Sales Blog with Sales Tips

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What can we do when a prospect or customer asks us, “What’s your price on this?” “What’s your price on that?” Ad infinitum. We know that many times we can lose this battle but there are sales skills that can  put these price questions to bed and save the order.

“When our customers start a roll-call of pricing questions it’s time to go shopping at the grocery store…”

Sales Tip 101
When customers have issues with pricing, their foremost concern is usually about the total price of all the products and services they’re buying from us, not each individual item. Normally a customer will have a vague notion of what the total price might be before they even receive any sales help from us. This is best demonstrated when customers look at formal proposals. The first thing they look at is the page with the total pricing. Customers focus on totals.

How to Sell with a Shopping Cart
When we go to the grocery store we pile a bunch of stuff in a cart and pay the total when we check out. Bar codes have allowed grocery stores to hide the pricing that used to be displayed individually on every item. They’re not stupid and they know what we know. Customers care primarily about the total price of the purchase, not the price of each individual item.

Let’s Go Shopping
When our customers start a roll-call of pricing questions it’s time to go shopping at the grocery store and put these sales tips into action. The first sales tip is to stop quoting price after price and respond with some variation of, “Rather than quoting each item’s price let me put together the complete package/order/proposal for you with a total price. Some of our pricing might be higher than you’re expecting and some will be much lower, but our overall pricing is consistently competitive and your total price will be too.”

We have to get into the mind of our customers and figure out what information they are really seeking. Most of the time when asking about pricing one item at a time they are really just wanting to know, “What is all of this going to cost me?”

Related information: Does any customer every pay the lowest price for anything?, A Great but Infrequently Used Objection Handling Technique

To receive this sales tips blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer

Bad sales skills die slowly don’t they? One of my poor sales skills when I was younger was to shotgun my prospects and customers with sales and marketing brochures by snail-mail and E-mail. Want to know something I always knew but never admitted to myself? All of that activity never helped my sales one bit.

“…reminds me of the guy I know who hasn’t exercised in thirty years but wears the best looking and most expensive pair of Nikes on the planet.”

Why don’t brochures work?
They don’t work because we have two primary considerations when it comes to the most effective ways of selling: relationship and information. We need to create a partnership with our customers and accumulate as much data as possible about them in the process. How does a printed piece of marketing collateral or a beautifully crafted PDF file E-mailed to a decision maker help us in either of those two areas? We’ll get plenty of people doling out sales tips and sales advice in our careers about why we should launch an avalanche of marketing materials. They’re not providing good sales help.

Marketing Brochure Cleanliness is Next to Godliness
Snail-mailed collateral is thrown away and buyers delete E-mailed marketing propaganda if it isn’t caught by the company’s spam filter first. Consider for a moment how little marketing material actually hits the eyes of a decision maker. Virtually zero percent. Our customers treat this stuff like Anthrax. Besides, if customers want information guess where they look first? Your web site.

Why do we keep doing it?
We keep sending out a tsunami of sales brochures because it’s something we’re supposed to do and it makes us feel good. At least we’re doing something. It reminds me of the guy I know who hasn’t exercised in thirty years but wears the best looking and most expensive pair of Nikes on the planet. It somehow makes him feel like he’s doing a positive thing regarding his health.

So doctor, what is your sales advice?
Stop wasting time on ineffective sales materials and focus on what makes a difference. The difference is all the activities involved with relationship building and being a student of our prospects and customers. That’s the best sales tip I can give you when it comes to collateral material.

Related information: Collateral Materials, Sales Brochures, What a waste!, A #1 Proposal Tip

To receive this sales tips blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer

Our customers and prospects don’t need our sales help and sales skills as much as they used to. They can find much of the information they need on the Internet. The first thing most customers do before purchasing anything is to research the product or service on the Internet before talking with a sales professional. We know this is true because we do the same thing when we buy a consumer product for ourselves. Since buyers know they can easily get product information on the Internet, there has been a fundamental change in what they need from us and how to sell to them.

“In the 21st century decision makers are increasingly using a vendor’s knowledge as the key differentiator…”

What are today’s buyers looking for?
They want information that goes well beyond what is available on the Internet. Furthermore, they want it coming from someone they view as an expert. Sales professionals that can only provide information easily found on the web are viewed as order-takers. Customers view order-takers as human powered e-commerce web sites that provide little sales help or value.

How do we respond?
To set ourselves apart from the competition and demonstrate our value in this changing sales environment we have to provide something the customer can’t get without us. Expert information. Expert knowledge and experience are not available on the Internet. If they’re using our expertise then the likelihood that they will buy from us increases dramatically.

What’s next?
To put ourselves ahead of 99% of our competitors and to provide the kind of expertise that our customers are thirsting for, we need to make sure we are up to speed on the products and services we sell. We must also ensure that we are knowledgeable about our industry as well. To gain and maintain expert status we can take training available from our employer, subscribe to industry publications and subscribe to an industry specific sales blog or podcast. We can read a few books specific to our industry too. Recommending these books to customers even further enhances our expert status. VIP (Very Important Point): Don’t ever stop learning; this is an ongoing process.

What’s the bottom line? In the 21st century decision makers are increasingly using a vendor’s knowledge as the key differentiator between selecting vendor A over vendor B.

Further reading: Customers in 2008 vs. 1993. Are they really different?, Attention sales representatives, the Internet is not replacing you

To receive this sales tips blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer

“What is your price?” That question can really get to be annoying to sales professionals because:

1. We’re tired of having to respond to it.
2. We know that price isn’t really the most important issue to our prospects and customers. Risk, service, quality and availability always come in ahead of price in virtually every study that’s ever been done of buyers’ real concerns.

“You’ve just dodged a bullet.”

We know not to answer a price question without first getting all the information we need. We also know to provide price information only when we are ready. These are just basic sales tips. However, what are the
sales skills to effectively do this?

Step 1
If the customer pops the “What is your price?” question on a product or service, then simply respond with, “How many do you need and when do you need them?” This will lead into one of two directions. If they say they don’t need any, this indicates they’re just price shopping and you can respond with something like, “When you know the quantity you need and the delivery timeframe, I’ll be happy to research a price for you.” You’ve just dodged a bullet. If they do have the answer to those questions then move on to Step 2.

Step 2
Now that they’ve told you how many they need and when they need them you can continue the conversation by asking, “Can I ask you some questions in order to get the information I need to price correctly?” You then proceed to ask them about whether the purchase is budgeted, how they are currently being supplied, who the decision makers are, etc. All of this buys you time to get more information, demonstrate your added value and negotiate the details.

The best part about this technique is that it gives you some control over when and how you quote pricing to a customer, ideally when you are ready and when you have enough data.

Further reading: How to handle: “Tell me your price right now.”, Here’s some fact-filled sales help about price objections.

To receive this sales tips blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer

Do your price quotes have ED, also known as Expense Dysfunction? Do you just throw out prices and assume your prospects and customers understand all the added value and sales help you and your company are bringing to the transaction?

The Summarized Price Quote
You’ve been working hard putting together a price quote for a customer and you’ve reached the point where you have to send them a price. During the sales cycle you’ve given them all the brochures you could find and used all your best sales skills including some from this sales blog, I hope. Shouldn’t you be able to simply provide them a bottom line total price with the words “all items included” next to it?

“If the customer starts to fuss about pricing then we have some ammo to respond.”

Why This is Bad Sales Advice
By going the “all items included” route you have missed an opportunity to tell the customer all the added value they get by buying from you. Oh, I understand, you’ve shown and told them everything already. Forget it. They’ve forgotten everything. The best place to show the customer the details of the hidden value they are getting from you is alongside the bottom line price. This is the one place you know the the customer is going to focus their attention.

Assumptions, Assumptions, Assumptions
Have you ever noticed that the word “assumption” has a negative connotation? Want to know why? Because in most cases we assume something that isn’t true. In sales we assume that the customer knows all the additional value we bring to the table. The fact is, they don’t. It’s our job to remind them of their return on investment by doing business with us and the best place to do this is by including the details right by our final price.

Examples
Free Delivery N/C
Project Coordination N/C
Safety Training N/C
Pre-sale Design Services N/C
Customized Packaging N/C
Assigned Account Manager N/C
Post-sale Engineering Support for 90 Days N/C

There are a million of these depending on your industry and product. You get the idea.

One Final Note
One additional feature is this gives us some negotiating room too. If the customer starts to fuss about pricing then we have some ammo to respond. “If we were to lower your price by 10% we wouldn’t be able to include the additional services at no charge as we have proposed.”

Related information: How to handle: “Tell me your price right now.”, A #1 Proposal Tip

To receive this sales tips blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer

We’ve all seen families where the kids run the show. I’ve seen very few five-year-olds that even have a hint of what is required to successfully run a household. Finance, career, insurance, taxes, etc. - they’re clueless about these things. We can’t let kids run the house and we can’t let customers undermine our sales skills and run the sales show.

“…we can’t let customers…run the sales show…”

When it comes to the sales process itself this is the hierarchy of players.

#1 Sales Professional. That’s right. We come in number one. We are the bond between our customer and our employer. As a result, we must necessarily direct the sales process and provide sales help when and where needed. Who else is better positioned with the sales skills to fill this role, especially in larger transactions?
#2 Our Customer. Without the customer not much else happens does it? They are the ultimate source of our income. However, realize that the sales professional knows how to sell to a specific customer and can put together the following mix of ingredients: customer relationship management, competitive benchmarking, product recommendations/information, budgets and timing. How else would all these building blocks come together if an account manager wasn’t in control of things? The larger the sale the more critical this becomes.
#3 Our Employer. In the threesome of sales representative, customer and employer we see that the employer comes in last in the sales process. Is the employer important? Yes, but without a conductor standing in front of the employer (and customer) orchestrating all the ingredients noted above, there is no music.

This hierarchy is predicated upon one thing however, that the sales professional is really a sales professional. When our employer and customer have confidence in us, they want and need us to coach the team.

Related links: Capital, Sales Representatives and Business Development, For improved closing skills you need to drive for show and putt for dough., Sales Competency Categories: Are you competent or do you just think you are?

To receive this sales tips blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer

I was in a sales training class recently and sitting next to me was the Purchasing Director for a Fortune 1000 company. After a couple of days of polite conversations with him I finally had to ask, “What the heck are you doing in a sales skills seminar where we’re learning how to sell to people like you?” His answer got my attention. “My department is responsible for purchasing hundreds of millions of dollars worth of products and services from salespeople. We are constantly negotiating contracts, terms, etc. as part of this process. Doesn’t it make sense for my department to understand how salespeople sell? Every sales tip I learn here can be used to our advantage in purchasing.”

“What the heck are you doing in a sales skills seminar…?”

The lesson is obvious isn’t it? Doesn’t it make sense that we might benefit by learning more about how purchasing departments work? We could benefit by knowing how they view us, what they look for and generally how purchasers purchase.

In 600 BC Sun Tzu wrote in his well-known military strategy book The Art of War that “We must know our enemy.” While I don’t view Purchasing Managers and their kind to be enemies, they can certainly cause conflict in our attempts to sell. We might be smart to listen to Sun Tzu and turn his military advice into sales tips by getting trained on how to navigate our way through purchasing departments.

There is no shortage of places we might go to find this training. Click here for a resource list.

Related links: Tips for Sales: Don’t take this customer bait., Customer Negotiation 101

To receive this sales tips blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer

Yesterday, without even knowing it, Barack Obama inadvertently provided sales professionals around the world with some exceptional sales advice. It doesn’t matter whether we love, hate or feel indifferently about Barack; his unintended sales tip applies to all sales representatives regardless of industry.

What sales skills did he teach us? He told us that Americans need to be multilingual. Whether we agree with that statement or not makes no difference when it comes to this sales blog. What is important is that we realize we must be multilingual with our prospects and customers regarding the language of their business. When we are speaking with customers do we know their industry language? Do we speak their language of finance, manufacturing, distribution, construction, etc.?

“…we must be multilingual with our prospects and customers regarding the language of their business.”

One of the best ways for us to use our multilingual sales skills is to ask our customers quality open-ended questions that demonstrate our knowledge of their business. Doing this provides valuable information about the customer, helps build a relationship with them and creates believability.

Non-multilingual Example: “Are you more efficient since you’ve installed the new manufacturing equipment?”

Multilingual Example: “How has your new MRPII system positively impacted your finished inventory turn rate?”

If all we can do is talk to the customer in generic non-industry-specific terms then we run the risk of being viewed as just a generic non-industry-specific order processor. There’s not much perceived value in being one of those.

Related links: Sales Advice: Take this test to see if you have become an order taker., The Attributes of an Unsuccessful Salesperson

To receive this sales tips blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer

In earlier posts I’ve provided sales tips about firing customers. I’m surprised at the number of sales pro’s who haven’t considered the benefits of this. Let’s explore this concept a little further and see why it can help grow our sales.

First, a sales help checklist for customers that are candidates for termination.

> Small purchases that require absurd amounts of hand-holding, price quoting, etc.
> Chronic credit problems.
> Purchase size may be acceptable but profitability is heartbreaking.
> Commissions barely cover gas costs for customer appointments.
> Frequent returns of merchandise and/or unending unhappiness with service.
> Constantly threatening to complain to: boss, BBB, local C of C, newspaper, sales blog, etc.
> Personally abusive to the sales representative in any way.

“You’ll be positively amazed how high you’ll have to raise their prices…”

Second, sales skills on how to do it.

If we have a customer that fits most of the attributes of the above list, then they may be a contender for termination. What’s the best way to fire a customer? As I’ve said before, we end their buying privileges with a dull pencil (versus a sharp pencil). Raise their prices to the point where they flee. If they decide to continue buying from us at inflated prices, at least we’ll have the satisfaction of knowing that we are being compensated for the pain of doing business with them. We can always raise prices even more if necessary.

You’ll be positively amazed how high you’ll have to raise their prices to make them go away if that is the true objective. This reinforces the sales tip that people really don’t make buying decisions exclusively on price. The “firing with a dull pencil” concept has the added benefit that it doesn’t focus on the customer or us; it’s just a pricing issue.

Finally, sales advice on why we do it.

> Frees up our time to pursue high quality prospects.
> Gives us more time to develop relationships with existing customers.
> Potentially stops a persistent source of negative public relations.
> Not worth $4+ per gallon gas to visit them.
> They aren’t worth losing any of our sanity or self-esteem.
> They start buying from one of our competitors. Think about this one for a second.

This is a serious exercise in how to sell to different types of customers. We must be confident that we’re terminating customers that genuinely are hampering our sales success and have little to no chance of improvement. Secondly, this is a bona fide way for us to decrease frustration, increase sales and build a better account base for the future.

Related links: Fire a Customer for Fun and Profit, 4 Ways that $4 a Gallon Gas Can Help Our Sales Skills, Here’s some fact-filled sales help about price objections

To receive this sales tips blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer

One of the worst habits to get into is becoming a Task Salesperson. A Task Salesperson loses sight of their sales goals and sales skills. They primarily focus on the mechanics of sales. This can happen to us without even knowing it.

I used to observe two polar-opposite sales representatives. One of them was incredibly well organized, a hurricane of activity and was under budget every month. It looked like he had everything under control but in reality needed a lot of sales help. The other one sat in a garbage dump cubicle reading her favorite sales blog, always seemed relaxed and blew out her sales budget every month. What was going on here? One of them was most likely focusing on the mechanics and tasks of sales while the other was focusing on the true goal of sales…developing relationships with customers.

“Be careful not to be a slave of what doesn’t matter in sales.”

Giving sales tasks too much priority will keep us busy but normally doesn’t make us a sales leader.

Task Salespersons have these habits:

-Respond to every proposal and lead that is sent their direction
-Spend three days on a proposal that could be done in four hours
-Contact 100 prospects each day regardless of the quality of the leads
-Spend a minimum of two hours preparing for each customer appointment
-Spend 90% of their time on administrative functions
-Their sales manager loves the quality and penmanship of their required sales reports
-Never seeks sales tips from his or her peers and refuses all sales help

Goal Oriented Salespersons have these habits:

-Ensure they have a relationship with a company before investing time in them
-Are always prospecting but primarily to referrals and other qualified leads
-Do only mandatory administrative duties that aren’t directly related to sales
-Are always getting screamed at by their sales manager for past due sales reports
-Relationships are first, administrative perfection is number two
-Are consistently hitting and exceeding their sales objectives
-Welcome any and all sales advice and are open to any sales tip given to them

Remember, no sales representative is ever paid more or promoted simply for their administrative abilities. Be careful not to be a slave of what doesn’t matter in sales. What matters is customer relationships.

Related links: Your Personality is What the Customers Wants to See, Free Sales Tips: Don’t lose sight of this when selling, The Attributes of an Unsuccessful Salesperson

To receive this sales blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer