Category: Sales & Marketing

Article Contributed by Mark Hunter

My mom always used to tell me how we learn more in life from our failures than we do from our successes, yet for too many of us in sales this concept doesn’t seem to sink in.

I’ve lost plenty of sales in my life. If I wanted to get really down on myself, all I’d have to do is take a piece of paper and start writing down as many as I could remember.  If I wanted to go into a complete state of despair, all I’d have to do is to write down next to each sale I lost the amount of commission I failed to receive because of the lost sale.

For this simple reason too many of us in sales choose not to dwell on what didn’t happen. Instead, we merely move on.

It’s much easier to move on than dwell on the past, and I’m a firm believer that dwelling on the past doesn’t do anyone any good.  If you want to damage your sales motivation, go right ahead and dwell all you want.

As much as we can’t dwell on the past, we do need to spend a few minutes doing an autopsy on the lost sale and learning from it.  If we don’t learn from each sale we fail to close, then we’re committing ourselves to a pattern of losing more sales.

The key I’ve found to the process is to do the autopsy on the failed sales call right away.   The sooner you can do it, the sooner you can apply what you’ve learned to the next sales call.

The only downside to doing it quickly is you have to make sure you’re in a stable frame of mind.  I’m not meaning to be rude with this comment, but you can’t think clearly if you’re so hot emotionally over losing the sale.  If you are worked up over the lost sale – wait till you calm down. Then do your autopsy.

Ask yourself the following questions:

• Was I able to get the customer to state their key needs and desired benefits?
• Why specifically did the customer choose not to buy from me? How do I know that?
• What were two things I know the customer appreciated about me?
• What did the customer ask and how did I answer?  What can I learn from the questions?
• What were all of the customer’s objections and how did I respond to them?
• Did the customer clearly understand my value proposition?  How do I know that?
• What closing technique did I try?  How specifically did the customer respond to it?
• What did the customer agree with me on?  How can I leverage this for future sales?
• What is my next step with this prospect / customer?

Take the time to answer these questions. Doing so will provide you with key information you need.  Also, never hesitate to go back to the customer after they’ve turned you down and ask them why they didn’t select you.  Be sincere in how you speak to the customer and be appreciative for what they tell you.

This is not the time to be defensive or attempt to convince the customer they’ve made a dumb decision by selecting someone else.  Your ability to be professional and appreciative in listening to what the customer shares with you will do more than anything else to help ensure you have a good relationship going forward with that person.

It’s been my experience both personally and professionally that by doing this process right, you can position yourself to become the salesperson these individuals turn to in the future.

The beautiful thing about this entire process is you come away with two major outcomes.

First, you find out things you can do differently to help you with other customers.  Second, you deepen your relationship with the customer you weren’t able to close, setting yourself up to potentially close with them next time around.

About the Author:

Mark Hunter, “The Sales Hunter,” is a sales expert who speaks to thousands each year on how to increase their sales profitability.  For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit www.TheSalesHunter.com. You can also follow him on www.Facebook.com/TheSalesHunter, www.Twitter.com/TheSalesHunter and www.LinkedIn.com/in/MarkHunter. Reprinting of this article is welcomed as long as the following is included:   Mark Hunter, “The Sales Hunter,” www.TheSalesHunter.com, © 2011

Article Contributed by Mark Hunter

Every customer has a price range where they are willing to make a decision without any further thinking.  I refer to this as the Price Tolerance Ratio – also known as the PTR.

Knowing your customer’s PTR is critical. I believe it is one of the major obstacles salespeople fail to comprehend.   As a salesperson, when you don’t understand a customer’s PTR, at least one of the following results is inevitable:

• You offer a price that does not maximize the profit potential.
• You get the order but encounter resistance from the customer that hinders the relationship.
• You encounter resistance that leads to spending too much time on the selling process and ultimately no order.

Let’s look at each of these individually, starting with the first one where the price offering does not maximize the profit potential.

I start with this one because it is the most common. The salesperson rarely finds out the price is lower than necessary until long after the sales is completed – or worse yet, they never find out.

The only way around this is by asking the customer early in the relationship, before they’ve expressed any intention to buy, how they determine value and what their critical needs are.   Many times, trying to ask these questions during the sales transaction itself is too late, unless the customer is experiencing a significant issue as to why the order must occur.

The reason I say this is because once the customer has determined they need to buy, they many times become focused on seeing what it will take to get a lower price.  If you, the salesperson, ask them a question about value at this point in the sales process, the customer may very well use the question against you.

Take the time to ask the customer why the order is important and what risks they feel they would encounter should they not receive it on time.  Ask them how their order fits into the overall scheme of what they do and what their customers do (if you’re in a B2B environment).

As a salesperson, if you can identify value or risk in other parts of the supply-chain, you can leverage this information during the sales process and increase the amount the customer is willing to pay (essentially widening their PTR).

The key is to find out as much information about the customer as you possibly can early in the sales process.  Also, you need to understand how critical time is to their process. Obviously, the more critical time is to the customer, the wider the customer’s PTR will be. The impact of time could be reflected in how quickly they want to order.

By thoroughly understanding the customer’s PTR, you will be able to effectively price your product and/or service. Pricing too low means you leave profit on the table; pricing too high means you don’t get the order.   There is no magic formula. It comes down to your level of knowledge and your confidence.

The second scenario a salesperson may encounter with regard to PTR is that they get the order, but with resistance that ultimately hinders the relationship.   Resistance is not always a bad thing. I believe strongly that if you don’t encounter some customer resistance from time to time, then you have not truly pushed the process to the point of being able to maximize profit.

When you encounter resistance, you first have to determine if the resistance is real or superficial.  Many times the customer is merely venting as a way to assert their control.

The best way to measure if the resistance is real or superficial is to see if they continue to express their concerns about price on multiple occasions.  If price comes up only once or twice, then you can reasonably assume it is merely the customer venting. You can overlook it and continue with your sales process, knowing your level of service and support is going to overcome any pricing perception.

If the customer does carry on regarding pricing, then the resistance is real and it will slow the sales process. You then can adjust accordingly.

The final reason knowing the PTR is essential is it prevents you from spending too much time with someone who is nothing more than a customer from whom you can’t make any money.

Early in the prospecting and sales process, you must begin determining the customer’s PTR.  The easiest way is by simply asking them what they’ve been paying for services in the past and what their expectations have been for the companies they’ve been using.  If you are not direct with questions like these, you will waste time chasing customers you ultimately do not want.

Price Tolerance Ratio (PTR) is a new concept. I am pleased to be one of the first to educate people on this. Since explaining this concept, we’ve seen salespeople and companies significantly improve their profitability.

If you want to improve your bottom line, begin now to identify the Price Tolerance Ratio (PTR) for each of your customers. Waiting until you close the sale is too late.

About the Author:

Mark Hunter, “The Sales Hunter,” is a sales expert who speaks to thousands each year on how to increase their sales profitability.  For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit www.TheSalesHunter.com. You can also follow him on www.Facebook.com/TheSalesHunter, www.Twitter.com/TheSalesHunter and www.LinkedIn.com/in/MarkHunter. Reprinting of this article is welcomed as long as the following is included:   Mark Hunter, “The Sales Hunter,” www.TheSalesHunter.com, © 2011

Article Contributed by Mark Hunter

Recently I spoke at a large conference on the subject of how to maintain your price and avoid discounting.  After the presentation, a businessperson approached me and asked what my strategy would be if his company needed to discount price to create cash flow.  This is not an easy question to answer.

Sure, I could easily throw out a response that implies that the reason a company has to discount is because it hasn’t done a good enough job of building its pipeline or hasn’t invested enough in the right type of marketing.   I know, though, that this isn’t the answer a person needs when faced with the issue of cash flow.

Cash flow is a huge issue to a lot of companies, large and small.  I would be lying if I didn’t admit that even in my own company we’ve experienced periods of tight cash flow.

The question we’re answering is if cutting a price to get a deal is a smart way to create cash flow.

Here is my answer:

Before making any decision about cutting a price to create cash flow, think about how you can maintain the price point and offer the customer more value.  Cash is king. I first heard Donald Trump speak that phrase and I’ve never forgotten those three words.

Offer your customer more of something. Anytime you can close the sale at the original price, you’re going to be better off.  Just be careful in what your additional offering is.

The last thing you want to do is offer the customer something more that ultimately winds up costing you more in cash long-term.  Notice I said cash.  I’ll give up some percent margin before I’ll give up cash.

Before you look at offering the customer more, you have to ask yourself if you’ve truly done a thorough job of actually selling.  Many times I’ve found salespeople will cut their price only out of a false belief that that is what is needed to close the sale. You might say the salesperson or business owner is panicking over what they believe, not what the customer believes.

Before you consider discounting your price, make sure that the customer fully understands the value proposition you offer and that you fully understand the customer’s needs and wants. Too many times salespeople will flinch and offer a reduced price too early in the selling process.

A thorough selling process means you need to ask enough questions and follow-up questions – and listen – until you are certain you understand what the customer wants.  The more you focus on the fact that what you have to offer is of value to your customer, the less appealing discounting becomes as the only way to close a sale.

Is Discounting Ever Needed?

If what you’re selling is bought solely in an auction type of environment and cutting your price is the only way you know you can get the deal, then yes, it does become an option you can use.

Regardless of the circumstances that are compelling you to discount, you still must be very wise in your approach.  You have to remember that if you cut your price for one customer, you will potentially send signals to other customers and prospects.

If all of your current and potential customers are going to find out, then all you’ve done is move yourself into a permanent state of always having an issue with cash flow.   The reason is simple — you’ll now be selling everything at a lower price.

What Will Your Discount do to Your Competitors?

Just as you need to be conscientious of what messages you are sending to customers and future customers, you also must be aware of what your discount says to your competitors.  How will they respond?  If they respond by cutting their prices to match yours, then congratulations – you’ve now entered what I call “pricing death spiral.”

Pricing death spiral is when one company cuts their price and everyone follows.  I have one response – stupid!  “Pricing death spiral” is often broken only when one company ultimately goes out of business or leaves the marketplace to focus on something else.

If you do need to cut your price to gain a sale to create cash flow, then it’s imperative you do it in a way that will not send signals to other customers or competitors. Make sure the customer is isolated enough and the customer is not going to become a long-term customer.

One last point I would make about discounting is that you may have to clarify to your customer that the discount is a “one time” discount. The last thing you want to do is discount a price for a customer on one sale to create cash flow, only to have them expect the same reduced price for years to come.

To further protect yourself from being in the position of having to discount, be sure to build a marketing strategy that allows you to sell to different markets or industries. This way, even if you have to discount, you can do so with one set of customers as opposed to all your customers across the board.

Only you can decide if discounting your price is a good way or bad way to create cash flow. No matter what, make sure you think it through.

About the Author:

Mark Hunter, “The Sales Hunter,” is a sales expert who speaks to thousands each year on how to increase their sales profitability.  For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit www.TheSalesHunter.com. You can also follow him on www.Facebook.com/TheSalesHunter, www.Twitter.com/TheSalesHunter and www.LinkedIn.com/in/MarkHunter. Reprinting of this article is welcomed as long as the following is included:   Mark Hunter, “The Sales Hunter,” www.TheSalesHunter.com, © 2011

Article Contributed by Mark Hunter

When is the best time to sell a price increase?  I get asked this question a lot and my response is “right now.” After I say this and see the expression on the person’s face, I then have to back up my response with my rationale.

Taking a price increase is not something to be taken lightly. It has to be done with confidence, and too often, salespeople will put off taking a price increase under some false belief that if they only wait a couple of weeks, some how things will be better.

Sure, waiting is an option, but often the only thing you’ll experience is more of a belief as to why you can’t take the increase, as well loss of the added revenue during that time frame.

My perspective is you can take a price increase anytime any of the following conditions occur:

1.     A competitor has gone up in price.

2.     You’ve incurred an increase in your costs.

3.     Your customers have just taken their prices up.

4.     Other key players in the industry are increasing their prices.

These four reasons are all what I refer to as “market factors,” and any one of them is certainly reason enough to advance.

Keep in mind, though, that just because one of the above is true does not mean you should increase your price. It merely means the marketplace is giving you permission to do so.

Listed below are what I call “value factors.” These are the real reasons why you would want to take a price increase.

1.     Has your customer realized added value during the past year from using your products and/or services?

2.     Is your customer going to be realizing added value from what you provide them in the year to come?

3.     Are there improvements in service or performance you can document that your customer would see value in?

4.     Will you be able to increase your strategic importance to your customer in the year to come?

5.     Can you show your customer how what you provide them will give them a competitive advantage or minimize their risk in the year to come?

These are the real reasons why you can take a price increase.  The reason I say you can take an increase is because your customer is seeing increased value in what it is you provide.

When the customer can see increased value, you have every right to increase your price.  Yes, there could very well be other strategic or even tactical reasons why you would still not want to take a price increase.  Those questions are going to be answered only when assessing your overall business plan.

Again, my perspective is you should take advantage of increasing your price whenever possible.  Being proactive protects your bottom-line and provides you some protection against price increases with which you will have to deal on the production or operation side of what you make.

The more confident and comfortable you become in your pricing – including your price increases – the less likely you will be to devote precious effort and energy to worrying about your pricing.  That effort and energy is better spent on showing your customer how the value of your product or service meets their needs and the benefits they desire.

About the Author:

Mark Hunter, “The Sales Hunter,” is a sales expert who speaks to thousands each year on how to increase their sales profitability.  For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit www.TheSalesHunter.com. You can also follow him on www.Facebook.com/TheSalesHunter, www.Twitter.com/TheSalesHunter and www.LinkedIn.com/in/MarkHunter. Reprinting of this article is welcomed as long as the following is included:   Mark Hunter, “The Sales Hunter,” www.TheSalesHunter.com, © 2011

Article Contributed by Lynda-Ross Vega

As internet marketers, we draw people to our offerings by shining a spotlight on ourselves, our personality and our unique gifts and talents. The way we do this is by utilizing our “Spotlight Style.”

Much of what we sell is information – products and services based on what we know, and that we think will be of value to others. Our products and services carry a heavy stamp of our own distinctive personality and they ‘Spotlight’ who we are.

Each person’s Spotlight Style is unique to his skills, talents and life experience, but there are high level communalities that can be grouped together. The three Spotlight Styles we have researched are Brand Evangelist, Practical Engineer, and Trusted Advisor. These titles are a shorthand way to understanding the way that people of each style approach marketing and promoting themselves, the types of marketing tools they are comfortable using, and the manner in which they interact with both prospects and clients.

Recently a business owner with whom I was working expressed how excited she was to discover that her natural Spotlight Style supported a whole different approach to marketing than she had been pursuing. She was excited because she wasn’t really comfortable with the tools she was using, but had chosen them because that was what everyone else was using. She saw immediately that the tools highlighted for her style fit her to a tee! She did have one big concern. She was afraid that as she approached marketing in a new and different style, she would lose some of her current clients because they had bought the ‘old’ her. Her concern was based on the belief that she could only attract people who shared her Spotlight Style. She worried that many of her current clients would leave because their style would no longer match her own.

I have run into this concern before- that you can only attract and market to people like yourself. Most often, people initially confuse style with content. In the case of our program participant, she thought that as she chose marketing methods that more accurately reflected her Spotlight Style, what she was marketing would also have to shift and that this shift would cause her to lose clients who liked the ‘old’ products and services. Here’s the great news: content will have a tendency to reflect your style, but awareness of each of the styles will allow you to create copy, products, and services designed to appeal to people with any of the three styles.

Discovering and claiming your Spotlight Style will not limit your appeal to your current or prospective clients. Quite the opposite; as you become more and more comfortable with the natural marketing tools associated with your style, both current and prospective clients will experience and respond to the inner confidence your offerings and your marketing efforts reflect. Additionally, your comfort with yourself and your own talents will lead to a level of solid integrity that will appeal to those who can benefit from what you have to offer independent of your or their style.

So, don’t let anyone tell you that you can only market to people like yourself. Discover your own Spotlight Style and let its brilliance attract all who can benefit from what you have to offer!

About the Author

A partner at Vega Behavioral Consulting, Ltd., Lynda-Ross specializes in helping entrepreneurs and coaches build dynamite teams and systems that WORK. She is co-creator of Perceptual Style Theory, a revolutionary psychological assessment system that teaches people how to unleash their deepest potentials for success. For free information on how to succeed as an entrepreneur or coach, create a thriving business and build your bottom line doing more of what you love, visit www.ACIforCoaches.com and www.ACIforEntrepreneurs.com.