It's Never Price!!
In my observation of sales people, I’ve come to the conclusion that everyone falls on a continuum between highly skilled professional and poorly trained amateur. The people at the latter end of that scale are not bad people–they are just badly trained.
And nowhere does it become more apparent than when the sales person talks about the customer’s perception of “price.” If you want to move even one notch up the scale toward the highly skilled professional then, come to your own conclusion that if you’re talking about price with a customer you’re talking about the wrong topic.
It is never the price.
It is ALWAYS the perception the customer has about your value in relation to the price–but it’s never the price. Not only is it ‘never the price,’ but the words you will use to defend the price are irrelevant.
I could sit here for hours and give you all the clever moves and tactics upfront and in the eleventh hour negotiation process that will help you get out of that price mode, but if your “mind about price” is not right, then the words will never matter.
So I suggest the one thing you do over the coming weekend is get your mind straight about the price of your product/service. And get even more clear about the problem you solve for your customer rather than the price he pays to solve it. Dissect the value you bring the customer with the purchase of your solution–and forget about “justifying price.”
Rule #23 – Know Upfront…
Have an upfront understanding prior to a sales call.
I’ve been called on by a lot of sales people over the years. And few–very few–ever tell me what the call is going to look like. They never send an agenda upfront–they never tell me the process they’ll use–they never tell me what the outcome could be.
Shame…shame…shame….
If you are in professional sales–and make face to face calls on prospects, Rule #23 says, always have an upfront agreement prior to the call. What that means is have a conversation with your prospect on the phone talking about the topics of conversation for the meeting–maybe some of the questions you’ll ask–and maybe what the potential outcomes are (we meet again, we abort the process). Have a “process” agenda.
We always speak the line, “I respect your time,” yet when it comes down to it, very few of us respect our prospect’s time by sharing an agenda for the call, upfront. Do it and watch the level of truthfulness soar.
Raise The Yellow Flag!
It’s your responsibility as the seller to raise the yellow flags. What are yellow flags? They are those objections that customers usually raise–but in our method, it’s up to us to raise.
If you are going to control the sales process–which you should–then you have to be the one raising objections. The person with the power in the sales process is the one with the objections. That’s why we teach salespeople never, ever try to overcome the prospect’s objection.
Instead, think of all the things that could get in the way of the sale and make that your Yellow Flag List. Not talking to the right person? Yellow Flag it. Never bought from you before? Yellow Flag it. They haven’t convinced you they really have a problem worth solving? Yellow Flag it.
Stop using the old selling system of Persuade, Convince and Defend. Instead, be more discernng about who you work with. Make them come to you!
When Will They Learn Not To Close?
What is there about health clubs that turns nice, normal people into hammering sales people. I visited a local (new) health club this weekend. I’d had it with rain, cold and snow and their interference with my health. Rachel was my “tour guide” (a.k.a. pressure sales person).
I know that she wanted to care about my well-being–that she was interested in me as a person–yet when a prospect walked in the door (me), all of that care went out the window, in favor of the health club sales training she had received. She wouldn’t tell me the price until she gave me the tour. (And she wouldn’t give me the tour until I filled out the paper work with 5 other sales people looking over my shoulder.)
She had to tell me all about the features of the equipment. She never let me ask any questions, for fear that I would take back control. After 10 minutes, she put the close on me: “Mr. Caskey, if you sign up today, I can knock $100 off the upfront fee” (she never told me what that fee was.)
As I looked around and saw one person working out — which told me their sales process wasn’t working too well (it was a Saturday morning at 9:00–prime time for a health club), I had a question: Why do they treat people that way? Do they really think they’re calling on bozos? Do they not think we know what they’re trying to do? She lost me and a lifetime value, perhaps in the thousands of my dollars.
If they paid me to come in for a day and work with them…I would have told them a) find out why the person walked in the door, b) offer me a drink, a coffee or something so I feel part of the family, c) tell me the price upfront so that I can spend the tour justifying the price, (rather than spend the tour wondering how she’s going to close me) and d) give me a weekend pass (or even a week- remember there was no one there so the week pass costs them nothing). With the pass, I can get to know the staff, get comfortable with the radios and tvs and equipment.
If I owned the club, I would even throw in a free hour of personal training (invest small money to make big money). Why is this so tough? It’s not. They make it that way. Everyone lost. I lost because I still don’t have a place to work out. And they lost because they didn’t get my money (and a new member, who can refer them to hundreds of others). They just don’t understand the economics. Have you had similar experiences?
Integrity Demands Integrity
You get what you tolerate. Agree. But how can you limit what you tolerate from others? You can tolerate nothing but high integrity and high intent from yourself. Here’s how it works: You go see a prospect hoping to sell something. You are behind this quarter and need the sale.
He begins his ‘lying dance’ which results in you reluctantly agreeing to quote him on your solution. You want to get out of the ‘game’ but you can’t. Why? Because you are operating out of :low integrity: which is why you can’t expect anything more from him. We can only get what we give. You had an intent going into the call that was about “selling him something to meet quota.” How high is that intent?
That’s why when the sales people I coach come to me and say their customer is lying to them, I always say “Why did you force him to lie to you?” You force the behavior you get. Later we’ll talk about how to adopt the “high intent” mentality.
