Marla Kaye could not afford to lose this deal. She had watched sales at You Name It Promotions, her Oakland, Calif.-based promotional products company, drop by more than half since the start of the recession--from $3.5 million in 2007 to $1.5 million last year. When a six-figure sale to a new client seemed about to fall through this spring, she had to act fast.
The technology company Kaye was courting wanted a customized USB drive with its brand name on it to hand out at trade shows. When Kaye, 58, found out the client was planning to go with a cheaper bid from a competitor, she stepped her offering up a few notches--shaping the device like the company's logo and loading it with files about its product. "I said, 'Give me a chance to show you why what we do will stand out,'" she says. "We saved it by doing more work than just answering a bid."
Related: How to Adopt a Sales Mindset
Having a keen eye for when a sale is going sour takes savvy. Here are five red flags and strategies for saving the sale:
No. 1: If a Potential Client Seems Indifferent
A client who is interested in doing business with you should have questions and concerns. If they don't outright reject you but don't have any questions either, be on the alert, warns Victor Cheng, author of the book Extreme Revenue Growth (Innovation Press, 2007).
To resolve this problem, he suggests creating more of an advisory relationship with clients. You can let them know that you'll help either to solve their problem or point them in the direction of another business that might be a better fit. Offering to help people find other vendors might seem counterintuitive, but it can go a long way to earn the trust you may need to win over a client, Cheng says. "People will share more with an advisor than a salesperson. It's more of a dialogue than a broadcast."
No. 2: If There's No Hard Deadline For a Decision
Having urgency around a sale is important, Cheng believes. Early in the process, ask potential clients about their timeframe. You want to prioritize those companies that have a hard deadline.
You can find ways to firm up deadlines, says Rich Sloan, co-founder of StartupNation.com, a Birmingham, Mich.-based business-advice website. He suggests limited-time offers or discounts to create urgency around a sale. "The only way you get someone engaged is to find their buttons," Sloan says. Perhaps point out what the competition is doing, or identify the financial risk involved in not acting quickly on the sale.
No. 3: If You Aren't Dealing With the Decision Maker
You may start out talking with a junior-level employee who is vetting options, but beware if you aren't put in touch with the decision maker after a few conversations. It's probably a sign the company isn't serious about buying, Cheng says.
Getting past that roadblock can be challenging. The bigger the organization you are dealing with, the more layers of management you likely will have to penetrate, Sloan says. He recommends creating a presentation that your initial contact can easily show to upper management. You also might request a quick conference call with the senior-level person involved. "It's a sticky situation because you need to be respectful of the person you are talking to and not undermine them," Sloan says.
No. 4: If Your Price is Too High
People generally object to a price because they believe they can find the same product or service for less or because you're trying to sell more than they need, Cheng says.
If your competitors are offering a lower price, focus on how you can provide added value, as Kaye did with her customized USB. But if you're offering more than a client needs, you may need to scale back the initial proposal, Cheng says. You also could offer creative payment alternatives, Sloan suggests, such as incentives on the first purchase if the customer continues to buy more.
Related: Seven Ways to Avoid Competing On Price
No. 5: If You're Asked For a Proposal Instead of a Conversation
When potential clients ask for a proposal before agreeing to talk with you, it's usually a sign they're simply gathering price quotes from vendors, Cheng says.
Before submitting a proposal, ask what the client is looking for and what criteria will be used to make the decision. Reaching a verbal understanding on those issues increases the likelihood that you'll get the sale. "The problem with a proposal is there is no chance for them to tell you what is wrong with it," Cheng says, "as opposed to working through all the nuances verbally."
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Comments:
Goste da percepção do autor, retrata uma visão e consciência quântica do tema! Fundada por empenho e relacionamento com mentores com muita vivência. Parabéns, continuarei acompanhado. Obrigado Abraço a todos
It was painful reading this, as I think I've learned the hard way the truth of each point you raised. They're all very valid, all common-sense oriented and all of them relatively simple to do. Yet, simple does not mean easy. The sales team that understands the truth of these points is a strategic asset. Thanks for sharing these wonderful insights.
Extremely insightful, especially regarding merely submitting a proposal as compared to engaging the potential client in a conversation about what exactl exactly their firm needs. Taking this one step further, I haveve found that it is a good tactic to have the prospective client e-mail me exactly what they or their firm needs accomplished. The added benefit, aside from clarification, is thgat generally, the more time that a prospect invests in the "shopping process", the greater stake that they may have in the negotiating process.
I found this article helpful. but need more clarification in serial# 5 because most of the time sales people face that type of situation. z.k.zafi
Sorry Mark, speaking for most of us salespeople, (Senior or not), you can't redeem yourself now. You never shined a light on any variables your comments were straightforward. You must not like the lines at Walmart much when you're trying to stay within budget. Someone will get your money even if it is only Sam. Thanks for shopping at Small-Mart! Ha!
All I can say to you Mark is, "Buyers are Liars". I'm a buyer also, as well as a salesperson. With that said you are obviously just pompous with your statements. What else do you do besides buy? Did you pay too much for something that has haunted you to come to this venue and have to spew like this? You seem to be one of those people that would be upset if you were in the 99 cent store and saw something you paid a dollar for in the dollar store! People like you are the ones that have ruined America! You get what you pay for pal, simple. A cheaper price does not make the product or service better, it usually becomes disposable, and you have to repeat the purchase again and again. You should move to China then you won't be too far from living your fake cheap dream!
Jane, Thanks for these practical tips. You are spot on with each one. I would also add the suggestion to make sure you ask discovery questions that tap into the personal motives the buyer may have. Even b2b buyers are affected by emotions and personal motives that have nothing to do with your product or services. Knowing and addressing the hidden personal motives can give you a path for accelerating and closing the sale without discounting.
Sales is a process not an event in many cases. Sign 6 no relationship exists or is being developed. Sign 7 No burning need has been established or is being met. Sign 9 The prospect does not believe you are credible. Sign 10 The time is not right -for the buyer. Driving a square peg in a round hold can work but is it really worth the effort?
In some cases, however, offering a product at a higher price than competitors raises consumer intrigue...as in, "Could the higher-priced product be far superior, than the less inexpensive one."
Jagfrisco....Dead on! Mark is the customer that all of us can't wait to ignore....
Very much" to the point discussion" for closing nice
i liked this indifferent attitude of Jagfrisco
Hi Mark SG you have to little open and free while meeting your vendor so that the vendor can clearly understand the need of you and suggest or present a customised solution for your requirement. If you need only price is the factor, you may find yourself trapped by the victim of service
I like the points and the number of comments tells me this is a sensitive issue. On 4. the pricing assessment, I would just add that if price sensitivity appears, make sure it is not created in your own head, but if it exists with you customer, I would then look at how you have "differentiated" your offering and how the customer perceives the different value you offer.
Nice list. Point (2) probably means the customer is just a prospect, but may make the sale in the future. Often when you are introducing a new product, it takes time to educate your prospects before they can open up their wallet to you.
Some of your buying approach seems to be based on hostile assumptions about sales people. The good sales people truly do want to help you get the best outcome - for the simple reason that will produce the best long term outcome for both parties - even if, on this occasion, that means walking away. As Jagfrisco points out, that's why they ask all those apparently pesky questions! As a buyer, you ought to be concerned about dealing with any sales person who does not ask lots of intelligent and relevant questions about what you want, why etc. etc. That said, your point 1 is very valid - once some initial dialogue has occurred - and point 2 entirely valid - any sales person doing that has their interests at heart more than they should do!
Remember a customer will pay more for peace of mind, your job is to show them that even though you are the highest price, you are the lowest risk, at that point ask for the order, you will then close the deal
I agree with Mark on this one. In dealing with clients, quotes and proposals all day, I'm realizing we are in an era where buying habits are shifting. Most of my clients are doing the job of 2 or 3 people. They are overwhelmed with email, sales people, and supporting their organization. So when it comes to making a purchase (in my case technology), I will always include a ballpark price. Managing my customer's expectations is key to starting a trusting relationship. Our customers are tired of the 'smoke and mirrors' sales approach and are looking for facts up front (product feature set, ballpark price, etc). After this process and expectations are discussed, then you can move into value-add of account mangement and maintenance, etc. Thanks for sharing Mark!
I'm sure it is true that most senior sales people out-earn the people they sell to. But they don't get to be senior sales people by misreading their clients. When I find myself dealing with a senior sales person who really does understand the nature of their job then it makes my job a lot easier. The mistakes I've listed above are usually made by the ones who are still hoping to be senior sales people some day.
Even with a custom product you can still give an indication of ballpark costs, possibly by comparison with reference sites (which I'm going to want to see if it's a custom product anyway). Most custom vendors have an idea of their typical costs for an average small/medium/large customer, so there's no reason not to give them on request.
MarkSG, I think your comments reflect a buyer who is the most difficult to deal with. You are so sure that your "just a sales person" knows so little that you will probably buy the wrong thing that really won't work out as you had planned. Your "just a sales person" really knows her product. She is asking all those pesky questions to make sure that what she is offering for sale to you will perform the way you need. She wants to make sure it will be a "clean" sale and that you won't buy the wrong thing. BTW, most senior sales people out-earn the people the sell to by a huge amount, so we don't want your job, thanks anyway.
Hi Jane! I have very impressed with this post. As you said here, the above mentioned 5 signs show lot of effect on business. I hope this post would be more beneficial to business people to save their business.
Very brief but comprehensive illustration........Great
@MarkSG: good responses - especially #3. Too many fall into the trap of assuming that what they sell is needed rather than the other way around. However, your #1 point is only valid in a commodity / price book space. In the world of custom product, you need to understand the client's needs first and only then can you propose an accurate price. Of course, it's sometimes an iterative process... To all those who claim this stuff is self-evident: reinforcement of core concepts is always a good thing. It's a pity that there was only one expert quoted. Generally, this is a good article.
I've just forwarded this to all our sales team. Great post... lots of excellent pointers that anyone should be able to follow.
I agree with many of the commentators - there is really nothing new here. The best comment/insights are from commentator Mark SG - speaking as the buyer. His direct approach is very refreshing. Paul
i did not find anything really new in this article. i agree just generalizing on points pretty much everyone knows by now if they have been working in sales is redundant. i find apathy to be the major stumbling block with most prospects . broadbrush
Speaking as a buyer, here are three ways to lose a sale with me - and how to save it: 1. Not giving a price when I ask you for one. Price is fundamental to any contract. If you're out of my budget, then it's in both our interests to know it right at the start, so that we don't waste any more of each other's time. But if you're within budget, then you've got a big boost towards the top of the shortlist. If you won't tell me a price at all, then my suspicion is that it's because you want to work out how much you can get away with charging, rather than offering me your best deal. In which case, I'm going to play that against you by finding the cheapest offer elsewhere first, and then challenging you to beat it. Or, I might just go with the cheapest offer anyway. So do us both a favour, and be upfront about your costs right from the start. 2. Pressing me for a quick decision, when I'm still at the stage of evaluating options. You may find this hard to believe, but I have a hundred and one other things to think about other than you and your product. If making a purchase is urgent, I'll let you know. If it isn't, then you can't make it urgent by repeatedly pressing me. But if you back off, and just make sure that I know you're still there, then when decision time comes around you'll be one of the first people I call. 3. Telling me how I should be running my business. If I want advice, I'll ask for it. From people I trust to give it to me, without bias. And, frankly, a potential vendor isn't going to fall into that category. In any case, if you understand my business and my problems so well, then why aren't you doing my job instead of working in sales? So stop pretending to be something you're not, and stop pretending that you want anything from me other than my money in return for your product. After all, I'm not telling you how to make sales, am I?....
If you are just summarizing someone's list from a book and add an example, maybe you shouldn't write this post at all
That was a very proactive way of saving a situation from going bad. Useful insights for my own business website as I plan to launch some features in the new year.
quite good but generally there are lot of dynamics involved, these are only a few, if you look at the India context there are many
The real sign is when timescales start to slip (and when client is slow in coming back) and when there are no queries of any substance. The blog head-line is 5 signs you're loosing a sale. Number 5 is also correct. Some of your other points are reasons not signs e.g. not dealing with the decision maker - is a reason why you may well loose a sales but is not a sign.
This was a very valuable article.
Nice touch. However sometimes to make huge efforts on a losing sale, better maybe to focus on new ones?
Sorry, but in my opinion- if you do not know these things already, you should not BE in sales.
I completely agree with Anthonyonamission. Unless the client calls in in a rush, I don't want to rush a client. I want to be on the phone, addressing their needs, ensuring all the details are taken care of. If my client doesn't have a deadline, I let them know the time frame I require in order to get them their product. Then, with that in mind, if they suddenly realize their time is a bit tighter than they realize, there's more to work with. Even if, when they order, they still don't have a deadline, I let them know when they can expect their product. My mentality is, the faster the product can be delivered, the better as long as it doesn't cost the client anything and doesn't require too much extra effort on their part.
This article is factual, I've live through some of these same thoughts with clients/would be clients. At the end of it all, I also see creativity brings possibility. Good job.
Jimmy, this is Margaret here in Ireland having a cup of tea and wondering what the hell I'm doing reading this at all. Shure me granny could tell me all that stuff and you know what stuff really means Jimmy.
I think Jimmy got it right How did this get posted at all. What do you think Margaret.
No.4 - another thought is service after the sale. Customer service and a good follow up can set You apart, everyone loves that personal attention and felling. Also, knowing that they no longer have to worry about a task will allow them to focus else were.
I agree with most point on the post however with point 2 and suggesting limited-time offers or discounts to create urgency around a sale to me is just a cop out. It devalues the offering to me and makes it sound too desperate! I agree with wanting to prioritise finding out timescales etc to ensure you are working to the prospects timescales but the limited time offers is a really cheesey flaky closing option. I prefer the reverse psychology close and explaining to the prospect that they have all the time in the world to make their important decision and that it is first come first served. I would explain that we would need a little notice to fulfil the sale because of how busy we are with new customer orders.
Excellent post! Great summary. Always find out what the prospect needs are so you can better tailor your sales pitch to meet those needs. Dont ever presume! CSO are conducting a study at the moment, and by partaking you can access the full report when its published in February - full of the latest trends in todays sales environment. You will be able to compare your organizations sales effectiveness with others in the your industry. Will be featured in Harvard Business review and Selling Power Magazine http://info.profilesinternational.com/profiles-employee-assessment-blog/bid/77082/5-Reasons-to-Participate-in-CSO-Insights-2012-Sales-Performance-Optimization-Survey
Excellent article, Jane. I don't know how many times I've personally encountered those 5 signs.
Nicely summarized. Great points to remember...
Try to understand your prospective client, if you can anticipate objections you can pre-empt them before he can object which is far more effective. Make sure you don't do too much of the talking, remember, two ears and one mouth. Let him speak and when you do make a point it will have far more impact. Always check green lights.
I am amazed that this got posted at all.
Helpful article! My caution: don't be quick to drop prices. Figure out how to create and communicate value. No sense making a sale that loses money. Do you know when that happens? Bone up on your accounting and financial reporting. Charge what you must. And figure out how to be worth it and sell it!! Xo$ Ellen Rohr
I think this is a pretty solid article, if you're looking for some basic points. (Maybe it's a tease to get you to check out Victor's book or more of Jane's articles--and neither of those are bad things. Victor's book is great.) Having spent nine of my last 16 years in media on the client side, sometimes a client just doesn't have time to take personal meetings--even for the big proposals. That shouldn't turn a potential sales person off or make them question their strategy. Also, people talk about hitting the "key decision maker," but I can't tell you how much it would frustrate me as Media Director when people would go to my VP thinking they had a better shot going around me. I do agree with the deadline and price points--both valid and good reminders that sometimes you need to keep the client on track since they're bombarded by so many different proposals.
Old and warn out ideas. There needs to be new strategies for doing business. "Value added" simply means you can't justify your price.
When approaching a new company to sell to, or create a strategic partnership with, ALWAYS START WITH THE "C-SUITE", especially if you are selling to big companies. First, do some research to understand their company initiatives and then approach this level through a strategic email (great tips here from Jill Konrath: http://www.inc.com/guides/201108/7-tips-for-writing-e-mails-that-wont-get-deleted.html Once you make this connection with the "C-Suite", they will "connect the dots" while confirming steps to closure along with who else within their organization needs to better understand details behind your company, technology, value proposition, partnering options, etc. Remember, "C-Suites" relate more to the "emotional" sale Vs. a "logical" feature/product one. They want to partner with those who understand their business. Keep abreast of their company initiatives and goals as you can continue to propose additional products and services that can leverage their priorities, creating a long term, multi-phase revenue partner.
Common sense, but useful pointers that I don't always follow. Thanks!
I doubt you have the necessary authorisation to use an Alex Ross drawing for this blog. Tut tut... An iconic image which is heavily copyrighted.
Did you pay Alex Ross and Warner Brothers for using their IP of Clark Kent? Just curious...
Some great tips there. Small business owners need to be on their toes. Thanks for sharing!
In this time of competition , it is necessary to present own self as the best in the market and try maximum to get more clients than the competitor. So observe the market carefully and get the each and every detail of the market as the recent updates, also the competitor observation , know the need in the market that most people demand for and all the things. Then by building the strategies and plans effectively , you can increase the business. Here great points shared with us. Thanks for sharing such effective tips for increasing the sale.