Sales Machine

Here’s a post you can share with your customers… if you’re brave enough.

I recently had a conversation with a professional buyer who deals with millions of dollars of B2B contracts.  I asked him what advice he’d give to other buyers. He answered, providing I’d keep his name a secret.  I agreed.

Here’s what he had to say:

• LAW #1: DON’T hire a vendor just because they give good presentations. It’s a myth that a vendor’s ability to help you can be gauged by how well the firm can sell. Unless you’re planning to learn from their style, a vendor’s ability to sell is completely irrelevant.
• LAW #2. DON’T hire a vendor just because they’ve helped you in the past. It’s a mistake to choose based purely upon a positive experience in the past. While the vendor’s products may have been useful once, they’re not necessarily the products that will serve you best today.
• LAW #3. DON’T hire a vendor just because you’re impressed by their CEO. CEOs are often dynamic, charismatic individuals that can wow a crowd at a conference or webinar. However, that doesn’t mean that the vendor has a product that’s useful for your company.
• LAW #4. DON’T hire a vendor because they’ve worked with your competition. If the vendor is responsible for your competitor being successful, then there’s a good chance they’ll try to clone what they did before. Imitating competitors is a go-out-of-business strategy.
• LAW #5. DON’T hire a vendor because they’ve got “best practices.” “Best practices” inside one industry may be nonsensical inside another. Even within one industry, the “best practices” that work for one firm may not work for a firm with a different strategy.
• LAW #6. DON’T hire a vendor just because they’ve got a good brand name. Going with a top vendor just because of their reputation is like buying a car just because it has a familiar name. Common sense says to decide what you really need before you pull out your checkbook.
• LAW #7. DON’T EVER hire a vendor who exaggerates or misrepresents. If your drill-down reveals that the vendor is not being entirely straightforward, remove that vendor from the short list.  This is one case where “zero-tolerance” must always be the rule.

READERS: Do you think he’s right?  Or are these laws getting in the way of buying the right products and services?

Two weeks ago, I posted “Top 10 Sales Tips from the Seinfeld Show“.  It proved so popular, I thought it would be worthwhile to post an additional 10 tips.  Like the previous 10, I think you’ll find them useful in honing your sales skills.

As before, I’ve included polls so you can vote on your favorites.  Here’s the first; the link to the rest is at the bottom of the post.

GEORGE SHOPS FOR A CAR

SALES TIP: No matter what you do, some customers are going to dislike you, simply because you’re a  sales professional.  Usually they’re people with weak minds who are paranoid about being manipulated, BTW.

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CLICK for the next Seinfeld sales tip »

Yesterday, in “How to Kill an Objection For Good“, explained how to put an objection permanently to rest. It’s a useful, classic technique.  However, I would be remiss if I didn’t point out that there’s another school of thought when it comes to objections.

Some experts in selling techniques believe that answering objections individually is like playing whack-a-mole with hydra heads.  You can’t really win, because all objections are actually just reflections of the customer’s state-of-mind.  Objections are just another way of saying:

I am not yet convinced of the value of buying.

This school of thought believes that should focus on working with the customer to create a value proposition that makes overwhelming financial sense, and then the individual objections will disappear.

It’s really a profoundly different way of looking at sales.  The traditional sales model assumes that the sales professional is actively persuading the prospect to buy, in which case overcoming objections is simply part of the sales process leading to the close.

In the more consultative model, the sales professional is supposed to be helping the customer decide whether or not buying makes sense — and is willing to concede that it might not make sense.  In this case, objections aren’t all that important.

READERS: What do you think?  Is it possible to sell without answering objections?

When you’re selling, it’s not enough to simply answer an objection.  If you don’t want to see the objection pop up later, you need to kill it for good. Here’s a typical selling conversation:

• Prospect: We don’t have the money in this year’s budget.
• You: That’s O.K. We can finance it so part falls into next year’s budget. Does that work for you?
• Prospect: I guess so.

Many sales reps would happily (but wrongly) believe they’d killed the objection.  However, that objection will very likely to pop up later, because the commitment is weak.  An objection is not truly dead until until you’ve help the prospect bury it for good.  Here’s how:

• Prospect: We don’t have the money in this year’s budget.
• You: That’s O.K. We can finance it so part falls into next year’s budget. Does that work for you?
• Prospect: I guess so.
• You: …and so that’s all taken care of, right?
• Prospect: Right.
• You: Great! Did you notice that our reference accounts…

Getting prospects to publicly agree that the objection is dead puts them in the position of seeming inconsistent or wishy-washy if they bring it up again.  Most people will not do this because it conflicts with their image of themselves as decision-makers.

Please do not pretend that this is NOT manipulative.  It’s not.

If your prospects don’t believe you’ve answered the objection, they’ll say so.  What this prevents is the emotional off-again/on-again waffling that wastes your time, and keeps the prospect from making a decision quickly and effectively.

Important!  Once you’ve gotten the customer to agree, change the subject by asking a question on an unrelated matter. Why?  If you continue to focus on the objection past the point of commitment, the prospect may start waffling about the commitment, in which case you’re back to square one.

The above is a classic sales technique as taught by the ever-informative Tom Hopkins.

According to John Asher, CEO of the sales training firm Asher Strategies, there are 10 key sales skills, without which you will never reach your potential as a sales professional. I think there’s a lot of wisdom in what he has to say, so I’ve created a post to help you assess your own skill level, for each of these key skill.  I’ve also provide a link to a blog post that can help you develop any key skill which needs improvement.

I truly believe that this could be the most useful quiz I’ve ever posted here.

Give it a try, and tell me what you think!

CLICK for the first key sales skill »

The powers-that-be have reminded me that this is supposed to be a SERIOUS blog, and that stuff like Top 10 Sales Tips from the Seinfeld Show distracts from that purpose.  With that in mind, here is a series of videos that explain, in six easy steps, exactly how companies make buying decisions for mission-critical B2B solutions.

Step #1: The Customer Sets a Corporate Strategy

Your customer’s corporate strategy is the most important determinant of whether they will purchase your offering.  Therefore, it is essential to understand exactly how they’ve set that strategy, which will determine the basic parameters of their business model.

Note: This video has two segments; ignore the second part.

CLICK for step #2 of the customer buying process »

There are few things more valued in a sales professional than being a “closer.”  If you know how to close, then you end up making as many sales as possible; if you lack that skill, you’re probably floundering.

So, then, how do you know if you’re a closer?  Looking at the number of sales you make — even compared to your peers — doesn’t tell you much, because you can still make big sales (but not fulfill your potential) if you’re strong in other areas.

A better way is to ask yourself these five questions:

• #1: How would I rate myself as a closer?  In fact, you probably know, in your gut, whether you’re good a closing business.  A little self-honesty goes a long way when it comes to self-assessment.
• #2: Am I cultivating the right attitude to close business on a daily basis?  Closing business is about laying the groundwork from the get-go.  If you’re not getting ready to close, you’re not a closer.
• #3: Am I dependent upon high pressure sales techniques?  If you’re using trick closes and high pressure to try to get business, you’re not a closer, you’re a peddler.  Different thing entirely.
• # 4: Have I ever delayed closing because I wanted to enjoy the fantasy of getting the business?  This is probably the most common debilitating behavior in sales.  If you’re doing it, stop.  Right now.
• #5: What would it be worth to me if I could easily and simply close more business?  If you can still  visualize making more money and creating more success, you’re probably not at your peak.  Not yet.

The above is based on a conversation I had a few years ago with the amazing and perceptive sales guru Linda Richardson, founder of the eponymous sales training firm.

Here are some posts to help you hone your closing skills:

• The ABCs of Closing
• How to Close Without Tricks
• How to Close the Deal, Perfectly

Want to sell more quickly?  Then you’ve got to be able to read your customer’s mind.  Fortunately for you, your customers are all thinking the exact same thing… in the exact same order.  The big questions is: do you know that order?  Here’s a little game that assesses how well you can read the customer’s mind when it comes to this all-important decision-making process.

When you first contact a prospect, which of the following questions is uppermost in the prospect’s mind?

• Does the value and price of this product meet my expectations?
• Is this the right time to make a decision to buy this product?
• Do I want to do business with the firm this sales professional represents?
• Do I want to do business with this particular sales professional?
• Do I want and need the product this sales professional is offering?

Few customer behaviors are more irritating than surfacing new demands at the end of a sales cycle.  Do you know how to deal with them?

This post contains two very common selling scenarios, with multiple choice answers.  Answer both scenarios correctly, and you’ve earned bragging rights for the rest of the day!

SCENARIO #1: You’re meeting with a prospect to close on a first-time opportunity that will involve years of follow-on business.  You’ve discussed terms and conditions in detail and you’ve gotten firm verbal agreement.  At this final meeting, though, the customer confronts you with a new list of demands, saying: “If you can’t meet these conditions, the deal is off.”  You examine the list. None of demands are, by themselves, deal breakers, although they would reduce your margins.

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CLICK HERE for the correct answer »

Want to avoid a margin-killing price war?  Simple.  Focus on the “cost of not buying.” Don’t present features and benefits, overcome objections, and then try to close the deal. Instead, research your customer and craft questions that will uncover areas where the customer does not yet understand the cost of a problem.  Then help them estimate the financial impact of that problems.  Here’s how:

• STEP #1: Identify the Customer’s Problems. The majority of business purchases are made to solve some sort of problem, e.g., productivity problems, delivery problems, quality problems, etc. These problems consume resources and drive costs within the customer’s organization.  Find areas in the customer’s business model where your offering can solve problems.   Best case, your offering should do this in a unique way that competitors can’t imitate.
• STEP #2: Estimate the Financial Impact of the Problems. Depending on the size and sophistication level of the customer, they may — or may not — be aware of the true economic impact of these problems. If not, then you must use your expertise and experience to help them determine how much the problems are actually costing them.  You want to uncover accurate dollars-and-cents information in order to quantify the total economic worth of your offer.
• STEP #3: Determine the Root Causes of the Problems. It’s not enough just address the “presenting” problems.  You want to provide a long-term solution that will create more economic benefit for them. This is not only better for them, it also allows you to increase the total economic worth of your offer, because the root causes may spread financial problems throughout the entire organization.
• STEP #4: Estimate the Financial Impact of those Root Causes. Find opportunities where you can help the customer address these root causes, either with your product offering alone or with a combination of your product and additional information, or services and support, such as problem solving, application engineering, start-up assistance, etc.  The most opportunities you can find to help, the greater the economic value of your solution.
• STEP #5: Create a “Cost of Not Buying” Statement. Based upon the above, create a summary statement of what it will cost the customer if they do not buy your product. Once you’ve got the customer to agree on the impact, you’ve already closed.  The rest is just detail work.  In most cases, the “cost of not buying” will be so great that the price of your offering will be rendered entirely irrelevant.

BTW, the above is based on a conversation with Robert Nadeau, a consultant who helps companies with pricing issues.  Very smart guy.