Business is slow

When the customer says this to you as the salesperson you want to first acknowledge the statement. NOT AGREE with it! Successful sales calls have over twice the number of acknowledgements as unsuccessful sales calls according to the research conducted in the development of the Achieve Global Professional Selling Skills seminar (PSS). As the largest provider of the program for the last two consecutive years I would like to share some things that I have discovered that work for my clients that use the PSS skills. Not the ones that just give it lip service!

When the customer says "Business is down right now," we need to understand what is going on. This person knows the facts and business is down or this person does not know the facts and have been told to say this. Either way the job of the sales person in a down economy or an up economy is to serve their customer with ways to differentiate themselves in the market. It is our job as salespeople to assure that our clients and customer do not suffer from the down turn.

EXAMPLE:

Customer: Business is down right now.

Salesperson: I am sure you have plans for improving this situation. Having a relationship with us as a supplier at times like this is the very reason why we should be talking today. Our products or system can help you. Can I ask you some questions to help highlight how we can improve your business right now?

Customer: YES

Salesperson: Turn to the indifference probing model - If you have not taken PSS - this would be the time to make a call to learn more about our work - 518-869-8600.

EXAMPLE:

Customer: Business is slow, we have put a freeze on all new orders.

Salesperson: Prioritizing purchase decisions is extremely important. WHAT DO YOU THINK THE REALLY BIG COMPANIES IN YOUR FIELD DO WHEN BUSINESS SLOWS DOWN A LITTLE? Do you think that they completely cut off all purchases and board up the windows? Of course not. I respect your need to prioritize purchasing decisions. I suggest that you think like your large competitors. Cut back on purchases, but still make vital purchases, let me remind you why our product offerings are vital in any economic condition.

Customer: Okay

Salesperson: Turn to the indifference probing model - If you have not taken PSS - this would be the time to make a call to learn more about our work - 518-869-8600.

EXAMPLE:

Customer: Oh it is so terrible - We are loosing our shirts business is so bad!

Salesperson: Taking time to evaluate our wardrobe is extremely important! Business is slow right now?

Customer: You said it is.

Salesperson: Then, this is the perfect time for us to configure an order for your business. When business is booming, your people do not have the time to learn how to effectively impliment new products it your operation to increase sales and reduce expences. Now, while time are temporarily slow is the perfect time to get into this new product so that we can dedicate the time to training on the new offering and to do sales clinics on selling more of the product at our lower cost footprint! When business picks up, they will be skilled on the product offering.

Customer: Mmm that is an interesting perspective.

Salesperson: Many of our customers have said the very same thing. May I explore a few thoughts with you? Now revert to the indifference probing model.

What is all of the doom and gloom all about?

For those of you that have attended my Professional Selling SkillsTM (PSS) classes this past year and beyond there is a message that I keep getting from you about the selling conditions today. Yes these are turbulent times! A down economy is just the time for us as sales professionals to differentiate ourselves. Now is the time that sales people are exposed as it relates to their weak or limited capabilities. Some of your very best will discover and be discovered for their failure to build and develop their skills.

Let me share the "Leaky Bucket" story with you in terms of you as the salesperson. For the sake of illustration, try to think of yourself as a leaky bucket (hopefully something you don’t do too often). The tiny holes in the bucket are flaws, mistakes, areas in need of format improvement in your PSS skills.

The water represents lost sales opportunities — whether those opportunities are new clients, expanded product sales, new tickets, new kit boxes, more units, more contracts, better networking relationships, more production opportunities, more affiliations with your business and so on. Close up more of those holes, and you retain more opportunities to move towards your goals.

You will never close them all, but you can work to close as many as possible. The process begins with pin-pointing where you need to improve.

Some of the more critical areas that need improvement are:

• Have a written call plan and call objective - New and old sales people have gotten sloppy in the stronger economy and have forgotten to have a plan. Sales just came to easy before. Frankly it is sad they may have actually been better with call plans and objectives. It is just that sales people became satisfied with less when things were good.


• Knowing how to deal with customer concerns COLD! So the customer is indifferent - what did you expect? Are you even calling on the right person? Do you settle to have a relationship with the purchaser only in good times? Are you known to the owner? When the economy shuts down the first thing an owner does is they tell the purchaser to stop purchasing! How will you differentiate yourself if you do not sell to the Very Important Top Executive? Let me give you a clue - you will not! You settled before so now you pay the price - SORRY.


• Ask for referrals - I am amazed at how shy salespeople are to ask for introductions to people in the respective industries they serve. It is silly. Your clients want you to be successful and they will help you. That is if you really offer something unique and special. Which may be the real message that you are afraid to learn that you are (yawn...) boringly average as a sales person.


• As sales executives we have to understand that this is the time to help our customers reduce costs or increase revenues. A proper balance with this is always required. The same holds true however for the organizations that we work for. In down turns it is important for us to look inside and ask ourselves if we can do the same for our employers. The choice of hotel we stay in, the airline we chose, the extra dinner we charge to the company all serve to increase our firms bid to our next client. Ask yourself if doing business with you and your firm really helps your client accomplish more sales or reduced costs. If so how?


• The most cited factors that I hear to mediocre sales performance are sales peoples customers more than the competitors that are selling the same client. This plays out in the form of customers spending less, demanding more or deferring buying decisions. Do you have options to deal with these stalls and customer concerns? Are you listening? Is your own companies management providing you with creative tools to work in the soft economy? Now would be the time to create a unique way to do business with your firm. Frankly you should have been doing it right along but we all get a bit focused on serving the numerous opportunities that we have until the bucket starts to leak and there are less opportunities.


• Leads which are difficult to assess and those that seem to "fall through the cracks" need to be handled with a strong discipline. Are we even interested in building our customer base?


• Sales people have a way of getting stuck in the past, they have poor metrics for sales performance, and they have incomplete or terrible customer records data. Some of this is in large part to giving the sales people the chore of updating data after a full day of sales calls! Why do we do this? Hire a team of transcription support people and put your sales people on a dictation recording line and let the sales people do what they seem to love to do - TALK! Your data will have so much information now that in a down turn such as we might be in now is harvest time.


• Focus your energy on high-value customers or at the very least on those with significant opportunities. This is accomplished in part by demanding that sales and marketing departments become better and integrating their respective functions. Cross train with each other. Marketing people get out in the field and sell! Sales people spend some time understanding the frustrations of those in marketing. You are both on the same team. I watch so much "us and them" in corporate selling!


• STOP SELLING and START HELPING! Allan Cimberger taught my sales team this over 15 years ago when he was in his late 80's and early 90's after an amazing selling career. I persuade you to understand that you do NOT SELL PRODUCTS - you sell SOLUTIONS. This makes this economy the very reason why your clients and prospects should be buying more from you now.


• Sharpen your saw! Steven Covey says it and we need to listen. Graduates of our class are free to attend public session without charge. Now is the time to join a class again if you are a graduate and bring your book to learn again. Even as in instructor that has taught PSS for over 25 years and in the last year taught the program over 45 times I learn in every class that I teach. It is amazing that we have been named for the second consecutive year the largest providing partner of AchieveNET in the world. A small company in Albany, NY that just believes we can even do better for ourselves and our customers. We want you to have exceptional sales in these challenging times.

Less Chicken Little -"Sky is Falling!"

Mark Satterfield shared these comments with me:

There was a very interesting article in the 2/13/08 edition of the Financial Times about how the majority of small business owners are NOT seeing a downturn in their businesses; at least not in the first quarter of 2008. The article points out that an interesting bellwether of the economic future is the earnings reports for Proctor & Gamble.

Apparently one of the early indicators of a significant slowdown in the economy is people shifting from brand label products to less expensive generics. P&G reports no indication that this is happening, which correlates with anecdotal evidence from the Financial Times' survey.

Interesting article and I always appreciate the perspective of FT, which takes a less Chicken Little - "Sky is falling" editorial approach than a lot of other publications.

However, that doesn't mean that it is proverbial clear sailing. It's obvious that businesses that neglect to put in place a SYSTEM for continually getting new prospects, and then converting large percentages of them into clients, are setting themselves up for a huge fall in the not too distant future.

It seems a good time to remind the sales professional of some effective strategies for coping with price objections.

What is the meaning of a price objection?

• The prospect places insufficient value on the product
• A competitive product is a better deal
• The prospect just wants a bargain
  
  
  YOUR PRICE IS TOO HIGH YOUR PRICE IS TOO HIGH!
  Learn to respond to this objection:
  
• It is inevitable
• Buyers will object just to get a discount
• Knowledgeable buyers know that there is often a standard discount for which they qualify
• Price objections are an opportunity to sell the value of the product or service
• The danger is to respond to the wrong price objection
• “Tell me more” or “Explain”

Fundamental price perspectives:

Price versus competition

Discover the difference between the competitor’s proposal and your proposal. The price is lower because:

• The product or service is less robust
• A time related “special offer”
• Price versus approved budget
• Was it a budget, or an expectation
• Was it based on old or unreliable data?
• Price versus buyer expectations
• Was the prospect told about a less expensive solution provided to a friend?
• Explore the friends solution
• The buyer can then accept the other solution at the lower price

The buyer can then accept the higher price for the original solution

Price versus a process alternative

• Your price is being compared to a process alternative
• Buying software may be compared to manual methods
• There are often new benefits that are simply impossible with the manual method

Price versus a percentage of the product price (for continuing services)

• Maintenance or support costs can be greater than the original cost
• 20 years ago hardware and software was more expensive than support
• Today hardware and software costs are low. Labor for support is high
• Support may be more comprehensive than in the past
• Understand and communicate these changes to the prospect

Price versus “do–it-yourself”

• Denies the cost of labor of the participant
• Denies the cost of extended time to implement
• Example: lawn care

1. Everyone can cut grass cheaper than hiring a service
2. Few enjoy spending time on this chore
3. “Do it yourself” places less value on your time