Client said I was Priced too High, how do I Save the Deal?

Posted on October 17, 2012 by admin

What do you do when your client tells you that your proposal is twice the price of your nearest competitor? My client just called me and told me that my quote was 2X more expensive than the highest bid received from other companies. What do I do next?

First, don’t panic.

At least your client is talking to you. They could have just as easily thrown your proposal in the trash and never contacted you.

This could just be a ploy by your client to get you to lower your price or it could be a legitimate question about why your price is so high. Either way, your next move is to contact the client as soon as possible.

Your client is theoretically trying to make the best decision possible for their business and that is how you should approach this problem as well. Be a resource to truly help them figure out the best course of action.

If your price is 2X your nearest competitor, either:

A. You misunderstood the requirements.

B. Everyone misunderstood the requirements except you.

C. You are offering something of additional value that your competitors are not offering.

D. You are priced too high for your market.

If you have a great relationship with your client, I would ask to meet with them and help them compare the competitors proposal to your own to make sure it is a fair comparison.

I would do the following:

1. Review the specific issues that the client said was important to have addressed in the proposal. If you can get the client to rank the issues in order of importance, that would be even better. (See point #8.)

Doing this exercise should tell you if you and your client are in agreement on what all of their issues are that should be addressed in the proposal and help you identify if the problem with your client is A, B or C above.

2. If you have a unique service or offering that would be of value to your client that your competitor is not capable of matching, you can try to get that service included on the “important issues to address” list, though you should have done this the first time around. I would just say make sure you keep your clients best interests in mind when making this decision.

3. Once you are certain you and your client are in agreement on what issues need to be addressed in the proposal, ask to review the quotes.

4. Compare your quote and the competitors quote to the ranked list of issues and point out the specific spots where the proposals differ from each other or the list.

5. If you have addressed issues in your proposal not on the list or that the client does not want it is up to you to offer to remove the item or convince the client that they need it and to pay the additional cost associated with it.

6. If your proposal has addressed everything on the list, but your competitors proposal has not, ask the client if the item the competitor left off is important. If it is important, the competitor needs to add it, if it is not truly important, take that item off your proposal and adjust the price accordingly.

7. If your competitor has offered a very low price to get the business that you do not think they can honor, explain your concern to the customer and offer a fixed price or a guarantee to meet the price you quoted to eliminate the advantage such a tactic might give your competitor.

8. If the client did rank their issues in order of importance and price seems to be their ultimate concern, you might offer to remove the lowest ranking issues from the proposal and reduce your price accordingly.

9. OPTION: Offer up a discount/rebate or refund if you are wrong. You could offer to charge a lower rate if your actual costs are lower than what you are predicting in your proposal.

Good luck!

Why Your Sales Manager Wants You to Make More Calls

Posted on September 6, 2012 by admin

Short answer: Because you aren’t making enough calls.

It’s true that there is a difference between efficiency and effectiveness. It’s also true that way too many sales managers demand efficiency because it’s easier than helping their salespeople improve their effectiveness. But just like all sales problems aren’t efficiency problems that need to be solved with more activity, not all sales problems are effectiveness problems either.

Sometimes the reason your sales manager wants you to make more calls is because you need to make more calls.

You Tried It Your Way

Most of the time sales managers wait far too long to diagnose an efficiency problem. They want to allow the salesperson to do whatever works for them. If the salesperson is effective prospecting their own way, most sales managers want to support them. As long as what they are doing is working.

It’s when the email marketing, the social selling, and the waiting have produced no pipeline to speak of that sales managers start to ratchet up the pressure. When your approach isn’t working, it’s time to try another approach.

How Many Calls Is Enough?

I know a salesperson that can book four or five calls out of ten. She’s just that good. If you were new to sales, watching her would make you believe that prospecting is easy. You might allow yourself to believe that you can make a few calls and wildly succeed too. But you would be wrong.

You need to do whatever amount of prospecting that you need to do to build your pipeline. It’s personal to you. You might need to do much more than someone else, even someone in the same job, in the same company, with the same goals. If you are really effective, you might need to make far fewer calls than your peers. But if you aren’t effective, you just have to grind away and do the work. For now anyway.

Your Sales Manager Is Right . . . Now

Your sales manager is right. The right remedy for what is ailing you is more activity when you aren’t doing enough to give yourself a fighting chance.

But your sales manager doesn’t have to be right forever. Here’s the truth: The more calls you make, the more effective you become. If you make a lot of calls, you get better fast. If you never make the number of calls you need to improve, it will take you forever to build any real competence. Let’s say it takes 1,000 calls to improve one level (whatever that might mean). You can make those calls in a month or two, or you can make those calls in a year or two. But the sooner you make those calls, the sooner you can succeed in sales making fewer calls.

For now, give an increase in activity a chance, and give yourself a fighting chance. Just make more calls.

Questions

When is more activity the right answer to low sales numbers and a weak pipeline?

When is it time to give up a prospecting approach that isn’t working and try something new (or old)?

Why can some salespeople produce better results with their peers with less activity?

What’s the fastest way to improve your effectiveness at some task?

The Value of Fear

Posted on September 2, 2012 by admin

“I’m not afraid of anything,” goes the boast so often heard from sellers who are trying to impress their manager.

The idea that a top seller is so confident, so cool, so well prepared that they’re not afraid of anyone or anything, including failure, seems to be more prevalent now than in the past. Maybe I’m just more attuned to it now than I had been.

Whichever it is, I’m hearing it more and more often and most of the time it seems to be coming from young sellers who grew up being told that they not only could do anything they put their minds to but they deserve success because they are the most educated and admirable generation ever.

It seems that the coddling has bleached out all sense of fear and anxiety—and a great deal of hardness and determination—from the up and coming generation of sellers.

And although this isn’t universal, of course, it seems we’ve done them a mighty disservice.

To pervert one of Gordon Gekko’s quotes, “Fear is good.” Fear is, in fact, the stuff that success is made of. Fear of failure. Fear of losing one’s job or status or position or respect. Fear of disappointing oneself and others. Fear of not achieving. Fear of not living out one’s dream.

Fear is more powerful than the lure of success. It puts more demands on you than the want of things. Fear is a motivator like no other. For most of us it isn’t the carrot as much as the stick that is the base motivating factor.

And we have a generation that has been force fed unwarranted success through the elimination of the potential for failure and, thus, the purging of the sense of fear of failure.

I’ve yet to find a highly successful person who doesn’t respect fear—and if you haven’t had the opportunity to taste it in big chunks you can’t respect it. It is so simple and terrible, yet so powerful. Don’t allow yourself or your sales team to live with the illusion that success can be acquired without the help of fear.

If you’re a sales leader who has sellers who voice a lack of fear, encourage them to go out and get a really good taste of failure.

What is your prospect thinking?

Posted on August 27, 2012 by admin

Selling has become more difficult and challenging in recent years. However, if you think it’s tough to sell, try being a corporate decision maker.

Anyone who is responsible for making buying decisions experiences stress when they are faced with these decisions. Even if they like your product or service they will have questions and concerns about making a decision.

The problem is that many of these questions will NEVER be verbally expressed.

Here are just a few of the possible concerns and questions that occupy their mind space during your sales conversation.

1. How can this sales person or his company help me?

2. What’s in it for me? How will I personally benefit?

3. What happens if the company fails to execute or deliver what this sales person says they will do?

4. Are the claims about this product accurate?

5. How will this decision affect me and my position?

6. I’ve heard other sales people say that before, why should I believe this person?

7. What will happen if I do nothing?

8. How hard am I going to have to fight to get approval for this? Is it worth the fight?

9. Who is going to challenge me and oppose this decision?

10. How will this decision affect my boss’s perception of me?

11. What will my boss think about this decision?

12. We tried something like this before and it didn’t work; why should I consider it again?

13. How difficult is it going to be to implement this solution?

14. Is it worth the headache and hassle to make the change or is it simpler just to deal with the status quo?

15. Is the problem really big enough?

16. How much is this going to cost in terms of soft costs such as people, time, meetings, etc.?

17. What hasn’t the sales person told me?

18. What hidden costs haven’t been factored into this solution?

Not every decision maker is going to have ALL of these questions running through their head but I guarantee that ALL of your prospects will have several questions or concerns at the very least.

That means it is critical that you find out what questions your prospect has on their mind.

Unless you uncover AND deal with these questions and concerns, it is unlikely that your prospect will actually make an affirmative buying decision.

The next time you’re talking to a prospect about your offering think about the questions running through their head and figure out how you will deal with those concerns.

Are you winging it?

Posted on August 24, 2012 by admin

190

1 The other day I was reading an excellent blog post about the effectiveness of Steve Jobs’ presentations. The writer accurately suggested that part of Jobs’ success was the visual component because he knew exactly how to create a compelling presentation on Keynote (Apple’s version of PowerPoint).

A reader of the blog commented with the following statement…

“I have a presentation tomorrow morning to a group of new employees at our company. I have given it once before, about 3-4 months ago. I worked for a while on it them, and it went well. So I was going to wing it this time. But after reading this, I spent a few minutes reviewing it to ensure I bring the enthusiasm to it that our new employees deserve.”

Yikes!

Just because you delivered a presentation ONCE, several months ago doesn’t mean you should wing it. I don’t believe you should EVER deliver any type of presentation without first rehearsing it. And spending a few minutes reviewing does not count as rehearsal!

When a company hires me to deliver a keynote speech at a conference or sales meeting, I run through my presentation up to ten times prior to the actual day of the conference. I don’t memorize every word but I do make sure that all of the points flow properly together and that I remember the key points and examples I want to make.

Sales presentations deserve the same attention

Rehearsal helps to ensure that your presentation flows logically from one point to the next. You can ensure that the key points are properly addressed.

As you practice you can think of potential objections and address them directly in your presentation. You can also time your presentation to make sure that you finish ahead of schedule

Rehearsal also gives you the opportunity to run through your slide deck and update any slides that are outdated or no longer relevant.

Recipe for disaster

Winging a sales presentation is a recipe for disaster, regardless of how experienced you are.

I have conducted countless sales meetings and still make sure that I run through my presentation a few times beforehand to ensure that I am prepared.

But…I learned this the hard way…

Last year I was invited to conduct a sales presentation for several days of sales training. Because I knew the company and the people and had worked with them before, I didn’t rehearse my presentation. I figured I could wing it.

BIG mistake!

Shortly after I began I noticed a typo on one of the slides. Then, someone asked me a question I hadn’t anticipated (although I should have) and I faltered in my response. When I left their office I couldn’t help but shake my head at my poor performance.

Don’t wing it

The next time you catch yourself thinking, “I’ve done that presentation before so I can wing it” remember that your prospects deserve more. Plus, you also give a competitor who doesn’t wing it a better chance to capture that sales opportunity.

How to Succeed at Cold calling

Posted on August 21, 2012 by admin

A couple of weeks ago I wrote a blog post called, “How to Waste Your Time When Cold Calling.” It sparked some conversation and several people asked me what they CAN do to improve their cold calling efforts.

So, here are 9 things you can do that will help you achieve better results when making cold calls. Please note that this is for B2B sales situation and not mass calls in a business-to-consumer setting.

1. Target your cold calls

The first and most important way to succeed at cold calling is to use a targeted list. Flipping through the telephone book or picking up the telephone to dial for dollars is not an effective way to prospect via telephone.

People who achieve the best results use a carefully targeted list of companies who have used or need their product, service or solution. Ask any cold calling expert and they will tell you that the quality of your list with have a direct impact on your results.

2. Research before you cold call

Once you have a good list of companies to contact, you need to do a bit of research. This research will help you determine the best approach to take and how to capture your contact’s attention.

For example, as a sales trainer, if I learned that a company recently downsized their sales team, I would use this information to craft my opening.

3. Refine your cold call opening

Your opening needs to be short, concise and to the point while also demonstrating how your prospect might benefit from your offering.

If we use my example from the previous point, my opening might sound something like, “Mr. Jones, Kelley Robertson from Fearless Selling calling. I read in the national paper that you just laid-off one-third of your sales force. Our research has shown that companies often experience an immediate decline in morale when this happens and their sales suffer as a result. What’s your experience been so far?”

The key is to open quickly and keep your opening as short as possible…ideally no longer than 20-25 seconds at a slightly-slower-than-normal pace.

4. Avoid the pitch

If you noticed, I didn’t immediately launch into a pitch about my services or what I do. Instead, I gave my opening and followed it by a question.

Now, the chances are my prospect will ask, “What do you do?” or “Who are you?” or something similar before answering my question.

Don’t get tricked into talking about yourself yet!

Instead, give a brief reply and ask your question again.

“I specialize in helping companies keep their sales team motivated and up-to-date with the latest selling strategies. When I saw that you had downsized I thought it would be appropriate to contact you. How has your team’s morale been since the lay-offs?”

5. Speak slower during your cold call

Most of the sales people who call my office tend to speak to quickly and they also change their tone while calling.

When you slow down your pace you come across more natural and your tone will become more conversational. Plus, it makes it much easier for your prospect to understand you.

6. Engage them

One of the keys to cold calling is to engage people in a conversation and the most effective way to achieve that is to ask questions.

However, you need to lead into your questions and start with softer questions. You can’t open a conversation by asking, “So, what are the three biggest challenges you face right now?”

You need to demonstrate to your prospect that having a conversation with you will be worth their time.

7. “Send me information”

Many prospects will say, “Send me information” in an effort to end the call. However, before you agree to this, you need to ask at least one more question.

Sending generic information will not close a deal for you so I suggest that you say, “I’d be more than happy to send you information. What exactly do you need to see?”

8. Use a referral

It is much more effective to connect with a prospect if you both know someone in common. Whenever possible, use your existing network to connect with new prospects.

It’s all about the numbers

Regardless of how you slice or dice it, cold calling is a numbers game. Recognize that the majority of calls you make will NOT result in a sale.

9. Start cold calling immediately

Very few sales people enjoy cold calling so they procrastinate and work on other tasks.

However, it is much more effective to get started first thing in the morning because it creates momentum and gets the unpleasant task out of the way.

Set a goal of making a certain number of calls or booking a specific number of appointments and don’t quit until you achieve that goal. If you’re new at this, set small, attainable goals and gradually work your way towards larger, more challenging targets.

Cold calling is still an effective way to generate new sales leads and revenues. Use the ideas in this post to improve your results and stop wasting your time.

Faking it?

Posted on August 16, 2012 by admin

You have probably heard the saying, “Fake it until you make it.” This expression suggests that you should fake something until it actually happens or comes true.

I don’t disagree with this…at least not for some things…

There have been times that I have been sick on the day of a presentation and I kept telling myself, “I feel great. I feel great. I feel great.” And when it came time to deliver my speech, I did feel better.

I have experienced days when I was wasn’t feeling tremendously confident but I changed my body positioning and tone of voice, and a little while later, my confidence level improved.

However, sometimes faking it isn’t the best approach.

A few days ago, my wife and I were taking a walk through our neighborhood and we came across a property whose owner had replaced the grass on his front yard with artificial turf.

That’s right…artificial turf!

I’m not sure what his rationale was but replacing real grass with fake grass just didn’t work. His lawn stood out—and not in a good way!

Unfortunately, some sales people still think that faking it is an effective sales strategy.

In my profession as a sales trainer, I have encountered sales people who say, “If you don’t know the answer to someone’s question, just fake it” or “Baffle them with B.S.” or “Tell them what they want to hear” or even “They don’t know so it doesn’t matter what I tell them.”

I once heard someone say, “If you never lie to a prospect you will never have to remember what you said.”

I think that’s wise advice.

It may be tempting to pretend that you know something, but in the long run, your prospects will find out that you don’t. It is much more effective to say, “I’m not sure about that, let me find out and I’ll get back to you.”

Faking it can be a great way to improve your mental outlook or break out of a slump. But it is not an effective approach to use when engaged in sales conversations with your prospects and customers.

via Blog | Fearless Selling Kelley Robertson – Part 2.

How to Turn a Relationship Into a Sale

Posted on August 14, 2012 by admin

Sales teams that focus on relationships quickly learn the value of providing personal and professional value to clients rather than focusing solely on the sale.

The impact of relationship building with your customers may surprise you. Ferrazzi Greenlight’s study of 16 Global Account Teams (PDF) showed that these strategic, relationship-focused teams grew their accounts at least twice as fast as regular transactionally-focused account teams. This happened despite the fact that the relationship-focused teams worked on the company’s largest, most mature accounts — the most difficult to expand rapidly because they were already so large.

Why? People do business with people they know and like. And people like people who focus on their success. That means a sales call is a success if it advances your customers’ cause and builds the relationship, not just if it closes a transaction.

This won’t be news to most salespeople, who excel at building relationships. What can be hard for many sales people is turning the ongoing conversation of a relationship into a transaction.

The good news is that transactions often happen as a matter of course when sales teams focus on building great relationships with generosity.

Generosity Without Expectations of Tit for Tat

One of the things I advise salespeople to do is to be prepared with five packets of generosity and no expectations. Do the homework required to go into each meeting with a list of five ways to make the person you’re meeting successful. That’s what’s going to arrest people’s attention and make them willing to develop a closer relationship with you.

What kind of homework? I’m not talking about the usual research on the company and its need for what you’re selling. Research the person! You’re looking for personal reasons to care. Find a way to introduce something that leverages your shared interests. Failing that, fall back to some deeply-held personal interests of your own. Talking about them will make you human, not just a sales person pushing a service or a widget.

The End of Relationship Selling

Posted on August 13, 2012 by admin

I am not going to sugarcoat this, and I am not going to be polite.

All of this talk about the end of relationship selling is pure, unadulterated hogwash. While those that declare relationship selling to be dead shout louder, ignore their words. They couldn’t be more wrong.

You will hurt yourself and your sales by believing and acting on this horrid and horrible idea. Relationships are an essential part of winning an opportunity. They are also the biggest part of retaining your clients.

Where the Critics Are Right (and Wrong)

There are two reasons that the critics bash relationship selling.

The first reason critics bash relationship selling is that too many sales people believe that a warm, friendly relationship is enough to win and sustain client relationships. The critics are correct; it isn’t enough. Your relationship must be built on the firm foundation of your ability to continually create value for your client.

The critics mistakenly suggest that relationships and value creation are mutually exclusive. Nothing could be further from the truth. The truth is that the stronger your relationship, the greater the likelihood that you will be trusted to sell the ideas that create value, especially the big ideas that lead your client.

The second reason the critics are crooked on relationships is because so many salespeople avoid the necessary conflict that accompanies selling. These salespeople are conflict averse. And again the critics are correct.

But the critics of relationship selling make the mistake of believing that a warm relationship and an ability to deal effectively with conflict are mutually exclusive, that they can’t exist in the same body at the same time. But relationships and conflict aren’t mutually exclusive. In fact, a strong relationship improves the odds of a conflict being successfully resolved. Wouldn’t you want a strong relationship going into a conflict? Wouldn’t you want to have a relationship that could withstand a nasty issue?

What Is and What Isn’t a Relationship

A personal friendship is a surely a relationship, but it doesn’t rise to the level of an effective sales relationship. Your warm, friendly, personal relationship must be coupled with an equal or greater amount of value creation.

If your personal relationship means that you can’t effectively manage the conflicts that accompany selling, then you don’t have an effective sales relationship. One who can’t deal with conflict in sales is an order-taker.

An effective selling relationship is personal, professional, value creating, and built on trust. If you would be a trusted advisor, you are going to have to deal with conflict, and you are going to have to have the relationships to withstand those conflicts. If you are going to be a Level Four Value Creator, you are going to need the relationships that allow you to act as part of your client’s management team, and your clients don’t want people on their team with whom they don’t have great relationships.

You can make a lot of mistakes and still win in sales. Believing that you can go without relationships isn’t one of them. In a time when so many people are behaving like sales is transactional, swim against the current and build the deep relationships that success is built on.

All things being equal, relationships win. All things being unequal, relationships still probably win.

Questions

Are your relationships important to selling effectively?

Can you have a personal, warm, friendly relationship with your client and still sell effectively? Can you have that relationship and still create value?

Do your relationships enable you to effectively deal with conflict, or do they cause you to avoid conflict?

At the time of your dream client’s decision, would you rather have a strong personal and professional relationship, or would you rather just try to sell the value you create?

Have you ever lost a deal that you should have won because your competitor had the relationship? Have you ever won a deal that you should have lost because your competitor had a strong relationship?

If Winning Isn’t Everything, Then What Is?

Posted on August 5, 2012 by admin

Topping the leaderboard. Being first to complete a mission. Earning the most points. Much of the current talk around enterprise gamification understandably focuses on competition and status as the primary human drivers of an effective gamified experience inside corporations.

But new data suggests it may be time to start challenging that notion.

Yes, it’s true that a desire for mastery and tangible rewards are key human motivators. These drivers grab the brain’s attention, focus its energies and inspire repeat performance. And this effect absolutely can be amplified when employees are able to compare their performance to others and compete within the same experience.

The question is: are these the most important behavioral drivers? Not so much, according to new research by The Maritz Institute:

In a recent U.S.-based employee study, we found that the most engaged employees work for companies they perceive to value “self-expression” in the form of self-direction, stimulation, and universalism. Yet, this constituted only 21% of the organizations. The least engaged employees work for companies they perceive to value “self-enhancement” in the form of achievement, power, and conformity. This constituted 60% of the organizations.

These insights are reinforced by the findings of the World Values Survey. It shows that as more workers are lifted out of poverty and the world becomes an increasingly connected place, values globally are shifting away from material gain and toward self-expression. Business that want to succeed in the new normal should be paying close attention to this trend.

So, what does this mean for your employee engagement strategy? One guide might be The Maritz Institute’s re-imagining of Maslow’s well accepted, but (IMHO) slightly tired, Hierarchy of Needs pyramid. In their revised model, the desire for self-expression sits on high, trumping the desires for material success and basic security. This says to me that while generalized competition and rewards can be part of effective engagement design, an exceptional gamified experience will focus even more on the top of the pyramid, where personal meaning, collaboration and trust-building within the organization are the most critical drivers.

This can show up in your engagement design in three key ways:

Personalized Missions – One-size-fits all really means challenges that fit no one. Recognize that you have noobs and experts, thinkers and doers, and that your sales people and your IT team have different needs and values. Creating missions that are personally meaningful to them and their work will have a far greater impact than asking everyone to do the same thing.

Group Challenges – Collective action is a significant part of the global shift toward self-expression. Be sure you can create challenges that require the effort of every member of a team to complete, or which encourage different parts of the company to form spontaneous teams working together in order to level up. And if you still want competition in the mix, encourage competition between teams while your encouraging collaboration within them.

Choice – The human brain uses iterative processing cycles and feedback loops to explore options and make choices that match personal values. This means we attach more strongly to that which we choose, vs. that which is dictated to us. You’ll see more engagement when you offer employees a variety of challenges, mission types and rewards to select from, letting them be masters of their own destiny inside of a structured gamified experience.

Gamification is a proven tool for driving higher levels of engagement, but it’s a tool that will be most effective when applied with an understanding of the differing and shifting values of your employees. Simply put, figure out what winning really means to them and engagement will follow. Just don’t assume it always means topping the leaderboard

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