enough, in this profession we call selling, there will be prospects who desperately need help or a helping hand, but will simply refuse to take you up on your offer to help. Just remember, intentions count for everything. Its their loss, not yourskeep walking. ">;$ F)./E.G2* ,8 L*137 S/7*)*37 \88*E7 The person least committed to staying in a relationship has the most power since they don't care as much...hmmm. In selling, your job is to get the Selllng Aln'L Pard.When ?ou know Pow!
30 other side to commit to the sales relationship by getting them involved and creating a sense of urgency. How do you do that? Read the next rule. ">>$ C1=* 7&* J2.*/7 <.3E,/7*/7 Ernest Dichter, the father of Motivational Research, dedicated his life to understanding what motivated buyers to buy on both a conscious and an unconscious level. Dichter insisted that one had to use the techniques of motivational thinking, to make people constructively discontent. He contended that only by creating discontent would a buyer be motivated to make a purchase. In other words, to get a prospect to buy your product, they first had to be dissatisfied with what they had or what they were using. The best way to create discontent is by showing the prospect what he or she is missing out on by not using your product or service. For example, we all loved our records until the 8-track tape player came along and we could play multiple songs without having to flip the record. Plus, the 8-track was portable. We then moved away from the 8-track to audio cassette, preferring their size and the ability, to find a favorite song faster. Next, we turned to the compact disc. The CD was introduced because we didnt have to fast forward anymore, and the sound quality (e.g., no tape hiss) was superior. We then abandoned the CD when the mp3 (e.g., iPod) came along because we store hundreds, if not 8rldglng Lhe Sales Cap
thousands of songs, without having to worry about the number of CDs. Every time we moved over to a newer technology, it was driven by our discontent with what we were using. In selling, look for ways to make your prospect discontent by showing them something better, faster, more convenient, or cheaper. ">B$ L,/9 012*3 J'E2* O*)3-3 0&,)7 012*3 J'E2* The typical sales process includes the following stages: Prospecting, Qualifying, Investigating Needs, Presenting, Proposal, and Closing. A sales cycle is the length of time it takes for you to close a sale, from the day you started selling to that particular client. For example, if you met with your client for the first time on July 1, and you managed to close the deal on August 1, your sales cycle would be 30 days or one month. In general, a low-ticket item will have a shorter closing cycle than a high-ticket item. It is more likely that youll sell a $100 computer printer faster than you will a $50,000 printer. The terms long or short used to describe a sales cycle are relative. For some, a 30-day sales cycle may Selllng Aln'L Pard.When ?ou know Pow!
32 be short. Others who are used to selling more in that time would consider it a long sales cycle.
CHAPTER 6. THE LONG AND SHORT OF THE SALES CYCLE
">D$ C*13-)./9 +,-) 012*3 J'E2* Theres an adage that says you cant improve what you cant measure. To be amongst the elite in sales, it is first necessary to become aware of the length of your sale cycle. You can do this by tracking specific transactions from the initial point of contact all the way through the sale. Use a calendar to mark when you first started to sell to the person, and then note when the sale was finally complete. Repeat this tracking process for a few of your clients in order to establish an average sales cycle. Lets say, after a few months of tracking your clients through the sales process, youve determined that your sales cycle is 45 days. At this point, you may decide that 45 days is too long of a sales cycle. If so, then you should be asking yourself, Is there a way to Selllng Aln'L Pard.When ?ou know Pow!
34 shorten my sales cycle? The more you can reduce or shorten your sales cycle, the more clients youll be able to serve, and the more sales youll be able to close in a given time period. Begin by reviewing each of the steps in the sales process, and find ways to be more efficient. For example, maybe in the Qualifying phase, you can ask more specific questions to further qualify your prospects so they dont wind up wasting your time. The more you can qualify up front, the better your chances of closing the sales at the end of the sales process. ">H$ S `1O* 7, 0G*1= @.7& C' f Have you ever been in a situation where youve just finished making the best sales presentation about your product or service, and youre feeling really good? Youre feeling so good youre thinking theres no way this client can say no to your offer. Then you hear this phrase, Well, I like what youre saying, but I have to speak to my husband (or wife, or boss) before I make a decisionlet me get back to you? At that point, youre stuck. You cant force the issue by demanding that the client make a decision right there. So you just say, OK, when can I follow up? 1he Long and ShorL of Lhe Sales Cycle
The problem comes when you call a week later, and the prospect is no longer interested. What if I could show you a way to prevent yourself from getting into this situation in the first place? How? Its easy: insert a qualifying question BEFORE you present. Heres what youre going to ask: Mr. Jones, aside from yourself, who else needs to be involved to make a decision? Now the client has two choices: If the prospect says they need to involve their spouse, then you simply ask to reschedule a time when both of them can be present. Now, if the prospect says, Im the person that makes the decision, you can jump right into your presentation knowing that the prospect wont use the excuse, I need to speak with my spouse or boss. This simple question will save you time and headaches. ">K$ 0*/N C* +,-) S/8,)X17.,/ How many times have you made a call to a company, introduced yourself and your product, and after a few minutes of chatting, the potential client says, Send me your information, Ill look it over. Now lets be honest with each other here; do you think theyre really going to a) wait for your information to arrive; b) stop what theyre doing and review your information; and c) take the time and call you? No! Selllng Aln'L Pard.When ?ou know Pow!
36 No sooner than you hang up the phone, you are forgotten. Even if you did send the info and followed up, do you think theyd remember you out of the numerous calls they get daily from other salespeople? No. The question is, How do you get in front of the potential client so you can present your product and stand a better chance of closing the deal? Well, heres how you do it. When the prospect says, Send me the information, and Ill review it. I want you to reply, I could do that, but I also know youre still going to have questions. So, why dont I stop by and drop off the information personally? Would Monday or Thursday work for you? Then, be silent, and wait for a reply. If youre lucky, they choose one of the two dates, and youre one step closer to closing the sale. ">M$ A&17T3 A,, \cG*/3.O* ,) A&17T3 A,, C-E& C,/*' In selling, there will come a time when youve finished a sales pitch, and the prospect pushes back by saying, Thats too expensive or thats too much 1he Long and ShorL of Lhe Sales Cycle
money. Now, there are a couple of ways to handle this price objection. One of my favorite tactics for overcoming this objection is to reframe the price in such a way that it doesnt look that big to the prospect. For example, lets say Im selling a monthly membership for a fitness center that costs $50 a month to be a member. The prospect says, Isnt that a bit expensive? Instead of trying to argue or convince the prospect that it really isnt that expensive, reframe the price. What you say is, Fifty dollars may seem like a lot, but it really isnt. That comes out to a little over one dollar a day. Then you ask, Wouldnt you agree that your health and well being is surely worth a little more than a dollar a day? Then, say nothing. At that moment youve reframed how the prospect will look at the value of your offer, and you now stand a better chance of closing the sale. "BP$ <.3G21'./9 +,-) F),N-E73 Would you agree that every advantage in sales helps? A recent study showed that simply having your product on display could increase your sales by 10 to Selllng Aln'L Pard.When ?ou know Pow!
38 20%. Merely looking at the product, being able to physically see it, will increase the number of sales. So, what does that mean to you? The next time youre doing a product pitch or sales presentation, make sure you have your product in front of your potential buyer. Have it right next to you. As you describe the features, hold it in your hand and occasionally hand it to your potential buyer. Having a picture of the product is good, but nothing can beat the hands-on, touch and feel of the product. Imagine for a minute going to a car dealership to look at cars, and all they had were pictures. Imagine going to the store to buy clothes, and all they showed you were pictures? Having the product on hand and allowing the potential buyer to examine it, play with it, and even try it on for size, will increase the likelihood of them buying. Its not just about tell, its about show and tell. "B#$ S/82-*/E* O*)3-3 C1/.G-217.,/ There are several ways to influence people. They say that those who believe they arent susceptible to influence are the most likely to be victims of 1he Long and ShorL of Lhe Sales Cycle
influence. Which begs the question: is influence good or bad? Well, the difference between influence and manipulation comes down to a matter of ethics and intent. If you are influencing someones reason for buying from you because it will help them, then influencing them is a good thing. If you are influencing them, regardless of whether the product will help them or not, you can consider that manipulation. Success in sales, in the long run, depends on your ability to influence and NOT manipulate. Remember, it is six times cheaper to keep a customer than to go out and find a new one. Selling your customers what they want or need will keep them coming back for more. "B5$ A&* F).X1E' \88*E7 People tend to remember the first things they hear, or the first things they read. This is why making a first impression counts in sales. What people see or hear will affect how they perceive you from that point forward. In a sales presentation or pitch, you always want to lead off with something memorable that you want the prospect to remember about you or your company. Selllng Aln'L Pard.When ?ou know Pow!
60 "B;$ A&* V*E*/E' \88*E7 People tend to remember the first thing they see or read (the Primacy Effect), but as time passes, they will recall the LAST thing theyve seen or read. This is why having a good closingwith a strong emphasis on what you want the prospect to knowis critical. At the end of a lengthy sales pitch or presentation, its always a good idea to summarize the key points. "B>$ F)*3*/717.,/ 0*g-*/E* Should I present first or second? Studies have shown that if you have an option to present first or second, you should always present first. See my tip on the Primacy Effect to understand why. But, if there is a time lag between the first and second presentation, for example, you can present on day one or day two, then you should present on the second day. To understand why, see my explanation of the Recency Effect, which states that people remember what they hear last.
CHAPTER 7. THE MINDSET OF PROSPECTS
"BB$ F).E./9 ZG7.,/ When submitting a proposal to a prospect who has agreed to buy, the prospect will typically choose the less expensive option. The reason behind this is the fact that many prospects who are buying for the first time are risk averse. They dont like to take risk. By buying your less expensive item, they minimize the risk of buying the wrong thing, and therefore avoid what we all know as buyers remorse. So what if you want them to buy the most expensive item? Is there a way to influence them to buy the more expensive item? The answer is yes. Check out my next tip to find out how! "BD$ 0,E.12 F),,8 When determining a course of action or behavior, when unsure on how to act or behave, we will look for social clues or environmental cues for help. For Selllng Aln'L Pard.When ?ou know Pow!
62 example, lets say youre out and about looking for a good nightclub. There are many to choose from, but only one has a line that extends around the corner. You immediately draw the conclusion, based on the long line (i.e., social proof), which nightclub must be the best on the strip. "BH$ 0127./9 7&* h1) i(/,7&*) \c1XG2* ,8 0,E.12 F),,8j This technique is used to get clients to tip for services rendered at any public event or place. Weve all seen a tip jar filled with money deposited by patrons who want to show their appreciation for the service theyve received. If you go to a piano bar, youll see the piano player with a tip jar atop the piano. If you go to a coffee shop, you may see a tip jar next to the cash register. The salting part comes in when no one is around and the tip jar is empty. The piano player or coffee server will usually salt the jar with some of their own cash (e.g., some change and a few $1 bills), hoping to influence people to leave a tip. This is an application of the social proof principle. Seeing that others have tipped will compel you to do the same. 1he MlndseL of rospecLs
"BK$ V-2* ,8 J,/3.37*/E' This is also known as cognitive dissonance. This rule states that when your beliefs or values are not in line with your actions, you feel compelled to act to resolve this tension. For example, if you state youre going to do something and then dont follow through, you will feel an uneasiness brought on by your inconsistency. Think back at a time when you told someone you would do something, but at the last moment you decided to back out for some frivolous reason. Do you recall how you felt? Thats cognitive dissonance. This rule further purports that the more public the declaration, the more you will feel compelled to act consistently. "BM$ `,@ A*2*X1)=*7*)3 a3* J,/3.37*/E' Telemarketing folks will often ask you right off the bat, How are you doing? and then go silent. If youre like many people youll respond, Im doing great! What can I do for you? At that moment, youve fallen into the consistency trap. Once youve told them youre feeling great, youve set yourself up to be influenced. Studies have shown that telemarketers are able to sell to you more effectively (i.e., you are more susceptible) if they can get a positive response to the question, How are you doing? People will act consistently with what Selllng Aln'L Pard.When ?ou know Pow!
64 theyve stated aloud. (Refer to the rule of consistency.) It becomes more difficult to be rude or simply hang-up after stating youre doing great, and manipulators know this! "DP 012*3 A)-7& 0*)-X d `,@ 7, :*7 (EE-)17* S/8,)X17.,/ Have you ever had to ask the following questions to a prospect: When do you think youll be making a buying decision? How much money do you think will be in your budget for next year? And when you did get the answer (i.e., the prediction), for some reason you didnt feel quite confident that you were getting an accurate answer. In fact, more often than not the answer you received was either highly optimistic or pessimistic and far from accurate. Heres an interesting approach to getting more accurate or realistic information out of a person. Instead of asking a focus question, start by asking an ideal question, followed by a focus question, to produce more realistic results. 1he MlndseL of rospecLs
Lets say youre meeting with a prospect named Bob, and youre trying to get a realistic timeframe for when a buying decision will be made. Option 1: Ask the focus question. E23*()*#('4F !G<*4 ;' /'7 ,<54H /'7D33 1* .2H54A 2 17/54A ;*+5(5'4BC 6'1F !G*33- 8 ;'4D, #5A<,3/ H4'9$ 8, +'73; 1* 95,<54 2 9**H '# ,9'$C
Option 2: Ask the ideal question first, then the focus question (e.g., ideal focus sequence): E23*()*#('4F !E' 6'1- 5: +'4;5,5'4( 9*#* 5;*23- 9<*4 ;' /'7 ,<54H /'7D33 1* .2H54A 2 17/54A ;*+5(5'4BC 6'1F !G*33 5: *=*#/,<54A A'*( 2++'#;54A ,' )324- 8D; (2/ ,9' 9**H($C E23*()*#('4F !G<*4 ;' /'7 )*#('4233/ ,<54H /'7D33 1* .2H54A 2 17/54A ;*+5(5'4BC 6'1F !G*33- 8D; (2/ .'#* 35H* ,<#** 9**H($C One study showed that using the idealfocus sequence forces the respondent to really think about the answer theyre giving you. It works almost like truth serum for selling. This is a relatively simple and Selllng Aln'L Pard.When ?ou know Pow!
66 painless technique, which you can incorporate into the information gathering phase of your sales process. "D#$ 012*3 (77*/7.,/ :)1QQ*)3 Often times, we want to grab a prospects attention before we launch into our sales pitch. Here are three sure-fire ways to grab a prospects attention. First, ask the prospect, Let me ask you a quick question Nine times out of ten the prospect will stop mentally in their tracks and listen. Secondly, you can say, Let me run something by you. Or, the third thing you can say to get a prospects attention is, Tell me if this makes sense. Indirectly, youre asking for the persons opinion, and we all know how people love to share their opinions. Note that all three approaches dont have an aggressive tone to them. When you ask these questions or make the statements, you come across as someone who just wants to bounce an idea off the person, making them more susceptible to listening to what you have to say. "D5$ F).E* ZG7.,/3 After having completed your presentation, you hand the prospect your proposal, which includes a higher- priced and lower priced option. Which do you think the prospect will choose? More than likely, they will choose the cheapest of the two in order to avoid 1he MlndseL of rospecLs
paying too much. This phenomenon is called loss aversion. It gets better. What if you offered the prospect three options, varying from the most expensive, middle-of-the-road, and least expensive? Which do you think the prospect would choose? If you guessed the one in the middle, youre right. Loss aversion is at work here. In order to avoid over- paying or under-paying, the prospect will choose the option in the middle. When you present your proposal to a client in the future, always put your target option (i.e., the one you hope they choose) in the middle, sandwiched between a lower-priced and higher-priced option. "D;$ S <,/T7 ?/,@k Early in my sales career, someone taught me a wonderful tool for getting past the I dont know stalemate. When you ask a prospect when they think they will make a buying decision, the prospect might reply, Well, I dont know. If they do, heres what you should say: I know you dont know, but if you did know, what would it be? For some reason, this response always seems to garner a response from the prospect. Use it! Selllng Aln'L Pard.When ?ou know Pow!
68
CHAPTER 8. THE VALUE OF MONEY
"D>$ V*N-E./9 +,-) 012*3 J'E2* The best way to effectively reduce your sales cycle is to set up the next appointment while youre at the customers premise finishing up a meeting. Too often, salespeople leave a meeting without pre-arranging a time and date for the next meeting. This leads to a lot of telephone tag, and the next thing you know, several days if not weeks have gone by. When you finally do get a hold of the prospect, it might be too late, or they seem to have lost interest in the whole matter. Before you leave the meeting, confirm a time and date. If the prospect says, Well, I dont know when we can meet again. all you have to do is use the I Dont Know technique, to get your answer. Selllng Aln'L Pard.When ?ou know Pow!
70 "DB$ A&* (27*)/17.O* J2,3* In sales, the word close can be used to mean to close a deal or to get a commitment. The best way to insure that you close a prospect is by offering them an alternative. If they dont know which product they want to buy, offer them an option. If they dont know what day they can meet with you, offer them an option. For example, if youre selling a dryer and the prospect seems ready to buy, simply ask an alternative question to close the deal: Would you like it in green or just white? If youre trying to line up the next meeting, simply ask, Would Monday afternoon or Friday morning be best for you? You can even use this technique in your personal life. Instead of asking your spouse what they would like to do for dinner, rephrase the question as an alternative: Honey, would you like to stay in tonight or go out for dinner? If your spouse responds, Lets go out, then ask another alternative question: Chinese or Mexican dear? "DD$ Y*)Q12 F1E=19./9 How you say something can influence how it is received. For example, which do you think will sell better in the store: meat that is 90% fat free or meat with 10% fat? If you guess the 90% fat free, you win the prize. Both ads say the exact same thing, except 1he value of Money the message is packaged or presented differently and influences the way the buyer perceives the product. People like to ingest things that are fat free, and abhor eating anything with too much fat in it. Psychologists and behaviorists refer to this method of presenting as framing, whereby you, the salesperson, are framing how the product is perceived. "DH$ 0*g-*/E* +,-) Z88*) Id like you to take a look at these two options: Option 1: Gas $1.50, $1.65 with a credit card. Option 2: Gas $1.65, $1.50 paying cash. Even though both options are the same, if youre like most people youll be a little taken aback by Option 1. How dare the gas station owner penalize me $0.15 per gallon of gas, just because I use a credit card? On the other hand, if you see Option 2, youre a happy camper, because you have the option of saving money. The $1.65 in Option 1 is seen as a surcharge for gas, while the $1.65 in the Option 2 is seen as just that, an option. People love options, and they hate surcharges with an equal passion. How you present (i.e., frame) pricing and options can make or break a sale. Selllng Aln'L Pard.When ?ou know Pow!
72 "DK$ I-.2N./9 S/371/7 J)*N.Q.2.7' A man walks onto a car lot and shows interest in a particular car. The salesman immediately informs him that this particular car has a history of problems, and other available cars were better and less expensive. The man is stunned by the salespersons honesty. You walk into a restaurant to eat and order a particular dish. The waiter informs you that the last two patrons ordered the meal and didnt like it. The waiter then points out a similar item you might like, and it is a few dollars cheaper. The patron is taken aback by the waiters honesty. What do these two cases have in common? The salesperson and the waiter told the customer something they didnt expect to hear: the truth. What is the result? In both cases, the salesman and the waiter built instant credibility with their customers. "DM$ V*217.O* Y12-* ,8 C,/*' You go to the local store to buy yourself a new pen. You notice that the price is $20 but you distinctly remember seeing it at another store a few miles away for only $13. What do you do? Do you drive to the other store and save $7 or buy the $20 pen? Consider the following scenario. You decide to buy a suit for $500, but then remember seeing the exact same suit for $493 a few miles down the road. What do you do? 1he value of Money Do you drive to the other store? If youre like most people, you will make the effort to drive to the other store to buy the cheaper pen, but you will not do so for the high-priced suit. Money apparently has a relative value. In both cases, the savings are the same (i.e., $7) but when we take $7 as a percentage of the price, our perspective about the moneys value changes. The absolute value of money is apparently not so absolute, and is determined by the context of the purchase. This explains why its easier to sell an expensive suit first, then up-sell the inexpensive tie, as opposed to the other way around. "HP$ J-37,X*) Z).*/717.,/ If youve been to any of the large stores lately, you may have noticed that nothing is being sold within the first 10 feet of the store. Thats because studies have shown that customers need space upon entering the store to orient themselves. This space is called the transition space. Putting products at the door would be futile since customers will just pass right by them. In selling, customers need time to orient themselves to understand what youre trying to sell them, and how it applies to their needs. Never put your best stuff at the beginning of a sales pitch or presentation. The customer may not get it. Its better to spend the first few minutes laying the groundwork or providing background information of what you want to talk Selllng Aln'L Pard.When ?ou know Pow!
74 about before leaping into the details of what you have to offer. If you jump into the sales pitch too quickly, you may disorient, or worse, confuse the customer. As the saying goes, a confused mind never makes a decision, especially a buying decision. Orient the customer first, before beginning your sales pitch. "H#$ 0-/= J,37 W1221E' Someone gives you a $100 ticket to an event, but the weather is horrible for traveling. Do you go? If you paid $100, would you be more motivated to go? Studies show that most people would risk their safety and go to the event if they paid for the ticket. They feel compelled to go since they spent the money. This is called the sunk cost fallacy. Car salespeople use this technique all the time. A salesperson will try to keep you on the car lot as long as possible because the more time you invest (sunk cost) in trying to find the right car, the more you will feel compelled to make a decision as opposed to going through the whole process at another car dealership. In selling, you want to get the potential buyer to commit time to the sales process, thereby compelling them to seriously consider your product. You can get the prospect involved in the sales process in several ways. You just have to be creative. For example, you may have the prospect try out the product by using it 1he value of Money for a day, or maybe you can get the prospect to attend a training workshop. Whatever the approach, the more you can get the prospect involved in using or learning about your product, the more compelled theyll feel to buy. Create the pull of commitment, the sunk cost effect, by getting the prospect involved as much as you can. "H5$ J-37,X*)3 L.* Speaking of conversations with customers, lets talk now about how we find out what the customers real needs are. I mentioned that good salespeople not only listen for what is said, but also for what isnt said. Heres the thing. Dont be shocked by what Im about to say. Customers lie. Yep. Customers lie. They either withhold the truth from you or simply wont be honest with you when confronted. The psychology is fascinating. Customers distrust salespeople. Thats the unfortunate side effect of folks who have had bad experiences at car dealerships. One study showed that in an average 10-minute conversation almost three lies are told. So imagine how many can occur in 1 hour? Listen closely to what your customer is saying and verify by asking follow-up questions like, When you said X, did you really mean X? Selllng Aln'L Pard.When ?ou know Pow!
76
CHAPTER 9. ASSESSING THE SITUATION
"H;$ F),3G*E7./9 Of all the six stages in selling, prospecting is by far the most important; no prospects, no clients, no business, no money! You get the idea? In prospecting, the first step is knowing who youre selling to. Once youve identified your target market, the questions are; How do you get them to come to you? or How can you approach them? In sales, prospecting falls into one of three categories: Cold Call, Inquiry, or Referral. Lets take a look at each to help you determine which method of prospecting is good for you. "H>$ F),3G*E7./9 O.1 J,2N J122./9 Whenever you pick up a phone to call someone that you dont know, you are making a cold call. The objective of cold calling is to briefly introduce yourself and your company to the potential client. Selllng Aln'L Pard.When ?ou know Pow!
78 The hope is to generate enough interest that the prospect will want to set up a meeting to learn more about what your product has to offer. "HB$ F),3G*E7./9 O.1 S/g-.)' Many companies decide to market their product through radio, TV, newspaper, print advertisement, or via a promotional mail out. Either way, the prospect sees the promotion and decides to give you a call to find out more. This type of lead is called an inquiry. "HD$ F),3G*E7./9 O.1 V*8*))12 A referral describes someone who has used your product or service and has recommended you to a friend or colleague. You then decide to give them a call and mention your common friend or colleague as a way of breaking this ice. Many refer to this as a warm call as opposed to a cold call. If the interested referral contacts you, then I guess you can call that a warm inquiry Either way, the relationship starts from some reference point, instead of point zero. Assesslng Lhe SlLuaLlon "HH$ _, F1./^ _, 012*3 :1./ Studies have shown, that buyers are motivated more by their need to avoid pain than their desire for pleasure. Remember, your questioning strategy should be one where you constantly remind the prospect of what he or she stands to lose by not taking action (i.e., buying from you). Creating enough pain (or justification) in the prospects mind can only be done when you sit down and thoughtfully strategize the key questions to ask, and how each question will create a sense of urgency. Your questions should be geared to uncover the following information: a) Are they using your product today? b) If not, whose product are they using? c) Are they satisfied? If not, why not? d) If they say theyre satisfied, dig deeper and uncover the subtle discontents. e) Would they be inclined to use your product or buy from you ,if you could demonstrate your products superiority? f) Do they have the money to buy from you? g) Are you speaking to their decision maker? Can you think of any other questions you might want to ask? Selllng Aln'L Pard.When ?ou know Pow!
80 "HK$ L,@*)./9 V*3.371/E*^ A&*/ V1.3./9 (EE*G71/E* Many salespeople, when meeting a prospect for the first time, will immediately jump into their sales pitch. Theyll describe how their product or service can help solve the prospects need. What is the problem with this? The prospect feels overwhelmed, confused, and pressured to make a decision. What will be the result? The prospect will be ready to run away at the first opportunity that presents itself. So, what is the best to approach the situation? Begin by assuming every prospect you meet has a high resistance and low acceptance to whatever youre selling. Before you can get a prospect to accept what youre selling, you must first lower their resistance. How do you do that? Lets go back to our six phases of selling: prospect, qualify, investigate, present, propose, and close. During the first three phases of the sales process, your objective is to focus on asking questions and learning more about the prospect and their business. During these three phases, you can begin to establish a level of trust and credibility with the prospect by demonstrating, through your questioning, that youre more interested in what he or she needs than just selling something. If done correctly, you will begin to lower the prospects resistance to what you have to offer. It only makes Assesslng Lhe SlLuaLlon sense that once youve listened long enough and understood what the prospect needs, the prospect will reciprocate by listening to what you have to offer. When the information has been gathered to your satisfaction, and you feel that the prospect has told you all you need to know, the presentation phase of the sales process begins at that precise moment. Having lowered the prospects resistance, the next three phases of the sales process are focused on getting the prospects acceptance. The general rule is simple: you must first lower the prospects resistance during the first three phases, before you can seek the prospects acceptance in the last three phases. Seek first to understand, and once understood, begin to sell. Begin by understanding the situation. "HM$ 0.7-17.,/ 6-*37.,/3 Once you meet with the prospect and exchange pleasantries (e.g., nice weather were having, great office and location, how long have you been with the company, love your companys product portfolio, etc.), its time to get down to business. It all begins with easing into the phase of asking Situation Questions, questions designed to gather your prospects background information, and the current state of affairs as it relates to what you and your company are offering in terms of products and services. Selllng Aln'L Pard.When ?ou know Pow!
82 Here are some types of Situation Questions that you may want to consider. Supplier questions: Who do you currently use as your supplier? How long have you been using your current supplier? Motivation questions: What factors today contribute to your success with regard to (your product or service)? Are you looking for alternatives? If so, why? Buying process questions: How often do you purchase? What led to your decision on that particular vendor? Market questions: Who are your current competitors? How do you see our product helping you compete? When asking Situation Questions, the objective is to understand the current situation with the company and the quality of the current supplier relationship. Assesslng Lhe SlLuaLlon Each question should be aimed at answering two essential questions: 1) Are they a match for my product or service? 2) Are they in the right frame of mind to consider my product as an alternative to their current supplier? "KP$ Y*)Q12 :.87./9$ A&* a27.X17* V1GG,)7 I-.2N*) One of the biggest challenges we face with a new client or prospect is getting them to open up in order to help us understand their situation and then be able to provide an adequate solution. Unfortunately, clients and prospects are somewhat jaded by the sales process and immediately throw up a mental defense perimeter after a salesperson walks into the room. Think back to the last time you went to a car dealership. Before you stepped one foot on the lot, you were already preparing yourself for mental warfare. In fact, by the time you got to the car dealership, you felt this tense anxiety to turn back. As you walked into the dealership, you repeatedly warned yourself not to give out too much information because it might be used against you when it came down to negotiating a price. Sound familiar? Selllng Aln'L Pard.When ?ou know Pow!
84 Clients today are more reluctant than ever to give out information. However, without this free exchange of information and ideas, its hard to 1) build rapport and 2) offer the client our best product or service. So the question is, How do we get them to open up? One of the best ways of building rapport or getting someone to open up is to apply the rule of reciprocity. In the field of influence and persuasion, most people are familiar with the rule of reciprocity, which states that if we are gifted something, we feel the social pull to reciprocate in kind. Since no one likes to be in debt or indebted to someone else, we move swiftly to cancel the debt by repaying the favor in kind with something of equal or greater value. When most salespeople see a prospect, and after pleasantries have been exchanged, they dive right into asking questions. Theyll listen intently and then demonstrate understanding by asking another question. As salespeople, we already know in advance what critical pieces of information we need to qualify and/or sell the prospect. So we prepare a list of questions and then engage in the following sequence to gather the information: Step 1: Ask a Question Step 2: Listen Intently Assesslng Lhe SlLuaLlon Step 3: Demonstrate Understanding (Back to Step 1) The danger with this questionlisten sequence is that it can come across as an interview, or worse, an interrogation. A prospect who feels like theyre being interrogated will resist giving you information. By virtue of your countless questions, it will appear to them that you are there to take this information. As citizens in a society, we hate or resist takers in any form. To illustrate my point, heres an example of a salespersons first encounter with Bob, the prospect, whos looking to buy a car. E23*()*#('4F "24- 5, #*233/ 5( <', '7, <*#*I 6'1- ,<* &#'()*+,F J*( 5, 5($ E23*()*#('4F G*33 6'1- /'7 (**. 35H* 2 .24 9<' .*24( 17(54*((- (' 3*,D( A*, #5A<, ,' 5,$ 8( 5, 23#5A<, 5: 8 2(H /'7 2 :*9 K7*(,5'4(B 6'1F L' 2<*2;$ In the above example, no meaningful piece of information (i.e., a verbal gift) was offered upfront by the salesperson However, the salesperson does demonstrate that he respects the prospects time by wanting to get right to business. Unfortunately, at the cost of not taking the time to establish an atmosphere Selllng Aln'L Pard.When ?ou know Pow!
86 of mutual exchange, Bob the prospect is bracing himself for an interrogation by a taker. To avoid this stigma or any misunderstanding, its critical that from the onset when visiting a prospect you arent seen as a taker, but rather a sharer of information. The best way to do this is to insert a gift at the beginning by first volunteering a piece of information in the questioning sequence. Step 1: Volunteer Information (The Gift) Step 2: Ask a Question Step 3: Listen Intently Step 4: Demonstrate Understanding (Back to Step 1) Begin a conversation by first presenting the prospect with a verbal gift that will cause him to want to reciprocate. Let me define this verbal gift as some type of information about you or your company that has value and meaning to the prospect. Lets step back in time with Bob, the prospect, except this time, lets try using the verbal gift approach. E23*()*#('4F 6'1- 8 #*.*.1*# 17/54A ./ :5#(, +2# MN /*2#( 2A' 24; 5, 92( 2 O7,32(( E7)#*.*$ "24- 8 3'=*; ,<2, +2#$ G<2, 92( /'7# :5#(, +2#B Assesslng Lhe SlLuaLlon 6'1F "/ :5#(, +2# 92( ./ A#24;.',<*#D( '3; 1*2,P7)- 9''; )24*3 (,2,5'4 92A'4Q 2 #*23 +<5+H .2A4*, :'# 24 RS /*2# '3;$ >(2#+2(.? E23*()*#('4F E' 8 ,2H* 5, 2 9''; )24*3 (,2,5'4 92A'4 5( 4', 9</ /'7D#* <*#* ,';2/$ 6'1F T2<- 8D; 35H* ,' 3''H 2, ('.* ': /'7# 37U7#/ (*;24($ The salesperson, by volunteering a piece of personal information with meaning (e.g., we all remember our first car), presented Bob with a verbal gift that he then felt compelled to reciprocate by sharing his own personal experience about his first car. This allowed the conversation to get started without the salesperson feeling as though he was forcing the other to participate and vice versa. The prospect saw the conversation as an exchange of information, not a line of questioning. The rule of the verbal gift is simple: share something of value and the other person will reciprocate. The next time you meet someone for the first time, whether in a social or professional setting, try it out. I think youll be pleasantly surprised at how often people will open up to you by simply offering a verbal gift. Now is this rule 100% guaranteed? No, but Im willing to bet that your conversations with prospects Selllng Aln'L Pard.When ?ou know Pow!
88 will see a dramatic improvement by simply applying this rule. "K#$ A),-Q2* 6-*37.,/3 Listening carefully for trouble. When asking probing questions to uncover dissatisfaction, begin by asking general questions that relate to your product. Here are a few improvement questions you could ask: What areas do you think need improvement? If there were two or three things you could improve, what would they be? What are some capabilities youd like to have tomorrow, that you dont have today? What would you say is your number one issue with the product that youre currently using? These probing questions are meant to beat the bush to see what flies out of the prospects mouth. Listen carefully for soft trouble spots (e.g., the client shows dissatisfaction, but minimizes it at the same time). Gather as many trouble spots as you can during the conversation. Assesslng Lhe SlLuaLlon
CHAPTER 10. PRESENTING THE PRICE "K5$ <,/T7 V*1E7 ,) (E7 Salespeople who are looking for trouble spots will immediately react with some visual cue or change in audible tone, after hearing one. As soon as you react, the client may notice it and decide to pull back, and not speak so freely. In poker, the fastest way to lose your money is to telegraph your opponents the type of hand youre holding. The way to win and win big in poker is to let the opponent think they have the upper hand and that theyre in control. Every time a card is drawn, smart poker players will lull the opponents into a false sense of security causing them to commit deeper to the pot. Once hes gotten them to commit as far as he thinks theyre willing go he goes all in, catching the opponent by surprise and leaving them confused and unsure of themselves. Its no different in selling. If the client tells you something critical that you can use later to help you close the deal, dont show any emotion whatsoever, resenLlng Lhe rlce or you will cause the client to pause or even worse, stop feeding you good information. Allow the client to talk and encourage him to share as much as he can about the troubles theyre having. Dont interrupt. Just shut up and listen. Once in a while, throw in some momentum phrases: That sounds interesting, tell me more about that. You mentioned some discontent with this item, can you elaborate? When you first discovered the troubles you were having, how did you handle it? Sounds like youve had it rough. What did you do? The obvious purpose of these phrases is to nudge the client along in talking about the trouble theyre having with their current vendor or product. The more the client talks, the more information you gain, and the more the client starts to feel comfortable with sharing. Youll build faster rapport and trust by listening and empathizing with the clients situation. "K;$ A&* F3'E&,2,9' ,8 J,/3.37*/E'l(91./k Human nature dictates that people hate to admit when theyre wrong, and they will become more defensive when a decision theyve chosen is threatened. This is Selllng Aln'L Pard.When ?ou know Pow!
92 often referred to as the Psychology of Consistency. Once a person makes a decision, they will behave in a manner that supports that decision. Studies have shown a persons conviction will grow significantly once a decision to buy has been made. In other words, once a person makes a decision, they will justify and rationalize why they made that decision. Another aspect of consistency that needs to be considered is the fact that the more public that decision is, the more the prospect will defend that position. If the person youre dealing with was involved in the previous decision to go with another product, they will undoubtedly be more reluctant to tell you what the trouble spots have been with the product since the purchase. At this point, you will experience friction. In other words, the client will resist giving you the answer you need to be more effective. This means you will have to be more persistent in dragging it out of him. Its critical to find out if the person youre dealing with was involved in the selection of the current product youre trying to compete against. If the person was, then you may have to find a way to blunt the consistency factor. Look for parameters that will allow the person to save face. resenLlng Lhe rlce "K>$ (XG2.8' 6-*37.,/3 When confronted, a client may try to characterize his troubles as minor irritations that the company has had to endure. The client may be in denial or simply hasnt considered the consequences of these trouble spots. This is where you will now focus your attention turning those trouble spots into tangible expenses for the company. The goal is to amplify the trouble spots to such an extent that the client begins to see the impact on a much broader, company scope. An Amplification Question typically follows an open or closed question and seeks to highlight the impact of a given problem. Amplification Questions are essentially used for exposing the real impact of a problem and creating a sense of urgency on the clients part to act and correct it. For example, lets say youre selling a computer program that will allow a prospect to access their information 24/7, from anywhere in the world, from any computer. The prospects current system can only be accessed from a company computer in the office and only during working hours. Selllng Aln'L Pard.When ?ou know Pow!
94 As a salesperson, what you can do is put the consequences of not having certain features into question form to amplify the problem for the client. For example: 1. How does not having 24/7 access impact productivity? 2. What kind of problems does it create when you have to generate reports? 3. Is limited access creating delays in paperwork? If so, how is it impacting delivery times? Notice that each question is geared at amplifying (as opposed to the prospect minimizing) the problems. "KB$ V-2* ,8 (33,E.17.,/ Most salespeople, seeing that the client now understands the need for change, would seize the moment to make their product pitch. This isnt a bad approach. But there is a psychological mood at play that might hurt you unless you address it right there; its called the Law of Association. Now the buyer associates you with bad news (i.e., youve amplified the pain), which makes it unpleasant to continue the discussion. If you tell the resenLlng Lhe rlce client that you have a solution, you are telling him what he should do. The most effective strategy is to get the client to tell you how your products would help him alleviate his newfound concerns. Let me give you an example to illustrate my point. Early in my career, I knew an individual, well call him Joe, who would tell me what I was doing wrong whenever he saw me. He told me what I should do, but for some reason I never wanted to listen to him because he was always so negative. It got to the point that just looking at Joe coming down the hallway, would put me in a bad mood. My brain, without my consent, associated bad news with Joe. From that point on, Joe couldve had the best ideas in the world, but my state of mind would not permit me to listen to him. When you talk to a client and all you do is bring up all the troubles hes having and then ask him questions that only amplify those troubles, the client may have the same reaction I had to Joe. He might just shut down on you and go to someone else to help solve his problems. People dont like to be told theyre wrong, but they like to be shown how right they are. So before jumping into the product presentation, lets go ahead and make the client feel good about his need Selllng Aln'L Pard.When ?ou know Pow!
96 for change. Lets reward him with compliments on his insight into the problem. How? See the next rule. "KD$ V*@1)N 6-*37.,/3 Once youve identified the trouble and amplified it to the point that the buyer sees the full impact of what he thought was minor, he is now in a state of mind to listen to your product proposal. A Reward Question is similar to an Amplification question, with one key difference. A Reward Question is positive, and an Amplification Question is negative. Lets go back to the example where the company doesnt have 24/7 access to their computers, which caused the following trouble. We took these three trouble spots and created amplification questions to bring the totality to the prospects: 1. How does not having 24/7 access impact productivity? 2. What kind of problems does it create when you have to generate reports? 3. Is limited access creating delays in paperwork? If so, how is it impacting delivery times? resenLlng Lhe rlce Notice that these three questions are negative in tone, which is useful if you want to generate pain and a sense of urgency. Reward questions on the other hand are positive in tone, and allow the client to elaborate (i.e., dream a bit if you will) on what it would mean to have these troubles resolved. For instance: E*33*#F >V.)35:/? W'9 ;'*( 4', <2=54A MXYZ 2++*(( 5.)2+, )#';7+,5=5,/B 67/*#F [5A<, 4'9- 9* <2=* #*)'#,( 1*54A A*4*#2,*; 32,*- 9<5+< 54 ,7#4 +27(*( +'4:7(5'4 24; ;*32/( 54 ;*35=*#/$ E*33*#F >[*92#;? G'73; <2=54A 2++*(( *35.542,* ,<'(* +'4:7(5'4( 24; ;*32/(B 67/*#F V1('37,*3/$ E*33*#F G<2, *3(* .5A<, 5, 5.)#'=*B 67/*#F G*33- 5, 9'73; <*3) 7( ,#2+H '7# 54=*4,'#/ 1*,,*#$ E'.*,5.*( ,<* #*)'#,( 2#* (' ;*32/*; ,<2, ,<*/ ;'4D, #*:3*+, '7# ,#7* 54=*4,'#/$ E*33*#F >[*92#;? W'9 9'73; <2=54A 2++7#2,* #*)'#,( <*3) /'7 (2=* .'4*/B 67/*#F E'.*,5.*( 9* '#;*# )#';7+,( 9* ;'4D, 4**; 1*+27(* ,<* 54=*4,'#/ #*)'#,( 2#* '3;- 9<5+< .*24( 9*D#* ()*4;54A .'4*/ Selllng Aln'L Pard.When ?ou know Pow!
98 744*+*((2#53/- 9<5+< #*;7+*( '7# )'(5,5=* +2(< :3'9$ The goal of Reward Questions is to get the buyer past the pain of not having, and into a state-of-mind that sets up a what if scenario. This will allow him to think about the positive aspect of resolving other problems that are a consequence of the immediate problem. "KH$ A.*[<,@/ Lets do a quick summary of where we are at with S.T.A.R.T. system. Up to this point weve learned to understand the prospects current Situation by asking key question about current performance. We followed that up by specifically keying in on Trouble they might be having with their current supplier. Up to this point, the goal has been to create awareness on the prospects part. The next step in the process was the need to really dig for some pain by highlighting the real price of not addressing key issues to the prospect. In terms of time and money, it really was costing the prospect. Using the Reward step, you get the prospect to see the upside and benefit to resolving some of the current issues. If you did your job, the prospect should be feeling a sense of urgency to resolve his problems. resenLlng Lhe rlce It is now up to you, the salesperson, to begin to tie- down the prospects needs by demonstrating how your product or service will help the prospect. The last step in this S.T.A.R.T. system is the Tie- Down. A tie-down can best be described as a summation question posed by a salesperson seeking to get some form of agreement or commitment from the prospect. Tie-downs are powerful closing techniques that can be used to get the prospect to commit to buying or to simply get the prospect to agree with what youve stated. Tie-downs can be used in small (simple) and large (complex) sales, but how you use them to close a sale differs. "KK$ A.*[<,@/ ./ 1 0X122 0.XG2* 012* In a small sale, the prospect is less conscious of price. A tie-down can be used to gain the prospects commitment right there and then. For example, after having created the need and urgency, you may try to tie a prospect down for a commitment by using some commonly used tie-down phrases: Based on what Ive shown you, you can see why buying now would be a good idea. Am I right? Selllng Aln'L Pard.When ?ou know Pow!
100 Now that youve seen the product, lets go ahead and get the process started. Does that sound good to you? Seeing is believing, and you have to admit that buying this watch makes sense, dont you think? Even you must agree, this is a great deal for the price. Lets go ahead and write up the order. Hows that sound? If youre selling an item that isnt high priced and isnt that much of a commitment to the prospect, these tie-down techniques are viable and have been shown to work. "KM$ A.*[<,@/3 ./ L1)9* J,XG2*c 012*3 When selling a high-value item, the commitment to buy now requires a greater risk on the part of the prospect. Do you think a decision can be made quickly? I have my doubts. The sales value equation is simple: the more a prospect has to pay, the more time he needs (i.e., hand holding) before hell commit to buying the item. Higher value means a higher risk to the prospect. Simple tie-down techniques, like the examples above, may prove to be more harmful than helpful in your selling process. resenLlng Lhe rlce For example, if you havent built enough value into your sales presentation and then lunge into a tie-down to close the sale, the prospect will push back and say, Whoa! Wait a minute. Im not ready to lay down that type of money based on what youve told me. Many sales books today apply a one-size fits all mentality when it comes to closing a sale. Using high-pressure closing techniques (i.e., tie-downs) may work when trying to sell a $10 watch, but will fail miserably when youre trying to sell a high-end item. A complex sale is one where the item to be purchased is so expensive that it requires multiple people to make the final decision. More people involved means the sales process just got a bit more complex, and requires a more systematic approach to getting the prospect to agree to a purchase. In a complex sale, tie-downs occur throughout the sales process and not just at the end of a sales pitch. Every time youve made a point, demonstrated your products competence, and sought after the prospects agreement, you are essentially using a tie-down. A tie-down in a complex sale is more akin to an agreement or acknowledgment. If done correctly, by the time youre ready to present your product or service, youve already gotten a Selllng Aln'L Pard.When ?ou know Pow!
102 series of commitment statements from the prospect. As you demonstrate your capabilities, you tie each feature/benefit to the commitment statements (or agreements) that the prospect has made previously, regarding the importance of a particular feature. "MP$ F).E* <.37,)7.,/ d A&* C19/.8'./9 \88*E7 Daniel Putler, a former researcher at the U.S. Department of Agriculture, tracks and studies, of all things, egg sales in California. In his studies, Putler discovered an interesting dynamic in consumer buying habits when the price of eggs fluctuated. He noticed that when the price went down, consumers bought more eggs. No surprise here. Putler also discovered that when the price of eggs went higher, consumers cut back on their buying two and half times (2.5!). He found that consumers over react when they see a price increase. Putler had encountered the rule of asymmetry in egg sales. Asymmetry exists when one thing goes up (or down) and the other goes in the opposite direction, but with greater magnitude. Putler found what economists have known for quite some time: price increases act as judgment magnifiers. Buyers are more averse to loss than they are to the pleasure of gain. resenLlng Lhe rlce Lets take Putlers finding beyond eggs. If you were to find a $50 bill, youd feel real good. But if you lost $50, you would feel two and half times worse compared to the joy of having found $50 bill. This aversion to loss (i.e., not wanting to feel the pain of losing something) causes people to make irrational decisions. This may explain a clients behavior when we raise the price of our product. If you give a client a price break, he or she may feel some joy or sense of satisfaction. Keep in mind that you have also set a precedent (i.e., the client will expect a discount every time he buys). And if you do raise the price, keep in mind that the client is going to over react and experience 2.5! dissatisfaction, and may choose to go elsewhere. Clients forget quickly when you give them a great price or discount, but they wont forget the 2.5! pain and discomfort you caused them when you increased the price.
CHAPTER 11. RULES OF PERSUASION
"M#$ A&* <.3E,-/7 <*E*G7.,/ The University of Ohio did an interesting study. You might find it interesting, especially if youre a proponent of giving product or service discounts. The school had a theatre department that sold season passes for 10 shows put on during the semester. The folks at the university wanted to test the effect of discounted ticket prices on the shows attendance for that particular semester. When a person was approached about buying season tickets for $15, they were offered one of three types of season passes. Out of the 60 students in the test group, one group was sold a season pass at full price. The second and third groups were sold season passes with a discount of $2 and $7, respectively. The two groups receiving the discounted passes were told they were receiving a promotion discount from the theatre company. All three groups had access to good seats. 8ules of ersuaslon The folks at the University wanted to see if offering discounted passes as opposed to full-price passes would make a difference in the attendance for the 10 shows. The results were as one might expect. Those who paid full price showed up more often than those who received discount passes. Our initial impression of things causes us to view things in such a way that is consistent with our initial impression. Simply stated, in the case of the discounted season passes, if its a cheap ticket, then it must be a cheap show. Therefore, buying something cheap causes us to devalue or view the object as having little to no value. In selling, the tendency sometimes is to provide the client a hefty discount as an inducement to buy our product. But given the University of Ohios study, I think its worth pausing for a moment to reflect on how the buyer might view your proposal. Weve all been in a situation when someone offers us such a good deal that we wonder, Whats wrong with this picture? So it should come as no surprise that your buyer, upon receiving a very low price (big discount) may think, Why are they selling it so cheap? Whats wrong with it? Buying something at a price thats too good to be true may set up in the buyer's mind a discount deception. Selllng Aln'L Pard.When ?ou know Pow!
106 Just like the season ticket pass holders, the buyer may choose not to use the product even after the purchase (i.e., devaluing the item from the beginning). Value attribution is about controlling perception, and the last thing you want is a buyer to associate you (or your company) with selling cheap products or services. The unintended consequence of heavily discounting a product may be that the buyer, sensing little value, chooses not to buy any other products in the future. Be careful! "M5$ _,NN./9$ F-XG./9 7&* F),3G*E7 8,) S/8,)X17.,/ Lets go back to the premise that the best salespeople are usually the best listeners, and lets analyze more closely why that might be so. Weve all known that person who was able to squeeze out more information from a prospect, and were left wondering how. One study in particular may provide us with a clue of why that might be so. Research conducted on human behavior has revealed that using a head nod encourages the other person to talk. Its our way of saying, Go ahead, youve got the floor. It has also been shown, that nodding your head in intervals will encourage the other person to speak. One study showed that individuals will talk three to four times 8ules of ersuaslon longer, just by encouraging them with repeated head nods. The psychology of why this works is rooted in a need to satiate our ego and validate ourselves to others. When youre listening intently and agreeing with what the speaker is saying, you are validating what they are saying. That validation is hard wired to their ego (i.e., their need to demonstrate their authority on the subject) and helps their self-esteem. When self- esteem rises, the speaker is emboldened to continue to pontificate or share information. The person speaking gets a good feeling when others listen and care about what he had to say. The attention paid to them further encourages them to keep speaking, which is why they cant keep themselves from talking. The next time youre speaking with a client, try encouraging them to speak with repeated head nods. When you ask a question, become silent and wait for them to start speaking. When they start talking, encourage them to continue by adding in some frequent head nods and some pensive stroking of the chin for good measure. So you see, not only are the best salespeople in the world good listeners, they've also mastered the art of nodding their heads and stroking their chins! Selllng Aln'L Pard.When ?ou know Pow!
108 "M;$ V-2* ,8 L.=./9 We are more likely to be persuaded by people we like, know, and trust. We favor buying from people we like. "M>$ V-2* ,8 V*E.G),E.7' When someone gives you something, you feel a sense of obligation to return the favor in kind. "MB$ A&* \/N,@X*/7 \88*E7 Studies have shown that once you believe you own something, you will be more reluctant to give it up. This psychological attachment is known as the endowment effect, which states that people will value a good or service more once they see it as their own. One example of this effect is highlighted by Barry Schwartz in his book, The Paradox of Choice, where he illustrates how to employ this strategy in sales by playing on peoples inability to part with what they perceive as their possession. In this example, two groups of car buyers were set up to be sold under different conditions to test the endowment effect. 8ules of ersuaslon Car owners in the first group were asked to buy a car that was fully loaded with all the features one could possibly want in an automobile. The owners were then told to go ahead and take off any of the options from their list before finalizing the deal. A second group of car buyers were given the opposite task. They were given a car with no options, and were asked to add the options they desired. It should come as no surprise that the first group ended up buying cars with more options. Why? Once the car buyers in the first group mentally bought into their car and saw it as theirs, they were more reluctant to give up options that they would perceive as mental losses. The emotional cost of eliminating an option outweighed the price of owning the option, so they kept it. Remember, the emotional impact of a loss (i.e., giving up something) is stronger than the desire for gain (i.e., adding something). A buyer who takes mental ownership of a purchase will hold on to more options (buy more) to minimize the pain of having to give something up. You may be thinking, But doesnt adding features give the client some sense of satisfaction? Why not add options instead of subtracting them? A great Selllng Aln'L Pard.When ?ou know Pow!
110 question! Studies have shown that, in absolute terms, you will be more impacted by a loss versus a gain. "MD$ W,,7[S/[A&*[<,,) As a kid growing up in the inner city of Chicago, it wasnt unusual to see vagrants and drug dealers loiter about the streets. Id often see them go up to a stranger and bum a cigarette: Hey man, you got a smoke? The stranger would nod yes, handing the vagrant a cigarette and a lighter. After lighting the cigarette, taking a few puffs, and returning the strangers lighter, the vagrant would thank the stranger and then ask, Hey, do have any spare change in your pocket so I can get something to eat? More often than not the stranger would dig into his pocket, pull out a few coins, fork them over, and continue on his way. If they didnt know the stranger was a smoker, a much safer approach was to ask them for the time of day: Hey mister, can you tell me what time it is? And then theyd follow up with the spare change request. One in particular called the Foot-In-The-Door (FITD) technique brought these inner-city memories back. The FITD technique involves making a small, 8ules of ersuaslon negligible request first and then following up with a much larger request. The first small request (i.e., Initial Request) is a setup for the real request (i.e., Target Request). Studies have shown that if someone agrees to your first request, they are likely to agree to your second request. "MH$ W./N./9 7&* <,X./1/7 I-'./9 C,7.O* The first step is to identify the buyers Dominant Buying Motive (DBM). A DBM is the primary reason a client will buy from you. Lets say you walk into a store with the purpose of buying a dryer. The DBM is the need to be able to dry clothes. But if we look beyond the DBM well see that there are other mitigating circumstances that are supporting the DBM. Let me illustrate my point by using the need for a dryer to dry my clothes as my DBM. I also know that by having a dryer I will also solve other issues or concerns. For instance: I wouldnt have to hang the clothes out to dry on the clothesline, which will save me time, effort, and some embarrassment. I dont have to go to a public Laundromat to get my clothes dry. The current dryer isnt effective, so the clothes smell of mold. Selllng Aln'L Pard.When ?ou know Pow!
112 A good dryer could help me reduce my ironing time. I wouldnt have to dry clean certain items thereby saving some money. My current dryer is an energy hog and I keep blowing a house fuse when I use it. So you see, although my DBM is the need for a dryer to dry my clothes, I also have mitigating circumstances and reasons that support my buying a new dryer. In selling, most people just attack the DBM by telling the buyer that having a good dryer is a good thing, and then they go on to explain all the latest bells and whistles (i.e., features) that come with the dryer. A more effective strategy would be to emphasize how having a dryer will solve the other mitigating circumstances surrounding a good dryer. "MK$ V*O*)3./9 W.*2N [ I-.2N./9 V1GG,)7 1/N J)*N.Q.2.7' One of the fastest ways to build rapport and trust is to prove, in concrete terms, that you are looking out for the clients best interest. Zig Ziglar said that people dont care how much you know until they know how much you care about them. One tried and true strategy that I use to prove to a client that I care is something I call Reversing 8ules of ersuaslon Field. In football, when a player carrying the football reverses field, he goes the opposite way to avoid getting tackled by the defense. In sales, when someone thinks youre going to go one way, you surprise them by going the other way, thereby catching them off guard. 0E*/1)., J'7 923H 54,' 2 #*(,27#24, 24; ,<*4 2#* *(+'#,*; ,' /'7# ,213* 1/ ,<* A#**,*#$ W* ,*33( /'7 ,<2, /'7# 925,*# 9533 1* 1/ 54 2 07(, 2 .'.*4, ,' ,2H* /'7# '#;*#$ V:,*# 2 :*9 .547,*( A' 1/- 2 45+* /'74A .24 54,#';7+*( <5.(*3: )'35,*3/ 24; 2(H(- !"2/ 8 (,2#, /'7 '7, 95,< 2 1*=*#2A* '# 2 ;#54HBC J'7 '#;*# /'7# ;#54H 24; ,<*4 ,<* 925,*# ,*33( /'7 21'7, \';2/D( E)*+523($ V:,*# #2.1354A ':: ,<* 35(, ': ()*+523,5*( 24; 1*:'#* <* K75+H3/ ;2#,( ':: <* (2/(- !]*, .* A' A*, /'7# ;#54H 24; 8D33 1* 12+H ,' ,2H* /'7# '#;*#$C "547,*( 32,*# ,<* 925,*# +'.*( 12+H 95,< /'7# ;#54H$ \<*4 <* A#21( <5( )*4 24; 4',*)2; 24; 2(H(- !V#* /'7 #*2;/ :'# .* ,' ,2H* /'7# '#;*#BC J'7 ;*+5;* ,' '#;*# '4* ': ,<* E)*+523($ \<* 925,*# )27(*( :'# 2 .'.*4, 24; 3''H( 2, /'7 24; (2/(- !\<* 32(, ,9' )*')3* 8 <2; 54 <*#* 1*:'#* /'7 '#;*#*; ,<* (2.* )32,* 24; 54 1',< +2(*( ,<*/ 9*#*4D, =*#/ <2))/ 95,< ,<* 92/ 5, 92( )#*)2#*;$ 8: /'7D#* #*233/ <74A#/ :'# ,<2, ,/)* ': ;5(<- ,#/ ,<5( ',<*# ;5(<$ &*')3* 3'=* 5,I 8,D( Selllng Aln'L Pard.When ?ou know Pow!
114 2 15AA*# (*#=54A 24; ^_ +<*2)*# ,<24 ,<* E)*+523$C J'7 54(,54+,5=*3/ 2A#**$ V( ,<* 925,*# 3*2=*(- /'7 ,<54H ,' /'7#(*3:- !G'9- 9<2, 24 <'4*(, 925,*#$ T', '43/ ;5; <* (2=* .* :#'. '#;*#54A ('.*,<54A 8 .5A<, 4', 35H*- <* (2=*; .* ^_ 54 ,<* )#'+*(($ 8 35H* ,<5( H5;$C V*3-27$ \<* .*23 92( A#*2,$ J'7 7(7233/ ,5) R_`- 17, :'# <5( <'4*(,/ 24; H54;4*(( /'7 :**3 ,<* 4**; ,' #*+5)#'+2,* 24; (<'9 /'7# 2))#*+52,5'4- (' /'7 ;*+5;* ,' 3*2=* ,<* H5; 2 MN` ,5)$ The old adage that honesty is the best policy holds true here. With so much information available to buyers today, they need someone they can trust who wont steer them in the wrong direction when making a purchase. This is the premise of consultative selling. People need help making critical decisions. Position yourself much like the waiter and car salesman, as trustworthy, and you will reap the benefits in the end. Seek to serve, then to sell. uemonsLraLlng goodwlll ls a powerful lnfluenclng Lechnlque, lf done correcLly and wlLh lnLegrlLy. 8ules of ersuaslon "MM$ %&*/ 7, J,/3,2.N17* ,) F1)7.7.,/ +,-) F).E*3 Lets say that youre the new software manufacturer on the block who sells a software package to the high-tech industry. Youve been asked by a potential client to submit a bid. You see this as a great opportunity to win your first big client but you have a dilemma. How should you submit your bid? Should you offer one consolidated price or should you offer partition pricing where you break down the pricing item-by-item? Consolidated Pricing: Software: $199.00 License Fee: $0 Upgrade Fee: $0 Tech. Support: $0 Total $199.00 Partitioned Pricing: Software: $145.00 License Fee: $5.00 Upgrade Fee: $10.00 Tech. Support: $36.00 Total $199.00 Selllng Aln'L Pard.When ?ou know Pow!
116 Studies show that companies with low reputations caused buyers to be a little more suspicious, and they paid greater attention to pricing. The majority signed up if the prices were consolidated. On the other hand, its no surprise that the company with a high reputation didnt have a problem getting participants to sign up with either consolidated or partitioned pricing. It is worth adding that the consolidated pricing got a higher close rate than partitioned pricing. If youre in a business space where youre the new kid on the block or the unknown entity, the best thing to do is to propose one bottom-line price. Youre the low reputation company that no one has ever heard of, which could be a problem when bidding on a deal. Consolidate all your features, add-ons, support, and so on under one price to avoid triggering any suspicion or hesitation on the part of the buyer. 8ules of ersuaslon
APPENDIX A: RESOURCES Other Books by Victor Antonio The Logic of Success Cold Calling Success Why the Squirrel Kept Winning Response Block Selling Sales Psycho Winning Back the Business Appendlx: WorksheeLs
APPENDIX B: WORKSHEETS COMMITMENT EXERCISE Think of something youd like to achieve and then quantify your goal just like I did with the new car. [Find a picture (e.g., cut it out of a magazine) that represents your goal & paste it right here] (1) Object of your desire: ____________________ (ex. Car) (2) Cost of this object: _______________________ (ex. $36,000) (3) Average commission per sales: _____________ (ex. $200) (4) Months to complete this goal: ______________ (ex. 12 months or 1 year) (5) How many sales needed: ____________________Take (2) divided by (3) Selllng Aln'L Pard.When ?ou know Pow!
120 (6) How many sales per month: ____________________Take (5) divided by (4) Commitment Statement I __________________________________ (your name) hereby commit to directing all my time, energy, and resources to achieve the above goal by ___________ (date). Sign right here: ___________________________ Todays Date: _________________ Witnessed by:_____________________________
Appendlx: WorksheeLs
ABOUT THE AUTHOR Victor Antonio is proof that the American dream of success is alive and well. A poor upbringing from one of the roughest areas of Chicago didn't stop Victor from earning a B.S. Electrical Engineering and an MBA, building a 20-year career as a top sales executive, and becoming CEO of a multimillion dollar high-tech company. Prior to being CEO he was President of Global Sales and Marketing for a $420M company. He was tasked with building a global sales force, establishing contract agreements, developing financial pricing models, and in charge of developing the corporate brand and marketing the company's services for worldwide acceptance. Before that he was Vice 5"3/($ 6+/(+"( AbouL Lhe AuLhor
President of International Sales in a Fortune 500 $3B corporation at the time. Within a two-and-a-half-year time period he grew their business from $14M to $98M in annual revenue. During that time his sales totals were $162M, and he was selected from over 500 sales managers to join the Presidents Advisory Council for excellence in sales and management. This is a guy who loves to sell and teach others how to do it! In his own words, "It wasn't until I got into sales that I fully realized the opportunities selling afforded a person! If you like independence, aren't afraid of personal accountability, and want to control your earning potential, then sales is for you! All others need not apply!" His success in sales and management also helped him establish channels internationally. He has conducted business in Europe, Asia, Latin America, The Caribbean, South Africa, and The Middle East. Victor has shared the big stage with some of the top business speakers in the nation including: Rudy Giuliani, Zig Ziglar, Dr. Robert Schuller, Paul Town (Author of Rule #1), Paul Ortellini (CEO of Intel), John May (CEO of FedEx Kinkos), and many other top business speakers. http://www.victorantonio.com/
Jeffrey Gitomer - Jeffrey Gitomer's 21.5 Unbreakable Laws of Selling - Proven Actions You Must Take To Make Easier, Faster, Bigger Sales... Now and Forever-Bard Press (3 Sept 2013)
10 Top Tips For Creating An Ethical Sales & Marketing System (Build A Successful Business Without Compromising Your Integrity, Your Conscience Or Your Faith)