Tag Archives: selling

The Price Objection: What it Really Means and How to Overcome it

“Your price is too high!”

In my 10 years’ experience as a B2B sales professional, I can say with confidence that any client who initially objects to your price and uses that as an excuse not to purchase your product or service simply brushing you off.

After all, saying “Your product is too expensive” is much more polite than saying “I don’t want to buy your product. Get out of my office!”

So what do you do?

For starters, do NOT be sucker and immediately drop your price.

suckers

If you simply sell based on price alone, you are an order taker. Sorry to break it to you but there is no ‘salesmanship” in giving your best price and taking an order. Any customer service agent on minimum wage answering a phone can do just that!

The most important “sales training” I have ever had is working for a company selling higher priced products at a non-negotiable price point.  Rather than focusing on price, I’m forced to focus on the quality and service that my company can deliver.  To properly relay that information and translate that into a sale, requires work and that my friends, is salesmanship.

Clients have to realize that they can’t have everything and by everything I mean the best product at the best price that is delivered with the best service.  At best, most companies can offer 2 out of the 3.

projectTriangle

 

Let’s walk through the process through a general scenario.

EXAMPLE SCENARIO:

 You’re in front of a client for the first time, introducing your company and product portfolio. You’ve established what products your client uses from your competitor and you proceed to inform them that you offer the same or a similar product/service.  Prematurely, your client interrupts you and asks you your price.  When you give them your price, they tell you what you already know, “You’re price is too high.”

There it is.  You could interpret this in one of two ways:

  1. They are right. I’m not getting this sale.  I can’t beat the price, so I better move on. 

OR

2.   Game on! Now the real selling begins!

I hope none of you sided with option 1.  If you did, you either need more training or should consider changing careers.

So, game on!

Here is What You Should Do to Overcome the Price Objection:

1. Be Firm: Don’t negotiate your price. Others pay full price, so why should this client be an exception? If you have other clients in the area that this client would happen to be competing with who happen to be using your product of focus, make that known. If those direct competitors of your client aren’t using your product yet, make it known that you will be calling on them afterwards,  All the more reason that “you” don’t really need the business as much as they think you do and therefore have no need to budge on price.  Reverse psychology can go a long way.

2. Elaborate: Focus on other features and benefits that your company can provide (i.e. better service, higher quality).

3. Be Creative. If you are in your clients’ environment, look around for clues that might give them reasons to use a product from your portfolio that they may never thought of using before. Sometimes I’ve been in a clinic and see a list of things they are looking for. Simply pointing that out and mentioning that I can offer one of those items has gotten me the sale many times.  On the other hand, if you are meeting outside of their working environment be sure to ask them more questions about their business while in the back of your mind searching for products or services you can offer them.  Once this dialogue is open, you’d be surprised at how open most people are.

4. Ask For the Sale: As you scan through all of the potential products your client could purchase and they demonstrate interest, be sure to ask for the sale.

5. Be Persistent: This is where I have the most fun. Once you’ve gotten them to order one product, why not ask for more? Laugh and have fun with it.  Your client knows that you are there to sell them something so they expect it. If they haven’t ordered anything yet, keep asking! I have no shame in asking for the sale multiple times in a single call. I think my record was asking for a sale 10 times in one call.  After striking out 9 times, when I asked the 10th time, I finally got the “Ok, you got the sale!”.  I realize full well that he may have done that to get me out of his office (another brush off, yes I know!), but regardless I did get the sale, was welcomed back and continue to get more business.

Always keep in mind that if you can get at least one of your products or services in the door, that leaves that door open for you to come back and acquire more business, so don’t give up at the slightest objection.

Experiment: If you are used to selling on price alone, for one day or one week conduct all of your sales calls as if you are not allowed to budge on price.  I would love to hear your results!

Happy sales my friends!

Cheers,

TSW

Why B2B Sales is Really B2B2C: A Two Phase Sales Process

“Sell a man a product, and you’ve made a sale.  Teach a man how to sell your product to his customer and you have a business partner.”-TSW 

Man Holding Childs Hand

In my industry, which is the medical field, I often come across clients who have purchased products that they simply do not use (not mine of course!).  When I ask them about it, I get responses ranging from “Oh, I forgot about that!” to “Yeah, that machine cost me $100,000 and I can’t figure out how to use it.”

What a terrible position to be in!

So, how did they get there?

Surely, they must have thought that those products were wonderful at the time of purchase so what happened afterwards?

The problem is that all too often in Business to Business (B2B) sales, a representative sells a product or service to a business and then they move on to the next customer.  Sure, the representative has done his or her job of completing the B2B transaction, but just that alone.  When the rep stops here, they have ended the sales process prematurely.   You might argue, “But they made the sale?” And yes, you are correct, but only that.

By leaving the business to fend for themselves to figure out how to complete the Business-to-Consumer (B2C) sale and if that business does not have the knowledge and tools they require to sell that product to the consumer, the representative has failed.

I’m sure some of you are thinking, “Well that’s not my problem! I have a quota to make and I don’t get paid to be a hand holder”.  Well actually you do, or rather you should. At absolute minimum, offer your assistance post-sale, otherwise you might as well be selling snake oil.

If you want continued business and a good reputation, you’d better be sure that your client is capable of relaying the features and benefits of your product or service to their customer.  Otherwise, that fancy piece of equipment or innovative new product will simply just sit on their shelf collecting dust and one day you’ll receive a phone call from them inquiring about your return policy.

Of course, not all clients are created equal and certainly not all of them require hand holding.  However, when you are making the sale, keep in mind that after the sale you should always do some sort of follow up, the degree of which will vary depending on your client.  For this reason, I believe that making a business to business sale, is a two phase process as follows:

Phase 1: B2B Sale

“Sell a Man a Product and You Have a Sale.”

This is the traditional sales process as everyone knows it.  Prospect, qualify, ask for the order and close the deal.  I will not elaborate on this phase in this article.

Phase 2: Imparting the Knowledge for the B2C Sale

“Teach a Man How to Sell Your Product to His Customer and You Have a Business Partner.”

After you make the sale, both you and your client are excited; You about making the sale and your client about receiving that fabulous new product.

You, the sales rep mistakenly assumes that your client remembers your entire sales pitch and is just as eager and capable as you to impart this knowledge onto their customer.

Before you get too carried away with excitement, consider the following:

  • Your client is a business owner or decision maker, not a sales representative
  • Time may elapse between when the sale is made and when the customer receives their product. It’s only human nature to forget. After all, we aren’t all information sponges!
  • The reasons WHY your client bought the product- Did they have an existing need or did you create a need for them? Will that “need” dissipate after you walk out the door?

What should you do to avoid buyer’s remorse?

Two words: FOLLOW UP!

  1. At the Time of the Sale: Even though you should know the answer, ASK your client how they plan on selling your product to their customer or rather how they will incorporate your product into their business model. This will give you an opportunity to listen to their version of your sales pitch.  What did they pick up on? What was most important to them? What did they forget?  Make sure to fill in all the gaps before you walk out that door and ensure that they know how to get in touch with you or your company’s customer service department should they require further assistance.
  1. When the Order is Received: Whether you personally deliver the product or if it was delivered by a courier, touch base with your client to ensure that the product was received in proper condition and ask them if they have any questions. If the product is complicated, they and their staff may require training not only on the use of the product itself, but also what they should say to their customer when recommending the product.
  1. Two to Four Weeks Post Delivery: Touch base with your client. I would recommend a follow up visit to make sure that your client has all of the information and tools they require. Some team members may need additional assistance or training. Or perhaps they may have lost or gained a key staff member who requires training.  Your client may  also have many additional questions about the product as they use it or simply need a refresher.  If all is going well, they might even be in a position to reorder or want to discuss what other products you might happen to have in your portfolio which is all the more reason for you to be there.
  1. Regular Visit: Back to the Sales Cycle: If you customer was pleased with their buying process, they will want to see you again and continue to do business with you.  They may even want to act as a referral!

If you want to maintain a successful career in sales, you never want to make your customer feel sold and abandoned.  It is your job as a sales rep not only to sell your product but to work with your customer in a mutually beneficial working relationship where both of you grow your business together.

Never forget to follow up!

Happy Sales!

TSW

How to Qualify Leads and Not Get Led Astray

Qualifying leads is probably the most difficult skill a salesperson must learn in their career.   It is particularly difficult to do if you are new in sales or new in your industry.  In order to properly qualify your leads, you must:

  1. ASK the right questions
  2. LISTEN to your customer
  3. BE CREATIVEwinternowhere

When I first started in sales, I made the mistake of blindly trusting anyone who suggested a lead to me.  I can’t fault myself for my naivety.  I mean, I was just an eager brand new sales rep.  So whether I got a lead from upper management or by word of mouth through a referral, I quickly learned that you just never really know until you ask your potential customer some crucial questions and qualify them yourself.

I will share with you an example of a time when I failed to do so, and ended up in a less than ideal situation.  My very first week on the road as a sales rep, I got led astray big time both literally and figuratively all because I didn’t know how to properly qualify my lead.

I was having a good meeting with a customer and she asked me “Are you planning on seeing Dr. X?”.

The name wasn’t familiar to me, so I thought that I must have missed that doctor in my database.  I replied, “No, is Dr. X in this city? I don’t recall seeing their name in my database.”

She informed me that “Oh, you must stop by and see Dr. X.  She would use all of the products you are selling and she is only a 10 minute drive away.”

To me that sounded like a win-win.  I had some time to kill before I had to go to the airport, so why not try and get some new business and get working on that hot lead?  After all, it was only 10 minutes away and it was a referral.

She proceeded to give me explicit directions and I was on my way.  I must note that these directions were to drive along this highway for 20Km, make a right at a landmark and the clinic was just around the corner.

As I was driving on this prairie highway in the dead of winter, I was watching the odometer and 20km came and went.  On this particular stretch of highway, there were no businesses, no side roads and certainly no exits.  On top of that, the driving conditions quickly deteriorated into a complete whiteout.  I was driving a sedan with no snow tires.  Rental cars never have snow tires.  The landmark that I was looking out for was a white horse.  Try finding that on a flat prairie highway in the middle of a whiteout!  I was starting to panic, especially since I had a flight to catch later that afternoon.  My panic worsened when I saw a sign for the next town: It was over 300km away! “How on earth do I turn around and get out of here?!?” .

Finally after driving almost 60km and almost having a full blown panic attack, I finally saw the white horse landmark she mentioned.  I was going to give her the benefit of the doubt thinking that  she accidentally told me the distance in miles instead of kilometers (1 mile = 2.2km) but I don’t think the average person could drive 20 miles in less than 10 minutes! .  So that was lie #1.  When I saw this landmark, I was most relieved to finally see a road that I could take to TURN AROUND and go back.  But instead of turning around, I figured that I had already gone this far and I’ve already passed the point of no return, so I drove on in pursuit of this “lead”.

After I make the turn, it’s another 5 minute drive until I find this clinic. Certainly not just around the corner! Lie #2.

Upon my arrival at the clinic, I greet the staff and get in to see the doctor. Lucky for a cold call! I mention Dr. Y recommended that I see her because she thought that she could use my products.

Well as it turned out, this doctor didn’t use any similar products and in discussing her practice in greater depth, I realized that there wasn’t even potential for her to use my products. Lie #3.

I was furious! Dr. Y. sent me all that way in a blizzard on a route that was 3x longer than what she told me and this doctor she referred me to didn’t even use anything remotely close to what I was selling.  She totally sent me on a wild goose chase.  I’m sure she was very amused.  I was so angry that if I didn’t have to make that flight, I would have gone back to her clinic to blow a gasket on her. Not very professional I know, but I got quite scared on that drive and I just couldn’t believe that a professional would lead me astray like that just for fun.    People lie to sales reps for a multitude of reasons but as you may have guessed, this particular individual just happened to be a tad more “off kilter” than the average person.

I later found out from other representatives who had called on this doctor, that she had been known to deliberately go out of her way to get reps into trouble.  For instance, a few reps who used to call on her informed me that she would actually lock the door in front of them when they showed up for an appointment and then she would call their sales manager and tell them that they never showed for the appointment.

Although this lady was an exceptionally bad seed and it is extremely rare that professionals would act in this type of manner, this story is a great example of why you should not just blindly accept and follow any lead you receive without properly qualifying it first.

What did I do wrong?

You guessed it, I didn’t qualify this lead.

What should I have done?

A simple phone call to the clinic in advance would have saved me a lot of time and grief.  Calling in advance of dropping in is not only a sign of respect for your potential future customer but also a great opportunity to qualify them as a potential buyer and decide if they are worthy of your time.

Some questions to help qualify your lead may be:

I hear your business does “X”, can you tell me a bit more about your business so I can see if there is a potential fit between what your company does and what our company has to offer?

Does your business currently use Product or Service X (a product or service that is similar to what you are selling)?

How often do you buy/use said product/service?

Who is normally involved in making the decisions to purchase this product/service?

When do you intend to purchase? It is essential to find out where they are in the buying process and is it a wish, a want or a need? This is very important.

If they don’t currently use a product or service similar to what you are selling, make sure to ask them more questions about the nature of their business to see if there is some way that they could find your product or service useful.   Be creative! Think outside of the box.  But sometimes, just like in my example, there may just not be a fit.

If you can manage to ask a few of these questions in an introductory phone call in order to ascertain if the lead is worthwhile pursuing, it will definitely pay off.  If they are worthwhile pursuing, great, go for it! If not, you just saved a lot of time and effort which you could otherwise be spending focusing on clients who will actually buy from you.

In summary, qualifying isn’t easy.  Sure you can learn some good probing questions in your sales/product training but until you really have a solid grasp of your industry, it isn’t always so intuitive.

Practice makes perfect and the more questions you ask, the more you learn.   

Happy Sales!

 

How to Handle Clients who Want More than What You’re Selling

 

Salespeople are expected to always conduct business in a most professional manner.  So what happens when you are faced with a client who acts unprofessionally and say, starts to flirt with you?

Whether you are a man or a woman, if you are in sales, surely this exact scenario has happened to you at least once if not several times in your career.  So what do you do?

Although it is quite well established that “sex sells”, the last thing any salesperson should ever do in a sales call is use “sex” to sell, even if your client is flirting with you. You might be thinking “Why? That is so easy?”  Well, here are a few reasons why you shouldn’t:

  1. Your client will not respect you. You are “pulling the wool over their eyes” and they will see through this.
  2. You will not likely get repeat orders. Sure, using your sex appeal may help you close that deal.  Who cares about your product anyway right? But after they receive their order, they will have second thoughts.  Just like a one night stand; you think it’s all great and fun at the time and then you wake up to what you thought was a super-hot person next to you and now that  the beer goggles are off, they look more like a dishevelled dog, who’s name you don’t even know. Don’t be surprised if they return your order.
  3. Forget about that product/service reference. So you flirted your way to close a big deal with an important client who wasn’t buying from you. Time to celebrate right? Wrong.  If another client asks them why they purchased your product, they certainly aren’t going to tell them how wonderful your product is.  Why did they buy? Do you really want your clients discussing this amongst one another?  I most certainly would not.
  4. It shows you suck at selling. But you closed that deal right? So you must be good at sales? You obviously weren’t able to effectively communicate the value of the product or service you are selling, so you had to resort to other means.  It is one thing to sell yourself as a resource to your client, but another entirely to just flirt your way through sale.  What should you do then?  Take a sales course.  Improve those sales skills and don’t stoop to that level. If that doesn’t work, perhaps it’s time to consider another career.

Fortunately, I have not been faced with this scenario very often. In the past 10 years that I have been on the road, there have only been a handful of clients who have been overly flirtatious with me.

If you ever find yourself in this type of situation, just keep in mind exactly what it is you want to accomplish.  We all want to make that sale, but if you want repeat orders, your clients will likely only do so if you have more to bring to the table.   So, whether it is your amazing product or service or your resourcefulness, make sure to sell yourself and the company you are representing the right way, a way that earns you respect so you can keep those orders coming in.

Happy Sales!