Thoughtful Thursdays - Is it worth it?

Today's thought is about the age old topic of price versus quality. I will start with a quote from many years ago that has helped  me to remain grounded when the subject comes up.

"It's unwise to pay too much but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do. The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run. And if you do that, you will have enough to pay for something better!" John Ruskin (1819-1900)

Price is simple - dollars and cents

Quality can be interpreted in several ways, encompassing many things. In every case, a sale most likely to be made when the price is equal to or less than the perceived quality of the product. No one wants to overpay.

From a sales point of view one of the most common objections we face is typically to do with price. Sometimes it is legitimate, but in most cases the prospect is testing us. How hungry are we for the order and are we willing to sacrifice profit margin at the expense of the value of the product/service we are representing.

On the other side of the coin, at what point is the risk John Ruskin talks about too high before the potential customer decides not to buy?

When you find yourself in a situation where the easy way out is to compromise on price, don't do it without giving due consideration to the consequences.

• The value of the product/service is immediately lowered to that point
• Decreased profit margins
• Ultimate quality may be at risk
• Potential of customer dissatisfaction
• Continuing profit erosion as a result of lowered value

Is it worth it?

Good selling,
Richard

Thoughtful Thursdays - Assume nothing!

It makes perfect sense... to me anyway.

 

Just because it makes perfect sense to you does not mean that your prospect or anyone else for that matter shares your interpretation.

Today's thought is about assumptions. They make life convenient and can provide what appear to be good reasons for not getting things done.

 

Here is a list of assumptions when taken at face value that will inevitably lead to a longer sales cycle or worse, missing out on an opportunity. You can likely add to the list from your own experiences.

• They understand what I said
• They know what they need
• They will be too busy to talk to me
• My products/services are too expensive for them
• They are not my customer
• I am speaking to the decision maker
• I know what they need
• They are not interested
• They don't have the money
• Only the owner makes that decision
• They are the experts
• They can not help me

Before planning your next step ask yourself this: "How do I know?"

Good selling,
Richard

 

Thoughtful Thursdays - Managing your sales time?

As mentioned previously, a common subject of conversation with my clients is the matter of having too much to do and not enough time to get it all done. We all are subject to this in varying degrees and I have written several times on the topic.

Today's thought deals specifically with managing sales call time efficiently to maximize the return on your time investment.

You have targets in various stages of the sales cycle. Taking time to assess the following may help you determine where your time is best spent.

• Total potential sales volume
• Total available sales to you
• Probability of closing in the next 1, 2, or 3 months
• Value of the order you are working on

With this information you can determine a level of urgency for each your top targets. Obviously you want to spend the majority of your available time working on the potentials that will yield the highest sales in the shortest period of time.
By reviewing your targets and progress on a regular basis your process will become more efficient.

Good selling,
Richard

Thoughtful Thursdays - Getting past the gatekeeper

Sooner or later we all encounter the obstacle commonly referred to as the gatekeeper. Today's thought focuses on overcoming this obstacle.

First off, do not label these people as gatekeepers, they are potential customers and depending on your approach, may not want to refer you, and we all know the importance of referrals, right?

With that in mind, establish rapport, don't immediately ask to speak to someone else. It may be perceived as dismissive, most certainly an undesirable behaviour. Show respect for the person, I reiterate, they are also your customer and might be one of the most important people in your sales cycle.

Do not assume they can not help you, think the opposite; without them you are lost.

Your first sale is yourself. Be successful at this level and look forward to a shorter sales cycle.

Good selling,

Richard

Thoughtful Thursdays - Tips for your targeted email sales campaign

A targeted email sales campaign is a relatively low cost approach to reach a significant number of your prospects. It sounds simple enough, yet many do not produce expected results.

I client of mine recently ran a very successful targeted business to business email campaign. During a recent meeting he shared with me what he believed were key success factors and I am able to share them with you today for your thought and consideration.

1. Set clear goals for the campaign - Know why you are doing it in the first place
2. Know who you are targeting - Conduct your research first, remember we are talking about targeted campaign - a laser beam not a shotgun approach.
3. Hire a professional copywriter - Unless this is your profession, do not write your own copy. The success of your campaign depends on the ability of your message to engage and promote action.
4. Have and A/B test protocol for your message - Use what works
5. Predetermine how you will measure results - Tracking your results will help improve your next campaign. Consider using an email service.

In closing today, if you are planning to run a targeted email sales campaign, the chances of success are greatly increased when you have a clear plan to follow.

For your information my client's initial return on investment was approximately twenty fold.

Good selling,
Richard

Thoughtful Thursdays - Battling with the big guys

We see competition every day in almost everything we do. Whether it is purchasing necessities of life or deciding on how to use our discretionary budget. Competition keeps us on our toes.

We run across situations where the competition may be much larger and established. When starting a business it is often one of the most common obstacles to overcome. How do you compete with the big guys?

When you run into that kind of competitive situation think about your own buying habits. Specifically identify the suppliers you patronize who are not the big players. It could be the corner store, an independent garage, or any number of privately owned retail outlets.

Once you have this list, make another stating the reasons why you do business with them instead of the larger alternatives.

If my suspicions are correct, the reasons for your loyalty will be related to service or convenience. It will be due to a more enjoyable buying experience. The factors that affect the experience can be numerous, but in my experience the word "enjoyable" keeps coming up. You like dealing with them.

Your business can compete with the big guys. It may not be on total revenues, employee count or physical size of facilities. If those are the most important factors when your customer makes a purchasing decision, you are not likely going to get the business.

If your prospects are looking for the same characteristics demonstrated by the smaller suppliers you deal with on an ongoing basis, you can be superior and compete very successfully. It has been said many times by many people - bigger is not always better.

Good selling,

Richard

Thoughtful Thursdays - The other price objection

Today's thought is about the other price objection. Not every business will face this price objection, but it is worth discussing, especially if you submit price quotations and proposals.

This objection may not be verbalized yet almost always results in loosing the business.

You work hard determining the needs of your potential customer and establishing the value of your products/services. Everything is looking favourable and you are ready to prepare and submit your quotation.

If you look at the accompanying image, at first glance everything looks okay, but upon closer examination something just is not right. Graphic artist M.C. Escher is famous for his so-called impossible structures simplified by this impossible triangle.

The objection I am referring to is the opposite of the most common "Your price is too high."
It is "Your price is too low." The value that you worked so hard on establishing has been betrayed by a low price. The customer has decided that the products/services being offering can not be delivered for the indicated price.

You have heard the phrase "If it sounds too good to be true, it probably is."

Be competitive, not unbelievable.

Good selling,

Richard

Thoughtful Thursdays - Managing your prospect list

All your customers were once prospects. Without prospects there will be no customers. Yes we have heard it all before.

Today's thought is about managing  your prospect database. It is one thing to have a long prospect list and another to be working the list for maximum return.

Can you have too many 'hot' prospects? My answer would be yes, if it means your level of service is being negatively affected by the work load. Trying to be everything to everyone at the same time can be a risky and stressful way to do business.

One way to mange your prospect list is to grade including the following criteria:

• Sales potential, short term and long term
• Profitability of the potential business
• Probability of closing the sale
• Likelihood of the sale closing in 1 month, 2 months, 3 months or longer
• Where they are currently in the buying cycle

It makes sense to focus on confirmed high potential sales targets that have a high probability of closing in a short period of time. This information will also allow you to more accurately forecast sales.

Many times I have seen sales people spending too much time on low potential prospects. On the other side of the coin, be mindful of being seduced by the lure of a huge apparent potential with little chance of closing the deal. Make sure your information is sound and that the insights you draw are realistic.

Be wary of "Hopium" and "Happy Ears" as described in detail by author and sales expert Dave Kurlan.

Good selling,
Richard

Thoughtful Thursdays - Shortening your sales cycle

Today's thought is about shortening your sales cycle and finding the gold quicker. If one was to analyze their sales cycle and determine where the bulk of time is spent before closing, it is likely in the area of making connections with the right people. What if you could get to the right person faster?

Are you using all the resources at your disposal? Does your contact list include everyone you know, not just from business but personal as well?

Review and update your contact list. Make sure everyone you know is on the list. Before making contact with a prospect, mine your contact list and seek out the ones who might know someone at your prospect. You may be surprised with the results. We all know that once you have a referred contact name, the task becomes so much easier.

Give it a try.

Good selling,
Richard

Thoughtful Thursdays - Feel like it is an uphill battle?

If you have never been faced with an uneven playing field, you must be new to the sales profession. We face the situation every day, your competition works hard to create it and it is your job to level it and then tip it in your favour

This competitive situation can be caused by any number of reasons and today's thoughts are about ascertaining them. Only when you know what is causes can you begin to mitigate them. Trying to level the field without knowing what is making it uneven in the first place can have negative consequences for your business.

Here are a some examples of what can contribute an uneven field.

• Customer service
• Terms and conditions of sale
• Comprehensive offering
• Price
• Availability of product
• Guarantees
• Warranties
• Response time
• Product quality
• History
• Reputation
• Relationship

As a sales professional it is your task to assess the situation and develop the correct strategy to make the field level. The most common reaction when encountering and objection is to counter with a price concession. This can also be the most dangerous - not only to your business, but to the market you are participating in as well.

It is important to know what you are up against before choosing your tools. In my experience there are few objections that can not be overcome. It comes down to whether or not you are prepared to do what needs to be done. In come cases it is better to walk away and go on to the next opportunity. You are not going to win them all.

Whatever action you decide on, be sure to have all the information first. Talk to the righr people and ask questions that will get you the information you need to know.

Next week: Tipping the scales it your favour.

Good selling,
Richard

Thoughtful Thursdays - There is nothing like a happy customer, why are they so happy?

Not many people that I know or talk to do not want their customers to be happy. Given the opportunity, happy customers will more than likely buy from you again and refer new business your way. There are numerous reasons to keep your customers happy.

 

Having said that, it seems to be difficult for some businesses to make the experience of buying from them enjoyable. While unavoidable things do happen and it is impossible to keep everyone happy, many poor buying experiences could have been prevented with some forethought.

 

Take yourself for example. Do you have a favourite restaurant you keep going back to? How about a mechanic or dealership you have been dealing with for years. Maybe it is a golf course, or retail store you frequent. I think everyone has their 'own' hair stylist. Make a list of the businesses or people you purchase from on a regular basis. Add to that list the reasons why you patronize them.

• They treat me like they care
• They are always smiling and pleasant
• They are knowledgeable
• I trust them
• They listen and don't try to sell me something I do not want, they make recommendations based on my needs
• They are not pushy
• They are accommodate my schedule where possible
• They make me feel comfortable
• They make so convenient to say yes
• I get a lot for my dollar
• I like them

Now consider your day to day sales interactions with your customers and prospects. Have you forgotten or taken for granted any of the reasons that affect your buying decisions?

Good selling,

Richard

Thoughtful Thursdays - Value selling, quantifying the benefits

You have examined the features of your products/services and defined the benefits. The thought for today is to take the process one step further and quantify the benefits you have worked so hard to identify.

I have not yet run across a benefit that could not be quantified in dollars. Doing the arithmetic is another way to make it easier for your customer to say yes.

Does your product save time, increase productivity, reduce down time or cost less?

Being able to quantify the benefits requires research and is often a subject does not always come up in the first meeting. You will need to ask your customer questions to correctly convert the benefits to a realistic dollar value.

• If your benefits relate to time saving, hourly costs X the time saved equals a dollar benefit.
• Productivity could mean making more units per hour, thereby reducing costs
• Productivity could also mean reducing time consuming activities, again time X costs of that time equals a dollar benefit
• Downtime is expensive. If your product/service can eliminate down time, the dollar benefit is equal to the cost of down time X the down time eliminated

Take the time to do the research and calculate the dollars that your business will add to your customers bottom line. The sooner you can quantify the benefits, the sooner the sale will close.

Good selling,
Richard

Thoughtful Thursdays - Relevant information adds value

You know that following up with your customers is important. Have you ever found yourself in the situation where you just do not know what to say beyond what you have already said and consequently avoided making the call?

You do not want to be a pest and reiterate what has already been stated and understood, but you do want to stay top of mind with your customer.

Maintaining contact without being a pest can be a challenge. One way to look at the task is to always be mindful of adding value when communicating. Relevant information is valuable and if you become a know source for reliable information it can work in your favour.

Communicate information your customer will be interested in. This could be industry news or information about their target markets. Do not assume they see everything  that is published. One way to source this type of information is to set up a Google alerts that come into your mailbox. Social media is another way to keep your finger on the pulse of an industry. Follow credible tweeters, join and participate in Linkedin groups that have relevance to your business.

This kind of information is often appreciated and will help keep you top of mind with your customer.

Good selling,
Richard

Thoughtful Thiursdays - Back to basics

Today's thought is a simple one, getting back to the basics of sales. Here are a few pointers you may find helpful.

• Dress appropriately
• Know what makes your product/service different
• Prepare for every call
• Arrive a few minutes early
• Bring a great attitude
• Know what you are going to say
• Listen more than you speak
• Thank your customer for their time
• Never conclude your call without knowing when the next contact is going to take place
• Complete your call report and analysis of the call when it is fresh in your mind - do it right after you leave the customer.
• Follow up
• Follow up
• Follow up
• Make your process routine

Good selling,
Richard

Thoughtful Thursdays - Learn from the people you buy from

I would be willing to bet you have a list of product or service providers you prefer to do business with.

Maybe it is the favourite restaurant you frequent and no matter hwo many times you read the menu, you end up ordering "the usual". Your server may already know you and ask if you if want "the usual".

It could also the service station you have to drive a bit further to get to now, but you always go there when your car is in need of service.

How about the hair stylist you have followed from salon to salon over the years?

The list goes on...

Today, think about why you continue to take your business to these businesses and list the reasons. Review the list and ask yourself if your customers feel the same way about you.
You can learn a lot from the people you buy from.

Good selling,
Richard

Thoughtful Thursdays - Be a better listener

Being a good listener is a characteristic demonstrated by successful people in every walk of life and sales is no exception. You can become a better listener by putting into practice a few simple thoughts.

•  Focus on the speaker
• Avoid distractions - turn cell phones off, do not incoming take calls, stay on topic, tune out the noise
• Make eye contact
• Acknowledge and empathize
• Do not interrupt
• Be interested and learn
• A bit of silence is okay

A lot of the selling process is about asking, when you ask a question have the courtesy of listening to the response and hearing what your customer or prospect is saying. Assessing the situation and determining needs is facilitated by being a good listener.

It sounds easy, it may take longer than you think to improve your skills. The improvement in the quality of your conversations will be noticeable with the increased information that becomes available to you. Being a better listener pays off in the long run.

It has been said may times before: You have two eyes, two ears and one mouth. Use them in similar proportions.

Good selling,
Richard

Thoughtful Thursdays - Using objections to your advantage

Past Thoughtful Thursdays have talked about handling common objections and using them to grow your business.

Today's thought describes another way to approach common objections.

Once you have identified the objections that are indeed common in your sales experiences, you will undoubtedly have responses at the ready.

Instead of waiting for the objection from your prospect, try bringing it up yourself. For example: "Many people have felt that the cost of this product is prohibitive, and on the surface that may appear to be true. Allow to me explain how you can save in the by using this product." (advance preparation will allow you to back up your claim)

You can mitigate the chances of encountering many insincere objections by eliminating them before they have the opportunity to surface.

Good selling,
Richard

Thoughtful Thursdays - Commit to do instead of hope to do



The other day I overheard a sales representative on the their telephone say: "I was hoping to get back to you in a day or two with the information."

I could not help but wonder how the person at the other end of the conversation felt about this response. Would it have a negative effect on any future dealings, or in the worst case prevent a sale from taking place?

I do not like to leave the matter of getting back to a customer to hoping. "In a day or two" also makes me cringe a bit. It leaves one open to a range of expectations that is avoidable.

A different approach might go something like this: I expect to have that information in two days and will follow up with you by Thursday. (If the conversation took place on Tuesday) Will that be satisfactory?

I have found that by taking the approach of offering a time line that meets my own requirements is acceptable in the majority of cases. If it is not, the customer will tell me and an action plan to accelerate the process will result.

Make your commitment specific and remember to confirm that it is acceptable.

Good selling,
Richard

Richard

Thoughtful Thursdays - Don't bore me with the details

There are lot of benefits to be realized by noticing the "little" things during a sales call. The major benefit being the shortening of the sales cycle.

The "little" things I am referring to relate may help reveal the personality of your contact. The value of knowing your audience is undeniable. The ability to assess and adjust your approach is a competency that develops over a period of time and increases with experience.

So, what might you be observing while listening?

• Is the office neat or does it appear to be in disarray?
• How is the customer dressed?
• What is hanging on the walls?
• Are there family pictures?
• Is there note taking?
• Does your customer keep looking at the time?
• Eye contact?
• Are there interruptions?
• On time, or do you have to wait?

These kinds of observations will help you determine who your audience is. With that knowledge you can adjust your approach to match their personality. There is more value focusing on numbers and details with an analytical personality, where the intuitive type may be more interested in the theory.

Remember the formula: Two eyes, two ears and one mouth, use them in the same proportions to your advantage.

Good selling,
Richard

Thoughtful Thursdays - Prospecting

Closing that first new, new customer is a challenging task, yet one of the most rewarding closes a new business owner can make. This is a customer that does not come from a referral or previous business relationship. It is new business developed from a new prospect identified from scratch.

Today's thought is about identifying those prospects in a timely manner.

Networking is a powerful tool that can generate many new prospects. Business directories, industry databases and trade associations are also good sources for identifying prospects. In my experience, it is a combination of resources that leads to successful prospecting.

A colleague of mine provides good advice when he says "Don't go looking for the needle until you identify the correct haystack."

If you are experiencing challenges prospecting, you may not be searching in the correct haystack. If this is the case, revisiting your market research will likely be a beneficial. Does the target market identified represent the people/businesses that are most likely going to want to purchase your products/services? If not, further research will help bring clarity.

If the target market is correct, are you prospecting in the venues where they are most likely to be found? Networking quickly turns into not working if this is the case. Review your activities and confirm  that you are in the right places on a regular basis.

Good selling,
Richard