Indicator 4.04

Employ sales processes and techniques to enhance customer relationships and to increase the likelihood of making sales.

Marketing Management 4.04 Employ sales processes and techniques to

enhance customer relationships and to increase the likelihood of making sales

• Assess customer/client needs

Vocabulary

• Probing• Information-gathering probes• Opinion-gathering probes• Confirming probes

Distinguish between probing and questioning

• Probing questions find out detail. An effective way of probing, gaining clarification, and drawing information

• Probing helps your clients to discover problems

Describe reasons for probing• To gain and maintain control of the conversation • To gather information • To sell the appropriate benefits and features and facts • To involve the customer in the “Feel” portion of the

product • To understand the customer’s needs, values and wants

• http://callcentertoday.com/callcentermagazine/2011/01/17/why-we-probe-the-customer/

Explain benefits of probing to assess customer/client needs

• To uncover as many of the client’s needs as possible to address solutions to those needs.

Identify probing techniques• There are basically two types of questions - open and closed (sometimes called indirect and

direct). • Open questions are used to get people to “open up” and get information whilst closed

questions are used to solicit commitment and will get a yes or no answer. Once again our 80/20 rule comes into play. You should analyze your questioning so as to make sure that you ask 80% open and 20% closed questions.

• Unfortunately closed questions are easier to ask and we often have a “compliant client” we lapse into the bad habit of reversing the 80/20 rule and asking mainly closed questions. When you ask closed questions, even with the compliant client, you are doing yourself a great disservice. It will be as much by luck as judgment that you are getting any information at all and what you do find out will be limited.

• Once the art of asking open questions is mastered we take the types of questions and expand and define them a little further so that we can uncover and then develop needs:-

Open Neutral Questions - These get un-influenced and non-specific answers

Open Leading Questions - For long influenced, specific answers

Closed Questions - To solicit a short, influenced answer, usually just yes or no

Examples of Open Ended Questions• What kind of jewelry does she love? • · What do you want her to think when she gets this gift?• · How do you want her to feel when she opens the gift?• · How do you want her to react when she opens the gift?• · How long have you been thinking about buying a gift like this?• · Why did you decide to do this now, instead of six months ago or a year ago?• · Where else have you shopped?• · Where else do you intend to shop if you don’t find something you like here?• · What have you found that you think she would like?• · What have you found that you think she wouldn’t like?• · How much are you thinking of spending on this gift?• · What is your wife’s birth month?• · When would you like to give this gift to her?• · It sounds like your wife is a very special person. Please tell me a about her!• · What clothing colors does she wear?• · What kind of jewelry does she own?• · Tell me about her favorite piece of jewelry.• · Why does she like it so much?• · Who will be present when you give her the gift?• · How would you like to go about presenting the gift to her?• · What is your wife’s name?• · How long have you been married?• · Where did you get married?• · How will you go about making a decision on which item to purchase?• · What kind of jewelry gifts have you given her in the past?

Identify probing techniques• Funnel questions

– This is a questioning technique, or rather a structure to use the technique within, that keeps you “on track” as you guide your prospect towards your service or product offering once you have uncovered the needs. The technique relies on you using the prospects own words back to them and you must take notes. You will need to remember what the prospect says both now and possibly well into the future so do not rely on your memory.

Steps Of The Funnel Technique:

There are four steps to the technique but that does not necessarily mean that it will always be only four questions:

1. Motivate - why you are asking the questions2. Open neutral questions - to get non-specific, un-biased information3. Open leading questions - to get specific, biased information4. Summary and/or get commitment with closed questions

• Chunking

Questions to Avoid Asking• It is just as important, perhaps even more important, that you avoid asking sales questions that prospects will perceive as manipulative

questions. If prospects perceive that you are trying to manipulate them through your questioning, you have little chance of building trust during the sales process.

• Below are just a few examples of sales questions you should not use in meetings with prospects. There are hundreds, if not thousands, of these types of questions that "sales experts" still suggest should be used during sales interactions. If you want to be a trusted seller, do not use manipulative questions like these:

• You seem to be comfortable with the our [solution]. Would you feel comfortable with a delivery date of [date]?

• I believe we’ve covered everything, what do we need to do now to get your business today?

• Just between you and me, is there any reason this [solution] would not be approved?

• The only question you need to ask yourself is can you afford not to purchase this [solution]?

• Have you thought about the status and prestige you will enjoy from buying this [solution]?

• Off the record, what kind of budget are we looking at here?

• I see you have a beautiful trophy on the wall, do you [golf, fish, play tennis, play poker, etc.]?

• Don't you agree this feature alone will save you thousands of dollars in the first year?

• Should I start the paperwork for a buy or lease of the [solution]?

Explain guidelines for assessing customer/client needs

• Use open ended questions• Ask a key question which is one with more

than one reason, benefit, or purpose.• Ask business questions or those that directly

refer to the merchandise.

Demonstrate procedures for assessing customer/client needs

• Build rapport with your clients. • Understand your customers’ needs. • Illuminate your customers’ hidden needs and wants. • Look for information from your clients. • Direct the conversation. • Increase your customer’s comfort zone. • Name your customers’ fears to help conquer them. • Galvanize customers’ emotions so they’ll take action• http://salesmarks.com/archives/probing-sales-questions-

to-ask-your-prospects/

Vocabulary

• Sales talk • Product demonstration

Explain the importance of an effective product demonstration

• http://www.slideshare.net/CommLab/key-elements-for-an-effective-product-demonstration

• This is an opportunity to match what the customer’s needs/wants with your product.

Describe guidelines to follow in selecting a product to demonstrate to a customer

• Select samples to meet the needs of the customer based on your questioning.

• When in doubt about price, select medium priced products first and then, deviate based on your customer’s reactions.

• Show two but never more than three products at a time.

Explain guidelines to use in demonstrating products

• Be prepared• Use whiteboard and power point sparingly• Stand during your demo• Be involved and prepare for the unexpected• Use stories to enhance power• Make demo a 2 way dialogue• Ask questions to keep them engaged• Focus on style as well as content• Reinforce your strengths• Start from scratch with every prospect – no cookie cutter presentations• Flush out problems• When under attack, fall back• Get the audience talking early

• http://salesmarks.com/archives/21-powerful-product-demo-and-sales-presentation-tips/

Demonstrate a product• Creatively display the product. • Properly handle the product. For example, pearls should

be handled carefully. Luggage should be handled more rugged.

• Show the product in use. • Dramatize or use showmanship. • Use sales aids such as visuals, samples, article reprints,

drawings, graphs, customer testimonials or warranty information.

• Involve the customer physically. Get the product in the customer’s hands as soon as possible.

• Use questions to regain the customer’s attention.

Discuss the importance of feature-benefit selling

• It is widely known that customers do not buy features or what the product has, but rather, what the product will do for them or benefits.

• The more useful a feature is to a customer, the more valuable the product will be to the customer.

Describe product features that should be considered in preparing to use

feature-benefit selling• Quality• Performance• Colors• Warranty• Service• Financing• Product itself• Establish brands or stores

Explain the importance of determining which features and benefits appeal

to each customer• Determining the customer’s buying motives

clarifies which features/benefits that will appeal to the customer.

• Customer decision making also clarifies which features/benefits that will appeal to the customer.

Explain the guidelines for prescribing a solution to customer needs.

• Consult with the customer to make sure you are on the right track. Since customers may at any time become worried, frustrated, angry, or anxious about the process, it is your job to let customers know that they are a priority and that you are trying your best to meet their requirements. Keeping customers informed will be an important ingredient of success.

Article Source: http://EzineArticles.com/795990

Vocabulary

• Objection• Yes, but. . .• Toss-it-back• Deny it• Point-counterpoint• Inquiry• Show 'em• Testimonial• Try it

Distinguish between objections and excuses

• Objections: concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchase.

• Excuses: reasons for not buying or not seeing the salesperson.

• It is difficult to distinguish objections vs. excuses.

• Some excuses are used to hide real objections.

Explain the importance of properly converting customer objections into

selling points

Describe reasons that salespeople should be prepared to answer objections

• Objections can happen at any point during the presentation.

• Customers become preoccupied with the objection if not handled immediately.

• The objection helps you to determine the customer’s needs/wants.

• Welcoming objections creates a positive atmosphere and relationship with the customer.

• With advance preparation, you can incorporate anticipated objections into your presentation as long as you don’t introduce too many.

Classify types of objections

• Product– Construction, use, quality, color, size, style

• Need– Customer does not have an immediate need or wants the item

without a true need.• Source

– Negative past experiences with the company or brand.• Price

– Often associated with expensive merchandise• Time

– Hesitation to buying immediately

Describe methods of converting objections into selling points

• Yes, but. . .– Acknowledges that the objection is valid and then present a

feature/benefit to offset the objection. – Ex. Yes the book bag is expensive, but it has a lifetime warranty on the

straps and is made of durable nylon that will not tear.• Toss-it-back

– This is the boomerang method where the objection is turned back into a selling point.

– Ex. The facial lotion bottle is small; however, you only use 2 drops per night and therefore, it will last a long time.

• Deny it– Provides proof that a customer’s statement is incorrect.– Ex. Many customers have said that same thing, but this material is 60/40

polyester and cotton so it is preshrunk.

Describe methods of converting objections into selling points

• Point-counterpoint– Superior Point method: very similar to the yes but method.– Salesperson acknowledges objections as valid yet still offset them with other features and

benefits. – The salesperson acknowledges the disadvantages in the product.– Ex. You are correct about the price of these windows. On the other hand, your energy bill

will be reduced by 20% due to the added insulation around the outside of the windows. • Inquiry

– Question method: ask questions to learn more about the objection and then offer a solution.

– Where do the shoes feel uncomfortable? We can adjust the lacing to give you more room.• Show 'em

– Demonstration method: show the customer a feature that answers that objection.– Ex. Many customers have told me that this slicer looks too difficult to operate. Here is a

potato. I want you to try it just to see its ease of use.• Testimonial• Try it

Describe methods of converting objections into selling points

• Testimonial– Third party method: refer to another customer

who overcame the objection – can also be a celebrity endorser.

– Ex. This travel trailer does look difficult to drive and hook up. A customer, Lisa Garrett, just sent me this note the other day saying that she was so pleased with her new 5th wheel travel trailer.

• Try it

Explain procedures for converting objections into selling points

• Listen– Let your customer finish telling you their objection. Do not interrupt the

customer.• Empathize or Acknowledge

– Use empathy statements to acknowledge that the customer’s objection is valid.

– Ex. I understand your concern. . . • Restate the Objection

– Paraphrase the objection to let the customer know that you heard him/her correctly and to let him/her know that you were listening. This also gives the customer an opportunity to clarify their objection if incorrect.

• Answer the Objection– Use one of the previous methods to answer sincerely. Check the customer

for understanding.

Role Play

• Situation: You are employed in the shoe department of a sporting goods store as a sales associate. One of the best selling items is hiking boots that are waterproof, durable, and very lightweight. A customer you are helping in interested in the boots but is hesitant to buy. She thinks the price is to high, and she’s not sure she wants to buy today. She has told you that she’s a new hiker and has not been out on very long hikes. The mountain area where she has been hiking has several small streams and a rocky terrain. Use your skill in handling objections to help this customer make an intelligent buying decision.

• Evaluation. You will be evaluated on how well you do the following:– Distinguish between objections and excuses. – Identify the buying decision upon which objections are based. – Demonstrate skill in using specific methods of handling objections – Effectively handle this customer’s objections.

Vocabulary

• Sales close

List reasons that closing a sale is a courtesy to customers

• Making a decision to buy is difficult for some customers.

• Closing the sale is equivalent to solving their problem.

• Customer fear that they are making a wrong decision.

• Customers must identify the value received from purchasing the product.

Explain the importance of using an appropriate closing technique

• The goal is to make the decision easy for the customer.

• Identify the type of customer personality you are dealing with to choose your closing technique.

• Don’t use cookie cutter techniques for your customers.

Identify closing techniques

• Direct– Used when the customer is showing many positive buying signals

then ask a direct question or make a comment that gets the customer to commit to buy. Ex. How would you like to pay for that?

• Assumption– Rather than ask if your prospect wants to move forward or not,

assume the sale and give her/him a choice of one option or another. This closing technique solidifies the sale. For example, "Would you like the blue or the green?" "Do you want it delivered, or will you be picking it up?" "Will that be cash or charge?"

Article Source: http://EzineArticles.com/169655

Identify closing techniques• Minor Points

– A closing technique which involves getting the prospect to make minor decisions about a purchase before asking for the major decision or whether to buy or not; also known as stimulus-response close.

– Ask them about minor points, getting decisions on things they might consider if they were really going to buy the product.

– Ask about size, shape, shade, delivery times, fitting options and so on.– Then go for the final close on purchase.

• Examples– If you chose this one, which model would you prefer?– There are five shades available. Which do you like the best?– Do you have a click-fit system already? ... Good, that will make it easy to install.

• How it works– The customer knows they need to decide on many factors, and this complexity of decision may be

holding them back. By getting the easier decisions out of the way, this greatly simplifies the final decision.

– After several closures on minor points, the customer gets accustomed to the pleasure of feeling of closure. They can continue this by making the purchase.

• http://www.changingminds.org/disciplines/sales/closing/minor_points_close.htm

Identify closing techniques

• Summary– After all product options have been presented,

summarize main features and benefits, review objections and how they were resolved, go over selling points that customer agrees with and get the customer to express his or her agreement.

– Ex. The black dress can be dressed up or down and thus used on a variety of occasions. The teal dress is prettier and more unusual; however, it can only be worn on dressy occasions. What do you think?

Identify closing techniques

• Standing Room Only Close– Used when the product is in limited supply;

product is selling extremely quickly; or price will go up soon.

– Explain why the customer should buy now.– Ex. This is the last one and I don’t know when we

will get more.

Identify closing techniques• Closing on Objection

– Used when the customer is giving positive buying signals, except for one objection.

– Resolve the objection and then use a direct close.– Ex. We can hem the dress for you at no cost and have it delivered to

your home in 3 days.• Contingent

– Home buyers who decide to buy before selling often write a contingent contract to purchase, meaning the buyer's home must sell before the buyer is obligated to complete the purchase transaction. Because contingent contracts are most often a good deal for a buyer and a riskier solution for a seller, many state Realtor associations have devised legal documents that sellers and buyers can use to address contingent contract situations and protect the rights of both parties.

Identify closing techniques• Contrasting advantages and disadvantages

– A closing technique which involves comparing a product's advantages and disadvantages

• Suggesting Ownership– A closing technique in which the salesperson stresses the enjoyment or the

benefits the prospect will enjoy from owning a product.• Narrative

– A closing technique which involves getting the prospect to make minor decisions about a purchase before asking or whether to buy or not; also known as stimulus- response close.

• MBAResearch and Curriculum Center (2012). Closing sales [LAP: SE-107]. Columbus, OH: Author. [Available Winter 2012]

Identify closing techniques• Related Merchandise

– A closing technique which uses products that go with the item being presented to help customers make buying decisions.

• Bonus– A closing technique in which customers are offered something extra

for buying immediately.• Silence

– A closing technique in which the salesperson stops talking after the presentation to allow the prospect time to think and to respond.

• MBAResearch and Curriculum Center (2012). Closing sales [LAP: SE-107]. Columbus, OH: Author. [Available Winter 2012]

Describe guidelines for closing sales• ABC• ABC is a common term which stands for 'Always Be

Closing', which is both good and bad advice. • ABC is good advice when it is used to keep in mind that

you are always aiming towards a close. It is bad when you just use it to mean battering the customer to death with a barrage of unsubtle closing techniques.

• Selling can be a lot like fly fishing. If you tug hard on the line, it will snap and the fish will get away. The best method is a gentle coaxing that gradually brings the fish in to shore - although sometimes when they are spooked you have to let them out again and calm them down further away.

Describe guidelines for closing sales• Silence after• When you have used a closing technique, be quiet afterwards

and let them respond. If you just keep talking, then you may miss what they have to say - like 'yes' for example.

• Silence also builds tension and will encourage them to respond - and a response to a well-put closing question will hopefully be positive.

• Watch emotions• Watch out for the other person not only in what they say but

also in the emotions behind the words. • Never try closing when they are in a negative emotional state

- you will only cause further objection and possibly anger that means they will never buy from you again.

Describe guidelines for closing sales• Over-closing• It is not unknown for sales people to talk their customers into closure then carry right on and talk them out again. You

can over-do closing and it requires a close sensitivity to avoid this trap.• It is often the fear of the other person saying 'no' that often causes a sales person to keep on talking. You must have

faith and also accept that when they say 'no' it is no real comment about you. If you take rejection personally then you are probably in the wrong job.

• There are no bebacks• When a customer says 'I'll be back', sales people in many different situations know that this is just an excuse to leave.

Thus, it is said, 'there are no bebacks'.• The consequence of this is that when customers say they will be back, you cannot count on it and should treat this as

if they will not and decide either to move to the next customer or redouble your sales efforts. • Closing need not mean a sale today• In some situations, there are bebacks. In fact any business sale may require that the sales person make many visits

and a multi-million dollar deal can take years to set up.• When you can meet the customer again, then you can have intermediate goals and closure may just be and

agreement to meet again. It can also ask for commitment to certain acts such as getting you information or looking at a website. Generally, if you are getting the other person to commit to some action, you are moving the sale forward.

• Horses for courses• In all of these methods, remember that all closing techniques are appropriate only in particular circumstances. This

can include the emotional state and readiness of the customer. • It also depends on the sophistication of the customer. A professional buyer in a big company has been on all the sales

courses themselves and can see a closing technique coming from several miles away. Using simple methods with sophisticated buyers will only serve to annoy them, so rather than treating the situation like one-off selling, use more relationship selling methods, seeking to understand them and meet their needs, both professional and human. Everyone, even buyers, like to be treated with respect, and if they do catch you being a bit crass, then apologize and be more careful where you tread!

Vocabulary

• Suggestion selling

Identify examples of suggestion selling

• Suggestion selling involves:– Related merchandise: items that compliment the

original purchase– Additional merchandise: larger quantities– Special sales opportunities: recommending

upcoming holiday sales, identifying an upcoming sales specifically for targeted customers, recommending new items.

Describe the importance of using suggestion selling

• To the customer:– Saves time and money– Useful merchandise– More enjoyable purchases

• To the salesperson/business– Increased sales– Increased customer loyalty– Decreasing inventory

Explain guidelines for using suggestion selling

• Only suggestion sell after the original commitment has been made to avoid confusing the customer.

• Make the recommendation specifically from the customer’s point of view. It doesn’t matter what you think; it is only about the customer’s opinion.

• Be specific – avoid asking “will there be anything else?”

• Show and tell. Customers need to see what you are recommending.

• Be positive about the recommendation.

Identify benefits of negotiating sales terms

• Negotiation is your opportunity to demonstrate your commitment (and your company’s) to a long-term relationship and to maximizing value for both parties (for those who sell to businesses, value is synonymous with return-on-investment).

• Sales negotiation can be a formal event (at a specific time and date) or it can be an ongoing theme at different points in the sales process. It’s beyond price and includes the entire value proposition.

• As a professional you’re seeking a mutually beneficial relationship with your prospects and customers (not something that benefits only you or them). Practiced and applied, negotiation skills can increase the level of trust and credibility you and your company have with your prospects and customers.

• http://www.justsell.com/negotiation-guide/

Discuss the importance of patience when negotiating sales terms

• Negotiating is an area where patience provides the professional salesperson with powerful advantages. Negotiations where concessions are made too quickly, where there is a rush to closure without appropriate understanding of the other side's position, or where artificial deadlines created by the other side are immediately agreed to, each tend to result in an unsatisfactory outcome.

• The sales professional understands the crucial importance of constantly managing client and prospect relationships. This leads us into the realm of human nature. If we do not demonstrate patience in our dealings with the inevitable quirks, foibles and idiosyncrasies of the people we do business with, we will fail to effectively manage the relationship. Every sales professional understands this. The word we tend to use to describe theprocess is "empathy." But without patience, empathy is hollow.

• http://www.saleshelp.com/guestservices/destinations/newsletter/Sales%20Patience.htm

Explain the need to analyze the product’s added value in comparison to that of

competitors• Defining value• The best value-added salespeople define value in the

customer’s terms. They understand that value is a moving target: It’s anything a particular customer wants it to be.

• The goal: Uncover the prospect’s needs, analyze the costs associated with those needs and translate features of the product into what it’ll do for the prospect.

• http://www.businessbrief.com/20-minute-sales-meeting-overcoming-price-objections/

Describe the importance of being prepared for negotiations from the beginning of the sale

• Always be Prepared: All effective negotiations start before you actually sit down at the bargaining table. So don't jump in without any research or planning. Take time to consider your counterpart's situation. Ask yourself what they need from the deal and identify what you can and cannot compromise.

• Negotiations for a yearlong service contract will obviously require more preparation than for a one-time purchase of a product. Regardless of the size or length of your deal, use preparation to gain a comprehensive view of the situation. Preparation and planned alternatives will help you stay relaxed through the negotiation. Remember, the more you know about the deal in question, the easier it will be to arrange the best solution for everyone involved.

• Work With, Not Against, the Other Party: Good negotiations mean all parties leave the table feeling good about the agreement and about each other. In order for this to occur, everyone involved must strive for mutually beneficial solutions. When you approach the situation with the goal of mutual satisfaction, the other party will usually disarm. Most people only get defensive when they feel like they are being taken advantage of. If the other party knows you want to play fair, they try to play fair as well.

• Unfortunately, some people, regardless of how you approach negotiations, won't play by the same high standards. You may come across some people who don't agree with the concept of fair play. No matter what you do, these individuals are prepared for battle and may bring out the heavy artillery, such as intimidation and manipulation. You can't stoop to their level, no matter how tempted you may be. Keep the possibility of an unfair counterpart in mind, but don't abandon your own strategy for fair play.

• Follow Through: Once you've developed mutually beneficial solutions, negotiated the sale, and signed the agreements, you must follow through on your part. This means you do what you said you would do, when you said you would do it, and in the manner you said it would be done. For example, if you said you'd deliver a product or service on a certain day, then make sure it's there. If for some reason you can't follow through as expected, make sure you contact the other party and discuss alternative arrangements.

• Also, make sure the other people involved in the agreement follow through as well. Unfortunately, at some time in your sales career, you'll inevitably run into some people who blow off agreements. In these cases, you must protect yourself, but as a rule, for everything you give, you must expect to get something in return.

• Negotiating Conclusions: Negotiation is a process of give and take for everyone involved. When you follow a strategy, you can focus on finding solutions, rather than winning a position. Preparation gives you a comprehensive view of the situation and standards serve as guidelines for compromise. Remember to work with, not against, your counterpart. Then, finalize all the details you've agreed upon. Most importantly, once you've completed the negotiation process, keep your word, and follow through with the deal.

• As a salesperson, you naturally want your client to be satisfied, but you also need to benefit from your hard work. When you use these strategies every time you negotiate a sale, both parties will come away pleased and you'll win more clients in the process.

• http://www.connectionsmagazine.com/articles/5/063.html

Discuss information that the salesperson needs in order to negotiate effectively

• Finalize All Agreements: Keep in mind that the point of negotiation is to arrange the best deal for everyone, so ask plenty of questions. Don't let important details slip through. More importantly, listen to the client's responses and concerns. If they are worried about customer service, the contract length, or routine repairs on the product, then address these issues with care. When the terms are settled, make sure everyone's perceptions match and recap all the important details.

• Depending on the impact of the deal, you may decide to put the terms in writing in a sales contract or agreement. Keep a copy for your records and give the other party a copy as well. Then if any questions arise, you'll both have a copy of the answers. Don't sign off until both parties understand all the key points.

• Set Objective Negotiating Standards: If you want to reach a mutually beneficial agreement, everyone has to play the negotiation game by the same set of rules. Objective negotiating standards are like a set of rules established before the process starts. Many times, these standards are set by the organization or by a government law. For example, most banks won't grant a loan to someone buying a home until that house has been inspected and declared structurally sound. This rule is a standard that must be met before the bartering can even begin.

• In most cases, you can set your own rules. For example, if you're negotiating a carpet cleaning service contract, you may approach your client with your competitor's price, using what the client currently pays as a standard for the negotiation process. By setting guidelines prior to the negotiation, you ensure that everyone operates under the same standards and everything runs smoothly.

How to create win-win negotiations• There are two pieces to the win-win puzzle. The first is what I call the automatic win-win. Let’s say, for example, that a software

company provides expensive, niche software programs for engineering consultants. The software costs $15,000 for a site license for firms with up to ten consulting engineers (the bulk of the customers for this product are small shops with 10 or fewer engineers).

Although there are no competitive commercial products on the market, the real competitors are the workaround solutions that the engineers cobble together themselves from other software that they already have. For this reason, the software company sometimes has to be aggressive on price and, if they have to, they can go as low as $9,000 for a site license. This is their Least Acceptable Settlement. In other words, any sale between $15,000 and $9,000 is an Acceptable Settlement, but $9,000 is the last stop (the LEAST Acceptable Settlement) and anything below $9,000 does not provide them with sufficient profit.

Now let’s look at a potential customer. Let’s say that the customer is a small firm with eight engineers and that they really like this software. Unfortunately, things are a bit tight right now and they only have $12,000 left in their budget for software. They will try to negotiate as low a price as they can get but will, if they absolutely have to, pay up to $12,000 for this software. Thus, $12,000 is their Least Acceptable Settlement. Even at that price, they are still better off buying the software then they would be walking away.

So how many places can we have a win-win? We will have a win-win anywhere between $9,000 and $12,000, because anywhere in that space, both parties are better off than they would have been had they walked away. But, the space between $9,000 and $12,000 is also the ONLY space in which can have a deal. Any deal we make must be between $9,000 and $12,000 since above or below, one party will have to walk away.

Thus, no matter how tough the price negotiation was, when the sale is closes, both sides automatically win because both are better off than when the negotiation started.

In fact, have you ever made a sale and had the customer moan and groan that they probably shouldn't have done that and it’s not really a good deal? How do you know whether it was a win for the customer? Answer, they did the deal. It had to be at or below their Least Acceptable Settlement and therefore, it was a win for them. In fact, the more they moan and groan, the more I worry that I gave away too much. So you see, a win/win is automatic if we make the sale.

•

http://www.negotiationdynamics.com/WinWin.asp

Discuss the importance of considering the buyer’s feelings when negotiating sales

• To negotiate effectively, take up residence in the buyer’s mind. Say to yourself, what might actually be going on vs. what they’re telling me? What they say may be the least important information. What they say to each other and what they’re thinking is the key.

• In order to have what I call a really robust win-win, there's a second piece that we have to focus on. That involves the customer’s feelings. For example:

•You have bought software before and you know that sometimes you can get large discounts. We are on the phone and you say to me, “Mike, we like your software but it is a nice to have item, not a necessity, since we get the work done just fine with what we have put together ourselves. If you want to make this sale, you will have to come down to $9,000 for the site license.”

There is a pause. And then I say to you, “Well, that's an awfully low price. However, it’s the end of the month, so, ok, I think we can do that. Cut me a purchase order for $9,000 and we’ll do it.

What is your reaction as the buyer? Do you feel like you just won? Or instead do you start thinking to yourself things like:

“Boy, was he ever planning to rip me off at $15,000 if he could really go all the way down to $9,000"∙

or even worse, “Oh my goodness, why didn't I say $7,000 in the first place? I probably still could have gotten him lower.”∙

Negotiation is about paradoxes. Jumping all the way down to my Least Acceptable Settlement of $9,000 like that, in fact, made it appear that it wasn't a win-win because first, you will now feel that my initial prices weren't reasonable, and second, you fear that you still left money on the table. So in the end, you are not a happy customer. You are an unhappy customer who is going to be an even tougher negotiator the next time you buy software.

Everybody has strong feelings about the outcome. Everybody wants to feel like they won. But it's not the actual numbers on the deal that count as much as the feeling that you were treated fairly and didn't leave any money on the table. No matter how good deal is, I will feel bad if I felt I left a lot of money on the table. No matter how bad the deal, is I will still feel much better if I believe that, even though I didn't get everything I wanted, I got everything that was possibly available.

Explain barriers to sales negotiations

Describe the use of silence in negotiating sales

Silence can be a very effective negotiating tactic indeed.

How do you feel about silence? Dealing with silence can be tough. In our society, we are not really comfortable with silence, so you need to evaluate your own reaction to it.

Silence comes in two forms. One is silence contests. Silence contests are good if you start them, but not so good if the other side starts them. The tricky thing about a silence contest initiated by the other side is that they don’t announce, "OK, I'm going to start a silence contest." It's just that they say something or ask a question and then there is silence. And the silence continues and it continues and before you know it, there is a silence contest going on.

The second way to use silence is to go slowly and leave lots of gaps for the other side to rush into. Put in an extra long pause........make sure........that you don't.......answer........your own question........ Wait and hold your breath.........while the other person........ is thinking about making a concession.........and just starting to talk about it. Have that little hesitation........before answering their question........so that maybe they will rush in..........and answer it themselves.

So train yourself to recognize silence tactics when others use them and to avoid the traps. And develop the skill to use silence effectively as part of your negotiating style. You will be amazed at how often it will work dramatically in your favor.

• http://www.negotiationdynamics.com/silence.asp

Distinguish between sales standards and sales policies

• Standards are best practices• Lessons learned• Minimum operating procedures

Explain the purposes of sales standards (provide structure for salespeople without

stifling their personalities)

Discuss benefits of having sales standards

Describe common sections contained in sales standards documents

• Corporate information• Sales organization• On-boarding process• Sales and technology• Prospecting• The engagement cycle• Selling tactics

Demonstrate procedures for maintaining sales standards

Identify appropriate selling techniques for use with a specificclient/customer

Demonstrate procedures for selling a good or service.

Explain how sales techniques are modified to sell to groups

Explain the use of technology in selling to groups

Demonstrate procedures for selling to groups