Monday, April 14, 2014

The Sales Process - Part 1

I am writing a piece on sales process that is getting large, so I'll start feeding it out in parts, and dwell on one particular step in the coming days:


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There is a point in the sales process, well into it, where you need to “sell” your company, in the sense of establishing yourself as the source of the product (not literally put the company up for sale to someone else.) In the classic sales process there is approach, qualification, agreement on need, sell the company, fill the need, closing.

Note how far down the line “sell the company” is.  In effect, you sell your product or service first, then the real work begins, selling your company as the source.  Think about it:  just because you have a good idea does not mean you are also the best place in the world to get it.

You have had plenty of opportunity to find out if the product is right by speaking to customers before you develop the product.  So you may have some business going, but when it comes to expanding, you are offering your product to new customers.  who knows what new customers bring in the way of feedback.

But at this “second sell” in this sales process, selling the company, you are learning not only about wider market reaction to your product, but also market opinion as to your company. Just as with the product, if you get objections to working with you, you can know what those are and work on them too.  Some objections can be overcome with what you have got, other objections require redesign.

Some salespeople in a desperate effort to divert attention away from the buyer’s question: why should I buy from you?  Try diversion to get past the question.  

Buyers are free to buy from whomever they wish.    So let’s take a look at one scenario...

As mentioned, the first step in the sales pricess is APPROACH.  Now there are countless means of approach,   But two crucial elements in APPROAC are to answer “who says?’ and “so what?”  Usually you need ot initiate the topic, and initiation always includes the word “you” within the first three words.

You: “Do you have an award winning ice cream scoop in your housewares offering”

You listen to the response.  Is it authoritative?

Non-authoritative “Dude, what are housewares?”

Authoritative “Ice cream scoops are 2/10ths of 1% of our sales, and 4/10ths of profits.”

Our customers are getting 1/10th of 1% but 5/10ths profits.”  the bold part is “who says” and the rest is the “so what.”

The reason I put in a non-authoritative response is to remind you usually you are not talking to a buyer.  As a simple matter of professionalism,  if you are not talking to a buyer, stop selling.  Your work is not to sell everyone, but to find the buyer and sell to the buyer.

Your approach may also invite a shut-down:  

Do you offer gluten free bread in your bakery?

I’ll never offer gluten free in my bakery>

Now you can either start a fight with the custoemr  “You should...”

or you can embrace in preparation to extend the conversation where you want it to go.

“Of course, not self0respecting bakery sells gluten free bread....”

Let is sink in....

“Unless of course the sales is greater and at beter profits than you lest selling item...

Now you have agreed, but extended the coversation to a rational place.  if he listens, you’ve succeeded in aproach...

There are countless other permuations...

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Once you are speaking to someone authoritative, a buyer, you go for QUALIFICATION.

You: If  I can get that  5/10ths of 1 percent, would you place an order?

non-qualified “I’d have to ask my boss”

You are arriving at whether the person you are speaking to is qualified to place an order.

qualified: “I’d order and increase my allocation by 7%.”

You: “Here is our MOQ FOB, will this work within your program?

non-buyer: What’s a program?”

Buyer: “I’d need at least 12% off that price.”

You probing buyer: “if I get you that price, will you pay by credit card or open account?”

You may also simply ask: “are you a buyer?”

Nothing gets settled yet, since you have not decided on what is being traded.


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Feel free to forward this by email to three of your friends.


2 comments:

Anonymous said...

Hi John,

With all of the neat and useful business info. added on your blog over the past few years, have you thought of writing another book? The blog posts here appear to be adding a lot of good nuggets of insightful info. not found in the world trade book, or anywhere else for that matter.

John Wiley Spiers said...

I am rough-drafting it here...