Today sales expert Dave Kahle shares the three biggest mistakes you can make in a sales presentation. Thankfully, he also shares what you can do to fix them!
The sales presentation is the ultimate purpose of every sales process, of every sales call, and of every sales system. The job of the sales person revolves around the point in time when he offers the customer something to buy.
The sales presentation can take a variety of forms. If you demonstrate a product, for example, that is a sales presentation. If you use a hard-copy brochure or a CD Rom presentation on your lap-top, that is a sales presentation. If you deliver and detail a sample, that is a sales presentation. If you respond to the customer’s request, and provide a price, deliver a proposal, or submit a bid, each of these are sales presentations.
Without the sales presentation, there can be no sale. It is, then, the foundational step in the sales process. Everything that happens before is in preparation for the presentation, and everything that happens afterward is a result of the presentation.
You would think, then, that every sales person is extremely well-trained in the science of making an effective sales presentation.
Alas, that is not the case. Left to learn on their own, many sales people make the same mistakes over and over again. Here are the three most commonly made sales presentation mistakes.
1. Lack of preparation.
In my very first sales position, I had to endure six weeks of sales training. In those six weeks, the entire training class had to memorize two four-page sales presentations, and give them to the training class. We were videoed and critiqued, over and over, for the six weeks. At the end of that time we were thoroughly prepared to give that sales presentation.
Now that may have been a bit of an overkill, but the point remains: Preparation is the first step towards an effective sales presentation.
That doesn’t necessarily mean that you memorize the presentation. But it does mean that you organize it, that you secure and check your collateral (the sample, brochures, price quotes, etc that form the basis of what you are selling), and that you practice the presentation several times until you are comfortable with it and confident in your ability to deliver it.
Unfortunately, preparation is a discipline that seems to be fading from the routines of many sales people. The world is full of sales people who either have little respect for their customer’s time, no particular interest in doing their jobs well, or an over-inflated view of their own ad-libbing abilities. Any of these produces the sense that they don’t need to prepare, that on the spur of the moment, they will come up with the most persuasive things to say, in the most effective manner.
That’s too bad. Preparation is the first step toward a better sales presentation, and lack of preparation is endemic in the world of sales.
2. Information purging.
This occurs when a sales person thinks his/her job is to relate everything he/she knows about the product, service or proposal.
I was deeply into a training program wherein we work with six sales people every day for a week. Sales people role-played various situations, we videoed them, critiqued them, and had them role play again, only better.
We were methodically working through the sales process, and it was time to make the sales presentation. The class was taught to organize the presentation on the basis of what they learned about the customer in the previous “find out what they want” role play.
One particular sales person never got that message. He thought a sales presentation was like an oral exam in school. It was his opportunity to spill everything he knew about the product. What should have been a 20 minute presentation dragged on and on for 45 minutes. Even though it was a role play in front of the class, even though it was being video recorded, the person playing the customer began to fall asleep. The hapless sales person continued on, purging himself of every bit and morsel of related information. I had to finally step in and put an end to the tedium.
While that may have been a dramatic example of this mistake, it occurs in smaller ways thousands of times a day. It occurs when sales people feel the need to tell the customer everything they know about the product or service they are presenting, whether the customer cares or is interested in that feature or not.
The problem is greater than just “too much information.” Sales people who do this disrespect the customer, as they don’t take the customer’s interests and requirements into account in the presentation.
As a result, customers are turned off and tuned out, and sales people leave shaking their heads, unable to fathom why the customer didn’t buy all the incredible features of his sales presentation.
3. Failure to include the customer in the presentation.
This occurs when the sales person thinks that the presentation is all about his product, service or proposal. The truth is that effective sales presentations are always about two things: the offer, and how it can impact the customer.
When sales people simply talk about their offer, and ignore the second half of the equation, they make one of the most common mistakes.
Customers are far more interested in how the thing being presented impacts them, than they are in the details of the offer.
The sales person may be impressed with all the neat details and features, but that reflects his/her values, not necessarily those of the customer.
The best sales presentations describe the salient features of the offer, and then relate them to how they impact the customer. Remember “features and benefits”?
This third most common mistake occurs when sales people emphasize the features, and forget the benefits.
If you are guilty of any of these mistakes, or, as a manager, if your sales force is guilty of them, their sales presentations are not as effective as they could be. You are leaving money on the table. Fix these mistakes, and watch your sales rise.
Dave Kahle has trained tens of thousands of B2B sales people and sales managers to be more effective in the 21st Century economy. He's authored nine books, and presented in 47 states and seven countries. For a limited time, you can buy his latest book, How to Sell Anything to Anyone Anytime, and receive $534 of FREE bonuses. Learn more at www.davekahle.com
Showing posts with label Dave Kahle. Show all posts
Showing posts with label Dave Kahle. Show all posts
Friday, July 8, 2011
Tuesday, June 21, 2011
Listen Constructively
While we all know the importance of listening, today sales expert Dave Kahle shares the importance of listening constructively. It's a great read!
A study of the behavioral characteristics of the best sales people was published a few years ago. One of the not-so-surprising conclusions was this: The best sales people “listen more constructively” than their more average counterparts.
What does it mean to “listen constructively?” My wife is a crises counselor, and she talks about listening “empathetically.” That means that she listens to understand and relate to how people are feeling. But the study didn’t say great sales people listen “empathetically,” it said they listen “constructively.”
There is a clue to its meaning in the word itself. Think “constructively = construction = building.” Listening constructively means to listen for things upon which to build.
Great sale people ask great questions, and then listen more constructively. They focus intently on what the customer is saying, filter it through the perspective of things “upon which to build.” So, they build their next question on the braces and beams of the customer’s answer. As they dig deeper and listen intently, they gather a better picture of the customer’s issues, needs, situation, motivation and concerns. They form a clearer mental “blue print” of the selling situation, and are able, therefore, to provide a more accurate and appealing solution.
This, of course, flies in the face of a piece of conventional wisdom that proclaims that good sales people are good talkers. Nothing could be further from the truth. Good sales people are good listeners, not good talkers.
A study published by RainToday.com, found that 74% of 200 purchasers surveyed at companies nationwide said they would be “much more likely” to buy from a sales person if the seller would simply listen to the prospect.
Imagine that. Almost three quarters of customers would be more likely to buy if the sales person would just listen!
Listening well -- listening constructively -- is not a natural skill. It takes intentionality and dedication to work consistently at it and to become, over time, one of the best listeners. As in every aspect of sales success, the best decide to become the best, and put in the time and effort it takes to gradually develop the skills that take them to the top.
There are few things more important than listening well. The best do it better than the average. That’s why they are the best.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
A study of the behavioral characteristics of the best sales people was published a few years ago. One of the not-so-surprising conclusions was this: The best sales people “listen more constructively” than their more average counterparts.
What does it mean to “listen constructively?” My wife is a crises counselor, and she talks about listening “empathetically.” That means that she listens to understand and relate to how people are feeling. But the study didn’t say great sales people listen “empathetically,” it said they listen “constructively.”
There is a clue to its meaning in the word itself. Think “constructively = construction = building.” Listening constructively means to listen for things upon which to build.
Great sale people ask great questions, and then listen more constructively. They focus intently on what the customer is saying, filter it through the perspective of things “upon which to build.” So, they build their next question on the braces and beams of the customer’s answer. As they dig deeper and listen intently, they gather a better picture of the customer’s issues, needs, situation, motivation and concerns. They form a clearer mental “blue print” of the selling situation, and are able, therefore, to provide a more accurate and appealing solution.
This, of course, flies in the face of a piece of conventional wisdom that proclaims that good sales people are good talkers. Nothing could be further from the truth. Good sales people are good listeners, not good talkers.
A study published by RainToday.com, found that 74% of 200 purchasers surveyed at companies nationwide said they would be “much more likely” to buy from a sales person if the seller would simply listen to the prospect.
Imagine that. Almost three quarters of customers would be more likely to buy if the sales person would just listen!
Listening well -- listening constructively -- is not a natural skill. It takes intentionality and dedication to work consistently at it and to become, over time, one of the best listeners. As in every aspect of sales success, the best decide to become the best, and put in the time and effort it takes to gradually develop the skills that take them to the top.
There are few things more important than listening well. The best do it better than the average. That’s why they are the best.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
Thursday, April 14, 2011
Best Practices: Prepare Better Sales Questions
Today sales trainer Dave Kahle shares how to create better questions that will aid your sales process. Sounds good to me!
The single most powerful tool that a sales person has is a well-phrased, appropriately asked question. Nothing else compares to the impact a good question can have on the customer and the sales process.
That's because a good question directs and influences the customer's thinking. When you ask a question, they think of the answer. That simple statement neatly packages the latent power of a good question.
Yet, few sales people understand that, and fewer still implement it. A number of years ago, a study was done on this very issue. Here are the results:
"Out of 300 sales people studied, 87 percent realize the importance of asking questions. However, only 27 percent displayed the ability to ask a well thought out, stimulating series of questions."
In other words, thirteen percent of the sales people in the world don't even recognize the power of asking a good question. And only about one out of four could actually do it. That means that three out of every four sales people, or 75 percent, don't ask good questions.
There are two issues here: First, realizing the importance of using good questions effectively, and second, actually doing so.
This is such a big issue that my book, Question Your Way to Sales Success, is devoted entirely to this issue.
Everyone can ask a question. I have a three year old grandson. He can do it. This issue isn't asking questions; the issue is asking better sales questions. While I can't condense the book to a few hundred words here, I can point out a couple of things that the best do with this most powerful tool.
1. They prepare their major questions before the sales call. This gives them the time to select the best language and sequence.
2. They are mindful, at every stage of the sales process, of using better sales questions. They understand that there are questions, there are good questions, and there are better sales questions. So, they constantly focus on creating and using better sales questions. Whether it's a cold call on a prospect, or following up after the sale, at every stage of the sales process, a more effective use of questions will produce dramatically better results. And they know that.
3. They collect good questions over time, and use them over and over again.
A master sales person is a master at the use of better sales questions. That's why it is a best practice of the best.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
The single most powerful tool that a sales person has is a well-phrased, appropriately asked question. Nothing else compares to the impact a good question can have on the customer and the sales process.
That's because a good question directs and influences the customer's thinking. When you ask a question, they think of the answer. That simple statement neatly packages the latent power of a good question.
Yet, few sales people understand that, and fewer still implement it. A number of years ago, a study was done on this very issue. Here are the results:
"Out of 300 sales people studied, 87 percent realize the importance of asking questions. However, only 27 percent displayed the ability to ask a well thought out, stimulating series of questions."
In other words, thirteen percent of the sales people in the world don't even recognize the power of asking a good question. And only about one out of four could actually do it. That means that three out of every four sales people, or 75 percent, don't ask good questions.
There are two issues here: First, realizing the importance of using good questions effectively, and second, actually doing so.
This is such a big issue that my book, Question Your Way to Sales Success, is devoted entirely to this issue.
Everyone can ask a question. I have a three year old grandson. He can do it. This issue isn't asking questions; the issue is asking better sales questions. While I can't condense the book to a few hundred words here, I can point out a couple of things that the best do with this most powerful tool.
1. They prepare their major questions before the sales call. This gives them the time to select the best language and sequence.
2. They are mindful, at every stage of the sales process, of using better sales questions. They understand that there are questions, there are good questions, and there are better sales questions. So, they constantly focus on creating and using better sales questions. Whether it's a cold call on a prospect, or following up after the sale, at every stage of the sales process, a more effective use of questions will produce dramatically better results. And they know that.
3. They collect good questions over time, and use them over and over again.
A master sales person is a master at the use of better sales questions. That's why it is a best practice of the best.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
Friday, April 1, 2011
Becoming an Expert
A reader recently sent the question below to sales expert Dave Kahle, asking how effective salespeople manage learning about the many different businesses they call on. Kahle's advice to the reader is practical and easy-to-follow!
Q. Dave, on several occasions you have said that our customers want us to understand their business. How do we do that when we call on lots of different types of businesses? How do we become experts in everything?
A. Unless you are a real genius, you don’t. Rather, you do two things:
1. You prioritize your prospects and customers, focusing your best efforts and your greatest investment of sales time on a smaller number of customers whom you decide are the highest potential customers. So, you decide that while you cannot become experts in every customer, you can become an expert in a few. This requires you to "demote" some customers so that you can "promote" others. Choose those others well.
If you are going to do this well, it is a whole lot more complex than it sounds. You may want to read chapter six of my book, Ten Secrets of Time Management for Salespeople. It explains in detail the concepts, processes and tools necessary to make cold-blooded business decisions about in which customers you should invest your valuable time.
2. Then, decide that while you may not be able to become an expert in everyone's business, you can still, in the time that you do have, learn more about each customer's business. There is a whole lot of room between being ignorant of their business and being an expert in it. Decide to move slowly and inexorably toward the "expert" end of the spectrum.
That means that you decide to become more skilled at the processes and skills necessary to understand your customer better each and every time you meet with him/her. Regardless of what type of business on which you are calling, you can still drill deeper in that particular sales call, even if it is only one call a year. To do this, you focus on improving your observing, asking and listening skills.
So, you focus more precisely on a smaller number of high potential customers, and then you focus on using the time that you have to more completely understanding every customer.
You are in it for the long run. There are very few short term solutions in sales. Invest in the right customers, and in doing the right things with every customer, and you'll see your performance improve.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
Q. Dave, on several occasions you have said that our customers want us to understand their business. How do we do that when we call on lots of different types of businesses? How do we become experts in everything?
A. Unless you are a real genius, you don’t. Rather, you do two things:
1. You prioritize your prospects and customers, focusing your best efforts and your greatest investment of sales time on a smaller number of customers whom you decide are the highest potential customers. So, you decide that while you cannot become experts in every customer, you can become an expert in a few. This requires you to "demote" some customers so that you can "promote" others. Choose those others well.
If you are going to do this well, it is a whole lot more complex than it sounds. You may want to read chapter six of my book, Ten Secrets of Time Management for Salespeople. It explains in detail the concepts, processes and tools necessary to make cold-blooded business decisions about in which customers you should invest your valuable time.
2. Then, decide that while you may not be able to become an expert in everyone's business, you can still, in the time that you do have, learn more about each customer's business. There is a whole lot of room between being ignorant of their business and being an expert in it. Decide to move slowly and inexorably toward the "expert" end of the spectrum.
That means that you decide to become more skilled at the processes and skills necessary to understand your customer better each and every time you meet with him/her. Regardless of what type of business on which you are calling, you can still drill deeper in that particular sales call, even if it is only one call a year. To do this, you focus on improving your observing, asking and listening skills.
So, you focus more precisely on a smaller number of high potential customers, and then you focus on using the time that you have to more completely understanding every customer.
You are in it for the long run. There are very few short term solutions in sales. Invest in the right customers, and in doing the right things with every customer, and you'll see your performance improve.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
Tuesday, February 1, 2011
Spending Time With Clients
Every month sales trainer Dave Kahle receives a variety of questions from his readers. He recently answered a question regarding how much time should be spent outside the office, and I thought his answer was informative and a good reminder to salespeople. Here's the question:
You've said on several occasions that the most important part of my job is interacting with the customers. How important is it to spend time with the customers out of the office, and what percentage of time should I spend doing it?
So many of these answers begin with the phrase "it depends." This is another one of them. The amount of time and money you spend entertaining customers, or spending time with them outside of the office, depends on the value of the account. The larger the annual dollar potential, the more time you should seek to spend with the customer on a personal level.
For example, if you sell water softeners to homeowners at $1,000 each, you probably should not ever invest in entertaining. On the other hand, if you sell those same water softeners to retailers, and one particular retailer could buy 2,000 of them in the course of the year, you should seek to deepen the relationship with that customer.
So, the answer begins with you analyzing the dollar potential of each of your accounts, and then making the determination as to which accounts, if any, are worth your extra investment of time and money. After you've compiled a "hit list" of people with whom you'd like to spend some additional time, create an annual budget. This can vary from a couple hundred dollars for lunches over the course of a year, to something entirely different. I recall a friend of mine who was a manufacturer's rep in the automotive industry, with General Motors as his only account. In the by-gone-days of lavish entertainment, he had an annual entertainment budget of $80,000.
After you have compiled your "hit list" and developed a budget, you then need to determine what that customer could do. Some accounts have policies against having lunch with vendors, for example. Others don't. Don't create an awkward situation by inviting your customer to do something that the company's policy discourages.
Ideally, I'd like to see you have breakfast or lunch every day with a customer. That's a good use of time for both of you. Try to schedule events – concerts or sporting events are always good, and invite your hit list. Be careful about outright gifts. You don't want to be seen as "bribing" anyone. Instead, orchestrate time together so that you nurture and expand the relationship.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
You've said on several occasions that the most important part of my job is interacting with the customers. How important is it to spend time with the customers out of the office, and what percentage of time should I spend doing it?
So many of these answers begin with the phrase "it depends." This is another one of them. The amount of time and money you spend entertaining customers, or spending time with them outside of the office, depends on the value of the account. The larger the annual dollar potential, the more time you should seek to spend with the customer on a personal level.
For example, if you sell water softeners to homeowners at $1,000 each, you probably should not ever invest in entertaining. On the other hand, if you sell those same water softeners to retailers, and one particular retailer could buy 2,000 of them in the course of the year, you should seek to deepen the relationship with that customer.
So, the answer begins with you analyzing the dollar potential of each of your accounts, and then making the determination as to which accounts, if any, are worth your extra investment of time and money. After you've compiled a "hit list" of people with whom you'd like to spend some additional time, create an annual budget. This can vary from a couple hundred dollars for lunches over the course of a year, to something entirely different. I recall a friend of mine who was a manufacturer's rep in the automotive industry, with General Motors as his only account. In the by-gone-days of lavish entertainment, he had an annual entertainment budget of $80,000.
After you have compiled your "hit list" and developed a budget, you then need to determine what that customer could do. Some accounts have policies against having lunch with vendors, for example. Others don't. Don't create an awkward situation by inviting your customer to do something that the company's policy discourages.
Ideally, I'd like to see you have breakfast or lunch every day with a customer. That's a good use of time for both of you. Try to schedule events – concerts or sporting events are always good, and invite your hit list. Be careful about outright gifts. You don't want to be seen as "bribing" anyone. Instead, orchestrate time together so that you nurture and expand the relationship.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
Friday, December 18, 2009
Best Sales Practices: Closing the Sale
Today sales trainer Dave Kahle shares the best practices of the nation's top closers - and you know they're not using manipulative closing techniques. Read on for closing tips you can feel good about, and confident implementing.
Unfortunately, there is no one issue that is more misunderstood and incompetently trained than that of "closing the sale." Much of the sales training on the subject, as well as the vast preponderance of sales literature, is way off the mark.
Closing is not a matter of continually pressing for the business, nor using manipulative techniques, nor clever repartee, nor memorizing any "magic" closes.
Just today I said "no" to someone who kept pressing me for the order. I interpreted his pressure as desperation on his part, and his desperation meant that there was something not right about the deal. I said "no." In this case, the highly trained, very skilled salesperson, with the right product at the right price, did exactly the wrong thing, and brought about a negative result, solely on the basis of his poor judgment about the customer, and his repeated attempts to close the sale.
When it comes to closing, the best salespeople do two things. In the traditional sense, they ask for the order when they sense that the customer is close to committing to a decision. This has always been the classic definition of closing the sale.
But in the hands of a master, closing takes on a larger meaning. Sales masters also understand that "closing" is more than an event that gets tagged onto the tail end of the sales process. They understand that "closing" is the process of attaining an agreement with the customer on the action that the customer will take as a result of every interaction. They have the mindset that every sales call - whether 45 seconds on the phone, or 90 minutes in the customer's office - always should end with some agreement on the next step.
The process of closing, then, starts with the first "Hello" and continues through every interaction that the salesperson has with the customer.
So, confirming an appointment is a mode of closing. As is gaining a commitment to view a presentation, test a sample, research other users, etc. The best salespeople continually seek, and obtain, commitment from the customer to take action at every step along the way.
As a result, the final decision to buy the product or service is a natural, logical result of all the commitments (closes) that went before.
The best salespeople are continually and effectively closing every conversation with the customer. That's why this is a best practice of the best salespeople.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
Unfortunately, there is no one issue that is more misunderstood and incompetently trained than that of "closing the sale." Much of the sales training on the subject, as well as the vast preponderance of sales literature, is way off the mark.
Closing is not a matter of continually pressing for the business, nor using manipulative techniques, nor clever repartee, nor memorizing any "magic" closes.
Just today I said "no" to someone who kept pressing me for the order. I interpreted his pressure as desperation on his part, and his desperation meant that there was something not right about the deal. I said "no." In this case, the highly trained, very skilled salesperson, with the right product at the right price, did exactly the wrong thing, and brought about a negative result, solely on the basis of his poor judgment about the customer, and his repeated attempts to close the sale.
When it comes to closing, the best salespeople do two things. In the traditional sense, they ask for the order when they sense that the customer is close to committing to a decision. This has always been the classic definition of closing the sale.
But in the hands of a master, closing takes on a larger meaning. Sales masters also understand that "closing" is more than an event that gets tagged onto the tail end of the sales process. They understand that "closing" is the process of attaining an agreement with the customer on the action that the customer will take as a result of every interaction. They have the mindset that every sales call - whether 45 seconds on the phone, or 90 minutes in the customer's office - always should end with some agreement on the next step.
The process of closing, then, starts with the first "Hello" and continues through every interaction that the salesperson has with the customer.
So, confirming an appointment is a mode of closing. As is gaining a commitment to view a presentation, test a sample, research other users, etc. The best salespeople continually seek, and obtain, commitment from the customer to take action at every step along the way.
As a result, the final decision to buy the product or service is a natural, logical result of all the commitments (closes) that went before.
The best salespeople are continually and effectively closing every conversation with the customer. That's why this is a best practice of the best salespeople.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
Friday, January 23, 2009
Preventing the Price Objection, Continued
Yesterday sales trainer Dave Kahle gave us some excellent advice on how we can reduce how often we hear the price objection. He's back today with a few more ideas - try some out next week and let us know how they work for you!
4. Don't advertise your willingness to discount.
Sometimes, in our eagerness to make the sale, we advertise our willingness to make price concessions in order to secure the business. We say things like, "We'd be happy to discuss pricing with you." Or, "We may be able to do better." Or, "If you give me the last look, I may be able to sharpen the pencil."
I was shopping for office space. As I looked through one location with my realtor, I asked the listing realtor what was the lease rate. He told me, and in the same breath said, "But we're willing to work with you on that."
After hearing that, why in the world would I accept his original terms? He broadcasted his willingness to discount, and I'd be foolish not to take him up on it. By broadcasting your willingness to get the deal, you encourage the customer to ask for price deviations.
5. Be careful about ever discounting
If you discount your prices in response to a customer's request, on even one occasion, you have conveyed to the customer the idea that your quoted price is not your final price. Now, forever in the future, the customer will remember that you can discount when pressed. He will, therefore, press for discounts.
If, however, you never discount from your quoted price, you convey that there is some integrity in your pricing, and that you are quoting him your best price from the beginning.
It's OK, on some occasions, to walk away from a piece of business rather than to discount in order to get it. The net impact is that the customer respects your pricing, and is less likely in the future to ask for a discount.
If you get almost every deal, your prices aren't sufficiently high. You need to lose some in order to gain the customer's respect as well as a sense of where the market price is.
I've often thought that the idea of asking for the opportunity for a "last look" - which most salespeople strive for and proudly proclaim as proof of a good business relationship - is merely another way of saying that you'll discount the most. Why would the customer give you a "last look" if he wasn't expecting you to discount some more?
It's so easy to complain about the customer and the constant pressure to reduce our prices. It's the thoughtful salesperson who understands that our own behavior can often be the cause of the price objection. Change your behavior, and you'll improve your results.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
4. Don't advertise your willingness to discount.
Sometimes, in our eagerness to make the sale, we advertise our willingness to make price concessions in order to secure the business. We say things like, "We'd be happy to discuss pricing with you." Or, "We may be able to do better." Or, "If you give me the last look, I may be able to sharpen the pencil."
I was shopping for office space. As I looked through one location with my realtor, I asked the listing realtor what was the lease rate. He told me, and in the same breath said, "But we're willing to work with you on that."
After hearing that, why in the world would I accept his original terms? He broadcasted his willingness to discount, and I'd be foolish not to take him up on it. By broadcasting your willingness to get the deal, you encourage the customer to ask for price deviations.
5. Be careful about ever discounting
If you discount your prices in response to a customer's request, on even one occasion, you have conveyed to the customer the idea that your quoted price is not your final price. Now, forever in the future, the customer will remember that you can discount when pressed. He will, therefore, press for discounts.
If, however, you never discount from your quoted price, you convey that there is some integrity in your pricing, and that you are quoting him your best price from the beginning.
It's OK, on some occasions, to walk away from a piece of business rather than to discount in order to get it. The net impact is that the customer respects your pricing, and is less likely in the future to ask for a discount.
If you get almost every deal, your prices aren't sufficiently high. You need to lose some in order to gain the customer's respect as well as a sense of where the market price is.
I've often thought that the idea of asking for the opportunity for a "last look" - which most salespeople strive for and proudly proclaim as proof of a good business relationship - is merely another way of saying that you'll discount the most. Why would the customer give you a "last look" if he wasn't expecting you to discount some more?
It's so easy to complain about the customer and the constant pressure to reduce our prices. It's the thoughtful salesperson who understands that our own behavior can often be the cause of the price objection. Change your behavior, and you'll improve your results.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
Thursday, January 22, 2009
Preventing the Price Objection
How many times have you heard a price objection in the last few weeks? With the economy the way it is, you've probably heard it even more than usual. Dave Kahle has some advice to help you reduce how often you hear it.
"While we can't control our customers, we can control our behavior," says Kahle. "And many times it's our behavior that prompts the customer to ask for a discount. By changing our behavior, we can impact the customer. Here are five specific strategies to help you prevent the price objection, by focusing on our behavior."
1. Look like you are worth more
Our appearance impacts the customer's subconscious view of our value. If we look like we don't value ourselves, it's natural for the customer to assume the same about our product.
I will never forget a salesperson for one of my clients who came to see me, concerned about the pressure his company was putting on him to get results. He chewed tobacco and had the yellow teeth and spots on the leather vest he wore to confirm that. A wrinkled pair of blue jeans topped a pair of dusty cowboy boots. He looked like a reject from a consignment shop. His appearance screamed "cheap."
If you look confident, competent and successful, you send the subtle message to your customer that you, and your offering, is worth a little more. You just look like you are less likely to discount your price in order to get the order. Practically speaking, that means to dress like your customer, only a little better. Project a demeanor of a successful, confident salesperson.
2. Believe in your price/value relationship
Do you believe that your offer represents a good value to the customer? If you don't, it will be difficult for you to convince the customer of it. You don't have to believe that your product is the best or that your company is the best. You just have to believe that it is a good value, giving the customer his or her money's worth. More people buy Fords than buy BMWs. It's not about being the best; it's about a good value.
This can be difficult if you, in your personal life, are a bargain shopper. If you refuse to pay the asking price for anything and won't buy it if it's not on sale, then you'll have a difficult time convincing your customer to pay the full price for what you are selling.
Your core beliefs will influence your behavior, and be communicated to the customer in a number of subtle ways.
To counteract that tendency, carefully examine the offer you are making from the customer's point of view. Do whatever it takes to convince yourself that it is a good value to the customer, worth every penny the customer will pay.
3. Don't inadvertently sow the seeds.
Sometimes we can blindly sow the seeds of discontent with our stated price by our poor choice of language. For example, when we say things like, "This is our retail price," "This is our rack rate," "This is list price," or other such terms, we immediately convey to the customer that there are other, lower prices, available.
We have inadvertently encouraged the customer to ask for a discount. The word "price" doesn't need an adjective to describe it.
We'll be back tomorrow with a few more ideas from Kahle on how you can avoid the price objection.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
"While we can't control our customers, we can control our behavior," says Kahle. "And many times it's our behavior that prompts the customer to ask for a discount. By changing our behavior, we can impact the customer. Here are five specific strategies to help you prevent the price objection, by focusing on our behavior."
1. Look like you are worth more
Our appearance impacts the customer's subconscious view of our value. If we look like we don't value ourselves, it's natural for the customer to assume the same about our product.
I will never forget a salesperson for one of my clients who came to see me, concerned about the pressure his company was putting on him to get results. He chewed tobacco and had the yellow teeth and spots on the leather vest he wore to confirm that. A wrinkled pair of blue jeans topped a pair of dusty cowboy boots. He looked like a reject from a consignment shop. His appearance screamed "cheap."
If you look confident, competent and successful, you send the subtle message to your customer that you, and your offering, is worth a little more. You just look like you are less likely to discount your price in order to get the order. Practically speaking, that means to dress like your customer, only a little better. Project a demeanor of a successful, confident salesperson.
2. Believe in your price/value relationship
Do you believe that your offer represents a good value to the customer? If you don't, it will be difficult for you to convince the customer of it. You don't have to believe that your product is the best or that your company is the best. You just have to believe that it is a good value, giving the customer his or her money's worth. More people buy Fords than buy BMWs. It's not about being the best; it's about a good value.
This can be difficult if you, in your personal life, are a bargain shopper. If you refuse to pay the asking price for anything and won't buy it if it's not on sale, then you'll have a difficult time convincing your customer to pay the full price for what you are selling.
Your core beliefs will influence your behavior, and be communicated to the customer in a number of subtle ways.
To counteract that tendency, carefully examine the offer you are making from the customer's point of view. Do whatever it takes to convince yourself that it is a good value to the customer, worth every penny the customer will pay.
3. Don't inadvertently sow the seeds.
Sometimes we can blindly sow the seeds of discontent with our stated price by our poor choice of language. For example, when we say things like, "This is our retail price," "This is our rack rate," "This is list price," or other such terms, we immediately convey to the customer that there are other, lower prices, available.
We have inadvertently encouraged the customer to ask for a discount. The word "price" doesn't need an adjective to describe it.
We'll be back tomorrow with a few more ideas from Kahle on how you can avoid the price objection.
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
Friday, October 31, 2008
Practice Makes Perfect
The best sports legends have always been those that took their talent and developed it, day in and day out. Practice is what made them successful, and it's the same for top sales professionals. This story from sales trainer Dave Kahle is a perfect example.
"Having spent most of my adult life in Michigan, I have naturally grown to be a fan of the Detroit professional sports teams," says Kahle. "Basketball is my favorite, and I've been a Pistons fan since before the Bad Boys. As you may know, the Bad Boys were world champions for a couple of years in the 80's. Isaiah Thomas was the leader of the team. He was at the top of his game - most valuable player on the world championship team."
"During that time, he built a house in Detroit, and added an indoor basketball court. When asked about it by a local newspaper reporter, he replied that he often woke up in the middle of the night and used the basketball court to practice his free throws."
"Imagine that. The most valuable player of the world championship team practicing the most basic shot in the game in the middle of the night. Why would he do that? Probably because he was not a 100 percent free throw shooter. No matter how good he was, he knew there was room for improvement, and that he could become better yet."
"That belief, that you are not as good as you could be, that there is always room for improvement, is one of the marks of the best salespeople," says Kahle.
"The world is full of mediocre salespeople who don't care enough about their own performance to spend any time or money improving themselves. My own experience is that only one out of twenty salespeople has spent $25 of their own money on their own improvement in the last 12 months."
"While that certainly is an indictment of their lack of professionalism, it also represents an incredible opportunity for those who want to excel. Image how competent you could become, relative to your competitors, if you regularly spent time, money and effort improving your sales skills! What an opportunity!"
Vince Lombardi once said, "We will pursue perfection, knowing that we will never attain it. But in the striving for perfection, we will catch excellence." "The best salespeople continually pursue perfection, knowing that in the striving for it, they will catch excellence," says Kahle. "And excellence is rewarded by greater competence, greater confidence, and a more robust standard of living."
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
"Having spent most of my adult life in Michigan, I have naturally grown to be a fan of the Detroit professional sports teams," says Kahle. "Basketball is my favorite, and I've been a Pistons fan since before the Bad Boys. As you may know, the Bad Boys were world champions for a couple of years in the 80's. Isaiah Thomas was the leader of the team. He was at the top of his game - most valuable player on the world championship team."
"During that time, he built a house in Detroit, and added an indoor basketball court. When asked about it by a local newspaper reporter, he replied that he often woke up in the middle of the night and used the basketball court to practice his free throws."
"Imagine that. The most valuable player of the world championship team practicing the most basic shot in the game in the middle of the night. Why would he do that? Probably because he was not a 100 percent free throw shooter. No matter how good he was, he knew there was room for improvement, and that he could become better yet."
"That belief, that you are not as good as you could be, that there is always room for improvement, is one of the marks of the best salespeople," says Kahle.
"The world is full of mediocre salespeople who don't care enough about their own performance to spend any time or money improving themselves. My own experience is that only one out of twenty salespeople has spent $25 of their own money on their own improvement in the last 12 months."
"While that certainly is an indictment of their lack of professionalism, it also represents an incredible opportunity for those who want to excel. Image how competent you could become, relative to your competitors, if you regularly spent time, money and effort improving your sales skills! What an opportunity!"
Vince Lombardi once said, "We will pursue perfection, knowing that we will never attain it. But in the striving for perfection, we will catch excellence." "The best salespeople continually pursue perfection, knowing that in the striving for it, they will catch excellence," says Kahle. "And excellence is rewarded by greater competence, greater confidence, and a more robust standard of living."
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
Wednesday, September 17, 2008
How to Build Rapport With Anyone - Part Two
Yesterday we talked about the importance of building rapport with your clients and sales trainer Dave Kahle offered up some advice on how to build rapport with anyone. Today, Kahle is back with a few more tips to help you build rapport and make more sales!
4. Use a sincere compliment
Everyone likes to be complimented. When you sincerely compliment a customer (or his company), you communicate that you are interested in him/her, that you have noticed something they do that stands out, and that you aren't afraid to say something complimentary. Those are all good things.
5. Ask a perceptive question
A perceptive question, asked with sincerity, does everything that a compliment does and then some. When the compliment doesn't call for any response from the customer, a question does. If done correctly, it can initiate the conversation and help the customer feel like you are interested and care about him.
6. Indicate a personal connection
If you have something in common with the customer, mention it. You don't have to beat it to death, just mention it. When the customer discovers that you both know the same person, went to the same school, vacationed in the same place, or belong to the same organization, he realizes that you are alike in some ways. It's easier to do business with someone who is like you.
7. Tell a short personal story
It doesn't have to be a major digression, but a short story about something personal is a great rapport builder. Something like this:
"Boy, I had a hard time getting here on time. I must have run over some glass or something sharp, because about half way here, my right front tire went flat. Took me a while to change it. Glad I made it on time."
That's short, it's personal, and it's a bit transparent because it reveals something about you, as a human being. And, it's something to which everyone can relate.
"Building rapport is a science with proven practices and tactics," says Kahle. "Use any of these techniques and watch your ability to create rapport improve, and thereby smooth out the way to more sales."
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
4. Use a sincere compliment
Everyone likes to be complimented. When you sincerely compliment a customer (or his company), you communicate that you are interested in him/her, that you have noticed something they do that stands out, and that you aren't afraid to say something complimentary. Those are all good things.
5. Ask a perceptive question
A perceptive question, asked with sincerity, does everything that a compliment does and then some. When the compliment doesn't call for any response from the customer, a question does. If done correctly, it can initiate the conversation and help the customer feel like you are interested and care about him.
6. Indicate a personal connection
If you have something in common with the customer, mention it. You don't have to beat it to death, just mention it. When the customer discovers that you both know the same person, went to the same school, vacationed in the same place, or belong to the same organization, he realizes that you are alike in some ways. It's easier to do business with someone who is like you.
7. Tell a short personal story
It doesn't have to be a major digression, but a short story about something personal is a great rapport builder. Something like this:
"Boy, I had a hard time getting here on time. I must have run over some glass or something sharp, because about half way here, my right front tire went flat. Took me a while to change it. Glad I made it on time."
That's short, it's personal, and it's a bit transparent because it reveals something about you, as a human being. And, it's something to which everyone can relate.
"Building rapport is a science with proven practices and tactics," says Kahle. "Use any of these techniques and watch your ability to create rapport improve, and thereby smooth out the way to more sales."
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
Tuesday, September 16, 2008
How to Build Rapport With Anyone
Rapport : An emotional bond or friendly relationship between people based on mutual liking, trust and a sense that they understand and share each other's concerns.
Many people think building rapport means some small talk about the weather or football before launching into a sales pitch. No way! Just like the definition says, rapport is much more than that. Rapport is creating a relationship based on more than just selling the client - it's based on truly caring for them as a person, and always making them feel comfortable. This is an important skill that the best salespeople have mastered - and sales trainer Dave Kahle has the tips you need to do the same.
1. Pay attention to your appearance.
People will form an impression of you, based on how you look, before they even say hello to you. Your appearance, then, should be designed to help you look confident and competent - whatever that means in your market. At a minimum, that means clothes clean and pressed, shoes shined and hair cut.
Your attire should help you connect with the customer - not separate you from him. For example, if you are calling on production supervisors, you ought not to wear a suit and tie, as that will separate you from them, and generate a bit of discomfort in them.
The best rule I've seen is this: Dress like your customer, only a little better. On several occasions, I have worked with sales forces who sold to farmers. Blue jeans and flannel shirts are ok, as long as they are clean and pressed blue jeans, and a better quality flannel shirt.
2. Try an occasional bit of disarming honesty
In routine interchanges, say something that the customer is not expecting. For example, when he says, "How are you?" instead of the perfunctory "Fine," try something like this: "Honestly, my day didn't get off to a good start. One of the kids was sick this morning, and I was a half hour late getting out of the house. How are you?"
It's disarming because it was unexpected. And, it's honest, reveals something about you, and describes a situation with which almost everyone can relate. A good way to build rapport.
3. Humor
If you are one of those people who can make people laugh most of the time, then you are equipped with a powerful rapport-building asset. There is something about laughing together that breaks down some of the barriers between people and removes some of the tension. It's a great way to build rapport.
If you are not one of those people so gifted, then it's better to stay away from this. Telling a joke that nobody gets, or having a glib comment being seen as sarcastic or caustic is not a good way to build rapport.
Tomorrow we'll focus on four more tips from Dave Kahle to help you establish rapport with anyone. See you then!
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
Many people think building rapport means some small talk about the weather or football before launching into a sales pitch. No way! Just like the definition says, rapport is much more than that. Rapport is creating a relationship based on more than just selling the client - it's based on truly caring for them as a person, and always making them feel comfortable. This is an important skill that the best salespeople have mastered - and sales trainer Dave Kahle has the tips you need to do the same.
1. Pay attention to your appearance.
People will form an impression of you, based on how you look, before they even say hello to you. Your appearance, then, should be designed to help you look confident and competent - whatever that means in your market. At a minimum, that means clothes clean and pressed, shoes shined and hair cut.
Your attire should help you connect with the customer - not separate you from him. For example, if you are calling on production supervisors, you ought not to wear a suit and tie, as that will separate you from them, and generate a bit of discomfort in them.
The best rule I've seen is this: Dress like your customer, only a little better. On several occasions, I have worked with sales forces who sold to farmers. Blue jeans and flannel shirts are ok, as long as they are clean and pressed blue jeans, and a better quality flannel shirt.
2. Try an occasional bit of disarming honesty
In routine interchanges, say something that the customer is not expecting. For example, when he says, "How are you?" instead of the perfunctory "Fine," try something like this: "Honestly, my day didn't get off to a good start. One of the kids was sick this morning, and I was a half hour late getting out of the house. How are you?"
It's disarming because it was unexpected. And, it's honest, reveals something about you, and describes a situation with which almost everyone can relate. A good way to build rapport.
3. Humor
If you are one of those people who can make people laugh most of the time, then you are equipped with a powerful rapport-building asset. There is something about laughing together that breaks down some of the barriers between people and removes some of the tension. It's a great way to build rapport.
If you are not one of those people so gifted, then it's better to stay away from this. Telling a joke that nobody gets, or having a glib comment being seen as sarcastic or caustic is not a good way to build rapport.
Tomorrow we'll focus on four more tips from Dave Kahle to help you establish rapport with anyone. See you then!
Dave Kahle is the President of the DaCo Corporation, specializing in helping business-to-business companies increase sales and develop their people. Learn more at www.davekahle.com
Friday, December 28, 2007
A New Kind of Resolution
It's almost time for New Year's Resolutions. Besides the usual resolutions of eating better or exercising, how about making a commitment to helping your customers in any way you can?
I came across this tip from sales expert Dave Kahle, and was immediately impressed by the giving attitude (and how it can help you win more sales!) What a way to start the New Year.
"When a customer goes out of business in your territory, get the home addresses, phone numbers and resumes of your contacts," says Kahle. "When you hear of a position opening up somewhere, let them know about it. Try to help them find jobs in your area. Whether or not they find employment because of you, they will recognize that you tried to help. Keep in contact with them. It is possible that they will surface in a position of responsibility for some other company giving you a great opportunity to leverage your relationship into a new account."
Dave Kahle is president of The DaCo Corporation, a sales training and consulting firm. He is also a high-energy, high-content speaker, with a special gift for engaging his audiences and stimulating people to think. Learn more about Dave by visiting his website at www.DaveKahle.com.
I came across this tip from sales expert Dave Kahle, and was immediately impressed by the giving attitude (and how it can help you win more sales!) What a way to start the New Year.
"When a customer goes out of business in your territory, get the home addresses, phone numbers and resumes of your contacts," says Kahle. "When you hear of a position opening up somewhere, let them know about it. Try to help them find jobs in your area. Whether or not they find employment because of you, they will recognize that you tried to help. Keep in contact with them. It is possible that they will surface in a position of responsibility for some other company giving you a great opportunity to leverage your relationship into a new account."
Dave Kahle is president of The DaCo Corporation, a sales training and consulting firm. He is also a high-energy, high-content speaker, with a special gift for engaging his audiences and stimulating people to think. Learn more about Dave by visiting his website at www.DaveKahle.com.
Subscribe to:
Posts (Atom)