You Don't Always Win

The percentage of prospects that buy from you after your sales appointment and closing attempts is referred to as your closing percentage. Prospects don’t all buy every time in spite of your best effort to convince them. The reality of selling is that no one has a 100% closing ratio. At the height of my personal success selling medical insurance billing systems to doctors, my personal sales closing ratio was less that 50%., and I was looked on as a leader in my industry. My best salespeople closed 20% - 25% of the deals they chased and they made a lot of money. You just lose more than you win in sales. That is how it works.

If They Say No

I was taught early in my sales career to take responsibility for my failures. It was good advice that has served me well. If a prospective customer says no to my offer after a focused sales sit down I only have myself to blame for the failure. If you are faced with no, take a deep breath and try to figure it out what happened and fix it.

“No is not no, it is non-yes.” Mark Thelen, My favorite sales trainer.

Objections

Objections are a term for the reason or reasons the prospect does not want to buy your product or service.

Overcoming objections is a deliberate method to answer and neutralize reasons the prospect rejected your closing offer. If you can get them to state the objection or objections to a purchasing decision you have a fighting chance to neutralize them and ask for the order again.

 

• Ask them why they are not buying.
• Confirm the objection. Ask them to confirm what you have heard.
• Put the objection in perspective. “How often will your objection issue happen every year?” If the answer is once or twice, you can overcome the objection with the many other positive reasons that your prospect has already agreed to.
• Look at your notes from the sales interview. If you were using the trial closing technique, you probably have all of the fuel you need to overcome, answer and ask for the order again.
• Offer a solution to the objection. “If you can’t pay the full amount today, why not take advantage of our 90 days same as cash option?” Wait for the answer. If they accept your counter offer you have made the sale. Congratulations.

Objections are normal, particularly when there is a lot on the line. Learn to deal with and handle objections. There are only a few objections that you will hear over and over again. They may be slightly different, but over time (hopefully not much time) you will adeptly answer the core objections effectively as second nature.

If your prospects repeatedly say no and mean it your closing problems might go deeper than just mastering closing techniques and overcoming objections. There are a lot of steps and barriers standing between prospecting for leads and cashing the check. If your closing ratio is a low number and if you are struggling to book business a serious analysis of your step-by-step processes is in order. If this is your personal condition I suggest that you get a mentor or coach and work it out.

Never forget that your mission as sales professionals is to locate opportunity, develop each prospect, sit down with them, skillfully pitch your product or service to them and ask for the order. Closing business is the end game and the final measure of success.

Trial Close and Sell like the Pros

Closing or ending the sales interview is end of the sales process. We traditionally close the deal at the end of the meeting. We use proven methods to get the prospect to yes after going through the steps of the sale.

My first sales book was the textbook from the Dale Carnegie Sales Training class that I attended weekly. The training was excellent. Looking back now, things have changed in sales. New tools, new systems, new products and services have revolutionized business, industry and the selling of product and services. In spite of the changes, professional salespeople still follow systems that generally end in a face-to-face moment when the salesperson asks for the order. That has not changed in one hundred years or more. The reality is that if you don’t ask for the order you are unlikely to get it.

The textbook was “The 5 Great Rules of Selling” written by Percy Whiting. Percy went on the road and sold securities in 1918, I believe. He wrote the book after an illustrious career in sales and after his appointment to a leadership position in the Dale Carnegie training organization.

The 5 Great Rules of Selling are:

1. Attention
2. Interest
3. Conviction
4. Desire
5. Close

Note what happens at the end.

Glengarry Glen Ross (1992) is my favorite sales movie. I don’t care much for the profanity. I guess it ads to the intensity of the movie. There is a lot to learn from the story. Much of it is overdone, but the reality is that selling is a tough business. There are too many great snippets from the movie to share with you. The best part is when a character (Alec Baldwin) conducted a sales meeting at the office as a favor to his friends that own the company. The presenter was a top sales producer. He didn’t have any respect for the sale force. It was a rough sales meeting for all involved, but the reality of selling was accurately presented again.

In the story, the sales process was noted as

1. Attention
2. Interest
3. Decision
4. Action

Get it done at the end.

 

There was another acronym that he presented during the meeting. The message is not new. It is well known in sales. It is an important truth that sales professionals follow when practicing their profession.

A. Always

B. Be
C. Closing

What does always be closing mean? How can you always be closing without irritating the prospect and blowing up the deal? The answer is simple. A easy and effective way to always be closing is to learn and practice the technique of trial closing.

Trial closing is done during the sales interview, not at the end. As you work through your sales process and ask your prospect if what you just said made sense. Ask if they agree with the value of each point. If they say yes you can go on to the next point. If they say no you can stop right there and explore why is isn’t important or of no value to the prospect.

There are a couple of really good reasons to practice trial closing. The first is that by trial closing you take and maintain control of the process. You are in the lead chair. If one or two points of your presentation don’t resonate, put them away and focus on others that do. The next good reason to trial close is that trial closing makes the end game easy. If your prospect continues to say yes and agree during the course of your meeting, it is darn hard for them to say no. If they do, just pick up your notes and confirm all of the good points that they have agreed to and go for close again.

Here are some simple examples that you can adapt for trial closing your products or services. Let’s use selling a car as an example.

(You) “I see that you like the red coupe. It really looks good. Can you picture yourself driving with your best girl, the top down and your favorite songs on the stereo?”

(Prospect) “Yes I can.”

(You) You might not know this, but your coupe is delivered with an unconditional 100,000-mile warranty. That is the best warranty in the business. You can rest easy that you won’t be paying for repairs for the foreseeable future. Do you see and appreciate the great value in having this extended unconditional warranty?”

(Prospect) “Yes I can.’

(You) I gave some recent industry data that shows your coupe has one of the top five-resale values in its class. That means if you decide to sell your coupe you will get a high market value for it. That makes your purchase of the red coupe financially sound. Do you agree?”

(Prospect) “Yes it do.”

If you have sufficient product knowledge, understand your competitive advantages and have a qualified buyer in front of you, getting to yes by practicing trial closing makes the whole sales event easier for both you and for them.

In reality, if I have a prospect that has told me yes to multiple trial closing questions I am inclined to just ask for the order.

(Me) ‘Based on what you have told me, let’s do the paperwork and get you your new red coupe.”

(Buyer) “OK.”

Based on my example, I have just completed a true sale, a value proposition for both of us. The buyer got the car of his dreams with assurances about warranty and resale value. I got money. We are both happy.

I love to sell. I hope that you do too.

The Just Ask Close

Just Ask For The Order

 

At the end of your sales call there is only one thing to do. Ask for the order. There are easy methods to get your prospective customer to yes.

 

There is a method that I refer to as the little decision closing technique. Other ways to close the sales are the act now close and the assumptive close. These tactics can stand alone or can all be used to complement each other during the tender period as you bring your sales call to an end and solicit positive purchasing decision.

 

I am making an assumption that during your sales presentation you are selling a product or service to a prospect that has a need, a budget and decision authority to buy from you. If not, all bets are off.

 

That said, if you have done a good job of prospecting, qualifying and interviewing your prospect you have earned the right to ask for their business.

 

A simple observation I would like to share with you is that your prospect know exactly who you are, who you represent and why you asked for their time. If they gave you and appointment it is a very good and positive sign. I don’t make appointments with salespeople unless I am interested in their topic. My time is valuable to me. I do not waste my time meeting with people who have not won my interest before setting the meeting. Your prospect’s time is just as valuable to them as mine is to me. If they give you an appointment you are staring out in a very good position.

 

This brings me to my final suggestion to end the sales interview and win an order. I personally prefer to just ask for the order. No gimmicks, no games, no tricks, just a simple yes or no answer. If I have done a good job along the way and the prospects says no, I immediately ask them why not, answer the objection(s) and ask for the order again.

 

Here are some simple statements that you can use to just ask for the order:

 

“Are you ready to move forward with my proposal?”

“Let’s do this.”

 “I’m ready to get started, how about you?”

 “Are we in agreement?”

 

No matter how you go about closing your sale it is very important to let your prospect answer any and all questions you pose before you talk again. You will be penalized for continued chatter while closing business. Let your prospect talk. Let them answer. They will tell you yes or tell you no. Again, if they say no you get to ask some variation of “why not?” Either way, you are still in the game.

 

Just ask? Yes, it is a very simple way to end your sales presentation successfully. There was a lot of preparation and skill required to get the prospect and the sale to a conclusion. If you did a good job during the sales process, closing the sale should be easy.

 

Now, go and close a deal. Good selling.

Assume the Closing Position

The Assumptive Close

Closing a sales is a relatively easy to do if you have successfully gone through a quality sales interview with a qualified buyer. My style is consultative selling or problem solving. This style of selling is based on getting the prospect to talk about his or her needs after leading them with relevant, progressive probing questions. The objective is to get to a point where you both agree that there is a problem that you can solve for an investment by the buyer.

Closing is just asking for the order.

There are a few simple ways to get to the end of the sales process. There is the act now close, the little decision close and the assumptive close. You can use any three of these methods to close the order. They all work. Another easy way to close sales is to just ask for the order. “Will you buy from me?” also works just fine.

Let’s look at the assumptive closing method. The assumptive close is a little more nervy and tricky than the others. It can backfire if deemed to heavy handed.

The premise of the assumptive close is that all during the interview you and your prospect have agree on the problems and the solutions you have offered. You may have stopped a few times along the way to do some trial closing. “Will that feature solve this problem?” After a few or more yeses you can assume that the prospect is going to purchase and become your customer.

The tender moment when you apply the assumptive close can be played out with simple statements or questions..

 

• "Just sign here and I will get your order processed.”
• “Please write a deposit check for $100.00.”
• “What is the purchase order number?”

 

Next?

If they don’t put up a fight you have won the order. Enjoy your victory and move on to the next call. If they do object to your assumption don’t panic. Objections are a normal occurrence in sales. They happen often.

 

Handling objections is easy if you have done a good job during the sales interview.

 

• Repeat the objection to your prospect so that you have a clear mutual understanding of their concern.
• Answer the objection if you can. Use the notes from your interview to point out what the prospect said earlier on that particular issue.
• Get agreement.
• Close again.

 

If you like, feel free to upgrade your close with a few little decision and an act now value statement.

 

Earlier you told me that this feature would solve an important issue for you. Has anything changed? Good then we can move forward. Will you be paying cash or will you take advantage of our payment plan (little decision)? Place the order today and I will be able to process it and deliver your product before Christmas (act now).

My favorite sales trainer, Mark Thelen, said that no is non-yes. If you don’t win the order on a sales call you have failed somewhere along the way. It is your fault not the prospect’s fault. Learning, practicing and using proven closing methods just makes good sense and helps salespeople succeed.

 

Assume that the order is yours. You have earned it.

Good closing!

Little Decisions

Closing the sale is difficult for most salespeople while relatively easy for others. The answer is that closers have done a good job of targeting and qualifying a customer then following a proven sales process to bring the sales event to a successful conclusion. The close is just a formality of the entire process that has been expertly crafted and executed.

Closing techniques do not have to be difficult nor tricky.

In my last article I talked about the “act now” closing technique. Retailers use this tactic all of the time. They offer a reduced price or enhancement (a TV, for example) for a finite time and then encourage buyers to pull the trigger in time or lose out. In manufacturing or distribution or any business-to-business environment, offers like delivery date, pending price increase and others are used to stimulate “act now” decisions.

Little decisions are another tactic widely used to bring a buyer to yes. Little decisions give you, the seller, a clue when to bring out contracts and ask for deposits or whatever you use to finalize your sales transaction acceptance. When you ask little questions you learn what answers are go-ahead signals to move forward. When you get the correct answer to a closing question or two you have, in essence, gotten to yes. Stop what you are doing and assume you made the sale, and then move forward with the termination of your process. (contract, work order, deposit, etc.)

Here are a couple of real world examples.

You: When do you need your new software to go live?

Them: January 1^st.

You: Well then you need to get the project started immediately. Sign here and I will get the project scheduled in our system.

You: Will you need 3 or 4 printers?

Them: 4.

You: OK, just initial work order here and we’ll have the 4^th printer.

You: Will you be paying cash or financing your purchase?

Them: I would like your 24 month financing.

You: That’s fine. Let’s fill out the credit application and get your financing approved.

Are they crafty or slick? No. Do they work? Yes.

Here is my disclaimer. If you aren't working with a qualified prospect that needs your product or service it is hard to close any deal under any circumstances. You have to lead them through an interview in which they tell you their pain and you then offer your solution(s). At the end of the sales interview you get to ask for the order. You earned the right to ask. How you ask is your little decision.

If they don’t buy, you have made a mistake somewhere along the way. “Act now” and “little decision” are nice little comfortable ways to move from your sales pitch to the finish line. If you didn’t make the sale, find out what went wrong and fix it for next time.

Act Now and Save

Act Now and Save

A proven sales tactic over the years has been the “act now” close. It requires some kind of incentive to get your prospect to say yes and give you the order. The reason for “act now” can be positive or negative. Either way it works if done right.

A positive reason to encourage your prospect to act now could be a price concession or other throw in.

When I sold medical billing computer systems to doctors, I used this tactic often and it worked for me most of the time. Of course, I had already qualified them to be a customer and had gone through a discovery, presentation and proposal cycle. If I did not get the order on the spot, I was ready to deal with the prospect later. I had some flexibility in each sale so I could offer an incentive and still make a profitable deal.

Here are a couple of positive examples:

“If you act now I am authorized to include an extended service contract with your purchase. It represents a $500 value. The offer will expire at the end of the month. Act now. “

“If you act now, I can put your order in front of the others and get your system up and operational by the end of the year. If you don’t act now I can’t do it, if not, I can’t”

“I have five certificates for a free Windows 8 upgrade.  If you act now, I can give one of them to you.”

And, a few negative examples:

“If you act now you can avoid the 15% price increase schedule to take place after the end of the year.”

“Your current system is in dire shape. If you don’t act now you might lose valuable programs and data at any time. Please act now.”

“Your software will not be supported after the first of the year. To avoid potential problems and act now.”

I will leave it up to you to create some great “act-now” rationale for clients and prospects in your industry.

Give it a try

Again, assuming the prospect has the need, budget and decision making power, I recommend that you pull out “act now” and give them a call. You can do it and by doing so, finish the sales year strong.

No Water - No Beer

No water – no beer? That is about as spot on a statement as I have ever heard. I went to a national water convention a few years ago. “No Water – No Beer” was the theme of the convention. There is some profound truth here. I would like to use it as a metaphor for business and sales careers.

A Metaphor for Business Development

Water represents your product or services. Beer represents your reward for delivering your products or services. Without water there will be no beer. Without products or services that represent real value to someone there will be no reward.

Making the Bell Ring

I work with a lot of sales and business people. They are either my clients or mentees. I spend my time helping them understand and solve business development issues. Absolutely everyone I deal with is driven to make more sales and more money for their effort.  All of them believe that they have products or services that are of great value to someone. When true, my job in helping them develop their business is relatively easy. Do certain things and avoid others and you will succeed.

The Elephant in the Room

Unfortunately, it is not always that easy. When push comes to shove the reality of a lack of value and demand for their offering is the elephant in the room. They either lack an understanding of their market potential or run on their infatuation for their product or service that is often supported by their friends and loved ones who don’t tell them the truth.

Reality

I know entrepreneurs who invest their savings, max out their credit cards, mortgage their houses, and borrow money from family, friends and fools chasing a dream that, in the end, was folly. I was on a panel of sales experts at a regional business incubator. After the event, a woman told me about her new venture with an online meeting tool organization. It is a multi-level marketing sales deal. She had stated her company, invested in the franchise and asked me my opinion of her potential. I had to tell her that there are two popular websites that provide the same or similar services for free. She had entered into a business where she is competing with free competition. She didn't know. She had no idea. I was sorry to be the bearer of bad news, but you would have thought that she would have done some elementary research before spending her precious time and money.

Research…Then Research Some More

The first two questions that I ask a new client or mentee are “Who buys from you?” and “Why do they buy?” Why will people give you money? Why? Where are they? And, what do you say to them to make the sale? You just have to know that there is water to make your beer or you are wasting your time.

I Can’t Do It

I have a reputation, with many, as a skilled sales professional. I have been to the mountain a few times over my long career. I take selling dead on seriously. My reality is that, short of selling snake oil, I can’t succeed with a product or service that has no real value or demand in the market.

Take Great Care

So, my message today is to invest whatever time and resources necessary to validate the value of your products and/or services in the marketplace. Don’t buy happy talk from your family and friends. They love you and mean well. Salesperson, entrepreneur or established businessperson…you owe it to yourself to make sure you have a sufficient supply of water to make the beer. Cheers!