Obtaining Obtaining CommitmentCommitment

Chapter 12Chapter 12

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Important Questions Important Questions AnsweredAnswered

How much emphasis should he placed on closing the sale?

Why is obtaining commitment important?

When is the best time to obtain commitment?

Which methods of securing commitment are appropriate for developing partnerships?

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Important Questions Important Questions AnsweredAnswered

► How should pricing be presented?

► What should a salesperson do when the prospect says yes?

► When the prospect says no?

► What causes difficulties in obtaining commitment, and how can these issues be overcome?

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Be A Winner

W i n n e r s L o s e r s

Part of the Solution Part of the problem

"It may be difficult but it's possible"

"It may be possible but its too difficult"

Finds an answer for every problem

Finds a problem with every answer

"Let me do it for you" "That's not my job"

"There's a green near every sand trap"

"There are two or three sand traps near every green

Always has a plan Always has an excuse

"I'll get it right next time." "It wasn't my fault."

"If it is to be, it's up to me." "I can't help it."

Translate dreams into reality. Losers translate reality into dreams.

Empower. Losers control

"Let's find out."  "Nobody knows."

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What is a Close?

Closing

•The process of helping people make a decision that will benefit them. •You help them make that decision by asking them to buy. •A question or action designed to elicit a buying decision

Attempt to Close

the Sale When

•The Prospect is Ready. •The prospect is in the "conviction stage" of the mental buying process.

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Perspectives on ClosingPerspectives on Closing

Closing should be natural and easy It should be planned like the rest of the

process Closing is integrated throughout the

presentation. It is not a separate event Each point of agreement is a minor

close. Failure to close comes from an

inadequate performance in other areas

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Obtaining CommitmentObtaining Commitment

Obtaining commitment occurs throughout the sales process, beginning With actions such as asking for an appointment and concluding with asking for the sale. In a partnership sales result only when the buyer is convinced that the decision to purchase is wise. Once needs are identified and satisfied, attempting to gain commitment is a logical part of the selling process.

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OBTAINING COMMITMENT OBTAINING COMMITMENT TODAYTODAY

Without a buyer's commitment, no sale Without a buyer's commitment, no sale takes place. Also, buyers will rarely takes place. Also, buyers will rarely volunteer to make the purchase, even volunteer to make the purchase, even when that decision is obviously the when that decision is obviously the right thing to do. One company looks at right thing to do. One company looks at a sale as "just another way of a sale as "just another way of reaffirming the relationship," meaning reaffirming the relationship," meaning that commitment to the relationship is that commitment to the relationship is more important than any single sale. more important than any single sale.

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Part of The ProcessPart of The Process

The process of obtaining commitment occurs throughout the natural, logical progression of any sales call. Creeping commitment occurs when a customer becomes committed to a particular course of action throughout the buying process. Salespeople actually gain commitment repeatedly: when asking for an appointment, when checking to see whether all of the customer's needs have been identified, and when asking whether the prospect would like to see a demonstration or receive a proposal. Commitment, of course, is more than just securing an order.

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THE IMPORTANCE OF THE IMPORTANCE OF SECURING COMMITMENTSECURING COMMITMENT

Overall, gaining commitment tells the salesperson what to do next and defines the status of the client. Salespeople need to become proficient in obtaining commitment for several reasons.

If they fail to obtain commitment, it will take longer to obtain a sale.

Assuming the product truly satisfies the prospect's needs, the sooner the prospect buys, the sooner she or he can realize the benefits of the product or service.

The company's future success depends on goodwill and earning a profit.

securing commitment results in financial rewards for the salesperson.

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FINANCIAL TERMS AND FINANCIAL TERMS AND CONDITIONSCONDITIONS

Price is often the last element of the deal to be presented and discussed. Yet it is often one of the most important factors when the buyer makes the decision. The final price is really a function of the terms and conditions of the sale Factors that affect price are the use of quantity and other discounts, as well as credit and shipping terms. Figuring out the final actual price can be difficult, especially in situations with many options and packages rather than standardized products.

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DISCOUNTSDISCOUNTS

Discounts are given for many reasons and may be based on the type of customer, quantity purchased, or some other factor. The most common type of discount is the quantity discount. Quantity discounts encourage large purchases by passing along savings resulting from reduced processing costs. Businesses offer two types of quantity discounts:

► Single-order discount ► Cumulative discount.

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CREDIT TERMSCREDIT TERMS

Most sales are made on a credit basis, with cash discounts allowed for early payment. These cash discounts are the last discount taken, meaning that if a quantity discount is also offered, the cash discount is calculated after the quantity discount is taken off. A common discount is 2/10, n/30, which means that the buyer can deduct 2 percent from the bill if it is paid in 10 days from the date of invoice. Otherwise, the full amount must be paid in 30 days. Another common discount is 2/10, EOM, which means that the 10-day period begins at the end of the month.

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SHIPPING COSTSSHIPPING COSTS

The terms and conditions of sale include The terms and conditions of sale include shipping costs. The seller who quotes a shipping costs. The seller who quotes a free on board (FOB) price agrees to free on board (FOB) price agrees to load the goods on board a truck, freight load the goods on board a truck, freight car, or other means of transportation. A car, or other means of transportation. A great many variations exist in the use great many variations exist in the use of FOB, but the term is used to specify of FOB, but the term is used to specify the point at which the buyer assumes the point at which the buyer assumes responsibility for both the goods and responsibility for both the goods and the costs of shipping them. Thus FOB the costs of shipping them. Thus FOB destination means that the buyer will destination means that the buyer will take responsibility for the goods once take responsibility for the goods once they reach the buyer's location, and the they reach the buyer's location, and the seller will pay the freight.seller will pay the freight.

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PRESENTING PRICEPRESENTING PRICE Price is often discussed at the end of the

presentation simply because the salesperson may not know what that price will be until the final solution is agreed oil. Because price is so important to the buyer, it is worth considering how price should be presented. Most firms set prices after careful study of the competitors' offerings, the value delivered by the product or service, and the cost of providing the product or service. For these reasons the price should represent a reasonable and fair picture of the product's or service's value. Therefore, never apologize for a price or present the price apologetically; rather, present it with confidence.

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WHEN TO ATTEMPTTO WHEN TO ATTEMPTTO OBTAIN COMMITMENTOBTAIN COMMITMENT

The right time to attempt to gain The right time to attempt to gain commitment is when the buyer appears commitment is when the buyer appears ready, as evidenced by buying signals. ready, as evidenced by buying signals. Some salespeople say that one Some salespeople say that one psychological moment in each sales psychological moment in each sales presentation affords the best opportunity presentation affords the best opportunity to obtain commitment, and if this to obtain commitment, and if this opportunity is bypassed, securing opportunity is bypassed, securing commitment will be difficult or impossible. commitment will be difficult or impossible. This belief is not true, however. Seldom This belief is not true, however. Seldom does one psychological moment govern the does one psychological moment govern the complete success or failure of a sales complete success or failure of a sales presentation. presentation.

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Buying SignalsBuying Signals

Buying signals, or indications that Buying signals, or indications that the buyer is ready to buy, can be the buyer is ready to buy, can be evidenced both in the buyer's evidenced both in the buyer's comments and nonverbally. A buying comments and nonverbally. A buying signal is anything that a prospect says signal is anything that a prospect says or does to indicate that he is ready to or does to indicate that he is ready to buy. buy.

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Answering a Prospect’s Answering a Prospect’s Buying SignalBuying Signal

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BUYER COMMENTSBUYER COMMENTS

► BUYER QUESTIONSBUYER QUESTIONS

► REQUIREMENTSREQUIREMENTS

► BENEFIT STATEMENTSBENEFIT STATEMENTS

► RESPONSES TO TRIAL CLOSESRESPONSES TO TRIAL CLOSES

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BUYER QUESTIONSBUYER QUESTIONS

► If I do agree to go with this cooperative If I do agree to go with this cooperative advertising program, do you have any advertising program, do you have any ads already developed that I could use?ads already developed that I could use?

► Do you have any facilities for training Do you have any facilities for training our employees in the use of the product? our employees in the use of the product?

► How soon would you be able to deliver How soon would you be able to deliver the equipment?the equipment?

► What do we do next?What do we do next? Not all questions signal a readiness to Not all questions signal a readiness to

buy. But if the question concerns buy. But if the question concerns implementing the purchase and points implementing the purchase and points toward when, not if, the purchase is toward when, not if, the purchase is implemented, the prospect is getting implemented, the prospect is getting ready to buy ready to buy

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REQUIREMENTSREQUIREMENTS

Requirements are conditions that have Requirements are conditions that have to be satisfied before a purchase can to be satisfied before a purchase can take place. take place.

► We need a cash discount for a supply We need a cash discount for a supply order like this.order like this.

► We need to get this in weekly We need to get this in weekly shipments.shipments.

Requirements that are stated near the Requirements that are stated near the end of the presentation are need end of the presentation are need statements that reflect a readiness to statements that reflect a readiness to buy when they relate to how the buy when they relate to how the purchase will be consummated. purchase will be consummated.

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BENEFIT STATEMENTSBENEFIT STATEMENTS

Sometimes prospects offer their own Sometimes prospects offer their own benefit statementsbenefit statements

► Oh, I like the way this equipment is Oh, I like the way this equipment is serviced-it will make it much easier on serviced-it will make it much easier on my staff.my staff.

► Good, that color will match our office Good, that color will match our office decor.decor.

Such positive statements reflect strong Such positive statements reflect strong feelings in support of the purchase, a feelings in support of the purchase, a sign that the buyer is ready.sign that the buyer is ready.

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RESPONSES TO TRIAL RESPONSES TO TRIAL CLOSESCLOSES

Salespeople can solicit such comments Salespeople can solicit such comments by continually taking the pulse of the by continually taking the pulse of the situation with trial closes, or questions situation with trial closes, or questions regarding the prospect's readiness to regarding the prospect's readiness to buy. Throughout the presentation.buy. Throughout the presentation.

► How does this sound to you so far?How does this sound to you so far?► Is there anything else you would like to Is there anything else you would like to

know at this point?know at this point?► How does this compare with what you How does this compare with what you

have seen of competing products? have seen of competing products? buyer's responses to such questions buyer's responses to such questions

provide good guidance regarding when provide good guidance regarding when the salesperson should attempt to the salesperson should attempt to obtain commitmentobtain commitment

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NONVERBAL CUESNONVERBAL CUES

Nonverbal cues serve as important Nonverbal cues serve as important indicators of the customer's state of indicators of the customer's state of mind. While attempting to gain mind. While attempting to gain commitment, the salesperson should the commitment, the salesperson should the use buyer's nonverbal signals to better use buyer's nonverbal signals to better identify areas or concern and see identify areas or concern and see whether the buyer is ready to commit. whether the buyer is ready to commit. Facial expressions most often indicate Facial expressions most often indicate how ready the buyer is to make a how ready the buyer is to make a commitment. Positive signals include commitment. Positive signals include eyes that are open and relaxed, face and eyes that are open and relaxed, face and mouth not covered with hands, a natural mouth not covered with hands, a natural smile, and a relaxed forehead. The smile, and a relaxed forehead. The reverses of these signals indicate that reverses of these signals indicate that the buyer is not yet ready to commit to the buyer is not yet ready to commit to the proposal.the proposal.

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Recognizing Buying SignalsThe CHEF Technique

C Cheek or Chin •Stroking cheek or chin means satisfaction •Leaning forward and nodding

H Hands•Open and Relaxed. •Plams Upward •Rubbing Hands means assumed ownership

E Eye Contact•Constant contact is good •Dilated eyes mean relaxation •Rolling or squinting means confusion or ire

F Friendliness•Smiling •Relaxed •Casual conversation

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Some verbal and non verbal buying signals

Resistance •objections mean interest

VerbalSignals

•How much is it? •How soon can I get it? •Sounds good. •What's the next step?

Gestures

•Nodding head •Leaning forward •Rubbing chin •Tugging ear •Reexamines product, sample or paperwork •Relaxes and become friendly.

Other•Stopping just short of buying •Asking about price means they are sold on benefits •Reinforcing or agreeing with your ideas •Asks another person's opinion.

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HOW TO SUCCESSFULLY HOW TO SUCCESSFULLY OBTAIN COMMITMENTOBTAIN COMMITMENT

► To obtain commitment in a non To obtain commitment in a non manipulative manner, salespeople need manipulative manner, salespeople need to follow several principles.to follow several principles.

► Maintaining a positive attitude.Maintaining a positive attitude.

► Letting the customer set the pace.Letting the customer set the pace.

► Being assertive instead of aggressiveBeing assertive instead of aggressive

► Selling the right product in the right Selling the right product in the right amounts.amounts.

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MAINTAIN A POSITIVE MAINTAIN A POSITIVE ATTITUDEATTITUDE

Customers like to deal with salespeople Customers like to deal with salespeople who have con fidence in themselves, who have con fidence in themselves, their products, and their companies. On their products, and their companies. On the other hand unnecessary fear can be the other hand unnecessary fear can be a self fulfilling prophecy. The typist who a self fulfilling prophecy. The typist who fears making errors will make many; fears making errors will make many; the student who fears essay exams the student who fears essay exams usually does poorly; golfers who believe usually does poorly; golfers who believe they will miss short putts usually do. So they will miss short putts usually do. So it is with salespeople: If they fear the it is with salespeople: If they fear the customer will not accept their proposal, customer will not accept their proposal, the chances are good they will be right.the chances are good they will be right.

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LET THE CUSTOMER SET LET THE CUSTOMER SET THE PACETHE PACE

Attempts to gain commitment must be Attempts to gain commitment must be geared to fit the varying reactions, geared to fit the varying reactions, needs, and personalities of each buyer. needs, and personalities of each buyer. Thus the sales representative needs to Thus the sales representative needs to practice adaptive selling. Some buyers practice adaptive selling. Some buyers who react very slowly may need plenty of who react very slowly may need plenty of time to assimilate the material time to assimilate the material presented. They may ask the same presented. They may ask the same question several times or show they do question several times or show they do not understand the importance of not understand the importance of certain product features. In these certain product features. In these circumstances the salesperson must circumstances the salesperson must deliver the presentation more slowly and deliver the presentation more slowly and may have to repeat certain parts. Trying may have to repeat certain parts. Trying to rush buyers is unwise when they show to rush buyers is unwise when they show they are not yet ready to commit.they are not yet ready to commit.

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BE ASSERTIVE, NOT BE ASSERTIVE, NOT AGGRESSIVEAGGRESSIVE

The salesperson should be assertive.

There are three types of salespeople► Aggressive► Submissive► Assertive

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AggressiveAggressive

Aggressive salespeople control the sales interaction but often fail to gain commitment because they prejudge the customer's needs and fail to probe for information. Too busy talking to do much listening, they tend to push the buyer too soon, too often, and too vigorously. They might say, I can't understand why you are hesitant, but they do not probe for reasons for the hesitancy.

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SubmissiveSubmissive

Submissive salespeople often excel as socializers. With customers they spend a lot of time talking about families, restaurants, and movies. They establish rap port quite effectively. They accept the customers' statements of needs and prob lems but do not probe to uncover any latent needs or opportunities. Submissive salespeople rarely try to obtain commitment.

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AssertiveAssertive

Assertive salespeople are self-confident and positive. They maintain the proper perspective by being responsive to customer needs. Rather than aggressively creating new "needs" in customers through persuasion, they look for buyers who truly need their products and then use questions to acquire information. Their presentations emphasize an exchange of information rather than a one way presentation.

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SELL THE RIGHT ITEM IN SELL THE RIGHT ITEM IN THE RIGHT AMOUNTSTHE RIGHT AMOUNTS

The chance of obtaining commitment improves when the right product is sold in the right amount. Although this principle sounds obvious, it often is not followed. Customers have long memories; they will refuse to do business with someone who oversells, and they may also lack confidence in someone who undersells. The chances to obtain commitment diminish rapidly when the salesperson tries to sell too many or too few units or the wrong grade or style of product.

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EFFECTIVE METHODSEFFECTIVE METHODS

► DIRECT REQUESTDIRECT REQUEST

► BENEFIT SUMMARYBENEFIT SUMMARY

► BALANCE SHEET METHODBALANCE SHEET METHOD

► PROBING METHODPROBING METHOD

► ALTERNATIVE CHOICEALTERNATIVE CHOICE

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DIRECT REQUESTDIRECT REQUEST The most straight forward, effective The most straight forward, effective

method of obtaining commitment is method of obtaining commitment is simply to ask for it, called the direct simply to ask for it, called the direct request method. It works best with request method. It works best with decisive customers, such as drivers who decisive customers, such as drivers who appreciate getting down to business appreciate getting down to business and not wasting time.and not wasting time.

► Can I put you down for 100 pairs of Can I put you down for 100 pairs of model63?model63?

► Can we meet with your engineer next Can we meet with your engineer next Thursday to further discuss this? Thursday to further discuss this?

► Will you come to the home office for a Will you come to the home office for a hands-on demonstration? hands-on demonstration?

► Can you call the meeting next week?Can you call the meeting next week?► Is it a deal?Is it a deal?

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Direct Requestask for the business

DirectAppealClose

•Has the advantage of clarity and simplicity. •Ask for the order in a straightforward manner. •Most direct closing approach and appeals to many buyers, especially decisive people. •Should not come too early. •Highly effective when salesperson has earned the customer's respect.

•We can have it delivered by the end of the month if we can get a signed contract into the implementation department by Thursday. •Should I forward a contract so you can get started? •Would you like to try it for a quarter? •It’ll take a few weeks to process and ship the order so if you’re interested in moving forward, we should start the paperwork now. •Let’s get this off your plate and start the paperwork. •What do you think? •Let’s start the process so you can get onto your other priorities. Sound good? •Would you like to move forward? •Are you ready to get started? •Can we go ahead? •We can start the process today with a credit card if you’d like. •We can deliver it to you by the close of business tomorrow if you’d like

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BENEFIT SUMMARYBENEFIT SUMMARY Early in the interview salespeople discover Early in the interview salespeople discover

or reiterate the needs and problems of the or reiterate the needs and problems of the prospect. Then, throughout the prospect. Then, throughout the presentation, they show how their product presentation, they show how their product can meet those needs. They do this by can meet those needs. They do this by turning product or service features into turning product or service features into benefits specifically for that buyer. As they benefits specifically for that buyer. As they present each benefit, they ask if that present each benefit, they ask if that benefit meets the need. When using this benefit meets the need. When using this approach, called the benefit summary approach, called the benefit summary method, the salesperson simply reminds method, the salesperson simply reminds the prospect of the agreed on benefits of the prospect of the agreed on benefits of the proposal. This method simply helps the the proposal. This method simply helps the buyer to synthesize points covered in the buyer to synthesize points covered in the presentation to make a wise decision. One presentation to make a wise decision. One advantage of the benefit summary method advantage of the benefit summary method over the direct request method is that the over the direct request method is that the seller can help the buyer remember all the seller can help the buyer remember all the points discussed in the presentation. points discussed in the presentation.

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BENEFIT SUMMARYBENEFIT SUMMARY

Summarize the product's benefits in a positive manner so that the prospect agrees with what you are saying

Then ask for the order. You can easily adapt Feature / benefit

statements for your "summary" close.

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BALANCE SHEET BALANCE SHEET METHODMETHOD Balance sheet method aids prospects who Balance sheet method aids prospects who

cannot make a decision, even though no cannot make a decision, even though no reason for their behavior is apparent. reason for their behavior is apparent. Such a prospect may be asked to join the Such a prospect may be asked to join the salesperson in listing the pros and cons of salesperson in listing the pros and cons of buying now or buying later, of buying the buying now or buying later, of buying the salesperson's product or that of a salesperson's product or that of a competitor, or of buying the product or competitor, or of buying the product or not buying it at all. However, this method not buying it at all. However, this method can insult a buyer's intelligence if used can insult a buyer's intelligence if used inappropriately. . A more effective start inappropriately. . A more effective start may be to simply draw a T on a plain may be to simply draw a T on a plain piece of paper, place captions on each piece of paper, place captions on each side of the crossbar, and leave space side of the crossbar, and leave space below for the insertion of specific benefits below for the insertion of specific benefits or sales points. Then just ask the buyer to or sales points. Then just ask the buyer to list pros and cons of making the list pros and cons of making the purchase. purchase.

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BALANCE SHEET BALANCE SHEET METHODMETHOD

► Often called the Ben Franklin close Often called the Ben Franklin close ► Based on the process people go Based on the process people go

through when they make a decision through when they make a decision ► Weigh the cons against the pros. Weigh the cons against the pros. ► The same as debits and credits, act or The same as debits and credits, act or

not act, etc.. not act, etc.. ► Modified T-Account or Balance Sheet Modified T-Account or Balance Sheet

Close -- only list the reasons to buy. Close -- only list the reasons to buy. Some salespeople do not remind the Some salespeople do not remind the prospect of any of the reasons not to prospect of any of the reasons not to buy as they attempt to close the salebuy as they attempt to close the sale

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PROBING METHODPROBING METHOD

In the probing method salesperson In the probing method salesperson initially attempt to obtain commitment initially attempt to obtain commitment by another method. If unsuccessful, the by another method. If unsuccessful, the sales person uses a series of probing sales person uses a series of probing questions designed to discover the questions designed to discover the reason for the hesitation. Once the reason for the hesitation. Once the reason becomes apparent the sales reason becomes apparent the sales people ask a what-if question.people ask a what-if question.

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ALTERNATIVE CHOICEALTERNATIVE CHOICE

In many situations a salesperson may In many situations a salesperson may have multiple options to present to a have multiple options to present to a buyer. more time is spend on probing buyer. more time is spend on probing about budget and desires and then about budget and desires and then only two options are shown at a time, only two options are shown at a time, explaining the key characteristics of explaining the key characteristics of each. This allows the customer to each. This allows the customer to express a preference. express a preference.

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ALTERNATIVE CHOICEALTERNATIVE CHOICE► Provides prospects with choice as a way of Provides prospects with choice as a way of

qualifying. qualifying. ► Allow customer to examine several different Allow customer to examine several different

models and try to assess degree of interest in models and try to assess degree of interest in each one. each one.

► Cease showing new products when it appears Cease showing new products when it appears that the prospect has been given ample that the prospect has been given ample selection. selection.

► Remove products that the prospect does not Remove products that the prospect does not seem genuinely interested in. seem genuinely interested in.

► Place unwanted products aside and Place unwanted products aside and concentrate on products the prospect seems to concentrate on products the prospect seems to be definitely interested in. be definitely interested in.

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IF COMMITMENT IS IF COMMITMENT IS OBTAINEDOBTAINED

► NO SURPRISESNO SURPRISES► CONFIRM THE CUSTOMER'S CONFIRM THE CUSTOMER'S

CHOICECHOICE► GET THE SIGNATUREGET THE SIGNATURE► SHOW APPRECIATIONSHOW APPRECIATION► CULTIVATE FOR FUTU RE CALLSCULTIVATE FOR FUTU RE CALLS► REVIEW THE ACTIONS TO BE REVIEW THE ACTIONS TO BE

TAKENTAKEN

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NO SURPRISESNO SURPRISES

Customers do not like surprises, so this Customers do not like surprises, so this is the time to go over any important is the time to go over any important information they will need to fully enjoy information they will need to fully enjoy the benefits of the product or service. the benefits of the product or service. Give the customer as much detail as Give the customer as much detail as possible to prepare him or her for that possible to prepare him or her for that experience. No customer wants to be experience. No customer wants to be kept waiting in the dark, not knowing kept waiting in the dark, not knowing whether he or she will ever get the new whether he or she will ever get the new product.product.

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CONFIRM THE CONFIRM THE CUSTOMER'S CHOICECUSTOMER'S CHOICE

Customers like to believe they have Customers like to believe they have chosen intelligently when they make a chosen intelligently when they make a decision. After important decisions, decision. After important decisions, they may feel a little insecure about they may feel a little insecure about whether the sacrifice is worth it. Such whether the sacrifice is worth it. Such feelings are called buyer's remorse or feelings are called buyer's remorse or post purchase dissonance. Successful post purchase dissonance. Successful salespeople reassure customers that salespeople reassure customers that their choice was judicious One way to their choice was judicious One way to help customers feel good about their help customers feel good about their decision is to assure them that they decision is to assure them that they have made an intelligent choice have made an intelligent choice

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GET THE SIGNATUREGET THE SIGNATURE The buyer's signature often formalizes a The buyer's signature often formalizes a

commitment. Signing the order is a commitment. Signing the order is a natural part of a well planned procedure. natural part of a well planned procedure. The signing should be treated as a The signing should be treated as a routine matter. Ordinarily, the customer routine matter. Ordinarily, the customer has decided to buy before being asked to has decided to buy before being asked to sign the order. The salesperson needs to sign the order. The salesperson needs to remember several important points.remember several important points.

► Make the actual signing an easy, routine Make the actual signing an easy, routine procedure.procedure.

► Fill out the order accurately and Fill out the order accurately and promptly.promptly.

► Be careful not to exhibit any excess Be careful not to exhibit any excess eagerness or excitement when the eagerness or excitement when the prospect is about to sign. prospect is about to sign.

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SHOW APPRECIATIONSHOW APPRECIATION

All buyers like to think that their All buyers like to think that their business is appreciated even if they business is appreciated even if they purchase only small quantities. purchase only small quantities. Customers like to do business with Customers like to do business with salespeople who show that they want salespeople who show that they want the business. Salespeople may show the business. Salespeople may show appreciation by writing the purchaser a appreciation by writing the purchaser a letter. This practice especially develops letter. This practice especially develops goodwill after large purchases and with goodwill after large purchases and with new customers. In some situations a new customers. In some situations a small gift, such as a pen with the small gift, such as a pen with the selling company's name on it, may also selling company's name on it, may also be an effective thank you. Salespeople be an effective thank you. Salespeople should always thank the purchaser should always thank the purchaser personally; the thanks should be personally; the thanks should be genuine but not effusive.genuine but not effusive.

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CULTIVATE FOR FUTU RE CULTIVATE FOR FUTU RE CALLSCALLS In most fields of selling, obtaining In most fields of selling, obtaining

commitment is not the end of a business commitment is not the end of a business transaction; rather, it is only one part of a transaction; rather, it is only one part of a mutually profitable business relationship. mutually profitable business relationship. Obtaining commitment is successful only Obtaining commitment is successful only if it results in goodwill and future if it results in goodwill and future commitment. Customers like to do commitment. Customers like to do business with salespeople who do not lose business with salespeople who do not lose interest immediately after securing interest immediately after securing commitment. What a salesperson does commitment. What a salesperson does after achieving commitment is called after achieving commitment is called follow up. The point here is that the sale follow up. The point here is that the sale does not end with the customer's does not end with the customer's signature on the order form. Effective signature on the order form. Effective selling means building relationships with selling means building relationships with customers, nor just going for the single customers, nor just going for the single sale. sale.

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REVIEW THE ACTIONS TO REVIEW THE ACTIONS TO BE TAKENBE TAKEN

An important step, particularly when An important step, particularly when commitment is to take the next step in commitment is to take the next step in the buying process, is to review what the buying process, is to review what each party has agreed to do. To be each party has agreed to do. To be welcomed on repeat calls, salespeople welcomed on repeat calls, salespeople must be considerate of all of the parties must be considerate of all of the parties involved in buying or using the product. involved in buying or using the product. They must explain and review the terms They must explain and review the terms of the purchase so no misunderstandings of the purchase so no misunderstandings will occur, and be sociable and cordial to will occur, and be sociable and cordial to subordinates as well as those in key subordinates as well as those in key positions. In addition, the buyer or user positions. In addition, the buyer or user must get the service promised. must get the service promised.

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Twelve Keys to a Successful Twelve Keys to a Successful ClosingClosing

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After the Close

•Confirm the sale when the buyer says yes: •Be sure all details related to the purchase agreement are completed •Check everything with buyer •Ask for signature if necessary. •Reassure customer and confirm

•Pointing out that s/he has made the correct decision •Describe the satisfaction that will come with ownership of product or service

•Thank customer for the order. •A follow-up thank-you letter is often appropriate. •Ask for referrals. •Provide after-sale service. •Leave Gracefully •Don't talk past the close

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IF COMMITMENT IS NOT IF COMMITMENT IS NOT OBTAINEDOBTAINED

Naturally, the salesperson does not always obtain the desired commitment. The salesperson should never take this situation personally (which is easier said than done). Doing everything right does not guarantee a sale. Situations change, and customers who may have really needed the product when everything started may find that other priorities make a purchase impossible.

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SOME REASONS FOR LOST SOME REASONS FOR LOST OPPORTUNITIESOPPORTUNITIES

► WRONG ATTITUDESWRONG ATTITUDES

► POOR PRESENTATIONPOOR PRESENTATION

► POOR HABITS AND SKILLSPOOR HABITS AND SKILLS

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WRONG ATTITUDESWRONG ATTITUDES A fear that obtaining commitment will be A fear that obtaining commitment will be

difficult may be impossible to hide. Some difficult may be impossible to hide. Some salespeople even fail to ask for the sale salespeople even fail to ask for the sale because if they never ask, they will never because if they never ask, they will never hear no. As a result, they always have hear no. As a result, they always have more prospects but fewer customers more prospects but fewer customers than everyone else. But all salespeople than everyone else. But all salespeople know they need to focus on obtaining know they need to focus on obtaining commitment to keep their jobs. Some commitment to keep their jobs. Some salespeople display unwarranted salespeople display unwarranted excitement when they see that prospects excitement when they see that prospects are ready to commit. A salesperson who are ready to commit. A salesperson who appears excited or overly eager may appears excited or overly eager may display nonverbal cues that suggest display nonverbal cues that suggest dishonesty or a lack of empathy dishonesty or a lack of empathy

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POOR PRESENTATIONPOOR PRESENTATION Prospects or customers who do not Prospects or customers who do not

understand the presentation or see the understand the presentation or see the bene fits of the purchase cannot be bene fits of the purchase cannot be expected to buy. The salesperson must expected to buy. The salesperson must use trial closes and continually take the use trial closes and continually take the pulse of the interview. A poor pulse of the interview. A poor presentation can also be caused by presentation can also be caused by haste. The salesperson who tries to haste. The salesperson who tries to deliver a 60-minute presentation in 20 deliver a 60-minute presentation in 20 minutes may skim over or omit minutes may skim over or omit important sales points. Further, a sales important sales points. Further, a sales presentation given at the wrong time or presentation given at the wrong time or under unfavorable conditions is likely under unfavorable conditions is likely to be ineffective.to be ineffective.

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POOR HABITS AND SKILLSPOOR HABITS AND SKILLS

Obtaining commitment requires proper Obtaining commitment requires proper habits and some measure of skill. The habits and some measure of skill. The habit of talking too much rather than habit of talking too much rather than listening often causes otherwise good listening often causes otherwise good presentations to fail. Knowing when to presentations to fail. Knowing when to quit talking is just as important as quit talking is just as important as knowing what to say. Some salespeople knowing what to say. Some salespeople become so fascinated by the sound of become so fascinated by the sound of their own voice that they talk their own voice that they talk themselves out of sales they have themselves out of sales they have already made. A presentation that already made. A presentation that turns into a monologue is not likely to turns into a monologue is not likely to retain the buyer's interest.retain the buyer's interest.

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Research shows six common closing mistakes

1.Talks too much. Doesn't ask enough questions. 2.Over-controls the call; asks too many closed-end questions. 3.Doesn't respond to customer needs with benefits. 4.Doesn't recognize needs, gives benefits prematurely. 5.Doesn't recognize or handle negative attitudes effectively. 6.Makes weak closing statements, doesn't recognize when or how to close.

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DISCOVERING THE DISCOVERING THE CAUSECAUSE

The real reasons for not obtaining The real reasons for not obtaining commitment must be uncovered. Only commitment must be uncovered. Only then can salespeople proceed then can salespeople proceed intelligently to eliminate the barriers. intelligently to eliminate the barriers.

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SUGGESTIONS FOR SUGGESTIONS FOR DEALING WITH DEALING WITH

REJECTIONREJECTION► MAINTAIN THE PROPER MAINTAIN THE PROPER

PERSPECTIVEPERSPECTIVE

► RECOMMEND OTHER SOURCESRECOMMEND OTHER SOURCES

► GOOD MANNERS ARE IMPORTANTGOOD MANNERS ARE IMPORTANT

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MAINTAIN THE PROPER MAINTAIN THE PROPER PERSPECTIVEPERSPECTIVE

Probably the inexperienced salesperson's Probably the inexperienced salesperson's most important lesson is that when a most important lesson is that when a buyer says no, the sales process has not buyer says no, the sales process has not necessarily ended. A no may mean necessarily ended. A no may mean

► "Not now," "Not now," ► "I need more information," "I need more information," ► "Don't hurry me," "Don't hurry me," ► "I don't understand." "I don't understand." An answer of no should be a challenge An answer of no should be a challenge

to seek the reason behind the buyer's to seek the reason behind the buyer's negative response. When an earlier visit negative response. When an earlier visit has not resulted in commitment, careful has not resulted in commitment, careful preparation for succeeding calls preparation for succeeding calls becomes more crucial becomes more crucial

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RECOMMEND OTHER RECOMMEND OTHER SOURCESSOURCES A sales representative who uses the A sales representative who uses the

consultative selling philosophy may consultative selling philosophy may recommend a competitor's product to solve recommend a competitor's product to solve the prospect's needs. When recommending the prospect's needs. When recommending other sources, the sales rep should explain other sources, the sales rep should explain why his or her product does not meet the why his or her product does not meet the prospect's needs and then provide the name prospect's needs and then provide the name of the competitive product. One salesperson of the competitive product. One salesperson for a welding supply company keeps a for a welding supply company keeps a current list of competitive products. After current list of competitive products. After recommending other sources, the recommending other sources, the salesperson usually should ask the prospect salesperson usually should ask the prospect for names of people who might be able to for names of people who might be able to buy the seller's product. Also, the buy the seller's product. Also, the salesperson should emphasize the desire to salesperson should emphasize the desire to maintain contact with the prospect in the maintain contact with the prospect in the event the seller's firm develops a event the seller's firm develops a competitive offering.competitive offering.

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GOOD MANNERS ARE GOOD MANNERS ARE IMPORTANTIMPORTANT

If obtaining commitment fails for any If obtaining commitment fails for any reason, the salesperson should react reason, the salesperson should react good naturedly. Salespeople have to good naturedly. Salespeople have to learn to accept no if they expect to call learn to accept no if they expect to call on prospects again. Even if salespeople on prospects again. Even if salespeople do not obtain commitment, they should do not obtain commitment, they should thank prospects for their time. Arguing thank prospects for their time. Arguing or showing disappointment gains or showing disappointment gains nothing. The salesperson may plan to nothing. The salesperson may plan to keep in contact with these prospects keep in contact with these prospects through an occasional phone call, a through an occasional phone call, a follow-up letter, or product literature follow-up letter, or product literature mailings. mailings.

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When You Dont Make The Sale

•Recognize hopeless selling situations •Avoid doing or saying anything that will jeopardize the relationship established

Act Professional Act Adult

•Do not take the buyer's denial personally •It was a business decision that the buyer made given the circumstances. •The proper handling of a no-sale situation actually helps build a sound business relationship with your customers. •Ask why you lost out - learn from your successes and no-sales. •In some situations, it is proper to reopen the presentation.

Prepare prospect for shopping the competition

•Do everything possible to help customer make an intelligent comparison. •Review strong points of product, giving special emphasis to areas in which product has superior advantage over competition.

•Never treat the lost sale as a defeat. •Do not use selling methods that are unethical and/or illegal.

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Analyze Lost Sales

•A lost sale can be a learning experience. •Take a good, objective look at presentation and try to identify weaknesses •Consider how to avoid this problem in the future. •Salvage as much as possible from the experience •Don't give up too soon. •Callbacks are very common, especially in the field of industrial selling.

Discuss thelost sale with

•Your sales manager •Your fellow salespeople •Other people who understand the selling and buying process.

Prepare for a possible returncall byrecording information.

•Personal information - family, hobbies, and so forth. •Company information - if selling to an individual buyer, company information is quite valuable. •Purchase priorities - every prospect has unique purchase priorities.

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BRINGING THE INTER BRINGING THE INTER VIEW TO A CLOSEVIEW TO A CLOSE

Few buyers are interested in a Few buyers are interested in a prolonged visit after they commit. prolonged visit after they commit. Obviously, the departure cannot be Obviously, the departure cannot be abrupt; the salesperson should complete abrupt; the salesperson should complete the interview smoothly. Goodwill is the interview smoothly. Goodwill is never built by wasting the buyer's time never built by wasting the buyer's time after the business is concluded. after the business is concluded. Remember that most sales take several Remember that most sales take several calls to complete. it is important that calls to complete. it is important that you follow up promptly with a thank-you you follow up promptly with a thank-you and reminder note after the sales call. and reminder note after the sales call.

End of Chapter End of Chapter 1212

Thank youThank you