Tag Archives: sales process

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

Parallels Between The Sales and Dating Processes

Businessman-and-woman-LPAre you a sales representative or business owner who has dealt with a client with whom you thought was loyal to your company only to discover one day that they have suddenly been using your competitor(s) without your knowledge?

I recently had this experience where a client of mine had been using my company’s products exclusively for some time and I only recently discovered that they had started to buy some of the same products from my direct competitor.  My first gut reaction was to think, “Why did they go behind my back and do such a thing without even consulting me?” If they had a problem with my company’s product or service, why didn’t they call me and give me a chance to resolve that issue?”

That’s when it dawned on me… this was a familiar feeling.  It was as though I was being “cheated on” as one may be in a romantic relationship. Although the circumstances and the relationships (client vs romantic interest) are entirely different, that feeling was the same.   Further analyzing this odd parallel in more depth, I have come to the conclusion that there are some very unique similarities in the sales process and the dating process that do not exist in our other relationships (i.e. friendship).

Sure you might be tempted to think that yours truly is just some crazy, over analytical chick who is projecting her dating experiences on her working relationships (and you may be right), but before you judge, read the processes below and draw your own conclusion.

Stages of Relationship Development in Sales and Dating:

  1. Prospecting: “The Cold Call/ Pick-up Line”

In both sales and dating, we must seek out potential customers or potential mates.

Sales:  We seek out customers who we think would buy our product or service either from an established database, book of business or referral.  From there we may conduct a cold call to introduce ourselves and our company to ascertain if there may be potential for a business relationship.

Dating: We search for mates either from a database in the case of online dating or in person through our network of friends or daily interactions.   If we see someone that appeals to us whether it is based on initial appearance, intelligence or other factors, we may initiate contact by means of flirting (essentially cold calling) to introduce ourselves and decide if there may be a match.

In both cases, if we see potential, we proceed to step #2.

  1. Qualifying: “Probing Questions on The First Meeting/Date”

Upon establishing initial contact in a business setting or on a first date, we must decide if the other party has the potential to be a partner in business or dating respectively.  We achieve this by asking a multitude of questions and getting to know more about the other party to determine if there is a fit.

Sales: We meet with our potential client and ask them a series of “probing questions” to determine if they could or would buy our product/service.  If they appear to be a good potential customer, we might give them a product sample or demo.

Dating: We go on a first date with a person of interest and ask each other “probing” questions in order to get to learn more about each other.  If the dialogue is suitable, we may try a first kiss, which is essentially sampling.

Upon qualifying the party of interest, we either come to the conclusion that we either have the potential to work together or not.  If so, then we proceed to step #3.  If not, then back to step #1.

  1. Closing: “Closing The Sale/ Sealing The Deal”

This is quite self explanatory. If you don’t get this one, well I might suggest that you avoid getting involved in either process.

Sales: If you don’t want this to be a one-time only sale, proceed to step #4

Dating: If you’re looking for a relationship and not a one night stand, also proceed to step #4.

  1. Maintenance: “The Follow-up/Relationship Development Phase”

In order to achieve growth, relationships need work and maintenance.

Sales: After closing the sale, it is essential to do proper follow-up in order to ensure that your client is satisfied with your product or service so that they continue to do business with you.  By following up and keeping in touch regularly, you may find that your client needed additional support or training.  It also keeps your foot in the door so that you can continue to supply those products or services to your client as well as others from your portfolio.

Dating: Once you have “sealed the deal” and have decided that you may want to do that again and again and… ok well maybe all the time, it is essential to “follow-up” with your person of interest. Make arrangements to get together again to repeat steps #2 and #3, and watch the relationship flourish.

  1. The “Exclusivity” Talk

When the relationship is going exceptionally well, both parties are happy, satisfied and don’t have a need to look further to have those needs fulfilled, it’s time to have the “Exclusivity Talk”.

Sales: If you have an excellent relationship with your client and they are using almost all of your products and services except for a few which they are still using from your competitor, it may be time to ask for exclusivity.  After all, if they like everything your company has to offer so far, why should they bother to use your competitor if they can get a similar product from you? If they agree, then great, happy sales! If not, then you are perpetually trapped in Stage #4 and will be required to work hard to maintain your existing sales to ensure that you don’t lose your piece of the pie.

Dating: Presuming both of you have an excellent relationship and are both on the same page about moving forward into a relationship, then go for it and make it exclusive.  If not, then you’re in more a “Friends with Benefits” zone of Stage #4 and will have to accept the continuous competition with other mates.

  1. The Future: Make it or Break it?

Is the relationship sustainable over time? Only time will tell and there are 3 most probable outcomes as follows:

A: The “Live Happily Ever After”

Ideally, we would like to achieve a mutually beneficial relationship that will last our lifetime or that of our career that requires minimal effort to maintain.

B: The “Break-Up”

Even though everything may be going perfectly well, a situation may arise which will result in the termination of the relationship.  In business, we may be forced to fire a client or our client may fire us because of poor service.  I’m not going to bother elaborating on why people break off romantic relationships.  That topic in itself is worthy of several books.

C: The “Friend Zone”

In business or in romantic relationships, we may find that although we have a good relationship, it may just not be as great as we thought it might be and worth 100% of our time and efforts.  I refer to this as “The Friend Zone” because regardless of the relationship, if it’s not headed towards the “Happily Ever After”, then we have to accept it for what it is and make the best of it and enjoy the piece of the pie that we do have.

So, do you still think I’m crazy?

I’d love to hear your feedback on this topic.

In the meantime, happy sales and best of luck in love!

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