Is This The Best You Can Do?

How Not to Negotiate Price

“Is this the best you can do?” Sound familiar? If your last several customers didn’t ask this question, the odds are pretty good that next one probably will. How you respond to this question may determine whether or not you make the sale— and I’m not talking about lowering the price.

When a customer asks you for a discount, the surefire quickest way to lose the sale is to give them even the slightest impression that you are considering their request.

It is critically important how you initially respond to an appeal for a discount. Hesitate, even for a nanosecond, or trip over a word or two, and your customer may well read your momentary indecisiveness as a sign that holding out for a better price may be a worthwhile cause. Offer up any reason for them to doubt your conviction and you may end up helplessly watching your otherwise “done deal” move into a “wait and see” holding pattern.

There are a few really good reasons why customers are inclined to ask for discounts.

The “avoid being taken” factor

To begin with, customers want to avoid being “taken” by a salesperson (taken: a slightly kinder gentler way of saying “ripped off”). Probing around and asking about discounts helps to confirm that they are actually getting the best price available. Remember, their life’s experience with other salespeople has taught them that negotiating often pays off.

The “avoid the embarrassment” factor

Customers also want to avoid the embarrassment of appearing less intelligent than someone else. One of their imagined fears (often grounded in the reality of an actual past experience) is that they will enter into an agreement, paying the full list price for some product or service, only to return home and later find out that their neighbor or brother-in-law purchased exactly the same thing for less.

The “less than professional” factor

There is another possible reason that may trigger a customer to ask you for a discount and that is— you! If you come across as the stereotypical salesperson, a little bit pushy, talking too much, plodding along through a somewhat uninspiring presentation— if you project anything less than a completely professional image— then you can bet that the customer will indeed be looking for a discount!

In the normal course of professional selling, it is certainly not unusual for customers to ask for discounts. But here’s what drives me nuts as a sales trainer. Even though customers ask for discounts on a somewhat regular basis— suggesting that learning how to effectively handle the question would be an economic “no-brainer” of sorts— unbelievably, the average salesperson often balks before spitting out a less than intelligent response. Or, they just sit there staring at the customer for a few seconds with a sort of empty-headed “dear caught in the headlights” look before saying anything.

In order to quickly dispel any notion that holding out for a discount could be worthwhile, a sales professional must always anticipate that their customer may ask for one and be fully prepared to respond appropriately and without delay.

Let’s have a look at a useful formula for responding to a discount request so that the next time you’re asked “Is this the best you can do?” you’ll know exactly what to do.

First, apply empathy: I can really appreciate the fact that you’re asking for the best possible price. If I were contemplating this investment, I would certainly ask the same exact question.

Next, make a value statement: Fortunately, we’re proud of the quality products and services we offer at XYZ Company and truly feel that our prices represent tremendous value in return for what we are providing.

Address any possible apprehension: You can feel comfortable in knowing that nobody else will be able to negotiate a lower price than the one that you are considering— that’s just not how we do business.

Suggest abstract savings: And, considering what you may have to pay for the same products and services in the future, the greatest savings are already built into today’s prices.

Finally, close decisively: I can assure you that the price you are considering today is the absolute best available and that you can feel confident in your decision.

Generally speaking, immediately handling the request for a discount along these lines, both empathetically and yet firmly will most likely put the issue comfortably to rest in the mind of the customer. It is unlikely that they will see any point in attempting to hold out for a better price.

Discounting lowers more than just price, it also devalues your firm’s credibility in the marketplace. It suggests that the products and services you are selling were not worth what you were asking in the first place.

Lowering the price to close a sale may seem like a better alternative than to lose the sale altogether, at least in the short run. However, the long term effect of discounting is troublesome. Unless you’re striving to establish the reputation as the “wheeler and dealer” in your marketplace, discounting adds up to a really poor business practice. It is mortgaging the future to save the present. Eventually, the negative effects will catch up with you.

At the end of the day, if you’re asking a fair price in return for quality products and services, and you stick to the general price list— raising value instead of lowering price— you will enjoy market credibility, build a strong commercial identity, and ensure the sustained loyalty of the customers you serve.

The Myth of the Elevator Speech

By Doug Stern

I wish I had a nickel for every time a marketing director asked the elevator speech question: "What if someone asks, 'What do you do?' and you have 20 seconds to answer? What do you tell them before the doors open and one of you gets off?"

I think, therefore I am

Since professional service providers tend to spend a lot of time in their head, they're ready to pitch at the slightest glimmer of interest from another human being (prospect). The brain is the default filter for everything.

Lawyers, for example, might offer an elevator speech along the lines of "I add value to leading privately held companies by addressing the sophisticated legal issues relating to complex ownership succession."

Nice try

Or, they might turn themselves upside down and inside out figuring out, as one expert recently put it, how to "spark interest in the potential client without sounding like a salesperson."

Gotcha!

The question, however, is not about wanting a snappy summary of how you make a living. It's not about re-framing the question from the other person's point of view to come up with a non-pitch pitch.

While all of that is good (especially the part about not talking about yourself), it's based on a flawed assumption, one that assumes that everyone is being cognitive all of the time.

The truth about the question

When someone asks what you do, chances are they really don't want to know what you do. That's because the elevator speech question is really about people being people.

The question is about someone needing something to break the ice. They could just as well be saying, "Nice tie. It reminds me of my Uncle Miltie." To which you might respond in a similarly personable and engaging manner.

It's a reminder that the brain is just one of several organs that apply to sales and marketing.

Breathe

So, lower the bar. Loosen up. Connect.

Remember the true nature of the question and say something like... "I'm a lawyer, but I'm looking for something less stressful. I've applied for a position as a peace-keeper in Iraq. How about you?"

When asked, I'm liable to respond with "I'm a freelance writer. I'm working on a story about getting stuck in an elevator with a stranger."

The moral of the story? Granted, be able to describe what you do in English. But most people who ask "What do you do?" aren't signing up for the lecture, so don't give it to them.

Have a conversation instead.

Doug Stern (http://www.doug-stern.com) is a free-lance business writer and strategist. His clients have included leading law firms, engineers and architects, medical practices and other professional service providers as well as manufacturers and real estate developers--and he's written just about anything you can imagine. Contact Doug at 502-599-6624 or doug@doug-stern.com. Article Source: http://EzineArticles.com/?expert=Doug_Stern

The Six Little Things for Sales Success

It’s Not the Big Things That Make the Big Difference

In most sales organizations, the productive salespeople generally spend their time doing pretty much the same things on a daily basis. They prospect, make presentations, seek referrals, attend meetings, and… okay, they also spend time fixing the paperwork they screwed up on their last sale and calculating the commissions they’re about to make on the next— but that’s a subject to tackle on a different day. For the purpose of this article, we are going to focus on the more productive activities and refer to them as the big things.

Although primarily engaged in the same “big thing” sales activities each day, it is interesting to note that the results can vary greatly between two apparently equally capable, equally committed, and equally experienced salespeople. How can this be? Why is it that some sales professionals seem to consistently outperform others, given the same opportunity and similar levels of dedication?

The answer to this question is found in the details so to speak. It’s not the big things that they are doing that make the big difference— it’s the little things! More specifically, it probably boils down to five or six little things that the most successful salespeople in the organization are doing slightly better than anyone else that makes the biggest difference in their production results.

For example, there is a subtle, but very important “results distinction” between a really good presentation and an exceptional one. Although the “closing rate” difference may appear to be nearly insignificant in the short term, over time, the ever so slightly better presentation will ultimately generate more sales. Or, apply the “slightly better” concept to referral acquisition. Initially, gaining a few extra referrals each month may not seem like a big deal, but once again, when the sales results are tabulated over time, say the course of a year, some of those “no big deal” extra referral leads will have been undoubtedly converted into additional sales.

Okay, so here’s where it gets really interesting. A slight skill distinction between top sales professionals in just one or two key performance areas may best serve to determine the order in which they are called to the podium during the annual awards event. However, take that same small skill distinction multiplied by five or six key areas of performance and the exponential effect in sales production is not only impressive, but you’re also likely to be looking at the organization’s next sales director.

The principle of the six little things formula for sales success exemplifies the value of continuous improvement. If you are willing to set aside a few minutes every day and dedicate that time for your own professional development (i.e., polishing your presentation delivery, working on your referral acquisition techniques, etc.), in other words, striving to continuously improve your key performance skill set to ultimately do five or six little things better than anyone else— you will be well on your way to being one of the most highly compensated and promotable sales professionals in your organization!

On Handling Objections

Everything You Really Need to Know in a Single Sentence

It is both easier and more productive to invest your time in mastering your presentation than it is to learn how to overcome objections.

Confucius Says... This is more of a "tweet" than a post! Stay tuned!

The Great Sales Crusade

King Arthur on Leadership

(Adapted from the book Success Through Total Empowerment, first publication Copyright 1999, Kenton W. Davis)

Whether you believe that he really existed, or simply enjoy the romantic legend, King Arthur’s leadership style and the concept of his legendary round table offer us timeless lessons in human motivation.

According to Phyllis Ann Karr, author of The Arthurian Companion, the “Round Table” is fabled to have had a total of 150 seats, in which once seated, there was “no order of precedence”. Everyone had an equal voice in the matters of the day, and rank went unobserved. Empowered by the authority of the table, the knights rode out to do “good” throughout the kingdom. It is written that, from here, quests, missions, and even the Great Crusade, all started.

Many of today’s organizations may need to conduct their own Great “sales” Crusade of sorts. With the economy struggling, high unemployment, and consumers cautious about their financial future, sales are definitely harder to come by these days. And with sales down, bottom-line revenues are suffering causing the operating budgets of many businesses to be stretched dangerously thin.

All this adds up to an enormous amount of pressure being placed upon sales teams to produce. More specifically, the weight of this responsibility falls squarely on the shoulders of the sales manager, whom is ultimately charged with leading their team north of sales targets irrespective of the challenging market conditions.

Now imagine for a minute that our legendary hero King Arthur faced a similar crisis in his kingdom. Say, something along the lines of… the treasury was running dangerously low, an unusually large number of peasants and serfs couldn’t find a field to work, and Merlin’s confidence in his magic was shaken from the resulting unrest spreading throughout the kingdom. How would the beloved king of English lore have handled this situation? Would he have withdrawn to his royal chambers and attempted to single-handedly solve all the problems of the realm?

Not a chance. In fact, if King Arthur had ruled autocratically from the throne, he would have likely been “done to the turn” back in the day (which would have seriously messed up this colorful legend). Instead, when confronted with challenging times, King Arthur would summon all the great knights of the land, from near and far, inviting them to join him at an enormous round table in the status of equality. There, he would openly seek suggestions from his dignitaries as to what they would (or could) do to collectively solve the crisis in the kingdom.

Under pressure to meet sales targets, instinctively, average sales managers often withdraw to their office, close the door, and attempt to formulate the master “sales survival strategy” by drawing on their personal experience― a very anti-Arthurian thing to do (dangerously limiting the probability of mapping out a successful strategy, thus increasing the odds of their own personal turn on the spit in the future!). Instead, they should take a page out of King Arthur’s leadership book and invite their sales team members to participate in a roundtable session.

When you summon your sales team members to participate in a genuine roundtable session, where they are truly seated with “no order of precedence”, where problem-solving, idea-swapping and general brainstorming is encouraged, where the suggestions made are incorporated into the direction the team is moving, where no idea or suggestion is considered “foolish” and everyone’s opinion is respected, the results can be nothing short of magical. You will have tapped into the power of King Arthur’s legendary participatory leadership style and trigger intrinsic motivation within each team member. This will then serve to motivate them to overcome the current market challenges, to reach and exceed their individual sales goals, and to help the entire team meet the collective sales objective.

If your sales organization needs to go on a “sales crusade” to turn things around, send your team members off with the weapons they will need and the additional inspirational strength and courage to slay the “economic dragons” they will confront along the way. Make full use of King Arthur’s “Round Table” strategy for success!

Selling Through Personal Integrity

The Highest Ethical Standards Approach for Success – Final Post

With consumer confidence hanging precariously in the balance these days, the slightest misstep by a salesperson can cause the “scales of trust” to tip away from making a sale— and rightfully so.

(Paragraph excerpted from Selling Through Personal Integrity, Frugal Speaker blog post, April 27, 2009, by Kenton W. Davis.)

Malcolm Gladwell, bestselling author of The Tipping Point, defines the title of this work as (the moment when) "the levels at which the momentum for change becomes unstoppable". And now for the billion dollar question: Have the ever-increasing levels of immoral business practices finally pushed today’s consumer past the trust tipping point?

In the event that you’re one of the salespeople out there still pondering the answer to this question— not yet quite convinced that your future selling success will require a more ethical and transparent approach— your time would probably be better spent polishing your resume or planning your retirement party rather than reading the rest of this post.

As for the true sales professionals following this blog, those whom understand the cynicism expressed by today’s consumer toward salespeople is completely justified, those willing to take the necessary steps to ensure that they build a strong foundation of trust with their customers, and those willing to develop the right philosophy, provide total disclosure, and be an expert— your continued success in the future is virtually guaranteed.

Finally, let’s remember this: When a customer decides to buy from you they are in fact saying “I trust you”, and their trust is not something that should be taken lightly. Although the public has been inundated daily with negative news of fraud, schemes, and scams, making it much more difficult to earn the trust of the consumer, in that moment of decision— when the scales must tip one way or another and a sale is made or lost— it is you that will make the difference.

We will not be able to legislate our way back into “good standing” with the consumer. There is only one way to get there from here. The answer to renewing confidence and rebuilding consumer trust is to be absolutely certain that we are selling through personal integrity and applying nothing short of the highest ethical standards approach for success in every interaction with our customers.

Do it because it is the right thing to do!