Posts Tagged ‘close the sale’

Your Sales Ingredients to Success: Part IIIc

May 3, 2008

Now that you have listened and gathered as much information as possible during the “question session”, it is now time to move on to the stages of negotiation.

Negotiation

The challenge most sales people seem to have here is the excitement they have of selling the features of their product instead of focusing on how their product is actually going to help them out. So the first law of negotiation is to remember that you are there to make a recommendation, not sell them on how good your product is.

Let me illustrate: I had a New York Life sales agent come to my office several months ago to present some interesting information to me. I have to admit he did not really ask many questions as to what was the best thing for my family. Instead, he proceeded to take out his laptop and give me his rote presentation on the features of a new program that had come out recently and was thoroughly excited about it. I admired his enthusiasm. He definitely knew what he was talking about. But I was not interested. He had no clue what I really wanted, he wanted to show me what “he” thought was best for my family and I. Instead of making a recommendation to fix what I wanted or needed, he only told me what he wanted me to hear.

The sad part is I actually thought the new program was a good one. But I didn’t purchase the program from him.

So you may ask, Steve, what do you mean make a recommendation? Well think about it. Why would you spend all that time asking questions, gathering information, and discovering the issues your prospect has just to end up sharing the same presentation over again that you have shared before?

So personalize it!

Your goal is to fix a problem, not sell them on the same idea that you’ve shared with countless others over and over again.

Application-Based Presentations

So the solution is for you to be so knowledgeable about your product or service that you are not being spontaneous about the presentation, rather you are well prepared to focus on those items that need to be addressed with the same excitement and enthusiasm you have to share your rote presentation. And do it in a different order!

One of the best ways to address this in the negotiation process is to involve the prospect as much as possible. Let them feel it, touch it, experience it, etc. Remove the fear and confusion by having them test it out as much as possible to see what you are recommending rather than just making the recommendation. If it has to do with numbers, let them punch the numbers in the calculator, etc. This allows them to mentally transfer ownership to themselves prior to signing the paperwork. This is very powerful!

The Price War

This is the most common issue that comes up in any negotiation process. If you are an amateur, your greatest fear is the price. The veteran never sees price as an issue.

The great news is that the answer to this is simple. I will write a very small article after this post to address the issue of price and how you can avoid these issues in more detail. The simple answer is if price is still an issue, you have not created enough value for your product or service. That is the only answer.

This is why the section I wrote on questioning is so critical. You need to know everything. You need to know all the problems that need to be satisfied. You must know the challenges, risks, and other struggles that they are trying to avoid and are important to them.

Address these issues first. Never discuss price until all items are discussed. You need to create a perceived value before issuing the price. If they see the value it must be higher than what they are willing to pay. A lot of the times sales people think they need to price things down to get the deal done. Guess what? You’re wrong! Because guess what happens the next time you meet? They will want it cheaper! The cheaper you go the cheaper they will want it and the cheaper they will expect it or look elsewhere. Just remember: Cheap is cheap. go back to the values and what your service or product will accomplish for them. Be specific. Always point out how each benefit helps their issue at hand. Never assume they will know what the benefit is!

So as promised, the next post will address price in a bit more detail and then on to the final ingredient in your recipe for success!

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