Professional Selling Final Exam

Iceberg Principle with Price

A sales proposal is sometimes like an iceberg... The customer sees the tip of the iceberg (price) but does not see the value-added features below the surface. - Salespeople need to direct the customer's attention to the value-added features that make up the bulk of the iceberg that is below the surface - sell yourself as a high-value element of the sales proposal - Emphasize your commitment to customer service after the sale - listen carefully to identify and reconfirm what intangibles in addition to the product or service the customers actually value

Video: AFTO

AFTO stands for "ask for the order" - Indirect Approach in the video is demonstrated by positive/negative - Narrator= Art Bauer - Customers expect to be asked to buy!! TRUE!!

BATNA

Best Alternative to Negotiated Agreement - what alternative(s) will be acceptable to you if your negotiation does not succeed - important to assess both your and your customers BATNA during formal negotiations because of concession - What alternatives will be acceptable to you if your negotiation does not succeed?• - What alternatives will be acceptable to your customer if his or her negotiation does not succeed?

Nonverbal clues

Body Movement, Facial Expression, Tone of Voice - very hard to detect so pay attention closely - When you see one of these clues, don't hesitate to ask for commitment EXAMPLE: - Suddenly, the person's eyes widen, and genuine interest is clear in the facial expression. - The prospect begins showing agreement by nodding. - The prospect leans forward and appears to be intent on hearing your message. - The prospect begins to examine the product or study the sales literature intently

Consultative Presentation

Customized, personalized presentation built around specific needs of each customer

Methods of negotiating buyer concerns

Direct: - involves refuting the opinion or belief of a prospect - Example: For example, if the customer questions the product's quality, meet the concern head-on with whatever proof seems appropriate. - very high risk - provide accurate information Indirect: - means to bend a little and acknowledge that the prospect is partially correct - Example: Yes, I agree the yellow pages in our directories do feature hundreds of ads, but the section for general contractors features fewer than 30 ads

Buying Motives

Every buying decision has a motive behind it and many are influenced by more than one buying motive - Emotional: Sentiment or passion - Rational: Objective thought process - Patronage: superior service, complete selection, competence of sales rep, ability to buy online - Product: brand, quality, price, design or engineering preference

Video: Negotiations, solving the tough problems and adapting negotiations for win-win solutions

Gerald Manning director of radiology Dr. Arroyo budget is 7.2 Million Dollars Walk-Away Price - The price where the salesperson walks away from the deal

Consultative Sales Process and Value

Increased customer satisfaction - adds value, maximizes satisfaction, sets the stage for a partnership relationship More sales closed - helps avoid unnecessary objections from the customer Fewer order cancellations - fewer orders cancelled, more profit Fewer returns - returns wipe out any profit from the sale Increased repeat business - companies don't make a profit on the first sale Increased referrals

Management Close

Involve senior executives or sales manager to assist with the close - used for major accounts - makes prospects feel your whole company's resources will be available to support the customer. EXAMPLE: - Ryan Hegman, who works for Hegman Machine Tool Inc once brought in the president of the company, the vice president of sales, and the lead engineer... - They each added value in a separate way

Dealing with Loss

Learn to manage disappointment hen a sale is lost: 1) Make sure the deal is really dead - last ditch effort - theres always a chance the customers decision can be changed 2) Review the chain of events - try to benefit from the experience - get input from each member (if you sold as a team) - schedule a debriefing session - engage in honest self-analysis (if you worked alone) - carefully review your performance during every aspect of the sales process... you may be able to identify weaknesses 3) Interview the client - Obtain feedback requires a delicate approach - Don't be too aggressive or too passive - ASK IN NEUTRAL TERMS EXAMPLE: - "Thank you for considering our company. We hope to do business with you at some time in the future. Would you mind helping me understand any shortcomings in our sales proposal?" ALWAYS KEEP THE DOOR OPEN FOR FUTURE SALES

Need Discovery

Length of process depends on... - Sophistication of Product - Selling Price - Customer Knowledge - Product Applications - Time Available

Elements of a Persuasive Strategy

Persuasive Communication - personal, subjective - emotional response - emphasize benefits - influence driven - Place special emphasis on the relationship - Target emotional links (you, advantage, benefits, new) - Use persuasive vocab - Sell specific benefits and obtain customer reactions - use showmanship - minimize negative impact of change - place strongest appeal at beginning or end - use power of association with stories

Quantifying the Solution

Process of showing the prospect that the cost of the proposal is offset by added value ROI - formula used to calculate net profits or savings from a given investment - Net profit or saving/Investment x 100 Cost Benefit Analysis - listing the costs to the buyer and the savings to be achieved from the purchase of the robots. Achieves - Salespeople often acquire this information at the need-assessment stage and then include it in the written proposal.

Verbal Clues

Questions: - One of the least subtle buying signals is the question. - You might attempt a trial close after responding to one of the following questions EXAMPLE: - "Do you have a credit plan to cover this purchase?" - "What type of warranty do you provide?" - "How soon can our company get delivery?" Recognitions: - any positive statement concerning your product or some factor related to the sale, such as credit terms or delivery date EXAMPLE: - "How long will it take to get delivery" - "Will this plane do all the things you said it will" - "I have always wanted to have a boat like this" Requirements: - sometimes customers outline a condition that must be met before they can buy. - IF you can fulfill this requirement, respond with a trial close EXAMPLE: - "We will need shipment within two weeks." - "Our staff will need to be trained in how to use this equipment." - "All our equipment must be certified by the plant safety officer."

Need Discovery Questions (SPIN)

Situation, Problem, Implication, Need-payoff Survey: - Discovers basic facts about the buyer's problem and existing situation - Example: "Can you describe the problems you experience traveling to each of the pro golf tournaments?" Probing: - Designed to uncover pain and clarify the circumstances and implications surrounding the customer's problem - used When you feel the need to obtain more specific information to fully understand the problem Example: "Are the travel problems affecting your concentration when you are preparing for the event?" Confirmation: - Used throughout the sales process to verify the accuracy and assure a mutual understanding of information exchanged by the salesperson and the buyer - used after important information has been exchanged - Example: "So you think the uncertainty associated with commercial air travel is having some effect on your game?" Need Satisfaction: - Designed to move the sales process toward commitment and action; focuses on the pleasure or payoff achieved from the proposed solution - used when you shift the focus from the problem to the discussion of the solution - Example: "With fractional ownership of your own jet, what personal benefits would this bring to your performance in the30 tournaments you play each year?"

FAB selling persuasive strategy

State the feature and convert it into a buyer benefit - then obtain customer reaction by using confirmation or need satisfaction questions EXAMPLE - Feature: 7 hour battery life - Benefit: Fewer work interruptions when traveling - Question: "Battery life is important to you, isn't it?" (confirmation question) "Would you like the luxury of setting the temperature and then not worrying about it?" (need-satisfaction question)

Guidelines for creating a presentation that adds value

Strategic Planning: - review prospect information - review buying motives - review product selection - select need satisfaction presentation - develop consultative presentation plan that adds value - rehearse presentation Actions taken during presentation: - Re-establish relationship - confirm buying conditions - present specific benefits - conduct appropriate demonstrations - confirm customer understanding - negotiate concerns, close and service the sale

Combination Approach

The cost of our business security system is a little higher than the competition. The price I have quoted reflects the high-quality materials used to develop our system. Wouldn't you feel better entrusting your security needs to a firm with more than 25 years of experience in the business security field?" In this situation, the salesperson might also consider combining the indirect denial with an offer to arrange a demonstration of the security system.

Reservation Point

The point at which a person will either stop bargaining or move their RP to achieve a settlement

Need Discovery Process

The salesperson establishes two way communication by asking appropriate questions and listening carefully to the customers responses Ask appropriate questions - Listen and acknowledge customer response - Establish buying motive

Closing Methods: Definition and example

Trial close Direct appeal close Assumptive closed Summary-of-Benefits close Special concession close Multiple options close Balance sheet close: vs closing work sheet Management close Impending event close (Positive/Negative)j. Combination close

Tactics that trained buyers use to negotiate the best terms

Unbundling: - strategy to reduce the price by eliminating some items - Example: "We can deliver the trucks with a less powerful engine and, thus, meet your budget figure. Would you be willing to purchase trucks with less powerful engines?" Take it or leave it: - confidently review the superior benefits of your product and make another closing attempt. - Appealing to the other person's sense of fairness also may move the discussion forward. - Example: "My final offer is $3,300, take it or leave it" - halt negotiation to allow the other party to back down from his position without losing face. Let us Split-the-Difference: - the salesperson may find this price concession acceptable - If the buyer's suggestion is not acceptable, then the salesperson might make a counteroffer. If.....Then Tactic: The buyer says: - "Unless you agree immediately to a price reduction of 20 percent, we'll have to look elsewhere for a supplier." - the correct response depends upon the outcome of the assessment of the balance of power conducted during the preparation - If the buyer does have a number of options, all of which offer the same kind of benefits as yours, then you may have to concede. - If your product offers clear advantages over the competition, then you may be able to resist the challenge. Sell Low Now, Make Profits Later (Reward in heaven tactic) Buyer says: - "If you can reduce the price another $500 on this job, I will give you all my future work." Seller says: - "Because of the price I have quoted, I am unable to discount this job. However, if you do give me this job and your future jobs, I will discount your future work." - creates value for both you and customer

Buyer's Remorse

When a buyer experiences emotional stress Some buying anxieties that explain why a customer is reluctant to commit to your proposal include: - Loss of options - Fear of making a mistake - Social or peer pressure

Incremental commitment

When you are working on a large, complex sale, you should try to achieve Some form of commitment during each step in a multi-call sales presentation - At the conclusion of the first sales call, you may obtain commitment to an agenda for the second call. - At the second call, you might obtain commitment for the prospect to tour your company facilities. - Each commitment should move the sale forward toward a signed order.

Superior Benefit

a benefit that in most cases outweighs the customer's specific concern - acknowledge the valid objection and then discuss one or more superior benefits EXAMPLE: Buyer says: - "Your television commercial proposal does not include payroll costs for actors who will be used during the shoot. This means we must cover this expense." Seller Says: - "Yes, you are correct. We do conduct the talent search and coach the actors throughout the development of the commercial. In addition, if you are not happy with the performance of the actors, we will conduct a second search for new actors and remake the commercial at no additional cost to you."

Trial Close

a closing attempt made at an opportune time during the sales presentation to encourage the customer to reveal readiness or unwillingness to buy "If I can address this final concern of yours, would you buy it?

Need Satisfaction - Persuasive Presentation

a sales strategy that influences the prospect's beliefs, attitudes, or behavior and to encourage buyer action - True persuasion is when a customer not only chooses your preferred option but feels good afterward - transition from intellectual to emotional appeal - acceptable strategy once a need has been identified and a suitable product has been selected Be successful by: - place special emphasis on relationship - target emotional links - SELL BENEFITS (FAB SELLING) - use showmanship - minimize negative impact of change - place strongest appeal at beginning or end - use power of association with stories

Multiple Options Close

allow the person to examine several different options, and try to assess the degree of interest in each one (provides flexibility) 1. Configure more than one product solution. 2. Cease presenting product options when prospect has been given ample selection 3. Remove products (or features) prospect is not genuinely interested in and concentrate on options of interest. - helpful with price conscious transactional buyers EXAMPLE: - "We have two financing methods available: 90 day open credit or two year long term financing. Which of these do you prefer"

Recognizing Closing Clues

an indication, either verbal or nonverbal, that the prospect is preparing to make a buying decision. - also called buying signals

Balance Sheet Close

appeals to customers who are having difficulty making a decision even though they have been given plenty of information. - the salesperson draws a T on a piece of paper and places captions on each side of the crossbar... On the left he writes "reasons for buying now" and on the right "reasons for not buying now" - useful when the customer feels they have a choice of buying now or buying later - *in order to be effective the salesperson and the customer must engage in a dialogue* Left Side (Reasons for buying now) - These should be benefits that the customer has already expressed an interest in Right Side (Reasons for not buying now)

Assumptive Close (take-it-for-granted close)

asks for a minor decision, assuming that the customer has already decided to buy - comes near the end of the presentation - provides a subtle way to ask for a decision when you are quite certain the customer has already decided to buy - appropriate when the salesperson has removed perceived risks and the prospect has confidence in the salesperson - if you have identified a genuine need, presented your solutions in terms of buyer benefits, presented an effective sales demonstration, and negotiated buyer concerns... it may be assumed the customer is ready to buy EXAMPLE: - "If you feel the Model 211 gives you the major benefits you are looking for, let's schedule delivery for next Tuesday." - "Since our production system provides you with the order fulfillment flexibility you require, let's go ahead and place your order."

Source

challenging when the prospect is a strategic alliance buyer, they may have a well established partnership with another company - avoid direct criticism from the competing firm - avoid negative comments - focus on customers needs and solutions Positive ways to cope with loyalty objection 1. Work harder to identify problems your company can solve with its products or services - ask good questions and you may be able to understand the prospect's problems better than your competitors 2. Point out the superior benefits of your product and your company - you hope logical points will overcome emotional ties that exist between customer and current supplier 3. Work on recruiting internal champions to build more support for your message. Use referrals whenever possible 4. Try to stay visible and connected - every contact with a prospect is one more step to a sale - do so with charity events EXAMPLE: "I'm very satisfied with my current supplier" - respond saying, "what can i do to get you to take a trial order"

Demonstration

discuss the competitive advantages of your product and discuss these features with confidence - helps to know your competitors product - With the aid of an effective demonstration, you can overcome specific concerns. - sometimes a second demonstration is needed to overcome buyers skepticism... this provides additional proof

Need Satisfaction - Informative Presentation

emphasizes factual information often taken from technical reports, company-prepared sales literature, or written testimonials from persons who have used the product. - often used to introduce new products, highly complex products, and services of a technical nature - "less is more" don't provide too much information - the salesperson must transition from an information conveyer to the role of a trusted business advisor

Win-Win Solutions

focus on integrative negotiations, which are built on joint problem solving, trust, and rapport to achieve a win-win solution - trust and rapport are important which creates a partnership between the buyer and seller

Trial Offer

involves giving the prospect an opportunity to try the product without making a purchase commitment - popular to the customer (especially with new products) because they can get fully acquainted with your product without full commitment EXAMPLE: Buyer says: - "I am sure you have a good cooking oil, but we are happy with our current brand. We have had no complaints from our managers." Seller says: - I can understand your reluctance to try our product. However, I do believe our oil is the finest on the market. With your permission, I would like to ship you 30 gallons of our oil at no cost. You can use our product at selected restaurants and evaluate the results. If our oil does not provide you with superior results, you are under no obligation to place an order."

Need Satisfaction - Reminder Presentation (reinforcement presentation)

involves making frequent calls to a customer to remind them of there products - the prospect has already been involved in an informative or persuasive presentation - customer understands the basic product features and buying benefits - USED TO MAINTAIN MARKET SHARE can be demonstrated in service after the sale, working with repeat customers to remind them of their products (B2B), retailers can use this to remind B2C customers about additional products, or simply used for busy customers who need to be reminded of certain maintenance - can show the customer you are comitted to them - can be used if unsuccessful in last call - can be used to reinforce benefits offered so they focus on value, rather than asking for cheaper price

Impending Event Close (positive/negative technique)

involves making positive use of a negative point - requires that you know the needs of the prospects well enough to turn their objections into your selling points - you need to have a good relationship with the customer for this to work EXAMPLE: - "As you have agreed, our product does have several advantages over the competing offerings. I also want to share with you that we cannot make delivery before the middle of next month (the negative point) due to high demand (the positive point). - I believe you're not looking for delivery until the end of next month (make sure you know this as a fact), so if you place this order today, delivery will not be a problem." - mentions negative point, counteracts it with positive point, then closes with a concluding point

Direct Appeal Close

involves simply asking for the order in a straightforward manner - advantages of clarity and simplicity - customers find it attractive (most direct closing approach) - should not be used until the prospect has displayed a definite interest in the product or service - The salesperson must also gain the prospect's respect before initiating this appeal - STAY QUIET after asking the direct close (secret weapon) EXAMPLE: - "Good, may I get your signature on this order form" Variation of Direct Close - asks a question to determine how close the customer is to making a buying decision EXAMPLE: - "How close are we to closing the sale?"

Summary of Benefits Close (step-by-step close)

involves to reemphasize the value-added benefits that can help bring about a favorable decision - summarizes the most important buyer benefits - gives you the opportunity to restate how the benefits will outweigh the costs EXAMPLE: - "Mr. Busch, we can provide you with a conference room that will seat 200 people comfortably and four smaller rooms for the workshops you have planned. Our staff will serve a noon lunch, and the cost will be less than $11 per person. Finally, we will see that each of your employees receives a pad of paper, a pen, and a copy of the conference program. Today, I can reserve these facilities for November 24, which is your first preference for a meeting date. Can I go ahead and enter your reservation into our computer?" - *reviewed all the important elements of the value proposition and then asked a NEED-SATISFACTION QUESTION*

Trial Close

is a closing attempt made at an opportune time during the sales presentation to encourage the customer to reveal readiness or unwillingness to buy - also known as a minor point close - effective when you are reasonably sure that the prospect is about to make a decision but is being held back by natural caution - good way to test the buyer's attitude toward the actual purchase - often presented in a form of a confirmation question -use after the salesperson presents a feature, converts that feature to a buyer benefit, and confirms the prospect's agreement that the benefit is important (can be used multiple times through out the sales call) EXAMPLES: - "We can arrange an August first shipment. Would this date be satisfactory?" - "Is the timing right to do a presentation to the executive committee?" - "Would you rather begin this plan on July first or July fifteenth?" - "Will a $2,000 down payment be possible at this time?"

Canned Presentation

is built around a standard set of steps, ignores the unique needs of each customer, and is presented in the form of a repetitive speech given to all customers interested in a particular item.

Special Concession Close

offers the buyer an extra incentive for acting immediately - A special inducement is offered if the prospect agrees to sign the order - could be a low price strategy, a quantity discount, more liberal credit plan, or an added feature the customer didn't anticipate - use this approach with CAUTION EXAMPLE: - "They had never seen anything so absurd in their life." To close the sale, he let the store take 24 pairs on consignment. "They sold out in one hour,"

Combination Close

sometimes the most effective close is one that combines two or more of the closing methods EXAMPLE: "Ms. Taylor, we have discussed several benefits that seem especially important to you. First, you agree that this line will be popular with the fashion-conscious shoppers your store caters to. Second, you indicated that the prices I quoted will allow you excellent profit margins, and third, if we process your order now, you will have the merchandise in time for the preholiday buying period. With this in mind, let's go ahead and process your order today." - Starts with summary of benefits close then ends with assumptive close "we have discussed great price, great quality, meets your time deadlines. Can you get your CFO'S signature on the order" - need benefits then ends with direct close

Third-party Testimony

using a favorable testimony of a neutral third party - provides a positive way to solve certain types of buying problems - never triggers an argument EXAMPLE: Buyer says: - business owner says "I can get along without the services of a professional landscaping company" Seller says: - "Some business owners feel the way you do. However, once they contract for our service, they do not regret the decision"... Mark Williams, owner of Williams Hardware, says our service completely changed the image his business projects to the public."

postpone method

when selling a complex product, it is often necessary to postpone negotiations until you can complete the needs assessment or acquire additional information regarding such things as final price or delivery dates - The customer may raise concerns that you would prefer to respond to later in the presentation EXAMPLE: Buyer says: - "How much will eight well-equipped cubicles cost us?" Seller Says: - "I would prefer to answer that question in a few minutes. Once I learn what features you prefer, I can calculate a cost estimate."

Negotiation

working to reach an agreement that is mutually satisfactory to both buyer and seller

ZOPA

zone of possible agreement - the space between the seller's walk-away point and the buyer's highest willingness to pay - The walk-away point represents the lowest offer a party would be willing to accept and is also called the "reservation value Example: Your walk-away point is $42 million and the highest price the customer is willing to pay is $49 million - the ZOPA is any offer that falls within this range - the ZOPA is $7 million

need for product

"I do not need your product" - may be a coverup for lack of funds, lack of time to examine your proposal - need to create need awareness in the prospects mind How to overcome - prove that your product is a good investment - demonstrate how your product or service can contribute to that goal of helping them make a profit If the owner of a hardware store says, "I already carry a line of high-quality tools," point out how a second line of less expensive tools can appeal to another large segment of the buying public. EXAMPLE: "15 cases of olives will take up valuable space in my room which is already crowded" - respond saying, "you will not have to face this problem because of this and that"

Felt-Felt-Found

"I do not think I will ever understand the process." Your response might be, "I understand how you feel, Mr. Pearson. Many of my customers felt the same way, until they started using the software and found it quite easy to master." - anticipating clues that indicate the client feels something wrong - I understand how you feel... - Many of my customers have felt this same way...

Time Concerns

"I want time to think it over" is an example of a stall which usually means.... - the customer does not yet perceive the benefits of buying now - indicates that the prospect has both positive and negative feelings about your product How to overcome this: - Consider using probing questions to determine the negative feelings - Example: "Is it my company that concerns you?" "Do you have any concerns about our warranty program?" - attempt persuasive strategy but be accurate, honest (if price is about to rise tell them that) Renewing a contract - be upfront and explain the benefits in precise terms concerning what additional values the new price will bring to the client - Sometimes it is advisable to offer a break in the payment schedule to overcome the client's adverse feelings about the price hike EXAMPLE: "This is a poor time of the year to buy a large order of olives.. people are not buying olives at this time" - respond saying, "yes i agree that this has been a problem in the past, but consumer attitudes seem to be changing"

Effective Presentations

- Adapt the presentation to meet unique needs of the customer. - Cover one idea at a time using appropriate level of detail. - Use proof devices to demonstrate buyer benefits. - Appeal to as many senses as possible. - Balance telling, showing, and interest. - Develop creative presentations. - humor - document value proposition - quantify solution (ROI, Cost benefit analysis)

Negotiation Strategy

- Anticipate buyer concerns - Plan negotiating methods - Initiate Win-Win negotiations

When the Buyer says YES

- Congratulations! You have closed the sale. - Now reassure the customer, which is the confirmation step in closing the sale and prevents buyer's remorse - Thank the customer for the order.

Guidelines for Closing the Sale

- Focus on dominant buying motives. - Achieve incremental commitments throughout the sales process, especially situations involving long selling cycles. - Negotiate the tough points before attempting the close. - Avoid surprises at the close. - keep prospects involved - Display a high-degree of self-confidence at the close - Ask for the order more than once.

Selection of the Solution

- Match benefits with buying motives - Configure solution - Make appropriate recommendation

Need Discovery Questions

- Survey questions reveal customer problems - Probing questions reveal customer pain. - Confirmation questions reveal mutual understanding. - Need-satisfaction questions reveal pleasure

golden rules for success in formal negotiations

- Understand the problem.• - Create alternative solutions that can add value - Periodically review acknowledged points of agreement. - Do not make concessions too quickly. - Remember most negotiations will conclude in the final 20 percent of time allowed. - Know when to walk away.

Need Discovery - Personal Selling

- Use effective questions to gather information and build a clear, complete, mutual understanding of customer needs. - Guide the direction of a sales call by striking an appropriate balance between open and closed questions. - Use their questioning strategy to facilitate an open exchange of information.

Formal Negotiations

- gather information before - decide team vs individual negotiation - understand the value of what your offering - determine your goals and financial objectives - prepare an agenda

Close (prescription)

- plan appropriate closing method - recognize closing cues - initiate closing methods

Price

- price objections may be nothing more than an excuse. - one of the most common buyer concerns in the field of selling. - when people say "Your price is too high," they probably mean "You have not sold me yet - most customers view value more than price How to overcome this... - position your product with a convincing value proposition What to do 1. Clarify price concerns with questions - Example: When you say we are higher, could you be more specific, please?..."What did you anticipate the price to be?" - If you had the budget, would you buy?" is a good question to ask if they say budget is primary reason for delay 2. Add value with cluster of satisfactions - includes good product, a salesperson who is truly a partner, and a company that stands behind its products 3. Point out relationship between price and quality 4. Explain and demonstrate difference between price and cost What not to do 1) don't make price the focal point of your presentation 2) do not apologize for the price EXAMPLE: "i have to stay within my budget" - respond "olives are a very high profit margin and will generate 25% revenue"

Questions

- use need satisfaction questions - designed to get the customer's attention focused on the solution - give ownership of the solution to the prospect EXAMPLE: Buyer says: - It would be difficult for our Human Resources Department to absorb the cost of your psychological tests. Seller says: - What would a 10 percent reduction in employee turnover save your company? (Need-Satisfaction Question

Consultative Sales Process

1) Need Discovery (emphasis on questions) 2) Selection of the solution (pivotal process) 3) Need Satisfaction through informing, persuading, and reminding (emphasis on statements) 4) Servicing the Sale (build repeat business)

Strategically planning for negotiation of buyer concerns

1) anticipate buyer concerns 2) review common types of resistance 3) review common methods of negotiating buyer resistance 4) prepare a negotiations worksheet

Strategic Planning for Closing the Sale

1) review possible barriers for closing the sale 2) review closing guidelines 3) prepare several closing methods 4) plan to ask for the order more than once 5) practice closing

8 types of negotiating methods

1. Direct Denial 2. Indirect denial 3. Questions 4. Superior Benefit 5. Demonstration 6. Trial Offer 7. Third-party testimony 8. Postpone method

Product/Service

1. The product or service is not well established - common when selling new products - buyer wants assurance that the product is dependable Overcome this by... - Using laboratory test results, third-party testimonials from satisfied users, or an effective demonstration to create value. 2. Their current product or service is satisfactory - In the prospect's mind, the advantages may not outweigh the disadvantages, so buyer resistance surfaces - change does not come easily - purchasing a new product may mean adapting new procedures or teaching employees Overcome this by... - build a greater amount of desire in the prospect's mind - Concentrate on a value proposition that gives your product or service a major advantage over the existing one - reconfigure the product and offer customized services to better meet the customer's needs

Types of Buying Concerns

1. need for product 2. product/service 3. Source 4. time concerns 5. price

Activities during negotiations

1. recognize and understand verbal and nonverbal clues 2. validate the problem 3. find some point of agreement 4. do not allow anger to surface 5. answer customer's concern 6. be alert for closing clues

Transitions: Confirming Questions

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