3 Powerful Skills You Must Have to Succeed in Sales

by Sharon Michaels

A key to successfully sharing and selling a product, service or idea, is to ask questions and then listen quietly and carefully to the answers. Many of us try too hard to “convince” people to buy instead of discovering what our future customer or client really wants, needs and desires from us.

To succeed in sales remember these three listening and relationship building skills:

S – Sincerity – Listen without an agenda, it’s not about your needs.

E – Ethics – It’s not about trying to talk someone into something, its about listening to what they want.

A – Asking – Serve others by asking questions that will assist them in making a wise buying decision.

Building win-win relationships means remembering that it is not about what we want but what the other person wants. Here are three relationship building skills that when used regularly will have you increasing sales and creating satisfied loyal customers.

1. Listening sincerely and without an agenda. The buying process is not about you and your wants and needs, it is about the customer. Too many of us come to the sales table with our own agenda. We are sometimes too busy thinking about quotas, promotions and commissions. It’s not about us; it’s about the wants, needs and expectations of the prospective buyer.

A sales person with an agenda tends to push too hard and often doesn’t listen well. Leave your agenda at home. Sincerely focus on your customer and how your product can best serve their hopes, dreams and goals. Zig Ziglar said it best, “You can have everything in life that you want if you just give enough other people what they want.”

2. Help talk someone into something. Allow them to make their own buying decision. Doing what is right for everyone involved is the ethical thing to do. I’m reminded of a phrase from Dale Carnegie’s book, How To Win Friends and Influence People, “A man convinced against his will is of the same opinion still.”

Your role in the sales process is to present your product in a clear, concise and truthful manner—with integrity. The best customer is the customer who can make an educated decision based on what is best for them. A loyal customer is an educated customer. You are not in the convincing business; you are in the sharing business. Your job is to ethically offer the product, service or idea, explain the benefits and answer questions. Your customer or client will then make a buying decision based on the information they’ve been given. Making the sale is about asking questions, answering questions and building a trustworthy win-win relationship.

3. You can serve your client/customer best by finding out what they want, need and expect from what you are offering. Sometimes, we are so excited to share everything we know about what we’re offering that we forget it is about your potential customer’s expectations. What is important to you may not be important to them.

I’m reminded of a story: A young mother just starting out with a large network marketing company was excited and eager to share her business with other stay-at-home mothers. She was having coffee with a potential recruit as their children played near by. The young mother was eagerly showing her products and explaining the business potential. She went on and on about how she could stay home with her children and didn’t have to leave the house to conduct business.

The mother who was listening seemed to suddenly turn off her interest and attention. When our eager young network marketing mother asked her friend to join her in the business, the friend replied with a resounding, “No,” The business-building mother was shocked and saddened, “Why?” she asked. “Because,” her friend said, “I want to be able to do something that allows me to get out of the house and socialize with other adults.”

Moral of the story: Ask questions and listen. Don’t assume that what is important to you is important to your future customers.

Successful selling isn’t about what you want, it is about how can you best serve the needs of your customers and clients. Coming from a sincere place of service, will help increase sales and develop loyal client and referral base.

Keeping the three elements of SEA (Sincerity, Ethics, Asking) in mind, you can easily and effortlessly find new customers and clients who will want to do business with you now and in the future. Selling your service, product or idea is about doing the right thing for everyone involved – it is about building win-win relationships.

Disarming The Price-Squeezing Customer

Six Ways to Eliminate Price Concerns

What's a salesperson to do when customers are more concerned with getting a low price than getting the best value for their money? Paul Cherry shows you how to get customers to look past the price tag by uncovering what they value most.

 

You've been prospecting this company for ages, and finally got your foot in the door. You're apprehensive because you're meeting with the purchasing agent –– not the big boss, but it's a start –– and you know you'll get hammered on price!
The agent shakes your hand. "Tell me what you can do for me –– and how much it'll cost me." Already, he's squeezing you on price! You want to make him recognize the value of your business solution. He only wants to dance around it, singing, "Sure, value's important. But how will you save me money?" To land this sale, flip the record and hear what he's really singing. Here are six techniques to build rapport with mid-level decision-makers and prevent them from getting hung up on price.

Understand their biggest values
For purchasing agents, this issue runs deeper than price or value. They want to feel like they matter. They deal with so many salespeople making promises that you become just another face in an increasingly maddening crowd. They're exerting what little power they have on vendors like you, and keeping an iron grip on that low price is the most obvious way they can prove their worth. Their biggest values are:

• Recognition from the boss and colleagues. They want to be recognized and rewarded for getting the lowest price, so of course they'll try to get it. Like all of us, they want the boss to say, "You just saved the company thousands of dollars! High-five!" They want their colleagues to think, "I want to be as successful as he is so the boss will high-five me, too!"


• Justification. Their self-esteem soaring, our money-conscious front-line managers think, "I've saved my company money! I'm valuable! My job's safe!" They've justified their existence, confirming to the company and the boss that they're a "keeper."

Understand their fears
Most people are satisfied with something average. With fears ranging from leaving their comfort zone, to spending more money than the boss wants, to getting fired, they're more likely to passively avoid what they don't like than to actively pursue what they want.

Understand what they're up against
Most people want to do a good job and make a decent living, but they also want to clock out at a humane hour and have time for a life. Meanwhile, they're competing for resources, clamoring for attention, mired in daily obligations. Consequently, they unwittingly overlook the bigger picture. Show that front-line manager a solution that'll bring the big picture back into focus. Pitching how you can help his company increase profitability is more meaningful when it directly impacts his year-end bonus. Maybe he's thinking, "Yeah, like my boss needs to drive another new Lexus while I can barely get around in my ten-year-old junker!"

Understand their need to feel appreciated
When companies keep a narrow focus on increasing profitability, people can slip below the radar. When the company has a great year, the CEO rarely says, "We owe it all to our purchasing agents toiling down in the basement, saving us 5 cents apiece on widgets."
Many workers you deal with feel overworked and under-respected. All they ask is that you make them look good. Provide them with solutions that will take paperwork off their desks and keep their bosses happy with them, and they'll be happy with you.

Focus on the lowest TOTAL cost
Avoid getting cornered on price by talking about the lowest total cost. Instead of just the up-front, out-of-pocket cost for the company, show how lowest total cost results from on-time delivery, faster time to market, support, quality, peace of mind, ease of use, reduced down time, overhead, and labor.

Utilize questions to uncover what your customers value
Understand what makes customers tick; see what's really driving them. When you hear "lowest price," don't scamper like a squirrel - instead, ask good questions that go beyond the price issue. You'll find out what they really want and why they want it, as opposed to what they're telling you they want.
Add some of these questions to your arsenal of sales techniques:
"Share with me the criteria you use when you're selecting a _____."
"When it comes to price, quality, service, delivery, performance, customer support, and ease of use, which matters most to you? Which matters least?"
Say your customer cited performance as a priority: "You mentioned that performance is important to you. Would you share with me your definition of performance?"
"So that I'll best understand your needs, can you walk me through a situation in which your standards for performance were not met?"
"Let's assume you're looking at three potential vendors who meet all your criteria (including price). How would you make your final decision?"
"You mentioned that the most important thing for you is price. How does that compare to what engineering (manufacturing, design, production, marketing, fulfillment) thinks is most important?"
"What's most important to your customers?"
"Think back to when you first chose your current product. What were your selection criteria? Based on what you know now, how would those criteria change?"
"Think ahead to three years from now. What do you anticipate will be most important at that time –– the initial price of the product? Or the peace of mind you'll have, knowing you're getting the necessary support long after a purchase was made?"
"Which characteristics of this product are 'must haves' for you, and which are optional?"
"The changes we've discussed would result in an increase in profits. What would you do with that increase in available funding?"
"What alternatives to this problem have you considered?"
"You have told me that your company has allocated Rs._____ for this product. How was that amount determined?"
Show your customers your solution will help solve these problems. Get them to define value based on their specific needs, and it'll be much easier to justify your solution as a smarter investment over lower-priced alternatives. Once you know your prospects' needs, inside and out, you'll be able to present your services and solutions as a great value at any price.

COMPETITIVE ADVANTAGE

by-Michael Porter

  COMPETITION is at the core of the success or failure of firms. Competition determines the appropriateness of a firm's activities that can contribute to its performance, such as innovations, a cohesive culture, or good implementation. Two central questions underlie the choice of competitive strategy. The first is the attractiveness of industries for long-term profitability and the factors that determine it... The second central question in competitive strategy is the determinants of relative competitive position within an industry....

Neither question is sufficient by itself to guide the choice of competitive strategy. A firm in a very attractive industry may still not earn attractive profits if it has chosen a poor competitive position. Conversely, a firm in an excellent competitive position may be in such a poor industry that it is not very profitable, and further efforts to enhance its position will be of little benefit. Both questions are dynamic; industry attractiveness and competitive position change. Industries become more or less attractive over time, and competitive position reflects an unending battle among competitors. Even long periods of stability can be abruptly ended by competitive moves. Both industry attractiveness and competitive position can be shaped by a firm, and this is what makes the choice of competitive strategy both challenging and exciting.

I Don't Have the Budget

By Jim Kasper

If you've been in sales for any length of time, you've heard this one. It really hurts when you've expended a lot of time and effort. This Sales trainer shows you how to respond, and, more importantly, how to avoid this classic objection in the first place.

It's a recurring theme these days. You know the "drill." You've done your homework, the prospect likes what you're offering, and after all of your hard work, you see yourself walking out with an ....order! You're ready to close. Then you hear the dreaded, "I really like what I see, but I just don't have the budget."

The typical responses to this statement are:

• You say, "O.K., Ms. Prospect, I'll check back with you later?" Then you leave.


• You handle it as any other objection by paraphrasing, clarifying, and restating the benefits.


• You realize that the prospect truly doesn't have the money.


• Relying on your keen instincts and superlative sales abilities you continually try to close, irritating the prospect who calls security to have your carcass escorted to the parking lot.

 You decide the most prudent course of action is to argue the cost vs. the benefits. "Yes, but what I've proposed will provide an R.O.I. of 133% within 18 months!"

Of the above responses, only one would be deemed proper. There are times when the customer really does not have a budget. The reasons for this may be:

• The customer may be too small to afford your services.


• It may be the end of the budget or fiscal year.


• Business may be particularly slow.


• Business may be good, but cash flow is slow.


• The company is cutting expenses to appease the "analysts."

How do you determine if these are legitimate reasons when they come from your customer's mouth? You always ask open-ended questions about these topics as part of the normal fact-finding mission in your sales interview. By doing this, you bring out budgetary restraints at the beginning of the sales cycle, not the end. Preface your questions with the statement, "Mr. Prospect, I have a few background questions to ask you that will help us determine the most effective way to proceed." Then, ask:

 

"Tell me about your fiscal year."
"How has business been lately?"
"What type of seasonality do you experience?"
"What was the last time you made this type of [product / service] purchase? How did it go?"

 

In other words, predetermine the fiscal condition of your prospect or customer before he or she uses one of these conditions as an objection. Like a good tailor, you've got to "size them up."

Upon hearing, "It's not in my budget," consider the following to sell your prospect:

Establish a financial proposition
A temporary personnel placement agency, specializing in the insurance industry, was approached by an insurance trade association to sponsor a member educational program. Although the association was a prime target for prospects, the cost of the program was thousands of dollars more than the firm expected. The small firm did not have the budget. How did the association close the deal?

The insurance association representative asked the placement agency owner how many dollars the average insurance association member spent with the placement agency annually. Then the association representative figured it would only take three new customers to pay back the sponsorship fee. Next, the association representative helped the agency develop a plan to obtain six new customers by sponsoring the event.

Be a budget planner
In January, a large financial services organization solicited proposals from several sales training firms. When the successful proposal was identified, their CFO realized the cost of the training was more than remained in the training budget for the fiscal year. The fiscal budget started in June. What did the successful sales training company do to close the financial institution?

Realizing that the "not in my budget" was legitimate; the training company agreed to aid the financial institution in planning its next fiscal year's training budget. The training company literally became a planning partner with the financial organization.

"I guarantee it."
In today's fiercely competitive market, sometimes prospects play the "It's not in my budget" card just to see what concessions they can get out of the deal. When appropriate, and when you know who you're doing business with, try the guarantee approach. Many companies offer a performance guarantee to their customers calling for a product or service to meet a certain benchmark by a specific date.

Here's an example. Recently, we were asked to make a training proposal to a major electronic manufacturing firm. During the initial interview, the firm said that the training was not budgeted and they were looking for some creative approaches to "sell" the program to senior management. We then offered a guarantee - within 60 days, the program was to provide a specific R.O.I. If that R.O.I was not met, the cost of the program would then be refunded. When presented with that solution, management promptly allocated the funds.

Keep these suggestions in mind when you are presented with the "no budget" response:

• Never, ever automatically offer a price concession.


• Don't instinctively accept the response at face value; always probe for the "hidden" reasons.


• Ask yourself, "Can they really afford what I'm selling?"


• Ask the prospect, "What are your future plans to buy?"


• Ask yourself, "How badly do I want this business? When? At what cost?"

Following these guidelines will give you insight on your next step and help you determine whether to pursue the opportunity or withdraw and head down the road to your next prospect.

Negotiating to Win

Julie Thomas shows you how the negotiating process takes place throughout the sale and what you can do to position yourself to win.

In today's hyper-competitive markets, prospects are more risk-averse than ever. Many prospects focus on every aspect of every purchase to prove that they are getting the best possible deal. Often they have "professional purchasers" who are fully responsible to get the best deal possible. At the same time, your goal is to establish enough value to minimize the cost discussion when it is time to close the business. As a seller of goods and services, your company's profits are directly affected by your ability to meet your customers' needs while meeting your own goals.

Sales is the business of relationships, and like any relationship it requires give and take. We typically expect the give and take, also known as negotiating, to happen during proposal and contract discussions; however, in reality, we continually negotiate throughout the sales process - on everything from picking a time to meet to determining who will participate in a demo to hashing out the terms and conditions of a contract. Negotiations are most productive when conducted objectively, and at the right time.

Here are a few points to remember when negotiating with prospects:
•Understand the "need" behind your prospect's position. In any negotiating situation, your responsibility is to understand your prospect's criteria –– as well as your own –– and ethically create positive outcomes for all parties involved.

•Know your empowerment level; you could find yourself in dangerous territory with either your company or prospect if you commit to things that are outside of your span of control.

•Define what constitutes a "win" for all parties. Here, it is critical to consider what you want as well as what your prospect wants.

•Be clear on what you can negotiate and what is non-negotiable. For each of us, there are non-negotiable items that are not open for discussion or compromise. It is important that we understand those and are clear about what we are willing to negotiate on.

•Maintain composure; respond rather than react and maintain a high level of rapport every step of the way.

•Finally, know your "walk-away" position; some deals are simply not worth what you are being asked to give up.

A key to successful negotiating is to understand when to negotiate in the first place. Negotiating components of deliverables, terms or pricing before the prospect is actually "sold" on your solution will cause you credibility problems. It is important not to negotiate until you have clearly shown the prospect what his world will be like after he acquires your product or services, and established both business and personal value with the individuals you are working with. Also understand the prospect's process for purchasing so that you are not caught in a position of multiple negotiations with multiple individuals.

There are typically three things to negotiate at the end of your sales cycle:
Deliverables, Terms and Conditions, and Pricing. One thing to keep in mind is that your price is always a function of your deliverables and your terms and conditions. As you prepare for your negotiation, there are three key strategies that can help you through the process:

Strategy #1: Trade-offs
Successful negotiations are a balance of meeting both parties' needs. With trade-offs, your objective is to meet both parties' needs by trading items from one category with items from a second category. For example, you may be willing to reduce your price with a change in terms or deliverables.

How it might sound:

"If you want this product shipped to multiple locations, are you willing to accept different payment terms?"

Strategy #2: Embellishments
This strategy requires you to add incremental value in one category when you can't make a trade-off to accommodate the prospect. For instance, you may throw in deliverables that have little cost to you but are large value to the prospect.

How it might sound:

"If we expand the training class from fifteen to twenty people, are you willing to move forward today with the terms and investment we have discussed?"

Strategy #3: Compromise
Compromise involves finding the middle ground in the same category. Splitting the difference on price, payment terms or a specific deliverable could be examples.

How it might sound:

"If we can split the difference in payment terms between net 10 and net 30, can we move forward today?"

Think about a current sales cycle that is nearing the closing point. First, analyze all areas of your qualification process to confirm that you have a truly qualified prospect. If you find that you are not working with a qualified prospect, re-engage on the sales cycle rather than the negotiation.

Next, prepare for any potential negotiation by identifying both the prospect's and your own ideal position. Make a list of what is non-negotiable from your perspective, and another list of what you think your prospect might require to move forward. From these two lists, develop potential win-win negotiating strategies using the aforementioned strategies:
•Trade-offs
•Embellishments
•Compromises

Negotiating for success requires planning and strong communication skills. Being prepared for the negotiation with solid ideas and strategies will put you in a position of strength!