Effective Negotiating - The Key To Sales Success

No two persons agree on all things. When people come together to work out a deal, they try to maximize their benefits and minimize their costs. Each person places a different value on individual elements of the deal.An effective negotiation is not just about making people see things from your point of view, but it is also about converging two different views to a point that is perceived by both parties as mutually beneficial. The art of negotiating is the backbone of a successful sales campaign.

Focus On The Customer - Show Him The Money:

The customer is not bothered about how badly you need to make the sale to meet your monthly target. He is more bothered about fulfillment of his needs and getting value for his money.

Talk about the customer's benefit. Don't tell your customer about the latest technology in the car's engine - tell him how this new engine saves him fuel and time.

Know Your Competition:

Knowing your product is not enough. You must know what your competition is offering. You don't want to end up staring at the customer, when he says your competitors are 20% cheaper. Have your answers ready. Give him valid reasons for your higher price.

Don't Waste Your Time With People Who Don't Matter:

When dealing with an organization, learn to prioritize. Don't waste your time explaining the secretary why your power tools are good. Save your time and energy for the decision maker. Try to get an appointment with "the boss". If you can't get one immediately, try for a later one, else move on. The secretary is not going to buy your tools.

Exploit The Copycat Mentality:

Humans have a mentality to copy what others are doing successfully. If a person's competitor or acquaintance is using a product, he may be tempted to use the product too. Keep your references ready and tell him how others have greatly benefited from your product or service.

Get Them To Agree:

When a person agrees to something you are saying, he subconsciously creates a positive frame of mind towards your offer.
Getting the other person to say "Yes" on various occasions brings both of you on the same side - with the same goal.

Your Negotiating Strength Lies In Your Uniqueness:

If it is easy to find someone providing the same service or product that you provide, your negotiating potential is reduced. The more unique your offer, the greater negotiating powers you have. Always make a list of points which differentiate you from your rivals. Sometimes people buy things just because they are different from what most other people are using.

Use Time To Your Advantage:

Every one of us has been to a stock clearance sale. When the merchant runs out of time to sell his stock, his loses his pricing power.

Customers use this tactic on sellers and give a deadline to make a decision on price and terms. The person who is short of time is always at a disadvantage. Never allow yourself to be trapped in a "time limit" trap. Even when you are short of time, don't let it be known to the other person.

On the other hand, a person's urgency to get something done can work in your favor. If the other person is in a hurry to get things done, you can be assured that he will be more willing to bend than he would in a normal situation.

A word of caution - never exploit the other person's urgency to such an extent that it makes the deal grossly one sided. You may get what you want one time, but such deals have a negative impact on your reputation and future business. A win-win situation is always desired.

Price Is Not Everything - Terms Matter Too:

Terms of service are as important as the price itself. An example could be the loans and mortgage industry. Companies are able to charge higher interests rates than competitors by allowing flexible repayment options. Companies offering freebies with their products are compensating a higher price with friendlier terms. Create a balance between the price and the terms - when price is your weak point, offset it with better terms.

"The Policy" Tactic:

Since childhood, people are taught that rules are not to be broken. At subconscious level most of the people carry a perception that it is their duty to follow all rules. You will be surprised how easily people give in when they are told that the terms which they expecting are against the company policy. Salespersons always keep a printed price list with themselves. Those few black words printed on a white paper add authority to the salesperson's arguments and send the message that it is not within their power to alter the terms.

Keep Your Last Price For The Last:

Most buyers have a tendency to ask for a lower price than offered. If asked for "the last price", quote something more than the actual "last price" which you are willing to give. It doesn't matter if initially you offer a price 2% lower or 20% lower - buyers will ask for a further lower price in both cases.

The Final Gambit - Say "No":

Risk taking is an essential ingredient of success.

Agreeing to customers' terms all the time weakens your image in the market. Walk out of the deal if it doesn't seem profitable. If the customer gives in to your terms, you win a profitable deal. If you lose the customer, why repent? He wasn't a profitable customer anyway.

Don't Shoot the Sales Team

Revenue is down. Sales are slowing. The CEO looks up from the business plan and realizes that the company won’t meet analysts’ expectations. Focusing on the organization’s sales leader, the stage is set for sacrificing a scapegoat.

Upon who else should the axe fall when the sales organization misses revenue targets? After all, aren’t sales and revenue the responsibility of the sales leader? The answer may be as easily forgotten as it is obvious.

To one degree or another everyone in an organization impacts the revenue generating process. The strategic plan of the board of directors and the CEO provides the overall strategy for revenue generation. The marketing department provides crucial demographic and psychographic customer or client information on which the sales department relies in formulating industry and account strategies. Manufacturing, finance, legal, customer service and all other departments facilitate or constrain the process of generating revenue, each in their own peculiar way.

The sales organization’s influence in enterprise revenue generation is con-centrated in the sales pipeline. Identifying bona fide sales opportunities, managing those opportunities through the sales pipeline until they produce revenue, and then managing customer or client relationships are the primary responsibilities of the sales and sales management teams. Rarely, if ever, does the sales organization control the resources of manufacturing, marketing, finance, legal and customer service.

The picture most companies present to the world show the sales organization “out there,” in front of customers and clients and in front of the rest of the company’s departments. Even marketing, the first cousin of sales, is more often than not as disconnected from sales as are the other departments. The sales group leads the company charge, and the other departments take up rear support positions, providing tangible and intangible support.

Revenue generation is a cross functional, company-wide process that involves every department and all employees in the organization. The CEO and the Board of Directors set corporate strategy and everyone else in the organization executes that strategy.  We have never observed a situation where the sales organization is in disarray while all the other business segments are humming along with little or no friction. In those rare cases where the failure or underperformance of an enterprise’s revenue generation process lies within the sales organization, the appropriate sales executives, managers and sales professionals should be held accountable and should suffer the requisite consequences. Before CEO’s shoot their sales teams, however, they might want to take a critical look at the entire revenue generation process and how each business segment contributes to or detracts from the success of the process. Like America’s favorite psychologist, Dr. Phil, would advise: Every department in an organization either contributes to the company’s revenue generation process or contaminates it.

Death of a Salesman? ItТs What Happens When the Customer Says УIТll Think It Over!

I was selling employment testing material that was based on the teachings of a well-known sales trainer. The question that brought the most conversation was about closing. How do you ask for an order? When someone says IТll think it over, do you become the nice customer service type that says Уfine, call me when youТre readyФ or do you go for the throat and say Уwhat is there to think about?Ф You know the first response is totally wrong and the second, which is the suggested answer, will probably turn the customer off. You try to say it nicely but at this point itТs likely heТs not going to say much more. What did I do? I said gently and with a smile in my voice, УMr. Customer, could you think out loud so I can hear you?Ф

I must tell you, I did not expect the response I got. He laughed heartily and said he could do that. He proceeded to tell me his reasoning and I proceeded to answer all his objections. We were both very relaxed; he purchased my product and congratulated me on my question and my closing.
ThereТs an old adage that says, УA smile given to another can make the difference in their day and yours too.Ф

Needless to say, I decided selling could be fun. I did not go back to boring bookkeeping and now that IТve retired, these words Сcould you think out loud so I can hear youТ are my present to you.

Converting Your Website Leads to Sales

Your website exists either to sell products or generate leads that can be later converted into paying customers. In the former case, unless you sell inexpensive commoditized widgets, it takes several interactions with a prospective customer before you can close the sale. Therefore, a top priority of almost every online business is to gather, organize, and convert website leads to sales.

1. Gather leads

Most of website visitors who are interested in your products or services aren't ready to buy just yet, but they sure have some questions and would like additional information (if it's not too hard to obtain). Don't make them search for it -- put your contact information right in front of them. Every page of your website must have call for action and contact options that are impossible to miss. Some examples include:

- Ask a question via email
- Call your sales phone number
- Request an instant call-back
- Sign up for special offers
- Contact for a price quote
- Download product brochure
- Submit an inquiry form
- Chat live with a sales representative
- Subscribe for a newsletter

When gathering leads, stick to the KISS principle. Don't ask for more information than absolutely necessary. For example, if you only need to know your potential customer's state of residence, don't ask for a full mailing address. If you do all your sales via email, don't require a phone number, or at least make it optional.

Be sure to provide a clear, concise statement about how the information you collect will be used. Assure your prospects that their contact data will not be shared with other parties and they can stop receiving communications from you at any time.

2. Organize leads and prospects

Leads are useless unless they are properly organized. First, you must establish the systems and processes for recording all pertinent information for leads collected via different channels, such as website, incoming phone calls, trade shows and so on. Aside from the contact information, each prospective customer record should date and source, products and services of interest, subscription and contact preferences, and any other relevant data.

Your lead management system must also be able to record the history of all communications with a lead, such as incoming and outgoing emails, phone calls, voice mails, faxes, and items sent via postal mail. Each lead must be assigned to a sales representative, and categorized by the level of interest, size of opportunity, and sales pipeline status (more on that later). Sales reps should also be able to enter internal notes and comments about the prospect, and set reminders for the future follow ups.

Last, but not least, your lead system must be centralized. Every person involved in a sales process should have the ability to instantly access and update the information, without the need to upload, download, and synchronize the data. This is especially critical if members of your team are geographically dispersed or telecommuting.

3. Convert leads to prospects to customers

This is where the rubber hits the road. There is a number of distinct steps in any sales process. Below is a typical example of a sales process. You can easily adopt its stages and definitions to your situation:

Lead - a contact that has expressed an interest in your product or fits the target profile of a potential customer.

Prospect - a lead that continues to express interest in your product or service after a two-way information exchange.

Qualified prospect - a prospect that has participated in a discussion with a sales representative and confirmed their need.

Confirmed prospect - a qualified prospect who has the info they need to make a decision and budget to go with it.

Committed prospect - a qualified prospect who has reviewed your price quote or proposal and has indicated that she is ready to move forward with you – but haven't yet.

Customer - ka-ching!

You can use your sales pipeline status report to not only organize and monitor the effectiveness of your overall sales process and individual sales representatives, but to forecast sales as well. To estimate the dollar value of your entire prospect base, multiple the average probability of closing the sale at every stage of the pipeline by the number of prospects currently assigned to that stage.

Establishing and managing your lead conversion process is all but impossible without proper customer relationship management (CRM) tools. You will need a system that captures lead information from your website and other channels, and integrates it with email, contact manager, calendar, and sales force automation software.

The companies that have established the systems and processes for converting leads to sales are already reaping the rewards.

4 Explosive Tips To Dynamite Your Sales Volume

Some of the most effective things in life are the simplest. Marketers spend a lot of time trying to understand the psyche of consumers, discover ways to predict economic trends and a million other aspects of business that can determine success. Hey, it pays to remember that some things are just basic, common sense and as easy as pie. Let's look at some tactics that just might be the key to the success you've been pining for.

1. Keep An Eye On Your Best Customers
Yeah, wouldn't be great if all of your customers were just like them? ...easy to please, loyal, and ready to tell a friend about your wonderful service. Just maybe you can develop more customer just like them!

Think about it... what makes them so great? What are the traits they have in common? Direct your marketing campaign to people who are just like them. Focus on their niche! You'll net new consumers and higher profits for your efforts.

2. Hurry It Up!
What's the hurry? Todays customers are busily running helter skelter from work to day care to home to an event back home... They're rushing through life, but trying to save a buck as they go. How much do you think they would appreciate the ability to do both in your shop?

Revise your advertising campaign to stress the time they'll save and the money they'll keep in their pockets while enjoying all of the wonderful benefits your products have to offer. Chip in a few specials where they can save even more moeny (with a deadline, of course). Deliver! Immediately! Let them save money and time... and hey, watch your sales explode!

3. Make it Easy to Buy
Convenience it the key to attracting buyers in today's fast paced society. What will be the fastest and easiest for them... credit card, phone, fax, Internet, or cold hard cash? They say there are different strokes for different folks... your customers don't all use the same methods to buy. It just makes sense that if the method they prefer is available, they'll be more likely to take advantage of it.

Simplicy... ah, it makes life so much easier. Yeah, your harried customers are busy and tired. They don’t want to mess around. Most of the time, they just want to make the purchase and head home. Convenience stores testify to the fact that quick and easy often overrides a better price!

4. Follow Up
Following up with a customer who didn’t buy can be the determining factor between and “almost sale” and a satisfied, loyal customer. Simply contact them afterwards and let them know the product is still available or offer them further information they may find valuable.

One of my favorite catalog companies always closes out the sale with a special buy that is available only at the time of purchase. I'm not an impulsive shopper by any stretch of the imagination, but it stops me in my tracks every time. I know it's a one-time shot, and I really consider whether I want or need it before I hang up the phone.

Expoding your current sales volume and profit margin may not be as difficult as you've been making it! Give these 4 tips a shot, and see what happens!

3 Hot Tips For Building Trust And Increasing Sales!

How many times has it happened to you? You walk through the doors of a place of busineess and here he comes - perfectly groomed with a smile planted across his face in greeting. Within two minutes he has talked non-stop and promised you everything, including the stars if you purchase his project. You lift and eyebrow, and think to yourself... "Yeah, right!"

The distrust between consumer and salesman is a longstanding feeling. After all, you know they are wanting to make a buck off your purchase. Sure, you don't mind them making a few dollars... everybody has to make a living... but heck, it would be nice if they were at least a little concerned about what your needs are too!

Let's face it... customers aren't likely to buy from you unless they feel confident that you will deliver. There are a few easy steps that you can take to give them the confidence they need to take the plunge.

1. Let Previous Customers Make The Claim
The proof is in the pudding... No one can say that you deliver and make good on your promises like a satisfied customer. It pays to use customer testimonials. Now, we're not talking about blindly pasting testimonials everywhere... a little business sense and organization will be helpful in making the most of them.

Choose testimonials that are exact and talk about specific aspects of your business. "Thank you so much for your hard work!" is wonderful, but "Thank you for spending 2 hours with me yesterday. Your personal attention is greatly appreciated." says a lot more. Yeah, the reader knows that you are willing to take whatever time it takes to help them through the purchasing process.

Be sure to get your customer's permission to use their testimonial as part of your advertising campaign. While you're at it, get as much personal information about them as you can. Their occupation, city, etc., create a more realistic appeal to their testimony.

2. Be Specific In Your Claims
Specific claims are more believable than vague, generic brags. Order today! It's Fast, Easy and Cheap! Sounds much better when you say... Order Today! Take 2 Minutes to Fill Out Our 7 Step Order Form and Save 20% on Your Purchase!

Specific numbers don't always come out even. In fact, readers tend to believe numbers that have decimals are more accurate than whole numbers... even if the real number is exactly a whole number!

3. Be Realistic
Don't alienate customers with claims that sound too good to be true. Yeah, we all know the old saying that if it sounds too good to be true, it probably is. Unrealistic claims steal your credibility and leave the customers with a raised eyebrow.

Think of it this way... what if you do understate the benefits? When your customer finds out the truth, he'll just be that much more satisfied! Marketers suggest that you under promise and over deliver to create the greatest customer satisfaction.

Customers who believe in you aren't afraid to buy from you. That means higher sales numbers and greater profit.