Negotiation
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Transcript of Negotiation
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– Myth Salespeople need to get better at closing.
– Reality. Salespeople need to get better at opening
– Myth.. Salespeople need to get better at price negotiations
– Reality They need a way to sell that takes the focus off price negotiation altogether
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Just so you are aware
– The opponent is Price competition – Most products and services have become
undifferentiated commodoities – To justify their existence salespeople must
add some kind of value that differentiates their offerings.
– They must give buyers a compelling reason to pay more for their goods and services than for very similar ones they can get cheaper.
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Selling By Definition …
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People Buy in a ���Predetermined ���
Order
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Sales Person
Company
Product
Time
Price
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Sales Person
Company
Product
Time
Price
Sales Person " Do I Like You? " Do I Trust You? " Are You:
" Honest " Credible " Knowledgeable
Until They Buy YOU They Won’t Buy The Company Or The Product
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Sales Person
Company
Product
Time
Price
Company " Are They a Good Match? " Are they known to be good at what they do? " Do they work in an ��� acceptable way for me
Why Would I Buy a Product From a ���Company I Don’t Buy Into
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Sales Person
Company
Product
Time
Price
Product " Which of MY Problems��� Does It Solve? " Does it Match MY Needs? " How Does it Stack Up ��� Against the Competition?
Make Sure You Are Not Led Into This Part Too Soon!
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Sales Person
Company
Product
Time
Price
Price " How Does It Compare? " To Get the Benefits, ��� How Much Must I Invest:
" Money " Hassle " Time
Is It Worth The Investment I Need To Make?
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Sales Person
Company
Product
Time
Price
Time " How Soon Do I Need To Make Up My Mind? " When Would I like To ��� Get the Results Buying ��� Will Give? " Should I Stall?
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All 5 Happen In The Course Of a Major
Buying Decision
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They Happen In The Same Sequence
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Your Job Is To Help ���The Buyer Make ���
Them In The ���Correct Sequence
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How Does This Fit With Your Current
Sales System?
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Sales Process
1. Commitment Objective 2. People Skills 3. Asking The Best Questions 4. Agreeing On Need 5. Selling The Company 6. Selling The Product 7. Asking For Commitment 8. Confirming The Sale 9. Replaying The Call
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Sales Process From Action Selling By Duane Sparks
Plan To Win 1 COMMITMENT
OBJECTIVE
2 PEOPLE SKILLS
3 ASKING ���
THE BEST QUESTIONS
4 AGREEING ��� ON NEED
5 SELLING THE COMPANY
6 SELLING THE PRODUCT
7 ASKING FOR
COMMITMENT
9 REPLAYING THE CALL
PROFESSIONAL GROWTH
PRODUCT
SALESPERSON
COMPANY
TH
E 5
BUY
ING
DEC
ISIO
NS
TIME TO BUY��� COST
8 CONFIRMING
THE SALE
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1. Commitment Objective
“An Agreement You Want From the Customer That Moves You Through The
Sales Process”
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1. Commitment Objective
Your Main Aim is to Get Customers To Commit...
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• What do you want the prospect to agree to do to move the sales process forward.
• No Commitment Objective , No call !!
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• Taking Control. “ Can I just explain how I would like to make the most of our time
together today. What I would like to do is outline what it is that Toluna do and how we work with similar companies to yourselves. Then I would like to ask you some questions so that I can get a real understanding of your company and specific requirements. Then I will run through the choice of solutions that we have and if we can both see the benefits to you and the company I am going to ask you to make a decision today. Would it be OK if we worked along those lines ?”
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2. People Skills
" You can’t Ask The Best Questions unless you build rapport��� " You must build their trust in YOU first��� " Buying decisions are based on Emotion and backed up by logic��� " If your prospects like you and trust you they are more likely to take your advice
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3 Tools of Communication ...
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• Sell your self first • Demonstrate that you are likeable,
Friendly and trustworthy • Show you are genuinely interested in the
customer as a person. • Excellent listening skills and being
present.
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3. Asking The Best Questions
" This should be 2/3rds of the sales process " Ensure the answers are noted so that they can be repeated back��� (To show you have listened and understood) " Know what to sell - this may not be the product yet - link it to the commitment objective " Where products have become commodities there is little for people to choose from - you need to differentiate to beat this " Look for the high yield needs in order to be different " Use leverage questions to turn up the heat " Understand the Decision Making Process
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3. Asking The Best Questions
" High Yield Need • The real reason behind the purchase • How do they win if they solve the problem? • How Do they lose if they don’t?
• Leverage Questions • Help find the high yield need • They raise the emotional heat • Help clarify the buyers need • Increase the sense of urgency
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3. Asking The Best Questions
" High Yield Needs?���
• Leverage Questions?
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The Question Funnel ...
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After asking the Best Questions you may ���need to reassess the
Commitment Objective
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“Seek First to Understand, Then to be
Understood” Dr. Stephen R Covey
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4. Agreeing on Need
" Ensure the prospect knows that you have understood their needs��� " Repeat their needs back and ask if this is correct. ��� " Use your understanding of their needs to draw out three High Yield Needs��� " The needs must be able to be linked to the features & benefits of your offering
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5. Selling The Company
" Why is the company a good match to me the customer?���
" What do you do " What are you known for " Are we a good match���
" Use the High Yield Needs you have found previously
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6. Selling The Product
" You now have the information to keep to the point��� " Sell the Product based on the High Yield Needs��� " Sell a solution to their Needs���
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6. Selling The Product
" TFBR - used for each need, identify but save the best for last���
" Tie Back - Connect to an agreed need��� " Feature - Describe it��� " Benefit - What will it do for the customer��� " Reaction - What is their view on this
Save one TFBR in case you get a stall
when you ask for commitment
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6. Selling The Product
" End Stage 6 by asking if they have any questions��� " If the answer is Yes then go back to Stage 3��� " If the Answer is No it is time to discuss the price
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7. Asking For Commitment " Psychologically this is the hardest part of the sale��� " It is the part most sales people don’t do (more than 60%) ��� " Asking for commitment at earlier stages helps you ask when it counts��� " You may need to ask for the sale up to 5 times��� " Don’t trap, trick, apply pressure - you will lose the trust you have gained earlier and people have seen it all before
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7. Asking For Commitment
" Process: " Summarise the features and give the price��� " Ask “How does that look/feel/sound to you?”��� " If negative return to Stage 3��� " If Positive then ask “Would you like to go ahead with this?”
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Stalls
" Acknowledge the stall as being true for them
" Repeat the features the customer did like��� " Add the TFBR you kept in reserve��� " Ask for commitment again
Never Challenge a Stall!
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Ownership Accountable Responsible
Blame Excuses Denial
Are you Above or Below the Line?
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Expect them !! • You don’t want them at the end of the sales cycle. • Anticipate them through the sales process. • Knowledge is the key. What are the likely
Objections ? • Cover them off as part of your presentation • If you are getting objections the prospect is fully
engaged • Keep moving forward.
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• What is an Objection ? – A statement of interest – A veiled request for more information. – Because something concerns him/her Put another way, an objection means the
benefits of your product are not yet worth enough for the customer to part with his money.
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• Objection
• It costs too much
• Translation
• I’m sold I want it, but I don’t want to pay that much for it. Its not that I cannot afford it, its just more than I want to pay- I need more information to justify buying it.
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• Objection
• I want to think about it
• Translation
• OK I’m sold, I want one, but I want to be sure I buy the best one, I want to see what the competition has to offer-I need more convincing, I need more information
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6 Steps to overcoming Objections. 1. Don’t Interrupt 2. Throw it back 3. Show empathy or Compliment 4. Isolate it 5. Overcome 6. Change gear. Follow on to close,.
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Are Sales Decisions based on ... ?
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Customers buy emotionally and justify their decision with logic.
Develop the emotion as you go through the
sales process
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Meet and Greet
Meet and Greet
Rapport
Rapport
Presentation
Presentation
Qualification
Qualification
Summary
Close
Summary Close
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NEW Selling is...
Building a...
Through a series of...
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• You • Your Company
• Your Product and service
• Combination of above is what differentiates you from the rest
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9. Replay The Call
" A Professional Salesperson Should Replay Every Call ���
" Go over each of the previous 8 stages��� " What worked & what didn’t?��� " What will you do differently next time?
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• What can you trade ? • Low Cost to you, High Value to prospect.
Make a list
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If you can Specific,
Then I can General
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Number of Leads x
Conversion Rate =
No. of Customers x
No. of Transactions x
Ave. £££ Sale =
Revenue x
Margin =
Profits
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Let’s put in some numbers ...
Number of Leads x
Conversion Rate =
No. of Customers x
No. of Transactions x
Ave. £££ Sale =
Revenue x
Margin =
Profits
1000 x
50% =
500 x
10 x
£100.00 =
£500,000 x
10% =
£50,000
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With just a 10% increase ... Number of Leads
x Conversion Rate
= No. of Customers
x No. of Transactions
x Ave. £££ Sale
= Revenue
x Margin
= Profits
1000 x
50% =
500 x
10 x
£ 100.00 =
£ 500,000 x
10% =
£ 50,000
1100 x
55% =
605 x
11 X
£110 =
£732,050 x
11% =
£80,526
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That’s a 46% increase in your
Revenues ...
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For FUN, what if 100% ... ?
Number of Leads x
Conversion Rate =
No. of Customers x
No. of Transactions x
Ave. £££ Sale =
Revenues x
Margin =
Profits
1000 x
50% =
500 x
10 x
£ 100.00 =
£ 500,000 x
10% =
£ 50,000
2000 x
100 % =
2000 x
20 x
£200.00 =
£8 million x
20% =
£1.6 Million
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Dreams can & do come true ... Start thinking like an Entrepreneur! What is your plan for the future? And second, you’ve got to change the
way you do things now ... If you keep doing what you’ve always
done ... You’ll keep getting what you always
got ! Hold onto your dreams ... They’re real !!!
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Quoting E. James Rohn ...
• “Never wish your life were easier ... Wish that YOU were better…”
• “Work harder on yourself than you do on your job …”
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Your Current ���Sales Process?
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What Are Your Current
Conversion Rates?
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Why Don’t Some People Buy From You?
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“One extra case per site, per week would increase
annual income by £93,600”
Bill Aiken
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Customer Service Quickie ...
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Just so you are aware • Failure to differentiate is the number 1 reason why Salespeople discount. • Only 1 in 5 salespeople deal effectively with price objections. • Only 1% of companies compete on Price. 99% are looking for added value. • 50 % of salespeople admit to discounting to match competitors price. • 43% of salespeople are not aware of their competitors strategy • Only 50 % of salespeople actually follow a consistent sales process
There is Hope
• Top sales people do drive higher margins • Quality sales relationships do win business,
– Not product features – Not company reputation. – And not price
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• The Do’s
• Leave your work at home • Create a list of things to do • Keep your self fit • Do what you don’t want to do • Be courteous and smile • Look like a professional • Accept when you are wrong • Motivate yourself • Set yourself goals • Under promise and over deliver. • Maintain eye contact
• The Do Nots.
• Knock the competition • Live in the past • Fight change • Stop learning • Waste time • Give losers the time of day • Give up • Procrastinate • Let yourself off the hook • Waiver from your plan • Lose sight of your dreams
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OLD Selling vs. NEW Selling …
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The key to Success in any business is creating a
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Sales Made Simple ...
Something YOU hold to be true ...
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BE X DO = HAVE
To Get Greater Results....
Thoughts Actions Results
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The 100% Sales Process… 1. Trust 2. Need 3. Help 4. Hurry
Adapted from Sell it Today; Sell it
Now By Tom Hopkins