NZ’s e-mag for sales leaders
NZSALESJUNE 2011 / IssUE 51
Leading the Sales Culture
The Impersonal Electronic Age
Clean Sheets!
Price Increases7 Tips You Must Read
Plus! Check inside to see if you've won cool prizes from our awesome new supporters!
JUNE / IssUE 51
THIs WEEK's MUsT READ
PRICE INCREAsEs
7 Tips you must read.
LEADING THE sALEs CULTURE
Management must lead the change
QUICK FIx
It’s not what you sell,
it’s how you sell.
TWO MINUTE TOP-UP
THE IMPERsONAL
ELECTRONIC AGE
Are you getting noticed
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The must read article by Mark Hunter in
this issue really caught my attention when
I read it. Implementing price increases in
a competitive market is never easy, and I done
some pretty tough ones over the years. I have
also experienced many poorly executed attempts
to increase prices. saying nothing and hoping
nobody notices, and small notes on the bottom of
a monthly invoice, are some of the worst practises
that I have seen.
Understanding your customer and the impact of a
price increase on their business is vital before you
begin to communicate the news of the increase. The
advice and tips that Mark gives are essential reading
and if this is not current practise in your business, I
suggest you have some work to do!
Be sure to check out our new subscriber prize draws
- look inside to see if you are a winner!
Happy Selling
Paul
NZ Sales Manager is a GREEN MAG, created and distributed without the use of paper so it's environmentally friendly. Please think before you print. Thank you!
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T H I s W E E K ’ s M U s T R E A D
Even the most sales savvy among us has had to
fight back the nerves that materialise whenever
we are faced with telling a customer about a
price increase.
Talking about it never makes for an easy conversation.
When discussing a price increase in a business-to-
business environment, it is important to remember
that our customers have probably had to have the
same discussion with their own customers. A company
exists only as long as it earns a profit, and it can only
do that if it delivers a quality product or service at the
right price. This means that the key to any conversation
about raising the price is to emphasize that such an
increase will ensure product quality.
Price Increases7 tips you must read
By Mark Hunter
Mark Hunter, The sales Hunter, is a consultative selling expert committed to helping individuals and companies identify better prospects, close more sales, and profitably build more long-term customer relationships. To find out more, visit www.ThesalesHunter.com.
7 / JUNE 2011 / NZsM
When discussing a price increase in a business-to-business environment, it is important to remember that our customers have probably had to have the same discussion with their own customers
As you begin to prepare your strategy for
communicating a price increase, ask yourself the
following questions:
Does the customer take your product/service and 1.
add a standard percentage increase in price when
selling to their customers? If this is the case, you can
point out that your customer will make more money
by taking a standard percentage of a higher amount.
What percentage of the customer’s business is your 2.
product/service? If the percentage is small, tell
them that the amount of increase is only a small
percentage of their total business. If the percentage
is great, then you can emphasize that the price
increase is necessary to maintain the level of product
quality necessary for them to serve their customers.
Has the customer faced any other price increases 3.
from other vendors? If so, try to identify what
some percentages of the other increases have
been. If yours falls into the low end, then you
can point out how your increase is comparatively
smaller than that of many others. If your increase is
at the high end, you can either explain how yours
is the only one you expect to take or that you
wouldn’t be surprised to see others coming back
to take another round of price increases.
How does the customer view you and the 4.
products/services you sell? If you have a quality
reputation and record, then you can emphasize
that the increase has been carefully thought
through and it is only being taken to ensure
continued quality. If you have a spotty record
with the customer, then you should stress how the
price increase will allow you to begin addressing
some of the issues in question by allowing you to
improve the overall quality of service they have
been receiving. Naturally, it is important to make
sure all comments are backed with a commitment
to follow-through.
Will the customer raise an issue with the price 5.
increase? Be prepared to show documentation of how
your costs have escalated and how other companies
are experiencing the same increases. (An example
is the increasing cost of oil, which has forced any
company that uses petroleum in the manufacturing
or transportation of goods to most likely increase
prices.) When having this discussion, be sure to show
empathy for the customer, but remain firm in what
you’re saying. If the customer senses any hesitation
on your part, they will likely try to exploit it in the form
of a price concession from you. Also, be prepared to
share steps that your company has taken in an attempt
to avoid a price increase.
6.
This can include ways you’ve already cut costs
or how the price increase is the only way to
maintain the quality and service the customer
expects. A final point to emphasize is the time
lag between this price increase and the previous
increase. Having information available concerning
the rate of inflation during that specific time period
may also help diffuse the issue.
Why does the customer buy from you 7.
anyway? Knowing this will allow you to reinforce
these points when talking about the price
increase. You should also have ready at least
two key needs of the customer that your product
or service satisfies. Be sure all of your strategic
information about the customer is up-to-date
before a price increase is announced.
How much business is at risk from the 8.
customer? We can sometimes get carried
away thinking that if we raise prices, we’ll lose
the customer, even though this is rarely the
case. Think through what steps the customer
would have to take to move to another
vendor. Many times the work involved in moving
is not worth the effort, and thus the business is
less at risk than thought.
NZsM / JUNE 2011 / 8
The following sales presentation tips are the best
practices to employ when executing a price increase:
Give the customer lead-time. Provide the customer •
with enough notice to allow them to make
adjustments in their information systems and to
exercise at least one more order at the existing price.
Avoid showing favourites. Pricing integrity •
is always essential, but especially so during a
price change. Do not treat particular customers
more favourably than others in pricing during
an increase. Different pricing levels are fine as
long as they can be logically defended so that a
customer who is not receiving the price break can
understand and accept the price change.
Do not allow your customer to find out about a •
price increase from your invoice. Any changes
in pricing must come from the account executive
or a person of high position within the company.
Information regarding a price change should only
appear on an invoice after every person involved
has been personally notified. (sufficient time
should occur in the price increase timeline to
allow at least one invoice to contain a note of the
pending increase in price.)
Make sure each customer service representative •
and anyone else who comes in contact with the
customer is fully aware of when the price increase
is going to be communicated. One of the most
significant possibilities for confusion is when
the customer hears conflicting information from
different departments. Everyone in customer
service needs to be fully aware of the price increase,
the reasoning behind it, and the logistics for
implementation. They should also be provided with
a FAQ guide to ensure that when customers do ask
them about elements of the pricing increase, they
are able to share accurate information.
Believe in the price increase. In order to be •
paid what you are worth, you must charge what
you are worth. Although this is not something
that can be explicitly communicated to the
customer, this general sense is what sets
apart the best practice companies and high-
performing sales professionals.
Instill an open-phone/open-door policy. Any •
time a price increase takes place, it is important
for all senior executives to be willing to answer
a phone call from a customer or to make
phone calls to key customers. For successful
consultative selling, nothing sends a stronger
signal to a sales organisation than seeing their
senior executives on the front-line when dealing
with a price increase.
Before and after the price increase, monitor the •
sales patterns of your individual customers. It is
important to quickly catch any changes that occur
as a result of the price increase.
During the 1970s and 1980s, price increases were
common and expected. In the past several years,
however, we’ve all grown used to lower inflation
and the overwhelming impact of Wal-Mart’s (editor:
consider the Warehouse in New Zealand) philosophy
on pricing. Today, price increases are again growing
more common and acceptable as long as they are
well thought through and not seen as a way to merely
increase profits. Because they are an inevitable part
of business today, we can’t let ourselves avoid dealing
with price increases. Instead, we should seek to use
them strategically to increase our selling potential. ■
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Anya Anderson is Managing Director of Online sales Training Company, Redseed. To find out more, visit www.redseed.co.nz
Leading the Sales Culture
The days when the only people responsible for
sales were those on the shop floor or travelling
reps are well and truly gone. For a business to
be successful in the 21st Century, everyone from the
CEO down must eat and breathe sales.
This is called a ‘sales culture’ and it means that
everyone knows they are part of the sales process and
they must all take responsibility for increasing sales by
adopting a customer-focused attitude to their jobs.
This customer-focused attitude is important. One of the
major misconceptions about sales cultures is that they
are built to increase sales at any cost to the detriment
of longer range relationship building activities. But a
true sales culture is focused on nurturing customers by
creating the best possible experiences for them and
making sure they find exactly what they are looking for.
Any sales culture must start from the top. If
management does not lead by example, others will not
follow. It’s like telling a child how important something
is and then doing the complete opposite yourself.
For example, if a CEO visited a shop and showed more
interest in how the stock was placed than sales, this
could give a conflicting message. But if he or she walked
up to an assistant and asked about a recent interaction
the assistant had with a customer, that would show that
the boss was serious about the sales culture.
By seeing management lead the charge, employees will
quickly recognise the need for them to follow.
This is why it’s vital that any sales training a business
considers is undertaken by everyone, not just the sales
staff. The necessary culture change will never happen if
the sales team alone are sent on some one day workshop.
With everyone taking part in ongoing training, they
will learn what an effective sales team does and learn
more about how their own roles can become more
customer-focused.
While the training is focused on the sales staff, the
same principles should apply to everyone in the
Management must lead the changeBy Anya Anderson
11 / JUNE 2011 / NZsM
Creating a sales culture is about doing things right and finding solutions for clients and identifying future problems before they even become apparent
organisation. For example, a receptionist could go that
extra mile to meet the needs of waiting visitors.
New Zealand has a poor record when it comes to
customer service and that’s not only the fault of those
on the shop floor. If they have not received the training
they need, they cannot be held accountable for a poor
performance. Equally, if management are not leading
by example, they would have no reason to believe that
customer service was as important as it should be.
A Kiwi Host survey in 2009 highlighted that it’s not
only the sales staff that must buy into this sales
culture. It found that the number one complaint about
telecommunications companies was finding the right
person to fix their problem.
If everyone in a business was focused on the
customer, far fewer complaints like this would be
made and profits would rise. systems would be
put in place to prevent this happening. It’s not just
telecommunications, but every industry. Customers
commonly hear phrases like “We are understaffed so
I can’t help you” or “As long as you wait until next
week, I can get you that information.”
But companies with an effective sales culture
have every person and every department thinking
and acting like the sales team. They are intent on
creating value, problem-solving and being customer-
focused. This leads to greater productivity, an
improvement in team dynamics and importantly, a
reduction in complaints.
Creating a sales culture is about doing things right
and finding solutions for clients and identifying future
problems before they even become apparent.
A good New Zealand example of a business successfully
introducing a sales culture is Warehouse stationery. This
is a business that has always had huge amounts of stock,
but it never offered customer service. People would walk
in off the street, and if they could not find what they were
looking for, they would leave without assistance.
Warehouse stationery decided it wanted to increase
its market share. To do this it would need to either
get more customers, or get those in the stores to buy
more. It decided a change in sales culture was needed
to achieve its goals.
Everyone in the team then got access to sales training
and the company set about changing its culture. It
was aware it would take time for customers to see the
change because they would need to visit stores a few
times before they realised the new customer service
policies were there to stay.
The change was led from the top. CEO Mark Powell
would even ring sales people personally and congratulate
them on their successes and looked at stores where
things were not going so well. Word soon got around
that management was serious about the change, so the
whole team followed suit. This has all led to a significant
increase in Warehouse stationery’s bottom line.
The need for a sales culture shift among the majority of
New Zealand businesses cannot be over-emphasised.
It never ceases to amaze me how so many managers
don’t recognise this. They will spend many thousands
of dollars on marketing to get people through their
doors or aware of their products and services.
While marketing is important, it is only effective if
it is backed up by an effective sales culture. It’s one
thing to get people through the doors, but it’s quite
another to give them the best possible experience,
make sales and retain their loyalty. Without having the
entire staff focused on this, all the marketing in the
world will be ineffective. ■
Q U I C K F I X
Make sure you start each client meeting with
a clean page in your notebook. If you are
using the same page from your last two
meetings, full of notes and scribbles, this will send a
message to the client that you are cluttered, and that
your attention is still in other places.
The clean sheet shows the client that the only
thing on your agenda is the meeting with
them. It will also keep your mind on the client
and the conversation without the distraction
of previous notes in front of you. ■
It's Not What You Sell, It's How You SellQuick Fix
CLEAN SHEETS
The Rev Sales Network invites you to join us for
Auckland Rev-Up #3 Tuesday 19th July 2011 Guest Speaker Linda Coles
The Topic
"Digital Networking– Prospecting in the 21st Century” Linda founded Blue Banana to train other professionals in the expert use of social media tools as a viable strate-gy to grow their brand or company online and develop an additional way of doing business.
Linda has helped many companies and businesspeople in New Zealand to gain a competitive advantage in their industries through inventive use of social media. Find out how to use digital networking to prospect outside the box. Linkedin • Is LinkedIn the new “Wine and Cheese evening”?
• What is it, who’s using it?
• Why is it important to have a presence?
• How do I utilise the tools to prospect?
• Do’s and Don’ts?
• What benefits can I get?
• What do I do with my connections?
Digital Networking and Prospecting in the 21st Century find out how...
The Presenter
RSN Rev-Up Series 2011 Auckland Rev-Up #3 With Linda Coles 12pm—2pm, Tuesday 19th July 2011 OfficeMax Training Centre 30 Sir Woolf Fisher Drive, Highbrook, East Tamaki Auckland Rev Sales Network Members: Free Non-members: $49.95 incl gst pp Includes light lunch
Linda has worked with professionals at major New Zealand companies including Wolters Kluwer, Telecom, ICONZ, Bayleys Real Estate, EBOS, and University of Auckland Business School. She has presented to Microsoft, the Her Business Network, MIT, Results.com, HRINZ, William Buck and staff of the University of Auckland. Linda's work has been published by the NZ Herald, NZ Business Magazine, Her Business Magazine, Human Resources Magazine, Social Media Examiner, Start Up magazine and she is the resident social media expert for www.businesswomen.co.nz
Visit us at www.rsn.co.nz
The Details
To register your attendance for this event send an email with “Linda Coles” in the subject line and the number of tickets required to [email protected]. Or for more details visit us at www.rsn.co.nz
Hurry! Registrations close Friday 15 July! Spaces allocated on first reserved, first served basis. Limit 80 attendees only.
With thanks to
RSN Rev-Up Series AUCKLAND 2011
How To Register
NZsM / JUNE 2011 / 14
The Impersonal Electronic Age
Linda Coles of Blue Banana is a speaker and trainer on building and maintaining relationships online. To find out more visit www.bluebanana.co.nz
If you are familiar with Dale Carnegie’s bestselling
book “How to win friends and influence people”,
you will know that he talks a great deal of common
sense when dealing with others, but unfortunately,
common sense is not that common in our very hectic,
stressful and electronic age.
Dale lays down very simple principles that really do
work in everyday life, but I fear that in this electronic
age, we have lost a good deal of them, and our lack of
time in our busy, busy worlds has not helped.
When was the last time you looked at how you
responded to a colleagues email, looked at not only
what you have written, but how it has been written?
My guess is not in a long time. I also bet that you get
a reasonable amount of emails and other electronic
communication from your suppliers, vendors and others
that are very keen for a slice of what you have to offer.
How many of this type of communication has made
you sit up and take notice? Made you want to find out
more? Probably not many.
The single sweetest sound we like to hear is someone
mentioning our name in some way, it makes us feel
important, and if you are really honest with yourself,
it’s a feeling we like. I really notice if someone has
started an email to me without a greeting and my name
because I instantly think it is a mass mail out. Give me
“Hi Linda” every time.
To start a conversation online without any of the pre
amble comes across as blunt and rushed, giving me
the impression that I am unimportant. I don’t like that
T W O M I N U T E T O P U P
Are you getting noticed?By Linda Coles
15 / JUNE 2011 / NZsM
feeling. “Hi Linda” on the other hand, instantly gives
me the feeling of calm, personal and friendly, definitely
my preference. The farewell is just as important.
If you see a baby in the street in its push chair, and
the little one smiles at you as you walk by, how do you
respond? You can’t help but smile back, even if you are
feeling stressed and grumpy, its human nature, and you
will probably wear that smile for a few extra minutes as
you continue on your journey.
so how can you add a smile into your emails, your
Tweets and your LinkedIn invitations? It doesn’t need to
be a smiley picture, but maybe a word choice, language
that would make the receiver smile, if only a little.
Carnegie also talks a lot about the importance of being
interested in the person he is talking to, but being
genuinely interested in what they have to say. The one
thing that we love to talk about is ourselves. It makes
us feel important and at the same time it gives us a
feeling of the warm and fuzzies. Most of us enjoy it, why
wouldn’t we?
When you next compose an email to a colleague, client
or prospect, remember to ask about something you
know they have been doing, whether it is a personal
activity or a business activity, but be genuine. The fact
that you have remembered will go a long way.
The final point I want to make is talking about the
things your prospect is interested in, and by that I
mean taking the time to do some research. Have a
look what Google has to say about the person you
are going to meet, see what LinkedIn and Twitter
have to say, or Facebook.
If you find that the person you will be meeting with
later is a keen cyclist and rides a T Mobile branded
cycle and a bit of further research tells you it is a
collector’s item, you would know that that cycle
is probably their pride and joy and has seen many
race meets.
so what can you say or do to bring the initial
subject round to the great bike? How would you
feel, if this cycle was your pride and joy, and at
the commencement of your meeting or email, the
person made a point of mentioning that it must be
great to have such a collector’s item to ride in races?
You would be proud I am sure and also quite taken
a back and impressed that the subject has been
brought up. You would probably go on to say how
your cycle got you around Lake Taupo recently, and
how you plan to tackle your next race…you could
talk for hours if someone is listening.
By the end of the meeting, you may not have even
spoken about the real topic at hand, but have built a
relationship instead. To move on from this point to a
transaction, could now be only a matter of time if you
have listened, encouraged and been genuine about it.
Don’t just limit these principles to your emails and social
media sites; use them with every point of contact that you
make with a person, whether it is on the phone, or in a
conversation with a real live flesh and blood person.
I have highlighted only a couple of his principles, the
ones I feel are the most important and easy to rectify.
If Dale Carnegie were alive today, I bet he would be
concerned at how we communicate electronically and
our lack of regard for the receiver of the message but
be completely in awe of how we can best use the tools
such as Google and Facebook to our advantage to do a
far better job.
These are all very basic principles that we perhaps do
in the real world, but not so much in our electronic
world, and I urge you to try them out and see what
response you get, I bet it would be a positive one.■
NZsM / JUNE 2011 / 16
R E s O U R C E C O R N E R
The Ultimate Sales Machine:
Turbocharge Your Business with Relentless Focus on 12 Key Strategies
Author: Chet Holmes
Publisher: Portfolio
$24.97 from Fishpond.co.nz
Holmes has been named one of the top 20 change
experts in the UsA by "Industry Week." He helps
clients blow away both the competition and their
own expectations with one piece of advice: focus. The
author shows the 12 key strategies organisations can use to
improve sales, marketing, management and more.
Brian Tracy describes Chet Holmes as ‘one of the greatest
teachers of marketing, sales, and business success in the
world today.’ ■
NZSM CALENDAR
JUNE-JULY 2011
14 to 16 June
Negotiating Skills
Auckland
Scotwork
www.scotwork.co.nz
15 June
Business to Business Sales Skills
45 d Mt Wellington Highway Auckland
Zealmark Group
www.zealmarkgroup.co.nz
16 June
Overcoming Objections
Auckland
Top Achievers Sales Training
www.achieveglobal.co.nz/calendar
20 & 21 June
Sales Management
Auckland
NZIM Northern
www.nzimnorthern.co.nz
22 to 24 June
Professional Selling Skills
Auckland
AchieveGlobal
www.achieveglobal.co.nz/calendar
23 June
How to Increase Sales in a Downturn
Auckland
Top Achievers Sales Training
www.topachieverssalestraining.co.nz
27 & 28 June
Complete Presentation Skills
Wellington
Effective Speaking
www.effectivespeaking.co.nz
4 July
Winning Executive Summaries
Wellington
Shipley NZ
www.shipleywins.co.nz/training/
7 Jul
Cold Calling/Hot Knocking
Auckland
Top Achievers Sales Training
www.topachieverssalestraining.co.nz
13 July
Foundations for Sales Success
45 d Mt Wellington Highway Auckland
Zealmark Group
www.zealmarkgroup.co.nz
MARKETPLACE
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Rewarding New Zealand’s sales warriors!
The deal… That’s right, even when we’re giving stuff away there’s fine print! Any-way, please note that to be in the draw to win stuff in the sales support section you need to have been a confirmed email subscriber to NZ sales Manager e-Magazine no less than two working days prior to issue date (‘cos that’s when our prize win-ners are drawn) and be a resident of New Zealand at the time of the draw. To be eligible to claim any prizes including, but not limited to, alcoholic beverages, travel, motor vehicle/boat usage, plastic surgery, sharp things or any other prize that might require you to be over than 18 years old, you must have been over 18 years of age at the time of the draw! Cheers.
Subscribe to NZ Sales Manager for free and you’ll be in the draw to win cool prizes every issue plus receive NZ Sales Manager in pdf direct to your inbox each month!
If you’re one of the lucky NZ sales Manager subscribers listed below, simply fire an email to [email protected] before 5pm Wednesday 15 June to claim your prize!
Could you be a winner?
CONGRATULATIONs TO OUR sALEs sUPPORT PRIZE WINNERs FOR IssUE 51!
>>>>
CONGRATULATIONs TO
You’ll be feeling like a million bucks with this selection of fantastic Primal Earth mens
skincare products, made in NZ from certified organic, plant based,
locally harvested raw materials.
Do yourself
a favour and
check them
out at www.primalearth.co.nz!
CONGRATULATIONs TO
You’ve won two bags of delicious award-winning, fair trade organic coffee thanks
to Avalanche Coffee!
If you love coffee be sure to check
out Avalanche
Coffee on
Facebook and
say hi from NZ
sales Manager!
CONGRATULATIONs TO
Your weekend is officially sort-ed with two bottles of NZ’s
finest thanks to our friends at VineOnLine.co.nz!
Whether it’s client gifts, team incentives,
Friday night drinks or you just want
great wines at great prices, make
VineOnLine
your first stop.
Bob Reed Rotorua
Anna Anderson Wellington
Richard Taylor Auckland
21 / JUNE 2011 / NZsM
Have you subscribed to NZ sales Manager? It’s free!simply visit www.nzsalesmanager.co.nz to get a copy of NZ sales Manager
delivered straight to your inbox monthly!
“
“To know that you do not know is the best.To pretend to know
when you do not know is a disease.
- The Way of Lao-tzu Chinese philosopher (604 BC - 531 BC)
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