Sales Chump

What do you do when the sale comes down to price? First, you should probably ask yourself, “How did I let it come to price?”

In basic economics class, we learn the sprit of capitalism. Charge what the market will bear. This means that if find a diamond on the ground and pick it up, that I shouldn’t simply sell it for $1.00 just because it was free to me. The object has value and it is entirely fair and ethical for me to charge what the market “buyers” will pay me for it. Even, if that means selling it for thousands of dollars!

Before going into your presentation and talking 80% of the time, ask them lots of questions first. You want to know what their situation is, how long it’s been that way and what they want to accomplish with you or any other vendor. Is your product or service a part of a larger strategy that you may possible to offer something entirely different?

By uncovering the needs of the prospect, you are creating value. This accomplishes two major wins in your direction. 1, the customer is thinking about their situation being better with your product or service and 2, they are beginning to believe that you are sincere in helping them look good to their superiors. Even top executives have to answer to someone (i.e.: shareholders) and everyone wants to look good to those they answer to.

When you are asked, “How much is it?” or “What’s your price?” you should confidently tell the prospect the amount. Do not hesitate, obviously the prospect will sense your uncertainty and will lose confidence with you and worst of all, your offer. Customers buy from people they trust and like. Even in a bid situation, the customer will feel better about paying a higher price, if they believe in you. Sell value, not price.

One thing I see time and time again is a sales rep working the same account for what seems like an eternity and not getting anywhere with it.  This is very frustrating from a reps perspective and a management perspective.  If a correct sales process was followed along with follow up after follow up with no further action, it’s time to cut bait!

This scenario is going to happen at some point no matter what and the best thing to do is try to learn from it and move on.  There are plenty of other prospects that will make a decision much quicker.  This may frustrate your reps because they think they will eventually land the customer or the deal.  This could be true however the time spent on running in place could be used much more effectively to land accounts that are willing to do something now.

I give my reps two options when they must cut bait.  The first is to cut bait, but set a reminder 3-6 months down the road.  I instuct them to not look at the account in that time and then call back after those months have passed to see if the prospect has changed their mind.  Things may have changed in that time period and they may be willing to make a decision at that time.

The second is to swap off your cut bait leads to someone else on your team.  A new perspective and style is sometimes all that is needed to land the deal.  This works best when other reps take and give the leads to a certain partner or spread it around evenly.  Sales is mostly an individual game but when other employees are successful it spreads.  This has been the most effective of the two options for me. 

Another amazing thing may also happen when a rep cuts bait.  The customer is no longer pursued or chased and calls back to complete the sale on their own.  I’m not sure exactly why this occurs but it seems like they finally have time to realize this is something they are missing out on and don’t want to miss the boat when it has pushed away from the dock. 

The time at which to cut bait will be different depending on what a normal sales cycle is and what kind of product is being sold.  The sales manager needs to be aware of that time and advise the rep to cut bait and move on.  This will allow the rep to be more productive with other leads and enable them to land more, instead of just spinning their wheels.