1. SMB market situation
Big competition –The SMB market is characterized by a lot of competitors, who are trying to be market leaders. The competition is tough and we have to fight hard to get a sale.e
Little earning – At the same time, it’s a market that gives us a little earning. It is very hard to drive a consultancy firm living only from the earning from small a midrange customer.
Decision making about 1 year. The decision making does not come overnight. You have to have patience and ensure awareness. You have to keep pushing the same winner buttons: branch specific, state of the art solution and low cost price.
½ day to convince the customer. When the SMB customer wants to se you be sure that you are on immediately available. The SMB company doesn’t wait for you. You got typically ½ day to get yet another invitation into the world of the SMB company and to get the sale.
This leads and trigger white lies – It’s a hard market and we all know that when we’re pushed enough we start to make our little white lies. So everybody without exception makes these white lies or conceals the truth.
2. The characteristics of the SMB customer
Hardworking – They work 24x7x52. They know more than anybody that success in the SMB market requires hard work
Humble – They have a very humble approach to the way of running business.
Proud – They have built their business and are proud of it and remember we are only invited into.
Simple minded – they just love simple solutions. Often they cannot afford the luxury of endless meeting to make decisions
They know the art of survival – They know more than anybody the art of survival. The must be flexible and continuously change according to their business environment
Their business is their life. Once I heard a sales man propose daily fines if we didn’t succeed in meeting the go life deadline in time. He didn’t understand that they were more concerned about surviving the implementation. An implementation drains the business for energy and if its fails it will kill the customer.
3. SMB customer’s perception
It’s legal to say that Enterprise Resource Planning (ERP) is not good – Even persons on the street seems to know. We’re working uphill right from the start.
Too big – It can be difficult to maintain the overview of ERP since there are too many functionalities and constant changes. However, it is necessary to understand what is available and how it can benefit them. On the other hand it takes the customer 5 min to ask for the very deepest functionalities the ERP system. I feel sorry for the other systems. They must give up much sooner.
You’re lost in the ERP system – Nobody seems to know what is going on, there are too many bad stories and you cannot control development.
Not user friendly – ERP much be repeated again and again. The new customers haven’t heard the good news. Too expensive – It is an old story. Now it is cost effective.
4. Enterprise Resource Planning (ERP)
Superior Industry specific ERP template – It no problem to stand up and say: I believe that this is the right solution for you dear customer. The king of functionalities – This is it, I’m still amazed when I make new discoveries. ERP covers the latest best practices and process need for a specific sub industry.
The best documented system – this is in fact a unique selling point. You will get all the support you can get – Some of my colleagues just have to learn to ask within our organization or ERP politely. Just ask politely and you will get the help.
Respect – Everybody respects the ERP system. We know and the customer knows that this is state of the art. Often it is chosen in the preliminary phase only as a reference system to ensure that the cheaper system is good enough.
You have to earn the trust – You don’t immediately have the customer’s trust. You have to earn it.
5. Presales issues
Do not only use salesman. You cannot sell an ERP system with PowerPoint presentations or CATT’s alone. The customer has met too many liars.
Trust – show the system. The customers want to see the system in action in detail! They want to see it before they can trust you.
Be honest so it hurts – You have to be very honest and that may hurts. Then the customer will trust you. The point is that you don’t have to lie. Remember that you have the best solution on the market in your hand.
Trust it. Show the pain points and challenges – Show that you know their business by indicating paint points and challenges that can be eased by using the system. Often they are amazing of the possibilities in the ERP system.
Emphasize template. Repeat again and again that this is a template and that the major decision already has been taken. We don’t need 1 year of analysis phase.
Narrow the scope down. Continue to control and focus on the scope to keep on narrowing it down.
Don’t make it bigger every time the customer has a question.
Fixed price – This shows the customer that you really believe in what you’re selling.
6. How do you present the system?
Trust – show the system, they need to see it working in real life.
Focus on enduser functions. When you show it, focus on enduser functionalities. Customers often have a perception that the system is very poor in this area. Even though you might think it is so simple, show it anyway. You get acceptance right away.
Start from scratch and build up the trust. Build a relationship of trust and a common ground of understanding from scratch.
Show simplicity – Keep it simple. Don’t show 8 different approaches to a problem. Show only what you believe in is best for them. Be straight forward – Show how easily the ERP solution solves even the complex issues.
Answer “razor sharp” every time – When you get a question, answer “razor sharp” every time. Don’t say: “well it depends”. What kind of functionality do you have in mind? You are the master. You are the one bringing in the best practice show it.
Saturday, January 13, 2007
Friday, January 12, 2007
Banned Until Further Notice: All Boring Business Presentations
Wow!! Wouldn’t it be great if we, business people, could give better presentations...guaranteed to be more interesting, informative and easier to attend and more successful?
Business Presentations, Today.
You arrive in the hotel conference room or auditorium; the chairs and tables are neatly lined up in audience format. The lectern is set-up on stage and there’s this huge screen with a projected greeting, welcoming you to the event. On the tables in front of each chair is a stapled package containing the presentation slides you are about to see during the presentation..
Over my career, I have personally sat through many boring slide presentations at conferences and after the room is darkened, the speaker aims his pen laser at the screen. I start to leaf through the slides in the package. In fact, I usually count the slides in the handout and estimate the time it will take to go through all those busy graphs and information soaked visuals. After some time, I have to fight valiantly against dozing off.
I have also listened to ‘kitchen table’ sales presentations which made me yearn to watch the most boring re-run on TV. No matter the forum, presentations have become all, too common in style.
What Has Happened to Our Presenters?
Over the past thirty years or so, we have discovered ‘overhead slide’ projectors and subsequently graduated to the ‘PowerPoint’ computer slide shows. Our love affair with color slides grew and graphic representations; even video went into high gear. Not one presentation exists without an exhausting and painful display of graphics, numbers, words and colors, complete with special effects and chase scenes.
Audience members are now treated like toddlers whose parents need a break and get it by sitting them in front of the TV to baby-sit for a while. The whole presentation process has become an exercise in visual aids. The audience is left somewhat unattended.
The True Reason for Presentations
As a presenter, your job is to “entertain” your audience with the intent of informing, persuading or selling them on your point of view, your product or service or to convince them to follow you in some endeavor...or to invest their time or money in you. They came to listen to you not to read “your presentation” off a bunch of slides.
The Real Presenter
The Real Presenter should be “Conversing” with her audience. That’s right, she should be speaking to an audience just like she would speak to a group of her closest friends. A presenter, who shares information in a direct and friendly way, with audience interaction, invites interest and discussion.
True Stories
“Jim, a retired airline pilot, told his audience about an episode in which he was giving flying lessons to a new pilot when the engine on the aircraft quit at two thousand feet over an interstate highway. He struggled for some time to restart the engine, but finally had to land the plane in a farmer’s field. The small aircraft wound up leaning on its nose but both he and his student walked away without injury.”
Wouldn’t you want Jim as your instructor? Wouldn’t you feel safe flying on an airliner with Jim at the controls? In one short story, Jim convinced his audience that he knew his business.
“Marty was introducing herself to the group and happened to mention how she backpacked across Europe in her college days, then she stowed away on a “tramp steamer” from southern France to Africa. Her tone and demeanor was relaxed and conversational. Her audience was mesmerized; she had obviously captured their attention. They believed her because she was telling a true story”
Business Presentations, Today.
You arrive in the hotel conference room or auditorium; the chairs and tables are neatly lined up in audience format. The lectern is set-up on stage and there’s this huge screen with a projected greeting, welcoming you to the event. On the tables in front of each chair is a stapled package containing the presentation slides you are about to see during the presentation..
Over my career, I have personally sat through many boring slide presentations at conferences and after the room is darkened, the speaker aims his pen laser at the screen. I start to leaf through the slides in the package. In fact, I usually count the slides in the handout and estimate the time it will take to go through all those busy graphs and information soaked visuals. After some time, I have to fight valiantly against dozing off.
I have also listened to ‘kitchen table’ sales presentations which made me yearn to watch the most boring re-run on TV. No matter the forum, presentations have become all, too common in style.
What Has Happened to Our Presenters?
Over the past thirty years or so, we have discovered ‘overhead slide’ projectors and subsequently graduated to the ‘PowerPoint’ computer slide shows. Our love affair with color slides grew and graphic representations; even video went into high gear. Not one presentation exists without an exhausting and painful display of graphics, numbers, words and colors, complete with special effects and chase scenes.
Audience members are now treated like toddlers whose parents need a break and get it by sitting them in front of the TV to baby-sit for a while. The whole presentation process has become an exercise in visual aids. The audience is left somewhat unattended.
The True Reason for Presentations
As a presenter, your job is to “entertain” your audience with the intent of informing, persuading or selling them on your point of view, your product or service or to convince them to follow you in some endeavor...or to invest their time or money in you. They came to listen to you not to read “your presentation” off a bunch of slides.
The Real Presenter
The Real Presenter should be “Conversing” with her audience. That’s right, she should be speaking to an audience just like she would speak to a group of her closest friends. A presenter, who shares information in a direct and friendly way, with audience interaction, invites interest and discussion.
True Stories
“Jim, a retired airline pilot, told his audience about an episode in which he was giving flying lessons to a new pilot when the engine on the aircraft quit at two thousand feet over an interstate highway. He struggled for some time to restart the engine, but finally had to land the plane in a farmer’s field. The small aircraft wound up leaning on its nose but both he and his student walked away without injury.”
Wouldn’t you want Jim as your instructor? Wouldn’t you feel safe flying on an airliner with Jim at the controls? In one short story, Jim convinced his audience that he knew his business.
“Marty was introducing herself to the group and happened to mention how she backpacked across Europe in her college days, then she stowed away on a “tramp steamer” from southern France to Africa. Her tone and demeanor was relaxed and conversational. Her audience was mesmerized; she had obviously captured their attention. They believed her because she was telling a true story”
Thursday, January 11, 2007
4 Tips to Boost Your Home-Based Business Sales During a Lull
Every business is bound to hit a lull at some point, but many business owners find themselves feeling disappointed by the lack of sales and unfortunately, businesses shut down because of it.
It doesn’t have to be that way. The next time your business takes a sales dive, be prepared, and turn it into an opportunity to revitalize your marketing efforts and start generating sales.
Here are 4 easy ways you can boost your business during a lull:
Have a Sale. This may seem like an obvious answer to some, but others are so bummed out by the lack of business that they don’t even think about it. Even offering a small 10% discount can motivate a customer to click the order button. A product or service that sells for $20 still gives you $18 after the discount, and you may have gained a return customer. Also, offering a discount or other incentive tends to compel customers to buy more then they would without it.
Hold a Draw. Splurge and offer your customers the chance to win a really awesome prize. The catch . . . they have to buy something in order to get a ticket into the draw, the more they buy, the more entries they get. Give yourself at least a month before selecting the winner so that you have a chance to let people know about your draw, and hopefully gain more sales.
Customer Rewards. People love being rewarded for the things they do, and tapping into that can prove to be worthwhile for your business. Set up a points system that allows customers to collect points for items they buy from you, or if you have a business that gives you direct access to your customers, such as distributing orders locally, give out punch cards and tell your customers that every time they spend a certain amount, they get their card punched. Once they have all ten slots punched, they get to turn their card in for special rewards. Promoting your rewards program will get your customers excited about what they can earn, which means you need to offer them worthwhile rewards in return for their efforts, doing so will gain you sales.
Contact Your Past Customers. Get creative and come up with a plan to get in touch with all your past customers, either through email, snail mail postcards or letters, or through phone and fax. Doing so will remind them that you exist, and that they liked you enough to buy from you in the past. Tell them that you are thanking them for being a customer, and because you appreciate their business, you are giving them a special offer. Your offer could be a coupon, a freebie, a buy 1 get one free deal, or any number of things that will encourage them to check you out and take advantage of your offer. Contacting past customers is something you should do on a regular basis, just because they bought from you once doesn’t mean they will return. Life gets in the way, computers crash and info is lost, there are many things that can cause your customer to lose your business information, so make sure it lands in their hands periodically.
It doesn’t have to be that way. The next time your business takes a sales dive, be prepared, and turn it into an opportunity to revitalize your marketing efforts and start generating sales.
Here are 4 easy ways you can boost your business during a lull:
Have a Sale. This may seem like an obvious answer to some, but others are so bummed out by the lack of business that they don’t even think about it. Even offering a small 10% discount can motivate a customer to click the order button. A product or service that sells for $20 still gives you $18 after the discount, and you may have gained a return customer. Also, offering a discount or other incentive tends to compel customers to buy more then they would without it.
Hold a Draw. Splurge and offer your customers the chance to win a really awesome prize. The catch . . . they have to buy something in order to get a ticket into the draw, the more they buy, the more entries they get. Give yourself at least a month before selecting the winner so that you have a chance to let people know about your draw, and hopefully gain more sales.
Customer Rewards. People love being rewarded for the things they do, and tapping into that can prove to be worthwhile for your business. Set up a points system that allows customers to collect points for items they buy from you, or if you have a business that gives you direct access to your customers, such as distributing orders locally, give out punch cards and tell your customers that every time they spend a certain amount, they get their card punched. Once they have all ten slots punched, they get to turn their card in for special rewards. Promoting your rewards program will get your customers excited about what they can earn, which means you need to offer them worthwhile rewards in return for their efforts, doing so will gain you sales.
Contact Your Past Customers. Get creative and come up with a plan to get in touch with all your past customers, either through email, snail mail postcards or letters, or through phone and fax. Doing so will remind them that you exist, and that they liked you enough to buy from you in the past. Tell them that you are thanking them for being a customer, and because you appreciate their business, you are giving them a special offer. Your offer could be a coupon, a freebie, a buy 1 get one free deal, or any number of things that will encourage them to check you out and take advantage of your offer. Contacting past customers is something you should do on a regular basis, just because they bought from you once doesn’t mean they will return. Life gets in the way, computers crash and info is lost, there are many things that can cause your customer to lose your business information, so make sure it lands in their hands periodically.
Wednesday, January 10, 2007
Would You Make the Best Dressed List
In any and every given moment of your life, you are either in command of yourself, or you are being commanded. Guy Finley
Keeping a wardrobe that is complete and always new is rare. The costs of buying clothing today and with the constant change in styles, bargains are a treasure. There is a definite challenge to being well dressed at all times, especially on a limited budget. For working women this is difficult, yet, it can be done.
The key is in the planning. It takes money to build a wardrobe, or to start over from one season to the next. When you plan your wardrobe, keep in mind your particular style or look. If you find yourself asking questions like, What on earth will I wear today? Or, I have got absolutely nothing to wear! Another favorite is to telephone a few friends to see what they are going to wear. If you find yourself doing any of these, then, your goal is to plan.
Asking yourself some of the following questions may prove helpful:
Does your wardrobe consist of more than 20% of clothing you have not worn in over a year, thinking they may come back in style? Do you own enough accessories to start your own craft store? How often do you make impulse purchases? Before purchasing, do you allow enough time to actually try on the garments?
Answering these questions may make you frown, but these fashion problems are not uncommon. Just realizing what your fashion sense is, is the first step.
Getting to know your own particular styles including the strengths and weaknesses of your figure type is a start. Make a point to focus on a clear image of what you consider being well dressed. Knowing what you like, want, and what looks well on you are important. Buy only what suits you best and not rely on the opinion of someone else. Nor should you base your decision only on what is currently popular.
Fashion is distinctive to each individual and does not need to be classified into a standard mold. Let your own taste dictate your fashion and beauty behavior. Pay attention to fashion and beauty magazines and adjust your taste to the fashions that are made available. Rather then being blindly led to something that may just be the popular style of the moment, adjusting your style is the better way to go.
Where do you start to build a best-dressed wardrobe? Start at the beginning and learn to stretch your fashion dollars by saving any clothing you already have. Make an inventory of what you have in your closet. Most of us usually make two main divisions. One is your summer-wear; the other is your winter wear. Stay within reason and keep anything that is still useful and in good condition. Just try not to cling to any clothing, even for sentimental reasons, that have not been worn for over a year. They only take up space.
Dresses, suits and coats are your most important investment and should be cared for properly. Upon removing them at the end of the day, be sure to immediately hang them up on their individual hangers. Check for spots and stains, and if necessary, brush them off and air them first before putting them away.
In dressing well, the other parts of your wardrobe include your shoes and accessories. Shoes are a major item and must be kept clean and in shape as often as possible. Constantly walking along cemented sidewalks can be a death march to your shoe heels and soles. Have them repaired as frequently as possible and discard shoes when they are unsalvageable.
Accessories are additional items that may be the central aim of your outfit. Give them your attention. Jewelry items must be sparkling clean. Any traces of tarnish on silver pieces can be cleaned with silver polish. Soap and warm water may be applied to jeweled rings, except on pearls, to remove dust and dried soap on the stones or settings. A little soap and water rinse, and even a little rubbing alcohol on many costume pieces can bring back the shine.
With a little planning, a lot of care, and special thought to your wardrobe purchases, you can add life to your clothing and have a closet that will rival any superstar. Dressing well is a sign of your self-esteem. And self-esteem is a part of your personal development. Without it, you may not be motivated to pay any special attention to the way you dress. Go do, and be well dressed!
Keeping a wardrobe that is complete and always new is rare. The costs of buying clothing today and with the constant change in styles, bargains are a treasure. There is a definite challenge to being well dressed at all times, especially on a limited budget. For working women this is difficult, yet, it can be done.
The key is in the planning. It takes money to build a wardrobe, or to start over from one season to the next. When you plan your wardrobe, keep in mind your particular style or look. If you find yourself asking questions like, What on earth will I wear today? Or, I have got absolutely nothing to wear! Another favorite is to telephone a few friends to see what they are going to wear. If you find yourself doing any of these, then, your goal is to plan.
Asking yourself some of the following questions may prove helpful:
Does your wardrobe consist of more than 20% of clothing you have not worn in over a year, thinking they may come back in style? Do you own enough accessories to start your own craft store? How often do you make impulse purchases? Before purchasing, do you allow enough time to actually try on the garments?
Answering these questions may make you frown, but these fashion problems are not uncommon. Just realizing what your fashion sense is, is the first step.
Getting to know your own particular styles including the strengths and weaknesses of your figure type is a start. Make a point to focus on a clear image of what you consider being well dressed. Knowing what you like, want, and what looks well on you are important. Buy only what suits you best and not rely on the opinion of someone else. Nor should you base your decision only on what is currently popular.
Fashion is distinctive to each individual and does not need to be classified into a standard mold. Let your own taste dictate your fashion and beauty behavior. Pay attention to fashion and beauty magazines and adjust your taste to the fashions that are made available. Rather then being blindly led to something that may just be the popular style of the moment, adjusting your style is the better way to go.
Where do you start to build a best-dressed wardrobe? Start at the beginning and learn to stretch your fashion dollars by saving any clothing you already have. Make an inventory of what you have in your closet. Most of us usually make two main divisions. One is your summer-wear; the other is your winter wear. Stay within reason and keep anything that is still useful and in good condition. Just try not to cling to any clothing, even for sentimental reasons, that have not been worn for over a year. They only take up space.
Dresses, suits and coats are your most important investment and should be cared for properly. Upon removing them at the end of the day, be sure to immediately hang them up on their individual hangers. Check for spots and stains, and if necessary, brush them off and air them first before putting them away.
In dressing well, the other parts of your wardrobe include your shoes and accessories. Shoes are a major item and must be kept clean and in shape as often as possible. Constantly walking along cemented sidewalks can be a death march to your shoe heels and soles. Have them repaired as frequently as possible and discard shoes when they are unsalvageable.
Accessories are additional items that may be the central aim of your outfit. Give them your attention. Jewelry items must be sparkling clean. Any traces of tarnish on silver pieces can be cleaned with silver polish. Soap and warm water may be applied to jeweled rings, except on pearls, to remove dust and dried soap on the stones or settings. A little soap and water rinse, and even a little rubbing alcohol on many costume pieces can bring back the shine.
With a little planning, a lot of care, and special thought to your wardrobe purchases, you can add life to your clothing and have a closet that will rival any superstar. Dressing well is a sign of your self-esteem. And self-esteem is a part of your personal development. Without it, you may not be motivated to pay any special attention to the way you dress. Go do, and be well dressed!
Tuesday, January 9, 2007
The Sales Lead List and Why You No Longer Need It
Three elements of modern advertising and sales have recently passed on; unfortunately, only a few of us heard about the funeral, leaving the rest of us to lead our daily business sales as if nothing ever happened.
Gone: the influence of big media advertising over the hearts and minds of the people. People are far too smart these days and know when they're being sold something; TV watching hours are down across the board, and who doesn't choose to download their music over listening to the radio these days?
Only the very, very creative pieces will survive. Follow-through sales are plummeting.
Gone: the poster age. Even the simple act of aggressive sales advertising in any media, where fancy images or a catch phrase used to win people over and lead them to the carrot, is now considered so repulsive that people will go out of their way to avoid it.
Definitely gone: the act of using a sales lead list to phone call / email / hit with Direct Mail those who you believe (and don't know) want your stuff. You're letting bad advice lead you astray.
If people aren't willing to sit through a 30 second commercial to hear its selling message, do you honestly think they're going to sit through a half-hour phone conversation and surrender their hard-earned money? Or read a 5 page long sales letter? Or weed their email list just to read your pitch?
Only if you're interested in evapourating sales.
What about those who do you want your stuff? How do you lead them in the right direction?
There are obviously those out there whose needs could be fulfilled by what you're offering, but the big problem is that they don't know how to find you. They're not going to be on a sales lead list, but I can guarantee you that they'll be on their computer surfing the web. It's a paradise of sales, and all you must do is lead them through the maze.
What you need to then do is use search engines to your advantage by matching what people type into them to what you have to offer. Think of it as a no pressure sale; they're literally coming to you because they need a solution to their problem! Direct them and you could be compiling a prospects list in no time.
How a good SEO writer can help you get things in order:
Good SEO writers will have special tools that lets them see exactly what people are typing into Google (and we're talking word for word) and the rest of the search engines. What they're able to do is to hook up the popular and valuable phrases people are typing in to your personal or corporate site so that when online consumers express their desire for what you're offering, their searches will lead them directly to you. There are hundreds of such opportunities for businesses in any category.
Gone: the influence of big media advertising over the hearts and minds of the people. People are far too smart these days and know when they're being sold something; TV watching hours are down across the board, and who doesn't choose to download their music over listening to the radio these days?
Only the very, very creative pieces will survive. Follow-through sales are plummeting.
Gone: the poster age. Even the simple act of aggressive sales advertising in any media, where fancy images or a catch phrase used to win people over and lead them to the carrot, is now considered so repulsive that people will go out of their way to avoid it.
Definitely gone: the act of using a sales lead list to phone call / email / hit with Direct Mail those who you believe (and don't know) want your stuff. You're letting bad advice lead you astray.
If people aren't willing to sit through a 30 second commercial to hear its selling message, do you honestly think they're going to sit through a half-hour phone conversation and surrender their hard-earned money? Or read a 5 page long sales letter? Or weed their email list just to read your pitch?
Only if you're interested in evapourating sales.
What about those who do you want your stuff? How do you lead them in the right direction?
There are obviously those out there whose needs could be fulfilled by what you're offering, but the big problem is that they don't know how to find you. They're not going to be on a sales lead list, but I can guarantee you that they'll be on their computer surfing the web. It's a paradise of sales, and all you must do is lead them through the maze.
What you need to then do is use search engines to your advantage by matching what people type into them to what you have to offer. Think of it as a no pressure sale; they're literally coming to you because they need a solution to their problem! Direct them and you could be compiling a prospects list in no time.
How a good SEO writer can help you get things in order:
Good SEO writers will have special tools that lets them see exactly what people are typing into Google (and we're talking word for word) and the rest of the search engines. What they're able to do is to hook up the popular and valuable phrases people are typing in to your personal or corporate site so that when online consumers express their desire for what you're offering, their searches will lead them directly to you. There are hundreds of such opportunities for businesses in any category.
Monday, January 8, 2007
Negotiation-Dealing With Price And The Closing Stages
Overcoming the Price Objection:
Price is an issue in most negotiations. We need to deal with the price issue confidently, but with an understanding of the needs of the other side. Here are some notes to help you:
• Be specific. State the exact price rather than ....well, it will be about £5,000.
• Maintain eye contact. It makes you look confident.
• Ensure the tone of your voice is confident and your body language is also confident and relaxed.
• Use silence. Once you have stated your price, stop talking and wait for the other side to speak. Give them time to think.
• Deal with price objections and defend your price, but don’t over argue your case.
• Close down your body language.
• Focus on price and benefit differences.
• Begin the bargaining phase.
The Closing Stages:
The closing stages of any negotiation are vital to the overall success of the final deal. There will come a time when both parties can sense an outcome is possible, and each negotiator needs to be careful not to be too eager to close or else the other party will be tempted to hold back for further concessions.
Once a likely outcome is seen, either party may define outstanding issues, compare arguments and objections, review the position to date and agree a deadline for agreement. If one side avoids making these decisions, the other must probe to find out the reason and deal with it effectively. Negotiators must be careful at this stage to identify tactical delay which deliberately attempts to force further concessions.
The best solution to aim for always, is one where both parties feel they have done well despite having to concede on certain issues. This is called a “win-win” solution. Once either side feels they have arrived at the final deal, it is important to signal this to the other party.
Body language can say as much about what you are thinking as speech. If you have made your final offer, look as if it is your final offer. Simply gathering up your papers, looking at the other side directly in the eye and saying “That is my final offer”, can do this, and silence can be a powerful tool in convincing them you mean what you say.
Be wary of "splitting the difference": If you offer to split the difference, you have, in effect, given the other side a concession that is one-sided. You have said you are prepared to move without asking for commitment in return.
The final consideration is when you have done the deal and both parties are in agreement. Record the details and agree with the other parties involved that your interpretation of events matches theirs. That way there will be no unexpected comeback in the inevitable post-negotiation period when either side reviews how well or badly he has done. Again, this will be minimised if the solution you have arrived at benefits both parties.
Price is an issue in most negotiations. We need to deal with the price issue confidently, but with an understanding of the needs of the other side. Here are some notes to help you:
• Be specific. State the exact price rather than ....well, it will be about £5,000.
• Maintain eye contact. It makes you look confident.
• Ensure the tone of your voice is confident and your body language is also confident and relaxed.
• Use silence. Once you have stated your price, stop talking and wait for the other side to speak. Give them time to think.
• Deal with price objections and defend your price, but don’t over argue your case.
• Close down your body language.
• Focus on price and benefit differences.
• Begin the bargaining phase.
The Closing Stages:
The closing stages of any negotiation are vital to the overall success of the final deal. There will come a time when both parties can sense an outcome is possible, and each negotiator needs to be careful not to be too eager to close or else the other party will be tempted to hold back for further concessions.
Once a likely outcome is seen, either party may define outstanding issues, compare arguments and objections, review the position to date and agree a deadline for agreement. If one side avoids making these decisions, the other must probe to find out the reason and deal with it effectively. Negotiators must be careful at this stage to identify tactical delay which deliberately attempts to force further concessions.
The best solution to aim for always, is one where both parties feel they have done well despite having to concede on certain issues. This is called a “win-win” solution. Once either side feels they have arrived at the final deal, it is important to signal this to the other party.
Body language can say as much about what you are thinking as speech. If you have made your final offer, look as if it is your final offer. Simply gathering up your papers, looking at the other side directly in the eye and saying “That is my final offer”, can do this, and silence can be a powerful tool in convincing them you mean what you say.
Be wary of "splitting the difference": If you offer to split the difference, you have, in effect, given the other side a concession that is one-sided. You have said you are prepared to move without asking for commitment in return.
The final consideration is when you have done the deal and both parties are in agreement. Record the details and agree with the other parties involved that your interpretation of events matches theirs. That way there will be no unexpected comeback in the inevitable post-negotiation period when either side reviews how well or badly he has done. Again, this will be minimised if the solution you have arrived at benefits both parties.
Sunday, January 7, 2007
Ego? At What Price!
It would seem that some salespeople would rather protect their ego than help a customer and make a sale.
Todays customers can make purchases without ever seeing a human - if they choose to do business that way.
To truly succeed in the future, sales professionals will be well served by knowing how to handle customers, and all their concerns and complaints.
If not, more than ever before that customer may simply go elsewhere.
So how would you deal with a disgruntled customer, who has a complaint about your product, or the service they received?
Allow me to tell you about an experience I had with a multimedia organisation. I wrote an article about it to demonstrate a point and the article found itself in the hands of the two salespeople I had mentioned, but not identified.
One of the two salespeople who came along to demonstrate the projection unit represented 3M Australia. The other, an authorised distributor.
Both companies telephoned to ask about my article.
3M’s representative called when I was away from the office, and left a message for me to return his call that afternoon if possible. When I spoke with him he said he had read the articles, was concerned, and wanted to make a time to meet with me. I told him that I had still not purchased a unit, and would be glad to see him the following day.
Meanwhile the proprietor of the distribution company was furious She called my office and demanding to speak to the person who has been slandering her company.
“He can’t go around slandering my company and not be available for me to speak to him”.
Clearly I was meant to interrupt my meeting with a client and run to the phone. (Pity her sales people weren’t instructed to do that when someone called to make an enquiry for a $14,000 piece of equipment.)
Returning the call later that afternoon,I was told, “Look I’m very concerned. Business is tough out there and if you haven’t bought something, I sure want to sell you the projector. Do you want to buy one?”
“Well yes I do”, I replied. “Well I’ve got one right here. What do we need to do?” At this point, the process moved from selling to negotiation. “OK, how about the price, what’s the best you can do?” “It’s the end of the financial year, and if you fax me an order tonight I can let you have the unit for $X, and I’ll throw in a travel case worth $1,000 give you one hour of training and will deliver it free”.
Now you and I both know that “value is a perception”, and I perceived no value in the free delivery. That’s a given.
Given my experience with an earlier model, training was not a bonus, and their travel case was not the one I wanted. So I asked, “How much if I don’t take the training, delivery, or the case?” “The price will be the same”, came the reply. “I’ve given you my best price.”
“Hang on - one minute you tell me the case is worth $1,000, then if I don’t take it, it’s worth nothing?” “It’s a value added deal.”
Interesting concept. A value added deal - from who’s perspective?
The distributor told me she had to rush to get to an appointment, so I suggested I would call back in the morning. At 9.30am the next day my p.a. received a call from the distributor demanding to know why I am not available to take the call and why I haven't call as promised. My p.a. explained I was away from the office in a meeting and that I will be available at around 11. At 11:30 a call came in, by which time I had a client in my office.
This seemed to further infuriate the distributor, who again demanded to speak to me, asking my p.a. if I am serious about buying this projector or not!
Explaining the situation again, and assuring the distributor that I would call as soon as I was free, my p.a. again heard how busy this person was, and how my behaviour in not calling her first thing in the morning was just not good enough.
A little after midday, I was able to call. “Well have you decided to buy this projector or not?” she demanded.
“Before we get to that, I understand that you have been a little less than pleasant with my p.a.. Can you help me understand.” “Well you said you would call me back first thing - are you serious about buying this unit or are you just playing games - I cant see why we have to keep making apologies.........” - and so it went on.
“I see. Well I certainly do want to buy this unit as I have for the past eight weeks AND I am also certain that I don’t want to buy it from you!” Herewith ended the conversation - along with any chance this company had of making a sale.
Later that day, as previously arranged, I met with the representative of 3M Australia. What a difference! “Firstly let me apologise for the experience you have had. We have learnt from this and believe we can improve in certain areas. How can I now help you with the projector?” I asked him to let me know the price for the unit minus any “bells and whistles”. As he could not directly sell me the unit he would arrange a price via one of his distributors. (No not the one I had been insulted by!)
In calling the following morning, he apologised for the delay and gave me the price. That afternoon I faxed him an order. I imagine the distributor who has benefited from the sale has had the easiest time of all - all they have to do is bank the cheque! Cheers!
Todays customers can make purchases without ever seeing a human - if they choose to do business that way.
To truly succeed in the future, sales professionals will be well served by knowing how to handle customers, and all their concerns and complaints.
If not, more than ever before that customer may simply go elsewhere.
So how would you deal with a disgruntled customer, who has a complaint about your product, or the service they received?
Allow me to tell you about an experience I had with a multimedia organisation. I wrote an article about it to demonstrate a point and the article found itself in the hands of the two salespeople I had mentioned, but not identified.
One of the two salespeople who came along to demonstrate the projection unit represented 3M Australia. The other, an authorised distributor.
Both companies telephoned to ask about my article.
3M’s representative called when I was away from the office, and left a message for me to return his call that afternoon if possible. When I spoke with him he said he had read the articles, was concerned, and wanted to make a time to meet with me. I told him that I had still not purchased a unit, and would be glad to see him the following day.
Meanwhile the proprietor of the distribution company was furious She called my office and demanding to speak to the person who has been slandering her company.
“He can’t go around slandering my company and not be available for me to speak to him”.
Clearly I was meant to interrupt my meeting with a client and run to the phone. (Pity her sales people weren’t instructed to do that when someone called to make an enquiry for a $14,000 piece of equipment.)
Returning the call later that afternoon,I was told, “Look I’m very concerned. Business is tough out there and if you haven’t bought something, I sure want to sell you the projector. Do you want to buy one?”
“Well yes I do”, I replied. “Well I’ve got one right here. What do we need to do?” At this point, the process moved from selling to negotiation. “OK, how about the price, what’s the best you can do?” “It’s the end of the financial year, and if you fax me an order tonight I can let you have the unit for $X, and I’ll throw in a travel case worth $1,000 give you one hour of training and will deliver it free”.
Now you and I both know that “value is a perception”, and I perceived no value in the free delivery. That’s a given.
Given my experience with an earlier model, training was not a bonus, and their travel case was not the one I wanted. So I asked, “How much if I don’t take the training, delivery, or the case?” “The price will be the same”, came the reply. “I’ve given you my best price.”
“Hang on - one minute you tell me the case is worth $1,000, then if I don’t take it, it’s worth nothing?” “It’s a value added deal.”
Interesting concept. A value added deal - from who’s perspective?
The distributor told me she had to rush to get to an appointment, so I suggested I would call back in the morning. At 9.30am the next day my p.a. received a call from the distributor demanding to know why I am not available to take the call and why I haven't call as promised. My p.a. explained I was away from the office in a meeting and that I will be available at around 11. At 11:30 a call came in, by which time I had a client in my office.
This seemed to further infuriate the distributor, who again demanded to speak to me, asking my p.a. if I am serious about buying this projector or not!
Explaining the situation again, and assuring the distributor that I would call as soon as I was free, my p.a. again heard how busy this person was, and how my behaviour in not calling her first thing in the morning was just not good enough.
A little after midday, I was able to call. “Well have you decided to buy this projector or not?” she demanded.
“Before we get to that, I understand that you have been a little less than pleasant with my p.a.. Can you help me understand.” “Well you said you would call me back first thing - are you serious about buying this unit or are you just playing games - I cant see why we have to keep making apologies.........” - and so it went on.
“I see. Well I certainly do want to buy this unit as I have for the past eight weeks AND I am also certain that I don’t want to buy it from you!” Herewith ended the conversation - along with any chance this company had of making a sale.
Later that day, as previously arranged, I met with the representative of 3M Australia. What a difference! “Firstly let me apologise for the experience you have had. We have learnt from this and believe we can improve in certain areas. How can I now help you with the projector?” I asked him to let me know the price for the unit minus any “bells and whistles”. As he could not directly sell me the unit he would arrange a price via one of his distributors. (No not the one I had been insulted by!)
In calling the following morning, he apologised for the delay and gave me the price. That afternoon I faxed him an order. I imagine the distributor who has benefited from the sale has had the easiest time of all - all they have to do is bank the cheque! Cheers!
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