Selling By Telephone 90601

SELLING by TELEPHONE By Len Rogers

Originally published by Kogan Page UK

Selling by Telephone by Len Rogers ([email protected])

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SELLING BY TELEPHONE © 2001 L A Rogers All rights reserved. No part of this publication may be reproduced stored in a retrieval system or transmitted in any form or by any means electronic mechanical recording or otherwise without the prior written permission of the author.

About the author Len Rogers DipMktg BA MBA MSc PhD Trainee with: Imperial Chemical Industries Ltd Management positions: Vickers Group (IOCO Ltd) R.I.L. Group Ltd Moss Bros. Ltd Founder director of: Montgomery Vaults (Nigeria) Ltd. Previously director of: Thynne & Rogers Ltd Hopson Rogers Ltd. Senior lecturer 11 years: Mid-Kent University, UK Owned and managed: Shapwick House Hotel, Somerset, UK Marketing consultant for fifteen years to: Philips Gloeilampenfabrieken, Eindhoven Currently a director of: Computer Resources International (Luxembourg) S.A. International Operational Studies Ltd. Currently professor of: International School of Management (Paris, New York, Shanghai, Tokyo)

If you would like to to talk to IOS about a business problem please email: [email protected]

Selection of Len’s BOOKS, cases and papers: Management, marketing, resources, and personnel BARCLAYS GUIDE TO MARKETING (90, 93, 94, 99, 02) BUSINESS ANALYSIS FOR MARKETING MANAGERS (78, 81, 85) Business Planning (2002, 04) Coggles Department Store (1971)*, Kent Electrical (1974)*, Medway Appliances (1969)*, Noroco Ltd. (1973)*, Owen & Davies (1972)* Robin, Scott & Turner Ltd. (1976)*, Soloran Ltd. (1970)*, South Wales Electrical Devices (1975)*, Stone Plastics Ltd. (1971)* The Butterfly Farm (1970)*, Upton, Vance & Wells Ltd. (1972)* Concepts, Theories, Hypotheses (2002, 05) Ethics and Business Morality (2002, 04) EVERYONE’S BUSINESS ON MARKETING (90, 92, 01) HANDBOOK OF SALES & MARKETING MANAGEMENT (87, 91, 93) Managing (2002) Major Industrial Equipment (IOS 2000) SELLING BY TELEPHONE (86, 88, 89, 01, 03) *(Case studies based on his consultancies with organisations, published with their permission and used by the Chartered Institute of Marketing, UK for their final diploma examination) Management oriented to quantitative and financial aspects Andrews, Bacon & Curtis (2003) Applied Computer Systems Ltd. (IOS 1998) Argent Ltd. (IOS 1998) Bulls, Bears, Swallows and Hedges (1999) Basic Bean Counting (2001) Company Evaluation (2000) Corporate Finance (2002 Correlation Analysis (2002) Cost of Capital (2002) Duration of Bonds (1999) Efficient Frontier (1998) Financial Ratios (2002) Financial Vulnerability (2002) EVERYONE’S BUSINESS ON MONEY (92, 93, 95, 01) Foreign Exchange Risk (1999) Harry Lofthouse Ltd. (2003) Hostile takeovers, (with Dr Chloé Kim, 2005) Immunising Techniques (1998) Mycock, Pauls, & Hall (2003) Net Present Value and Opportunity Cost (2000) Open Sourcing (2002) Philiclockia (Philips 1982, 2005) Price and Cost Analysis (2003) PRICING FOR PROFIT (91, 02) Spot Rates, Forward Rates and Yield to Maturity (2000) Trend Analysis (2003)

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SELLING BY TELEPHONE © 2001 L A Rogers

All rights reserved. No part of this publication may be reproduced stored in a retrieval system or transmitted in any form or by any means electronic mechanical recording or otherwise without the prior written permission of the author.

About the author Len Rogers PhD MSc MBA BA DipMktg Trainee with: Imperial Chemical Industries Ltd Management positions: Vickers Group (IOCO Ltd) R.I.L. Group Ltd Moss Bros. Ltd Founder director of: Montgomery Vaults (Nigeria) Ltd. Previously director of: Thynne & Rogers Ltd Hopson Rogers Ltd. Senior lecturer 11 years: Mid-Kent University, UK Owned and managed: Shapwick House Hotel, Somerset, UK Marketing consultant for fifteen years to: Philips Gloeilampenfabrieken, Eindhoven Currently a director of: Computer Resources International (Luxembourg) S.A. International Operational Studies Ltd. Currently professor of: International School of Management (Paris, New York, Shanghai, Tokyo)

If you would like to talk to Len about a business problem please email: [email protected]

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Selection of Len’s BOOKS, cases and papers:

Management, marketing, resources, and personnel BARCLAYS GUIDE TO MARKETING (90, 93, 94, 99, 02) BUSINESS ANALYSIS FOR MARKETING MANAGERS (78, 81, 85) Business Planning (2002, 04) Coggles Department Store (1971)*, Kent Electrical (1974)*, Medway Appliances (1969)*, Noroco Ltd. (1973)*, Owen & Davies (1972)* Robin, Scott & Turner Ltd. (1976)*, Soloran Ltd. (1970)*, South Wales Electrical Devices (1975)*, Stone Plastics Ltd. (1971)* The Butterfly Farm (1970)*, Upton, Vance & Wells Ltd. (1972)* Concepts, Theories, Hypotheses (2002, 05) Ethics and Business Morality (2002, 04) EVERYONE’S BUSINESS ON MARKETING (90, 92, 01) HANDBOOK OF SALES & MARKETING MANAGEMENT (87, 91, 93) Managing (2002) Major Industrial Equipment (IOS 2000) SELLING BY TELEPHONE (86, 88, 89, 01, 03) *(Case studies based on his consultancies with organisations, published with their permission and used by the Chartered Institute of Marketing, UK for their final diploma examination) Management oriented to quantitative and financial aspects Andrews, Bacon & Curtis (2003) Applied Computer Systems Ltd. (IOS 1998) Argent Ltd. (IOS 1998) Bulls, Bears, Swallows and Hedges (1999) Basic Bean Counting (2001) Company Evaluation (2000) Corporate Finance (2002 Correlation Analysis (2002) Cost of Capital (2002) Duration of Bonds (1999) Efficient Frontier (1998) Financial Ratios (2002) Financial Vulnerability (2002) EVERYONE’S BUSINESS ON MONEY (92, 93, 95, 01) Foreign Exchange Risk (1999) Harry Lofthouse Ltd. (2003) Hostile takeovers, (with Dr Chloé Kim, 2005) Immunising Techniques (1998) Mycock, Pauls, & Hall (2003) Net Present Value and Opportunity Cost (2000) Open Sourcing (2002) Philiclockia (Philips 1982, 2005) Price and Cost Analysis (2003) PRICING FOR PROFIT (91, 02) Spot Rates, Forward Rates and Yield to Maturity (2000) Trend Analysis (2003)

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Selling by telephone Table of Contents

Introduction Advantages of telephone selling. The right approach to telephone selling. Styles of telephone conversation. What you need when telephoning. Opportunities in telephone selling Chapter 1 Power of positive thinking Coping with an unsuccessful deal. Other opportunities. How to attract interest. Positive action and persistence. Questions on Chapter 1 Chapter 2 How to make appointments Importance of selling. The correct manner. How to get through. Use the filters. Getting the appointment. Being professional. Questions up to Chapter 2 Chapter 3 How to structure a telephone call Phoning a stranger. Phoning a friend or someone you have met. The structure. Mnemonic for telephone selling—ONROAD. Questions up to Chapter 3 Chapter 4 Opening a call with a statement Plausibility. A poor opening. Importance of a good opening. Opening with a factual statement. Opening with a specific topic. Third party reference. Opening on a minor point. Questions up to Chapter 4 Chapter 5 Opening the call with a question Is the customer buying on price?. Using the question opening. Product benefit questions. Questions up to Chapter 5. Chapter 6 Identifying needs The closed question and open probe. Interpreting the conversation. Use of question technique. Making notes. Identifying the real need. Questions up to Chapter 6 Chapter 7 Resolution of need Benefit linking. Barrier-building. Question up to chapter 7 Chapter 8 Making the offer Need and its resolution. Making an offer on the telephone. Questions up to Chapter 8 Chapter 9 Assessment of the offer—dealing with objections Helping the buyer. Valid and invalid objections. Classification of objections. The buying magnet. Questions up to Chapter 9 Chapter 10 Getting the decision Get your prospect relaxed. Ensure prospects hear all the relevant facts. The proposition must be understood. Say what will happen next. Repeat key points. Questions up to Chapter 10 Chapter 11 How to communicate effectively Specimen survey conversation. Sales sentences. Make your telephone conversation sparkle. Use of correct language. Control your voice and speech. Questions up to Chapter 11.

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Chapter 12 How to talk to people in different moods Talkative mood. Silent mood. Happy mood. Miserable mood. Indecisive mood. Aggressive mood. Over-friendly mood. Questions up to Chapter 12 Chapter 13 Handling complaints The emergency kit. Checklist for handling complaints. Questions up to Chapter 13 Chapter 14 How to find customers Three factors. Using the telephone to find customers. The decision-making unit (DMU). Assumptive questioning technique. Questions up to chapter 14 Chapter 15 How to arouse the buying inclination Who makes the decision? Buying an appointment. Drives that stimulate action. Telephoning the ‘company’ man. Questions up to Chapter 15 Chapter 16 After the successful call, the quotation Specimen proposal. What do you do with the proposal? There is just you and the decisionmaker. There is you, your contact and her/his boss. There is you, your contact and the board. You and the buying committee, and the groups with vested interests. Questions up to Chapter 16. Answers to questions

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INTRODUCTION Selling on the telephone is an art that has to be learned, practised and continuously developed in line with your business. Advantages of telephone selling The telephone gets action fast. Prospects will have immediate information about your product or service, and what it can do for them. Ideas can be quickly formulated. Selling is speedier because there is no sitting down chatting with the prospect. You have to get to the point immediately. Emails are fine but can be, and often are, ignored. The most effective way of getting personally presented ideas to the largest number of prospects in the shortest possible time is by telephone. If there are only two real live prospects in say, a possible twenty, they can soon be sorted out by phone. You don’t spend hours travelling, parking, and waiting until it is convenient to talk. The telephone keeps you busy. Personal selling day-to-day, driving, walking, waiting, chatting, more waiting, then face-to-face selling has one great drawback—inertia. It’s difficult to get started. You sit making plans, thinking how good it is going to be and, by the time you are ready to start, it is time for lunch. While my preferred method of communication is by email, it is no substitute for personal voice contact and multiple emails are no guarantee of response and are best left to the spammers who despatch them by the million. The phone helps to eliminate inertia—you simply pick it up and touch the numbers. You will be so busy getting new prospects and telling your story, you won’t have time to get discouraged. The right approach to telephone selling Whenever you attempt to sell by telephone, you are at an advantage and a disadvantage. Once you are through to the prospect you can talk directly without interference. The telephone takes precedence over everything and everyone else in the room but you can only hear the person. You cannot see face, expressions, nor observe ‘body language’. Neither can your correspondent—you are just a voice. If you have never met, you are as big, or small, as the personality you project. When using the telephone you must use the right words and appropriate tone of voice. You may not be able to sell something concrete on the telephone, but you can sell your company, your product, your service, yourself. You can create images and sell them. Always talk in the language of the listener. The words and phrases you use should be those used by the person at the other end of the phone. Think of the basic vocabulary of the computer world: hardware, software, ROMs, RAMs, megahertz, 32 FAT, DVD, or publishing: back-ends, front-ends, spine brass, half-tone, squared-up, 24-up, bleed in the gutter, offset, set-off—truly languages of their own. As you telephone someone, think of the environment in which that person is located. Try to imagine the surroundings. Your conversation will then be just that bit more related to the listener’s situation. Styles of telephone conversation Here is a travel agent talking on the phone with someone who is thinking of taking a late holiday in India: Customer: Agent: Customer:

We were thinking about a package tour to India. Do you have any? When were you thinking of going? Latish—September.

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Agent:

Well madam, we have a number of packages. For example, we have an excellent five-day tour based in Kashmir from €500. A chance for you to see the magnificent mountain peaks, lush green fields and trees, cascading waterfalls. You would stay in the capital city of Srinagar with its old wooden houses and bridges; be able to visit the fabulous bazaars in the narrow street, see wood carvers, silk…

This is not the language of telephone selling; it is the language of the travel brochure. No matter how interesting and informative the words are those you expect to read not to hear. The agent skilled in telephone selling would say: Agent: Customer: Agent: Customer: Agent:

Well madam, you have the choice of any number of attractive tours. How long a trip were you thinking of? A fortnight or so. And would it be just for you madam? No. My husband as well. I see. Now, the climate varies considerably from one part of the country to another during the year. Late September and October you’d be all right in say, Kathmandu, which is nice all the year round. That’s in Nepal of course. I’ll put some brochures in the post and mark what I think you should consider. Then I’ll phone you in a couple of days and see what you think. May I have your address and details please?

That’s selling. No order has been obtained. No money has been promised. No appointment agreed. Just straightforward selling the service offered by the agent. You can hear that the agent’s response needs developing. The first sentence about climate could be improved. As it is, it does not create an image that links the prospective customer with the agent. Better would be: Agent:

India has a wide range of climates through the year. One or other of our staff have been to all the places in the brochure. I went to Kashmir last year. In late September, you’ll be better in some areas than others, and you don’t want to spend your holiday in the rain; there are so many marvellous things to see. I’ll put some brochures in the post, mark what I think you should consider for September, then phone you in a few days and I, or someone here, will be able to tell you more about where you fancy going.

In Chapter 1, you will find variations on this theme. What you need when telephoning Before picking up the phone to make a call, make sure you have something handy to write with, to write on, a diary, and full information on the product or service you are going to talk about. I always use a simple spiral-bound notebook (as used by stenographers) with a line drawn down the right-hand side to provide a margin of about an inch or so (3cms). Each page is dated top right-hand side. Notes are made during the conversation; telephone numbers, addresses, names, dates, etc. are entered. I never tear out a page and keep every notebook as part of my records. Have a clock or watch near the phone as well as on your wrist to leave both hands free. Where appropriate, have a second timepiece showing current time in the region you are telephoning. If you are phoning from London at noon, continental Europe is already at lunch and if you phone Bombay much later than that, your contact will have gone home. In this book are ideas, suggestions, dialogue examples, outlines of problems and advice on

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how to solve them. It covers the whole spectrum of selling by telephone; more popular and important today than ever before in this technological world where speed of communication wins. Think about the skills and techniques explained here, adapt them to your own situation and practise them on your next telephone call. As soon as you find something you can use to your advantage, adopt it into your own selling system. Opportunities in telephone selling Telephone selling proves the law of averages. You are not going to sell to everyone you phone, but the number you sell will be in proportion to the number you call. Initially, it may be one per cent and if you phone 200 people, you might sell two. If you phone 500, you stand a chance of selling to five people. As you do more telephone selling, you will improve. Your technique will become more skilful because, as with any other activity, practice makes perfect. By the time you are phoning the three hundredth prospect your ‘hit’ rate will have increased until you find that you are selling to four or five per cent of the people you phone. When you reach 500 calls, you are likely to have sold 25 people. You will be told that luck plays a great part in this. When you are successful in selling by phone, “You’re lucky!” will be a regular comment from other people. Remember that the real meaning of ‘luck’ is when thorough preparation meets an opportunity. If you want to give yourself a chance of being successful in selling on the phone (or anything else for that matter) be prepared. When you are thoroughly prepared and meet an opportunity, you will have the confidence and knowledge to make a sale. You’ll get lucky!

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CHAPTER 1 THE POWER OF POSITIVE THINKING Thinking positively will increase your opportunities of succeeding in whatever you attempt. If you think yes things rather than no things, your general manner, and mannerisms, will be positive rather than negative, enthusiastic rather than depressive, and this will be quickly transmitted to people with whom you talk: Agent: Customer: Agent:

Mrs Brown? Yes? I have the information now about your holiday to India. The airline has offered us an excellent deal and we’ve a special rate for the hotel you wanted. You will have a wonderful time. I was there myself last year.

There is a feeling in the words and voice. It’s not just a recital of information. Such a manner does not come without being worked at. You have to assess the situation, make sure you have all the data, believe in your ability, know that you can succeed, and then act accordingly. Never be afraid of fantasising. There is no harm in building castles in the air if you then set about constructing their foundations! But, avoid the danger of over-confidence, of big-headedness. The man who never entertains the idea that his positive thoughts might fail to come to fruition is inflexible, unable to adapt to the changing world. Positive thinking is not simply latching onto one set of beliefs and ignoring the possibility of anything else. It means always looking for plus points in any situation and developing them: a skill that can be acquired. Look for good everywhere. When you meet obstacles, work to transform them into stepping-stones. Coping with an unsuccessful deal You have planned to sell someone a particular product/service and, as soon as you open the phone conversation, you learn that the prospect has already placed the business with another company. You: Secretary: Tudor; You: Tudor:

You: Tudor:

Good afternoon. This is James of Blackburn Electronics. May I speak with Mr Tudor please? Just a moment Mr James, putting you through. Hullo Mr James. What can I do for you? Ah! Mr Tudor, I have some updated figures on the resistance tests we’ve conducted on your proposed new… [Interrupting] Ah! Mr James, I’m sorry. We’ve decided to install the alternative equipment. We were very impressed with yours of course, it wasn’t price; you’re both about the same. But, as the other company were pressing and had the equipment more or less ready, we decided to go ahead with them and not worry too much about the extra performance. I think you understand. Yes, Mr Tudor. Of course I do. I’ll look in on you when I’m in your area later in the year. OK Mr James. Look forward to that. Goodbye.

Any time you then spend bemoaning to yourself about your loss is negative. Other opportunities Instead, immediately you realise that you are not going to get the order, consider the future. If this is an order that will not be repeated by the customer, a one-off, you must think of other opportunities open to you. There are more one-off orders to search for, more prospective

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buyers to find. What lessons can be learned from this present situation? How can these provide you with advantages in future negotiations? Are there similar possible customers you can call on? Can you strengthen your sales presentation? Do you really know why the order went to the other supplier? If the real reason was lower price, is this true? Is there an initial price with additional costs of operating, maintaining and servicing? If your price is higher, is it possible to bring out more strongly the benefits of your offer that offset your higher price? How can these best be put over to a prospective buyer? Do you need to revise your sales presentation? Where do you intend to make your next call? What objectives are you going to set yourself? This is positive thinking—being adaptable, searching for advantages, for better methods next time, seeing how you can improve so as to take advantage of subsequent opportunities. Getting lucky! Remember that ‘luck’ is when thorough preparation meets an opportunity. How to attract interest You must make your conversation stimulating, deal easily with objections and induce your contact to take the action you want. Make the client ready to listen to you. Get the preliminaries over as quickly and clearly as you can. Don’t rush it, but don’t dally. This requires you to practise openings. Suppose you, Johnson, are selling an energy-saving device: Johnson: Smith: Johnson:

Good morning, Mr Smith. My name’s Johnson of Jones Brothers, Blackburn. I understand you use electrical heating in your machine shops. Is that correct? We do. Why? Mr Smith, would a one per cent saving in fuel be of interest to you?

We will look at openings in greater detail in Chapters 4 and 5 but remember that you should never quote or use figures that you cannot substantiate. For example, never say: Johnson:

Mr Smith, I can show you how to make a one per sent saving on your fuel bill.

Mr Smith might well respond with… Smith: Johnson:

How interesting Mr Johnson. What exactly would that mean in money terms? Well, I…er…don’t know exactly what your present fuel bill is but…

Exit Mr Johnson. You do not have to be aggressive. You need not shout into the phone. You can make a positive statement in your normal conversation voice. To get people on the phone interested in your presentation you must get their attention. Be friendly; eventually, you may detect a receptive area. This is where the person expresses a willingness to explore further the points you are making. It may be in the form of a question, a request for you to repeat the point, perhaps asking for a more detailed explanation. Another area where you must always be positive is in your attitude towards objections. These are inevitable. The prospect will always say it is inconvenient; the buyer will say that your price is too high; everything is always difficult, different, too late, too big, insufficient, not enough. You must either overcome the objection immediately it is raised or say that you will deal with in a moment. Never think that because the prospect raises objections that you are going to lose (see Chapter 9). Prospect: You: Prospect:

I suppose you’re trying to sell me something. No sir. I’m hoping to help you to buy something. I wouldn’t dream of trying to sell you something you don’t need. Well, I think we are all right at the moment. We don’t need any more of that

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You:

line. Is that because sales are low sir?

No argument; no aggression; no surprise. You have expected the prospect to respond in this way. You have continued with a positive response in the form of a question. We go into this selling development in detail in Chapter 5. Positive action and persistence Induce the prospect to take the action you desire. The positive way to achieve this is to take it for granted that s/he will do so. Rather than ask: You:

Would it be convenient for you to see me next week?

You assume that the person will see you and you say: You:

Well, let’s meet when convenient and tell me, do you prefer a morning or an afternoon?

Being positive also means being persistent. You must keep going. You must call on every prospect to whom you think you can sell. Don’t prejudge situations. Luck is always on the side of the person who acts. It isn’t what you know it’s what you do about what you know. Questions on Chapter 1 1/1 What is positive thinking? 1/2 What should you do if you fail to get the response you were expecting when you phoned the prospect? 1/3 What can you do to persuade people to listen to you on the telephone? 1/4 What do you need to be lucky?

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CHAPTER 2 HOW TO MAKE APPOINTMENTS You must learn how to organise your time because, as you become skilled at telephone selling, you will find it easy to make appointments, and you don’t want to get into the situation of not being able to service all your calls properly. An appointment is a means to an end. You have to visit the prospect, make your presentation, draft a report, maybe prepare a proposal, and follow it up. Chapter 16 considers this last point in detail. Whenever you talk with a prospect, ensure that s/he knows early in the conversation that you are selling. The earlier in your presentation that the listener knows this, the less this will be an obstacle later on. If you try to develop a presentation by subterfuge—not letting the listener know that you are selling—then the moment you disclose this, it a first-class reason for the prospect to say no thank you. You may have been on the receiving end when this ploy has been used. A poor sales person secures your interest under the pretence that a survey is being conducted. You are asked all sorts of questions and eventually you are given the opportunity of obtaining a special edition of the product because it is in the interests of a market survey. You suddenly realise that the person is selling and you say no! If you reveal early in your call that you are a sales person, you have conditioned the prospect and it cannot subsequently be used as an excuse to end the conversation. Also, early disclosure means that you have to be much more professional in your presentation. But remember that no one ever really sells anything to anyone. It is the buyer who buys. The real secret of salesmanship is helping the buyer to buy. Make it easy for the buyer to come to a decision to buy from you. Therefore, keep your presentation simple. Don’t confuse issues. Make suggestions that are easily distinguished: yellow, purple or white; red or blue; today, tomorrow or next week; morning or afternoon; two metres or five metres; hard, medium or soft; dry, sweet or demi-sec; high or low, and so on. Here is a checklist of the things you should have available before you pick up the phone to make a call: • Pad or report form. • At least two writing instruments (they run out of ink, and pencil leads break!) • Diary open at the current week or date. • Timepiece. • Full data on your product or service including prices. • File or correspondence relating to the prospect (if appropriate). Do not assume that you will speak to the prospect directly. You will talk to the telephone operator then probably the prospect’s secretary. Both of these have a task to filter all calls to the prospect. If they didn’t, the prospect would spend most of the working day on the phone! Do not use a trick to get to the prospect. You might succeed—once! It is much better for you and the prospect to know that you are selling, that you are knowledgeable and enthusiastic, and take pride in doing a good job. Importance of selling Companies stay in business because they are selling products and services to customers. All the research, production, administration, all the management and supervision done inside the company costs money. It is only when you go outside a company and find customers that you make money. A lot of what is called selling is poorly done, and because of this, selling has a less than admirable reputation. You have built-in problems to overcome. So, consider yourself a real salesperson. The fact that you are taking the trouble to study this book means that you are interested in the process of selling, especially by telephone.

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When you call a known customer, even if they have not bought from you for some time, you are a supplier. So, when faced with the filters whose job it is to screen calls, you do not need to say that you are selling because you are already one of the company’s suppliers or potential suppliers. And, in the mind of the filters, suppliers aren’t selling! The correct manner Several texts on telephone selling advise salespeople always to control the presentation such as by saying to the operator, ‘Please tell Mr Brown, your financial director, that James White is on the line for him’. Can you imagine anything so pompous? ‘James White of where sir?’ the filter would respond. Unless the operator knows who White is, s/he is not going to win promotion and pay rises by connecting the financial director with anybody who phones in this manner. Consider what might happen: Caller: Operator: Brown:

Good morning. Will you tell Mr Brown that James White is on the phone for him, please? Yes sir. [Phoning internally] Mr Brown, there’s a Mr James White on the phone for you, it’s personal, I think. OK put him through.

He’s got the interview. Excellent! Or is it? Later… Brown: Operator:

[Internal phone to operator] Betty! That was a salesman. It wasn’t personal at all. Don’t put any more through like that please. Sorry Mr Brown. He sounded as though he knew you.

The next time Brown makes a call, he cannot try any other ruse to get through to the financial director. How to get through So, how can we get through to people who, on the surface, do not wish to talk to us? And, it must be on the surface because their jobs depend on the amount of business their company engenders outside the company. Buyers especially, have to be knowledgeable of what is happening in the market. They are expected to buy from the keenest suppliers. How can they know this adequately if they don’t at least talk to people like you? Let’s go back to White’s attempt to get through to Brown, the financial director. We assume that he has as perfectly good reason for wanting to talk to Brown, has a story to tell and a proposition to Brown’s advantage: White: Operator: White: Operator: White: Operator: Joan: White: Joan:

Good morning. I’d like to speak with Mr Brown please. Your financial director. By the way, may I ask his initials? Er! A moment…R G, Robert George. Is it possible to speak with him? Who are you sir? I’m with ABC Financial Group. I’m the area manager. Yes sir. Just a moment. I’ll put you through. [On internal phone to Brown’s secretary] Joan, I’ve got a chap on the phone. I think he’s a salesman. Wants to talk to Robert. Will you deal with him? Yes Betty. Put him through. [To White on being connected] Hello. Mr Brown’s office. Ah! Good morning. I’d like to have a word with Mr Brown please if that’s possible. He’s rather busy right now. May I ask what it is? I’m his secretary.

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White: Joan: White: Joan: Brown: Joan:

Yes. I’m the area manager of the ABC Financial Group. And what is the nature of your call Mr White? We have a new combined investment project with an inflation-proof assurance scheme that operates on a variable payback contribution basis. [Or some equally technical description] I think he’d like to have details. [Not understanding what it is, calls Brown on the internal phone] I’ve got a chap on the phone, name of White. He’s with the ABC Financial Group. I think he’s trying to sell you something. OK Joan. Tell him to write me. [To White] Mr White, I’ve tried to get hold of him but his light’s on. I know he’s got an important meeting this morning and is not to be interrupted. Will you put the details in the post please? I’ll see that he gets it.

Here is a better way—a more professional way: Joan: White:

[to White on being connected by the operator] Good morning Mr White. I’m Mr Brown’s secretary. Can I help you? Yes. I hope so. I would like to make an appointment with Mr Brown to explain an investment proposition to him. I am with the ABC Financial Group. It isn’t something I can put in the post because there are so many variables and I think he would want to be kept informed. Could you find me about twenty minutes one day next week?

Use the filters Here’s the secret of getting appointments with people who have efficient and effective filters. Use them. Make friends with the filters, the operators, the secretaries, and be completely honest. Make them feel confident that they are not going to be criticised by their bosses for letting you through the screen. They are employed and paid to be secretaries. They are not employed to assess the merits of the propositions that their bosses are paid to consider. They are expected to be effective as well as efficient. They gradually get to know a lot about the work of their boss. They often make judgements. But, whenever they are in doubt, they will pass it to the boss to decide. Therefore, tell them honestly what you are trying to do and don’t’ give them a lot oblique chatter in an attempt to confuse them and so let you slip through the screen. Leave them in no doubt that your company has a proposition that their boss would not want to miss, or to be unaware of. I am often asked to see callers in my various activities but I ignore all the façade and smokescreens that many so-called sales people put up in front of me. To the over-zealous strangers who call without an appointment I ask: Are you buying or selling? If they say buying, which I admit, is very seldom, I say: Fine! How can I help you? If they admit selling, I say: Fair enough. You have a couple of minutes to tell me what it’s all about. If, on occasions, people get to see me without an appointment, I am very anti whatever they are selling. It has to be a very good, professional opening to engage my attention. I used to own and operate Shapwick House Hotel and restaurant in the West of England and a representative of a wine merchant called at a very inopportune moment. He said: ‘I’m sorry, I tried to get you on the phone but couldn’t. I’ve got a few specials on offer. I know you like the particular wine and I didn’t want you to think I’d not given you the chance to say ‘no’. How could I refuse to see him! Getting the appointment Getting an appointment is only part of the process of selling, but it is crucial. You may have

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to sell to a committee. Certainly, with hi-tech products and services you have to sell to more than one person. (We look at this in some detail in Chapter 16.) A ploy you can sometimes use is to say to the prospect on the phone: ‘I will be in your area next Tuesday [or whenever] and as I’m not there very often, would it be convenient to call?’ The fact that you are making a special journey to see a client about an important prospective order is beside the point. The client thinks you will be in the area. I am a director of a company that sells complex, costly systems software. Each contract takes about six months to a year and more to secure. Every prospect is progressed through a number of stages up to the signing of the contract that has to be approved by their board of directors, or in the case of the European Commission, by the appropriate directorate. There is no way that such systems could be sold on the telephone. But the phone can certainly be used to get appointments, elicit information, and establish contacts before making personal calls. The phone is also used to follow up the progress of proposals, confirmation of the budget, additional suggestions, and quotations. We were progressing a proposal worth about €1 million with an organisation and it was touch and go whether we or our strongest competitor got the contract. They did have a slight edge as the prospective customer’s ICT director had worked with, and knew, our competitor’s set up. However, both companies’ systems were equally sound and cost-effective. The director responsible, Sampson had never met the ICT director, Brown, of the prospective client. You might consider this unusual but it is often the case. I suggested that a meeting might be just the thing to tip the balance in our favour. Brown was located about 1,500 kms away from Sampson’s base. He couldn’t simply ring up and offer to travel 3,000 kms just to have a chat! But, supposing Sampson phoned Brown and said: Mr Brown, I have to be in your area shortly—I have some business there. As I will be so close, I’d like to look in and see you. When are you free? What about next week? As far as Brown was concerned, Sampson did not make a special journey but, in fact, he did. And it was well worthwhile because the two of them got on very well together especially during the evening they spent socially. The ICT director’s vote was for Sampson and we eventually got the contract. Being professional Once, when I called on an occasional customer, a Bristol-based aircraft manufacturer, without an appointment, the receptionist spoke with the appropriate buyer who told her to tell me to telephone for an appointment. I thanked her, returned to my car drove out of the company’s car park and stopped at the nearest phone box. I asked to be put through to the buyer’s department, got his secretary and told her that Mr Giles had asked me to phone him to make an appointment…she put me through straightaway. Me: Giles; Me:

Hello Mr Giles. You asked me to phone for an appointment. But you only just called here a few minutes ago! That’s right sir, and you passed a message to the receptionist for me to phone you for an appointment. So here I am, phoning to find out when I may call to see you!

He laughed at my persistence and asked me how far away I was from the office. I said that I was in a public call box just round the corner. He told me to go back and he would see me. You must know something about your prospect’s business. You must know the products and services they sell. When phoning for an appointment, it is just a step in the normal selling process. It is a means to an end and not an end in itself.

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Don’t be afraid of asking questions. Frequently, when phoning prospective customers you will hear words similar to, sorry but not interested. A prospect who is not interested has made up her or his mind before possessing the facts. That’s not good sense. Change your tactics. Search for information about the prospect’s company and its products. Ask receptionists, secretaries and prospects if they can spare the time to tell you about their products. Ask questions; learn about their problems. Then, armed with this intelligence, you can study the situation and work out an approach that is based on the knowledge you have gained. Your approach will be enthusiastic because you have taken the trouble to think about the customer’s situation. But don’t stop there. Develop your knowledge about the whole of the industry in which you are working, its production methods, business structure, markets, competitors, commercial procedures and personalities. Then set fire to it. Enthusiasm is knowledge on fire. When all else fails in trying to get an appointment, you could say: ‘Mr Prospect, the success of your company depends on the products and services you sell. I’m trying to do my bit for my company. Just think how difficult it would be for you if your sales people could never get to see the buyer!’ Questions up to Chapter 2 2/1 Should you let the respondent know that you area selling or try to gain her or his confidence first? 2/2 Why is cold canvassing sometimes more difficult with personal visits? 2/3 What is the most professional way to make more appointments? 2/4 How can you make use of the ‘filters’?

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CHAPTER 3 HOW TO STRUCTURE A TELEPHONE CALL Using the phone is a means to an end. We are hoping to sell something but not necessarily a product or service. It is more likely to be an appointment or an idea. Selling by phone is much the same as selling in any other situation. We must have a framework—a structured sales presentation. You must have a general idea of what you are going to say. At best, you should have a specific objective that can be achieved. You cannot see the respondent you can only hear the voice, what is said and the manner in which it is said. Therefore, it is more important to have a basic structure to make the best use of the medium. Before you pick up the phone, you will know whether or not you have met the respondent. This will affect the way in which you structure your phone call. If your contact is a complete stranger, your approach will be markedly different from that to someone you know or have met. First, we assume you are phoning a complete stranger. Phoning a stranger Get to the point quickly but, if you go too quickly, perhaps in too blunt or forceful a manner, you’ll probably alienate the prospect before you can put your proposition. You:

Good morning Mr Prospect. I sell life insurance. For about €5,000 your family’s future can be guaranteed, should you die prematurely.

Thank you but no! You:

Is that Mr Jones? ... Fine. Good afternoon Mr Jones. My name’s Smith of Fire International Limited. I understand that you have an adequate fire prevention system in your building—is that right? ... Well, we have an entirely new servicing system that saves you about ten per cent on your present costs. Would it be possible to make an appointment to call and see you?

Thank you but no! You:

Hullo Mr Stewart. This is MacGregor Electronics here. We have a new control device that’s ideal for servicing your fire extinguishing system. I’d like to call and tell you more about it. When would you…

Thank you but no! You:

Mr Prospect. I can tell you how your company could make at least another ten percent profit on its product. Are you interested?”

Thank you but no! We’re not doing too well are we? We are getting to the point too quickly; we have no structure; we are giving too much information; we don’t appear to have any particular objective other than to see the prospect. The gravest error is that we haven’t even found out if the prospect has the time to talk on the phone. This happens socially: You: John:

Hello John, it’s Len. How are you? Fine. And you?

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You: John:

Yes. Top form. Tell me John…er…have you glanced through that article yet? I sent it the other day… Sorry, but, we’re just about to sit down to a meal. Could I call you back?

Phoning a friend or someone you have met The phone intervenes on everything. A beeping phone cuts across every other activity and, at home, the usual family query is who’s that? When you phone anyone—relative, friend, colleague, the boss, and particularly a complete stranger—irrespective of the time of day, if you get through to the person you want to speak with, ask immediately if it is convenient to talk. Make sure they are not sitting down to a meal, surfing the Net, standing on a ladder painting, talking with someone else, writing a letter, watching a favourite TV programme, or any of those activities that are more important or urgent than talking with you. Always preface phone conversations with: You:

Hello. Are you free to talk?

Imagine a similar situation in another setting. You enter a room and are received by your host; you are introduced to two or three people with drinks in their hands, smiling and talking together: Host: You:

Ah! I don’t think you’ve met Nigel [you] before. Nigel, this is… Hello. Good gracious! What a journey I’ve had. D’you know that stretch between Reigate and Wisley? It was supposed to be open last week. I’ve never had such a long, fatiguing journey.

Thank you but no! They don’t want to know about your journey; they were talking together. You’ve interrupted them. They will smile and listen but out of politeness. You should wait until after the introductions and listen carefully to their conversation. You have to be accepted by the group and, if they haven’t been talking about something far more interesting or important than car journeys, sooner or later they will ask you polite questions such as: What line of business are you in Nigel? Have you had your holidays yet? Have you come far? Then you can bore them with your journey! So, listen and be prepared to give a succinct reply when you are invited. Similarly, on the phone if you fail to get to the point in a reasonably short space of time the prospect is going to wonder just why you are phoning. You can improve your phone manner from the start by such considerations. Your initial call and willingness to phone back will inevitably cause the respondent to think I wonder what it’s about? Defuse this by adding a comment such as it’s not urgent I’ll phone later. But, quickly replace the receiver. You only have to do this occasionally but your stock will rise with the respondent. You will not become a phone drudge! If it is convenient to talk to a respondent, make sure they know who you are, if you are representing a company, and the reason for phoning. If you don’t get to these basic introductory points fairly soon, the respondent may switch off and not take in what you are saying. Keep your conversations crisp yet polite and pointed and you will find people are willing to talk with you. One of the most unnerving questions you can be asked is, What is the point you are making? Or even worse, What is the point you are trying to make?

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The structure Think of any of the ordinary things we do such as making a cake, decorating a room, cleaning the car, replacing an electric plug, going on holiday, taking the children to school, or any of the hundred-and-one other activities we carry out from time to time. There is always a procedure to be followed that makes it easier to complete the task. Numerous guides and mnemonics can help us to remember the order in which things have to be done. One of the oldest in selling is AIDA. It stands for attention, interest, desire and action. First, get the prospect’s attention. Then develop her or his interest in your proposition, create a desire to possess your product or service and finally, get action. In the early days of motoring when cars were much more basic than they are today, when stopping at a garage for petrol etc. my father used the word power to remind him to have everything checked. It stands for petrol, oil, water, electricity (battery level), and rubber (tyre pressures). I have adapted the mnemonic power for managing. It stands for plan, organise, watch, evaluate and revise. If you want to be an effective manager, first you devise the plan then you set up an appropriate organisation to implement it. You maintain a watching brief over activities, continuously evaluate the results and revise as necessary. Mnemonic for telephone selling Here is a framework for all forms of selling and presentations. It may be of interest to learn of its origin. During my fifteen years consultancy with Philips Gloeilampenfabrieken, Eindhoven, they were constantly assailed by training outfits wanting to sell them courses complete with schemes and frameworks. Many had merits, a lot could only be used in specific situations, most had to be adapted. Some had elementary flaws such as one that used seven Ps, which stood for seven points to employ and of course it was not always possible to remember all the Ps. It really was a problem of trying to mind your Ps and Qs! I was asked to survey them all and devise a structure that could be applied to any selling situation. I constructed the framework by considering what happens in every situation. Obviously there is always an opening. Clearly, there must be a need but this had to be established and agreed by the prospect because if there is no need there is no sale. An offer had to be made but when? In this way I built six sequential stages, denoted by words whose initial letters made a mnemonic that was relevant, referred to logical stages, and easy to remember. That was how the scheme ONROAD was devised and is now used throughout the world by many organisations. I recalled that sales people and commercial travellers were often said to be on the road. It stands for: • Opening • Need • Resolution • Offer • Assessment • Decision Opening All selling processes, whether face-to-face situations or on the telephone, begin with an opening. This should attempt to involve the prospect from the start. Openings are statements or questions and may be designed to create interest, curiosity, or simply to gain the attention of the prospect. Chapters 4 and 5 discuss the different types of openings.

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Need Need is fundamental to all selling processes. Without a real need, there can be no sale. Many prospects are unaware of their real need and simply articulate wants, or desires, which are not as essential as needs. Chapter 6 considers identifying needs. Resolution When the need has been identified, understood and agreed by the prospect, then both sales person and prospect can set about resolving this need. Chapter 7 discusses a number of techniques that may be used to reinforce the intention to satisfy the need. Offer Once the need has been established and any obstacles preventing its resolution removed, the offer may be made. The offer enables the prospect to satisfy the need. How to make the offer is discussed in Chapter 8. Assessment The offer should be assessed by the sales person and prospect in relation to the need that has been identified, made known and agreed. Chapter 9 not only considers assessment of the offer but how to deal with objections that inevitably arise. Decision The decision is whether the prospect is going to do business with the sales person and must be implemented by some definite action such as giving an order, asking for the offer to be put in writing, requesting a firm quotation, or simply stating that the matter will be taken further. Evaluation of the decision can only be done in retrospect and therefore all decisions must be followed up after an appropriate period. Chapter 10 looks at decisions. Any course or text on salesmanship will doubtless have its own plan of action and often its own mnemonics to make selling easy. Beware! Selling is not easy. It does not conform to an array of techniques where all you have to do is to use the plan and success will follow. Any plan of action, pattern of approach, mnemonic, is only an aid to selling. I suggest that ONROAD is superior to any other mnemonic because it is simple, easy to remember, is applicable to any selling situation and does not have to be used in its entirety. You must decide very quickly in the preliminary discussion with the prospect whether you need to go through the whole ONROAD sequence. Consider: Salesman: Customer:

Good afternoon Mr Prospect. Gordon Dungate of Medway Controls. I thought… Oh! I’m so glad you’ve called. We’re short of some 40 mm and 25 mm reducers. Have you got any in stock at Rochester?

Only a fool would go through the ONROAD sequence. Already we are in the resolution stage and it is up to Dungate to make the offer. Questions up to Chapter 3 3/1 Why is it important to have a structure when selling on the telephone? 3/2 Is it necessary to get to the point of your conversation early in the phone call? 3/3 When making a sales presentation to a prospect, when do you make the offer? 3/4 If you write right-handed, why should you hold the telephone to your left ear?

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CHAPTER 4 OPENING A CALL WITH A STATEMENT There are only two ways that you can open a sales presentation whether you’re face-to-face with a customer or on the phone: with a statement or a question. On the phone you must be much more careful with the opening because your prospect can only hear you and, if the two of you have never met, what you say and how you say it is the only means of communication. If you were face-to-face with the prospect, any slight aberration or faltering in your opening might be retrieved by gesture, smile, body attitude, illustrated literature, etc. Plausibility Your initial statement must be carefully constructed to present some characteristic or benefit of your product or service to the prospect. And this must be believable. You may have something to offer that can give great benefit to the user or owner, but its real value can only be appreciate when in use. If so, you have a difficult task in composing your opening remarks convincingly. A poor opening An example of how Dick Head of Con Fire Services tried to open a telephone sale with a statement. Salesman: Customer: Salesman: Customer:

Mr Roberts? Yes. Good morning Mr Roberts. I can show you a method of substantially reducing the servicing costs of your... [angrily] Who is this?

Not a very good opening; in fact, not an opening at all. The salesman didn’t introduce himself, didn’t say who his company was, or find out if it was convenient to talk. Straight into the socalled sales talk! He didn’t know if Roberts was the right person to talk to or whether he could influence the purchase. All preambles such as Good morning, Had your holidays yet? How’s business? are not openings. Opening the sale starts after you have said your greeting, told the respondent who you are, found out if it’s convenient to talk, said whom you represent and laid the foundation for the opening. Importance of a good opening Consider a speaker who has been invited to give a talk—maybe an after-dinner talk. The meal is coming to a close, coffee has been served, the traditional toast to the head of state made, the chairman rises, raps the table, calls for attention, and introduces the speaker. After briefly recounting some of the speaker’s accomplishments, the chairman says, ‘Ladies and gentlemen, it gives me great please to introduce…’ There is polite clapping, the chairman beams at the speaker who gets up, nods thanks to the applause, looks round the room and to the side to see that the chairman is seated and starts. What the speaker says at that point can intrigue and captivate the audience or annoy them. They can be amused or bored, interested or hostile. If the voice is not projected to the back of the room, people there may not be aware that the speaker has even started. The speaker has perhaps one or two minutes to gain attention, depending on the circumstances and politeness of the audience.

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When face-to-face with a prospective buyer, you have considerably less time to open your sales presentation. On the phone, you have much less—maybe 10 to 20 seconds to get attention. Speakers at meetings have an advantage over someone talking on the phone. They are unlikely to be cut short. Their audience will usually listen politely however much there may be a general preference to get out for refreshments! The telephone caller can be interrupted at any time during that crucial 20 seconds or less, which is an additional reason for a really good opening in a telesales presentation. An opening can only be a statement or a question. You cannot show the product or a picture of it. The very advantage and priority you have by talking directly with the prospect also means that you cannot waste time with irrelevancies. Your telephone openings need to be well constructed, burnished to remove unwanted words, and practised to make sure you can say them naturally. Opening with a factual statement ‘Mr Prospect, the article on our product in last month’s [professional journal] describes it as the leader in its field.’ ‘The newly designed digital readout on our fire equipment gives you instant data on its condition.’ ‘Our half-day course on [whatever] guarantees successful handling by your staff or we refund payment in full.’ ‘More factory complexes such as yours use our fire equipment than any other brand.’ ‘The fire equipment we supply to customers is always in peak condition because of our regular preventive servicing and maintenance.’ Statements must be true, relevant, understandable, and should arouse interest. These four requirements may be remembered by the mnemonic TRUE: • True • Relevant • Understandable • Evoke interest Opening with a specific topic Link the prospect with your product or service: ‘A couple of weeks ago, I sent you a sample product and said I would contact you to see how it worked out.’ ‘When we met at the national exhibition, you expressed an interest in our new model. This is ready and before arranging a visit, I’d like to check on the maximum flow you think you would need.’ ‘As I was passing your factory recently, I noticed that you have a problem with [whatever]. I have a service, which for a modest outlay can overcome it.’ ‘I couldn’t help noticing the amount of [whatever] you throw away. I’d like to tell you briefly how this can be made valuable to you.’

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‘I saw some of your brochures the other day. I’d like to give you some information that could mean a very acceptable saving. ‘Your company doubtless has a heavy bill for [travelling expense, servicing facilities, whatever]. I’d like to show you some data on a firm similar in size that has enabled them to reduce costs.’ Opening with third party reference Before you use this form of opening it is essential that you establish the third party is regarded as a reliable reference by the prospect: ‘Your Birmingham factory manger has been having very good results with our [service, product, whatever] and I thought you would like to have details.’ This is useful only if the prospect knows the Birmingham manager and generally approves of her or him. If the prospect dislikes that manager, you will learn quickly how not to win friends and influence people! If this information cannot be easily obtained, try to find out what the relationship is between the prospect and the reference you are thinking of using, by putting suitable questions to the prospect. Be prepared to change horses, that is, switch your opening, should you discover that the relationship between the prospect and the third party is less than friendly: ‘Mr Prospect, you know John Bell of Leeds. I saw him recently, said I was contacting you and he passes on his good wishes.’ Listen carefully to the reaction to this, especially the prospect’s tone of voice. This can often indicate a lot more than the actual words. Of course if possible, you would be wise to check with the referee to see if it would be sensible to use her or him as a reference with the prospect. You do not necessarily have to use personal references. You can talk about buildings, factories, offices etc. The criterion is that the prospect must think highly of the reference you are using: ‘The fire fighting equipment installed in [reference] is ours. When you are considering your next expansion, you could do worse than consider our services.’ ‘The paint used on the XYZ building was a special anti-corrosive product. When you are considering your next repaint you could do worse than consider our special finishes.’ ‘The cost of heating the Daily Echo building has been cut by 25 per cent since they have installed our [whatever].’ ‘The managing director’s secretary said I should contact you about [whatever]’. This last opening has considerable value but you may consider it a ruse. You speak with the MD’s secretary first, explain what you are trying to interest the company in, and then ask for the name of the person you should contact. When you contact that person, you are speaking the truth and a degree of importance is implied.

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Opening on a minor point You are selling; the prospect is buying. Buying and selling are simply different views of the same transaction! However, buying is usually a set of major decisions. The decision-making process is complex and a number of influences affect the decision. Sometimes it is better to open on a minor point. If you were selling a set of encyclopaedias, you should not open with: ‘Mr Prospect, the 25 volumes will provide you with all the knowledge of the modern world. The fine, leather-bound set will cost you €2,500 or on CDs, €450.’ It is better to open on a minor point: ‘Mr Prospect, the 25 volumes, or three CDs, will provide you with all the knowledge of the modern world. You get the right to purchase the annual updates for only €5.’ Opening on a minor point is to prevent hitting the prospect between the eyes with your proposition. You have to find out a lot more about the prospect before you can open with a major statement. If you were trying to sell a certain system that meant selling the prospect the idea that it was worth meeting you to have a look at the system working, you could open on a minor point: ‘Mr Prospect, while there are many systems available, what I’d like to show you is one that has the lowest annual running cost on the market. When would it be possible to give you a demonstration? Have you an hour to spare next week?’ If you use a statement to open, treat it as you would all other important announcements you make on the telephone. It has to be constantly reviewed and polished to make it easy to handle, believable, and readily understood. Questions up to Chapter 4 4/1 What are the advantages that an after-dinner speaker has over you as a salesperson on the phone when you are making your opening remarks? 4/2 Why do you need to be more careful with your opening statement on the phone than when face-to-face? 4/3 When does the opening of the sale actually start? 4/4 What should you have to hand before you pick up the telephone and ring your prospect?

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CHAPTER 5 OPENING THE CALL WITH A QUESTION The question opening is the most useful and, at the same time, the trickiest. If you ask a loosely constructed question, you will receive some difficult, unhelpful, even contrary responses. Your questions should be prepared so that possible responses can be related to the benefits of your product or service and a subsequent well-structured sales presentation. When you embark on your sales talk, you must know where it could go, not where you would like it to go but where your prospect might take you. No sensible motorist would set off into unknown territory without some idea of the locations of cities, towns and villages, without a map, not knowing if there were sufficient fuel in the car, or if there were adequate fuel stops en route. Because you cannot see the prospect and are unable to show him the product, illustrations, a presenter, or sales aids, you need to control the presentation by what you say and how you say it. Often the prospect will want to direct the conversation, which is understandable. However, there is no value to be gained in your fighting the prospect and insisting on trying to control a determined buyer. You will often hear: ‘Look, I’m busy. Write me about it please.’ ‘Sorry. Cut the talk. How much is it?’ ‘What are you trying to sell me?’ ‘I don’t want all the sales talk. What are your sizes and prices?’ The secret is to let the prospect control the conversation but you control the sales presentation. This means that you guide the conversation with appropriate questions and comments. Listen carefully to what the prospect says and then use that to lead back into your sales presentation. The above remarks may be countered as follows: Prospect: You:

Look, I’m busy. Write me about it please. Certainly Mr Prospect. May I have your initials? Thank you. I’ll send you this today. Would you like it by email, fax or in the post. It will cover all applications. You would need them all I suppose or is there a specific task that has to be done?

Prospect: You:

Sorry. Cut the talk. How much is it? [Quoting lowest price] Three hundred euros sir. That includes a year’s servicing. I take it that yours would be a normal installation. You wouldn’t need automatic sprinklers [or whatever] would you?”

Prospect: You:

What are you trying to sell me? The lowest priced solid-state control system on the market. But I’m not trying to sell it sir. Not unless you need one. Is your present system automatically monitored?

Prospect: You:

I don’t want all the sales talk. What are your sizes and prices? Our sizes cover 100 percent of the needs of the market sir and our prices are the lowest. You cannot buy better or even the same quality at our prices. Do you buy mainly on price sir?”

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Is the customer buying on price? If the answer to this question is yes and your prices are not the lowest on the market, you do not stand much chance of selling on the phone. You will have to retreat to fight another day. You will have to get an appointment and develop a personal sales presentation where you can put over the advantages of buying from you. However, the prospect who demands to know your prices as soon as you open is not necessarily buying on price. For example, a camera can cost as little as a few euros, or from €1,0 00 upwards. Price is a useful indication of its capabilities. Test this yourself next time you are near a camera shop. Tell the assistant you are thinking of buying a camera and listen to the response. Most likely, you will be asked what price range you have in mind. If you are conversant with cameras, you will know that when you ask for camera for around €200, you are indicating the type of camera you are interested in. The lesson is clear. Don’t assume that because you are asked about price that prospects are buying on price; they may simply want to know the category of merchandise you are selling. Using the question opening You may find that question openings are difficult to use because of the nature of your product or service, which may be completely new in concept and hard to explain on the phone. You may be selling an intangible such as advertising space or time, insurance, consultancy an inspection service or something with an equal lack of substance, and feel at a loss to know how to start, how to open. To cope with these feelings, remember that no one buys a product for itself alone but for the satisfaction, benefits or service it provides. We don’t buy new golf clubs, we buy lower scores; we don’t really rent strips of sand on a beach in summer, we buy dreams; we don’t want 6-mm twist drills, we want 6-mm holes; we don’t buy boxes of matches, we buy boxes of flames. Whatever your product, you must think of its use from the viewpoint of the prospective user. You must think about the benefit the user will have if your product is acquired, and then construct simple, easy-to-understand statements or questions that will convey those benefits to the mind of the prospect. Product benefit questions Here is an example of an opening question that relates to product benefits and is constructed to lead into the subsequent presentation: ‘Good morning Mr Prospect. This is John Smith of Allfasteners Limited. May I ask you, when you meet a difficult fastening problem how you overcome it?’ Consider other openings that might have been used: ‘Do you ever meet difficult fastening problems?’ [Response: Yes, all the time!] ‘Do you know our range of fastenings? [Response: Yes, I have your catalogue.] ‘What do you do if you meet a difficult fastening problem?’ [Response: They’re all difficult.] ‘Have you seen our range of special fastenings for difficult tasks?’ [Response: We know your range but please send me your latest catalogue.]

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‘When you meet a difficult fastening problem how do you overcome it?” [This is too direct and tends to create barriers such as, ‘What do you want to know for?’ ‘Why should I tell you?’ and begs the general thought, ‘Why?’] ‘When you meet a difficult fastening problem, may I ask how you overcome it?’ [This is the one we started with and is better because it is a request for information. It softens the approach and tends to avoid the general response. ‘Why?’] Test your openings rigorously. Make them easy-to-say, easy-to-understand, are polite and involve the listener. Avoid openings that pose a problem then suggest that you have the answer such as: ‘When you have [whatever] problem, do you know what I would do?’ because they do not involve the prospect. Only use such a question opening if you are introducing a topic of considerable interest to the prospect and you can continue with a description, maybe with comments about recent research that would hold the attention A good opening is only the beginning of the sales presentation. You must know where you could go after this, which means that you must have more than one objective for the telephone call. If your objective is to get an order every time you start a telesales presentation, you will fail to achieve this more times than you succeed. It is better to realise that you will not close many sales on the phone and this will save you from becoming too discouraged as call after call fails to secure an order. As you become accustomed to telephone technique and analyse prospects’ responses, you will find your strike rate of objectives-to-calls will improve. It is more realistic to get the prospect to understand that your product or service offers excellent value for its price and to consider buying form you when supplies are next needed. Such an objective will also give you a secondary aim: to establish when to phone again and to make sure that the prospect appreciates that you will be phoning on that date. After you have opened the presentation and introduced the product/service and some of its benefits, the next stage is to establish the need of the prospect. Questions up to Chapter 5 5/1 Why is it difficult to open a sale with a question? 5/2 What is suggested as the key to a successful telephone conversation? 5/3 How can you get through to a prospect when filters block your way? 5/4 Why should you test your openings thoroughly?

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CHAPTER 6 IDENTIFYING NEEDS—THE CLOSED QUESTION AND OPEN PROBE If the prospect has no need for your product or service, you are wasting your time and the prospect’s time by trying to get an appointment, let alone trying to sell on the telephone. Identifying a prospect’s needs is difficult enough in face-to-face situations; on the phone, as we know, there are extra handicaps and everything has to be done with the voice. However, you are talking directly into the listener’s ear and your conversation may be regarded as privileged and protected. It will not normally be overheard by others in the room. You can be a little more direct and ask more pointed questions because they will be private to the listener who will not feel so exposed as when others could hear your side of the conversation. Establishing the need is crucial. Good selling is finding out what the prospect actually needs and then offering to satisfy that need with one of your products or services. Once you have opened the sale, and started your presentation, you must progress it to determine the prospect’s real needs. You cannot ask, what do you really need? you have to elicit this information because the prospect may not know what is really needed. Here is a man who has a need but doesn’t know it. He visits his doctor asking for some medicine to take with him on a tropical visit. The doctor asks where he is going, finds out that it is the first time he is visiting the equator, and then, rolling up the patient’s shirt sleeve, injects a needle loaded with serum into his arm. The patient didn’t ask for this because he didn’t know what he needed. He certainly doesn’t want it and the two days of suffering that usually follow but he needs it. Interpreting the conversation Listening—ardently listening—to prospects’ responses and statements will help to discover their real needs. You must assume that some prospects will not necessarily know what they need. They may say that they need one thing while actually requiring something completely different. This is particularly important in the technical field where you may be selling complex products and services. Prospects may not be able to put into words what they or their organisations need and you must interpret the discussion for understandable needs. Take care on the phone to ensure that the prospect understands what is really needed. Never talk in a manner that could be misunderstood as being superior, that is, never talk down to the customer. Concentrate on what the prospect says and how it is said so that you can more quickly establish what is really needed. You can best identify needs by asking questions and listening to the responses. Questions you put to prospects are of two kinds: • Closed questions. • Open probes. Closed questions These narrow down the conversation to specific points. They can be answered by yes, no, black, white, two, six, every week, and so on. They ask for fairly precise responses. Examples are: ‘What colour do you use now?’ ‘Which day do you usually service the machine?’ ‘How many locks are there?’ ‘I can do that Friday, is that all right?’ ‘Are you left- or right-handed?’

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‘Where is the stock kept now?’ ‘Is it more than ten metres?’ ‘What system do you use?’ All of these questions can be answered by one response. Each one focuses the respondent’s reply to a single statement and does not readily invite further discussion. Open probes A closed question is used to obtain a clear response and limits the conversation whereas the open probe seeks more information, opens out the conversation and invites the prospect to expand on what has been said: ‘Why do you think that happens?’ ‘In what way?’ ‘Oh!’ ‘This is because…?’ ‘Why is that?’ ‘How do you do it normally?’ ‘Really?’ ‘Could you explain that?’ ‘Hm!’ ‘And, what happens after that?’ ‘How so?’ ‘If you had the opportunity what would you choose?’ Open and closed questions are used in the sales presentation according to whether you wish to open up the conversation, perhaps in search of needs, or to narrow it down and move towards the close. Even simple responses such as Hm! Oh! will work provided you are showing genuine interest in what the prospect is saying. You cannot make use of facial expressions on the phone to accompany the words. But, and this is important, your attitude does communicate over the telephone and if you smile, your voice will smile. If you are puzzled and frown, your voice will sound puzzled. It follows that you must live the part you play when speaking on the telephone. Use of question technique Even though the prospect may dominate the conversation, you can control the sales presentation by a judicious use of closed questions and open probes. If you use these two types of question skilfully, you can direct the conversation into those areas most advantageous to you. While your respondent has the oars and does the rowing, you do the steering,

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sometimes subtly with an almost imperceptible alteration of course, other times by a complete change of direction. Here is a telephone conversation by Pam Rainey who is trying to get a company interested in training. She is talking to Don Wilson. R: W: R: W: R: W: R: W: R: W: R: W: R: W: R:

W: R: W: R:

Good afternoon Mr Wilson, my name’s Pam Rainey of National Training. Do you have a few minutes free to talk? [closed] Yes. Who are you? Pam Rainey of National Training. We operate in Europe, the Middle and Far East, training middle and upper management. Do you have your own training department Mr Wilson? [closed] No. But presumably, you do some training; may I ask how many you employ? [closed] About fifteen hundred on this site and about double that at headquarters. But when we want any training, we send our people out on an appropriate course. I see sir. I’d rather not take up too much of your time now but I’d like to call and see you. Where is your interest in training? [open] Well, everywhere. Across the board. Really? [open] Yes, but we’re not doing a great deal at the moment. I see. You might be interested in some of our developments. Would it be convenient to see you next week—I’m in the area? [closed] Can’t you put it in the post? I am busy. Certainly Mr Wilson. What would you be interested in? [open] What do you do? I don’t know your outfit. We’ve been in training and supplying special services for over twenty years. We have over thirty of our own training centres. I’ll certainly put a brochure in the post; it will confirm what I’m telling you now. Our training is resultsoriented and if you could spare me about half-an-hour I can provide you with information that would be more specific for your needs. I will be in your area next week. Could I call and see you? Say Thursday or Friday? [closed] Next week? Let me see—I have a little time on Thursday morning. That would suit me sir. What time? [closed] About eleven? Fine. I’ll be there at eleven. That’s next Thursday, fourteenth, eleven o’clock. Look forward to seeing you Mr Wilson.

Note the use of the closed question to focus on getting the appointment. The first time Pam tries the customer declines. She then uses an open probe to develop the conversation and another closed question to focus on the appointment. Had she not obtained an appointment, she would continue with open probes to get more information to help her with the presentation and what she includes in the pack she has promised to post. Never be too discouraged at getting a no from the prospective customer. It is a natural reaction and indicates that the prospect is not yet convinced. You have to keep selling and do this with open probes and closed questions. Some authorities have suggested that a salesperson should take three no responses before accepting that the prospect really means no. Perhaps we can agree that the first no is probably a natural response and not accept it as genuine. We should continue with our conversation and make use of open probes and suitable focused closed question searching for the prospect’s real needs. Don’t forget to listen carefully.

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Making notes Cultivate the habit of jotting down on your pad points made by the prospect in response to your open probes. Points that seem at first to be unimportant may later become crucial to your discussion. Here is an example of an untrained department store salesman dealing with a customer who has phoned to find out if the store has what she needs. (It has been edited from what was overheard by the sales trainer but the salient points retained). Customer: Sales: Customer: Sales: Customer: Sales:

I want some curtaining material for my sitting room please. What do have in stock? Certainly madam. What colour and design do you have in mind? Well, the ones I have now are plum-coloured velvet. I’d like a change but I’m not sure about colours. There’s quite a lot of red in the carpet. It’s a Turkish design. Is it a large room madam? Not really. About forty-feet or so by about twenty-five I suppose. [Not listening properly, doesn’t jot down any note or the dimensions and only hears ‘not really’] What you need then I think is a fairly small design. We have just received some very nice contemporary prints. From Belgium.

The salesman has put in appropriate open probes but not listened to the answers about the size of the room. The woman thinks that it is not really a large room but the dimensions make it quite large by ordinary standards. Hardly a room for curtains with a small design. He has not had to open the sale—the woman is already in a buying frame of mind. What he does have to do is to search for the real need and this is where he came unstuck. The customer’s needs are far from clear. He has not even understood the room dimensions and so is unable to develop the sale very far. Let us follow the conversation further: Customer: Sales: Customer: Sales:

It sounds a little continental doesn’t it? Belgian you say. Won’t the colours fade? Well not in a soft reddish-brown, which I suggest you need to match the carpet. Blues and purples are difficult but with the red carpet, you wouldn’t want those anyway. I’m not too sure about the design though. Contemporary you say. My house is quite old. I don’t think a contemporary design would look right. You would find these would fit in with new or old-fashioned surroundings. You may think they’re modern prints but really they are more stylistic, in the conventional, traditional style.

He is in difficulties! Still attempting to sell without finding out what the customer’s real need is. Old-fashioned indeed! And what does stylistic in the conventional, traditional style mean? The customer persists. Customer: Sales:

Customer:

Do you have anything similar to the plum-coloured ones I have now? I will come in and have a look of course but I do live a fair way away and I want to make sure. [recalling that the customer said that she wanted a change] But madam, if you want to make a change I believe you would find these Belgian designs most acceptable. Would it help if I asked our Mr Harris to call and measure up? He can then bring a range of samples for you to look at. Oh! I don’t want anyone to call. Do you have any velveteen material? In plum?

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The customer has partly revealed her real need. She doesn’t want a change. She would like to have new curtains in the same expensive material that she has now but cannot afford it. Record comments on every call you make with prospect’s name, initials, position in the company, address, phone numbers, add a brief note about topics discussed, and any figures you or the prospect may quote. As you listen, if points are made that strike you as pertinent to your presentation, jot them down so that you can use them subsequently. It is good practice to reconsider responses you get to specific question openings. By periodically appraising these responses you can polish your opening questions and develop suitable follow-up comments. Remember that you can respond to questions without losing control of the presentation. Control does not mean taking the lead. You can control the direction of the discussion by asking questions. Identifying the real need It is so important to find out what the customer really needs before you make any offers. This woman customer is probably thinking of phoning another store now. The sales assistant started well but quickly got out of step, mainly because he did not listen. He didn’t even try to find the customer’s real needs—he took her responses at face value only. He also had the fixed idea that the room was not very large. Had he jotted down the dimension and compared it with an average sized room, he would have realised that her room was quite large. Probably what the customer needed was a substitute for the curtains she had already—a low-priced curtain material. But the salesman never even explored quality or price. Remember that there are usually at least two reasons why we do anything—a good reason and the real reason. Your task when progressing the sale is to find out the real reason—the real need. You have two objectives when identifying needs; articulating the real need and getting the prospect to understand and agree what this real need is. Questions up to Chapter 6 6/1 Why is the telephone conversation with a listener regarded as privileged? 6/2 When is it best to use a closed question? 6/3 For what purposes do you use open probes? 6/4 Before you make an offer to a prospect, you are advised to achieve something. What is it? CHAPTER 7 RESOLUTION OF NEED The resolution stage is after the need has been identified, the prospect understands and acknowledges it, knows how it can be satisfied and intends to resolve it. Before you start the resolution stage—in fact, even before you start your sales presentation—you must have a thorough knowledge of your product or service, the market, and competitive offers. You should also know current prices, discounts, advantages and disadvantages of all the major competitors. While you use your product knowledge to sell ideas and progress the resolution stage, this is too vague to be of practical use. Product knowledge must be broken down into attributes, which are intrinsic characteristics such as size, shape, colour, weight, formulation, servicing, cost, etc. Then, the attributes are written as benefits to the potential customer. Thus, resolution is not necessarily a separate activity like the opening, and is often intertwined with the offer. Resolution of the need must also be related to the objective of the call. If you appreciate this, already you have developed a keener sense of selling in general and by telephone in particular.

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Ideally, prospects should satisfy their needs by buying your product or service but you do not necessarily make a sale on the phone. You might make sales if you were phoning customers on a regular basis: a fresh food supplier or a processed food manufacturer contacting hotels and restaurants would find it normal to take orders by telephone. I used to own a hotel and restaurant in Somerset, UK and it was usual for Youngs, one of our suppliers, to phone us on Tuesday mornings to take our order for delivery later in the week. Their telephone sales staff were excellent at finding out what our needs were and offering us special deals on various foods. Because they were skilled in identifying our real needs, they were able to match those needs with attractive offers. In short, it was difficult to say no. There was no pressure selling. They just found out what our needs were and then made us offers that we could not refuse! Many things are not normally sold on the telephone in the sense of making a sales presentation and getting an order. These include hi-tech equipment, orders involving substantial sums of money, and products that must be demonstrated to be appreciated. Visits would need to be made, discussions with various people in the prospect’s organisation directly or indirectly affected by the purchase, demonstration of your equipment, perhaps a special customer-oriented benchmark, submission of proposal and quotation, negotiation, and so on. You cannot sell such a product or service simply by getting on the phone and talking with a prospective buyer in the company. Nevertheless, the techniques discussed in this book can be used at any time not only on the phone but also in face-to-face selling. Here are two that you can adapt to your own sales presentations to make prospects favour your organisation when resolving to satisfy their specific needs that you have identified and made known to them. Benefit linking Linking a prospect’s specific need with a product benefit is the basis of an almost hypnotic process that attracts the prospect to whatever you are selling. The tools you must have previously prepared are the attributes translated into benefits. Benefits can be general— applying to all customers, and specific—applying to a particular prospect. Certain attributes will be of greater benefit to some people and organisations than to others. It is therefore vital that you list them into observable and understandable product or service benefits. Ask yourself: in what way can this attribute be a benefit to the user? Some years ago, I was handling the marketing and advertising for a large company, one of whose factories made carpet sweepers. These are pushed or pulled across the floor on their rubber wheels that revolve and turn brushes that flick up the dirt into containers inside the cleaner. Very useful when you have power cuts and crumbs and dirt on carpets! When visiting the sales director one day, he asked me to look at the latest improvement in the carpet sweeper handle. He gave me the new handle and said, Look at that; look at the screw. The end of the handle that screwed into the cleaner body had an aluminium thread on it. This company had always fixed aluminium threads onto the handles in preference to a screw turned in the actual wood of the handle. ‘Yes.’ I said, ‘it’s got an aluminium screw.’ ‘You don’t understand do you!’ He was annoyed. ‘It’s been moulded on. Not fixed as before—moulded. Moulded onto the end. It’ll never come off. I’ve just got it from the factory about half an hour ago.’ ‘I can’t see any difference,’ I confessed. ‘It’s moulded,’ he said even louder than before, ‘moulded onto the wood. We used to fix them with screws. That moulded end will always be part of the handle. The aluminium is now part of the wood.’ ‘I can just see the advertising,’ I said. “Our handles have moulded screw-ends. They’ll never come off!” But the handles never came off before. What’s new about this? I’m sorry Bill I think it’s fine. It’s an achievement in the factory but it’s simply a product attribute. You

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haven’t any additional benefit for users because they didn’t have any problems with loose handles before.’ I continued and recounted that my grandmother had a competitive carpet sweeper made by Ewbank. Very, very old. Yet, although the wooden handle had an ordinary turned thread, it had never given any trouble in over 30 years! Like the bearer of bad news to potentates of old, I was not very popular that day. Nevertheless, to avoid facing the truth then would only have stored up problems for later on. But, to return to the first technique. During the sales presentation, you keep listening carefully to everything that is said. The technique is two-staged and must be employed carefully and distinctly so that the prospect understands exactly what you are saying. The first stage is triggered when you hear the prospect make a point, statement, requirement, objection, constraint, or whatever that matches or could be overcome by a product or service benefit. You restate it in similar words. The second stage is to link it with a product benefit. To illustrate: Customer:

It’s essential that we have a digital readout on the equipment.

Salesman Jack knows that his latest model has as digital readout. He does not jump in and say, ‘our model has one’, he uses the benefit-linking technique, first restating the requirement. Jack: Customer: Jack:

You’re saying that you can only install equipment with a digital readout. Yes. I agree. [Repeating the point made by customer]It’s essential if you want instant control over quality. That’s why we have one on our new model. It also has a recording meter with printout.

The essential step in the benefit-linking technique is to repeat the point made by the prospect and then link it with the product benefit. Here is another example from a saleswoman offering an attractive annuity scheme. Jane: Customer: Jane: Customer: Jane: Customer: Jane:

Good morning Mr Prospect. Have you a chance to read the prospectus I sent you the other day on annuity purchase? I can make more money by investing it myself than you can make me. I have €25,000 invested now that is yielding me more than a net thousand a year. [Knows of a product benefit that can be linked] That €25,000 nest egg is important Mr Prospect? Of course. You wouldn’t object to doubling its value straight away? Doubling it? To €50,000? What’s the catch? No catch Mr Prospect. I agree you have a fine investment…you mustn’t change that. But, invest €1,000 of the earnings a year into a €25,000 insurance investment plan and immediately, your estate is worth €50,000. What is more, you have a savings account after two years and, should you fall ill, even if you are totally disabled, your future deposits are guaranteed. Normally, you can retire any time after you’re 57 with a very comfortable inflation-proof pension.

Obviously, you must know all your product benefits and when using the telephone and have them on paper so that you can see them as you are talking. Let us assume that you are selling computer software for business. One of the product attributes is a code in the software that restricts multiple copies being made. This is not unique, and many programs are protected against unauthorised copying. Your prospect tells you that his company must have complete protection of the contents of the program and only those paying the fee are able to download

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the content. What you do not say at this point is that your system has a procedure that prevents unauthorised copying of the program; you repeat the point the prospect has made: Salesman:

Customer: Salesman:

I agree. Protection of the program is paramount in your business. Unauthorised copying of files would be disastrous. What you need it to have the flexibility of a multiple copying but with access limited only to those who have paid the fee. Exactly. Mr Prospect, we understand this. It is why confidentiality is absolutely guaranteed with our software—one hundred per cent. No one can copy the program without your agreement. You have the flexibility you need and control of restricted access that can be varied as you wish at any time.

It may be what any competent software supplier could offer but it is the way that it is said to the prospect that counts. It is not suggested as an example of revolutionary software improvement but to demonstrate the benefit linking process. You can almost feel yourself being drawn towards the product when the sales person restates the point you have made and then links it with the product benefit you need. Don’t prejudge situations. You never know what benefit the prospect will buy on. In the carpet sweeper organisation mentioned above, another of their factories manufactured lawnmowers. The advertising used to stress that the wheels of their lawnmowers had ball bearings. Most other lawnmowers also ran on ball bearings, but they were the first ones to use it in their sales presentation and advertising. Barrier-building The second technique is more general and is used any time during the conversation. Here again, you have to listen carefully to the prospect. Barrier building is a special form of barrier and not like barriers to buying with which you may be familiar. You use a prospect’s remarks to build an effective barrier or fence that prevents the prospect from retreating behind it. If s/he said that the colour must be blue, later you may use this as a barrier that cuts off retreat, ‘As you said, it has to be blue.’ It is a barrier behind which the prospect cannot retreat without contradicting the earlier statement. Customer: Sales: Customer: Sales: Customer: Sales: Customer: Sales:

The Intech Company are probably the most efficient in the industry. I agree. A very well run company. They don’t compete with you do they? No. We just know them. The system we install must be able to cope with almost as many variations as they have. [Barrier] [Using linked-benefit technique] You’re saying that you have to be as effective as Intech although with not their range? Yes. Did you know that they use some of our equipment in their factory? I didn’t know that. They have our [whatever] system. And, as you said, they are probably the most efficient in the industry. [Barrier]

The barrier has been built. The prospect cannot now retreat and say that the Intech Company is not efficient and s/he has been helped to resolve her/his intention to satisfy the needs of her/his organisation. S/he is also moving towards the close. In the description of the first technique you can see how a barrier was built by the salesman saying, in effect, ‘As you said, Mr Prospect, it is essential that the equipment has a digital readout.’ Barrier building is a technique that is used as you listen. You cannot use it without listening to what the prospect is saying. You are using the prospect’s own utterances to build the barrier. It is a powerful method of helping the prospect to resolve to satisfy her or his

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needs by considering your product or service. And, if you develop this pleasantly and professionally, the prospect will be much more inclined to place business with you. Questions up to chapter 7 7/1 Why is it necessary for the prospect to resolve to satisfy the need you have aroused? 7/2 What is the essential thing you have to do when telephoning a prospect in order to be able to build barriers? 7/3 Before being able to link statements, objections, and other points raised by the prospect with characteristics of your products or services, what must you prepare? 7/4 When do you try to get the prospective buyer to resolve to satisfy the need you have established?

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CHAPTER 8 MAKING THE OFFER Making the offer means trying to close and achieve the objective you set for the presentation. Closing does not only mean trying to get an order, but maybe an appointment, a definite enquiry, agreement to arrange a visit, permission to conduct a survey, submit a quotation, or anything else that is relevant to your business. Never make an offer until the other person is ready to accept or to consider it. They need to be heated up like a piece of metal has to be a minimum temperature before it can be moulded into shape. We have seen that there are two preliminary stages to cover before you make the offer: identifying the need and making sure that the prospect understands it, and resolution by the prospect to satisfy that need. These may be explicit or implied. That is, you may actually state the need and the customer may say the words that mean s/he is resolving to satisfy the need that has been uncovered. Or, the need and its resolution may be implied in the language used. Need and its resolution Sales: Good morning Mr Martin. This is Bill Williams of Fleet Cars. I understand that you are interested in the new Avensis. Customer: Yes. Well, I called in your main showroom last week but it was crowded and I didn’t have time. Sales: Well, may I suggest you try it sir. We have a demonstration model here. I could bring it round whenever convenient… No! The offer has been made too early and this is pressure selling. Sales:

Customer: Sales: Customer: Sales: Customer: Sales: Customer: Sales:

Good morning Mr Martin. This is Bill Williams of Fleet Cars. I understand from one of my colleagues in our High Street branch that you might be interested in the new Avensis. [Note use of ‘might be interested ‘ instead of ‘are interested’] Yes. I did call in there last Saturday but they were very busy. Have you a brochure on it sir? Yes. I picked it up Saturday Did you get a chance to look at the car? Not really. There were so many there. Could you spare a little time during the week? Well, a little. May I suggest sir that I bring the car to you, and then you can have a good look at it and try it out? Would morning or afternoon be more convenient?

The salesman is certainly not going to sell the car over the phone with the customer giving him an order there and then. He has established that the customer is interested that he has made the first approach, has not inspected the car but had resolved to do this in his original visit. The offer that the salesman makes is to bring the car to the customer for an inspection and test drive and he has only done this after a few preliminaries. He has judged, by the customer’s voice and responses that the customer is in the market for a new car; is resolved to have a look round to see what is available; is interested in a specific model. The salesman might ask a further question before making the offer to take the car to the customer: Sales: Customer:

So you have a little time to spare this week sir? Well, Tuesday or Wednesday. Today if you wish.

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This indicates that the prospective customer is warming up, is interested in looking further to resolve his need. The salesman would not then need to use the alternative close, morning or afternoon, because the customer has decided. The salesman then puts the onus on the customer by getting him to make the decision: Customer: Sales:

Could we make it about eleven tomorrow morning? Of course sir. Now what address? [Receives this and other details] What car do you run now sir? [Obtains this information] Nice car. What’s its mileage? [Given] We could make you an attractive offer on that if you’re interested sir. Well then, until tomorrow at eleven sir. Thank you.

The salesman is reinforcing the resolution made by the customer. He has hinted that the customer will obtain a satisfactory trade-in price for his current car. This increases the desire to purchase the new one. As always, listen carefully to the answers and responses. This customer may only be interested if he can arrange a part-exchange with his present car; and only if he can get a good discount on the new car, and so on. The responses and points made by the customer condition your replies. Before you make an offer ensure that the need has been established. If you don’t you are wasting your time and resources. When selling, it is very easy to give the impression that you are pressurising the customer. To avoid this, make sure s/he knows what the offer is and that there is no obligation. In other words, linked with your offer is absolute satisfaction guaranteed. Making an offer on the telephone Making the offer on the telephone is a specialised activity largely built on confidence. As the potential customer cannot see you, confidence is built with the voice, words used, speech patterns, and the way you pose questions and make suggestions. Consider the following in which a telesales operator is phoning a motorcar distributor with the objective of getting them to advertise in the newspaper she represents. This telesales conversation actually happened. Names have been changed to preserve the anonymity. Note particularly how the woman opens the sale, how she tries to identify the customer’s needs and how she identifies a need completely different from the one she was pursuing. She obtains resolution of the newly found need and finally makes the offer that the customer finds difficult to refuse! Sales: Customer: Sales: Customer: Sales: Customer: Sales: Customer: Sales: Customer: Customer:

Good morning Mr Peters, Joan Black of the ‘News’ ad department. I see that you have been advertising recently in the… Yes, I have May I ask Mr Peters, whether you’re having any success with your campaign? Yes quite good. I see you are advertising an 02 MR2, one previous owner. What colour is it? Silver—metallic silver. It’s front wheel drive isn’t it ... and power steering? Yes. Also, stereo with five speakers, showroom condition and, of course still under warranty. And mileage? Very low, under 5,000. Sales: Those points don’t come out in the ad Mr Peters. Don’t you think… I don’t know if you were thinking of buying it but you’re too late. It went yesterday.

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Sales: Customer: Sales: Customer: Sales: Customer: Sales: Customer: Sales: Customer: Sales:

Customer: Sales: Customer: Sales: Customer: Sales: Customer: Sales:

Customer: Sales:

Customer: Sales: Customer: Sales: Customer: Sales:

I was going to…er…never mind. I’ll phone you in a week or so Mr Peters. Incidentally, we are planning a special feature for car sales shortly. Perhaps I could phone your secretary and arrange to drop in. I wish you could. I’ve just lost her. She’s been with me for the last ten years. Her husband’s been promoted and they’re leaving the district. [Realising an opportunity] When will you be getting a replacement Mr Peters? Early days yet. She only told me yesterday. Have you thought of advertising in our special section dealing with top secretaries? No. But, that would be expensive. But you would want a first-class replacement wouldn’t you sir? Of course but…well…what would a classified ad cost in that section? Classifieds are €10 a line sir but I don’t think that’s the best way to get the kind of secretary you need. You should consider an ad that sets itself apart from the classified. It’s a semi-display. That’s €20 a single column centimetre. So if I had something about two inches by two inches, what would that cost? Mr Peters, you want a first class secretary and you’re in competition with every other business in the area. To attract the sort of applicant you want, you should take a six-centimetre by two columns, that’s twelve single column centimetres, which is two hundred and forty euros. Hm! Would that give me a large space compared with other ads? Yes. You wouldn’t be the largest but your ad would certainly catch the eye. But, one insertion won’t be sufficient. You’d need to think of a series of four… Hey! Wait a minute. I haven’t even decided to put one in yet. You’re talking about a thousand quid’s worth of advertising. Sorry Mr Peters. I didn’t finish. You are advertising for a top-flight secretary aren’t you? Yes. Absolutely. I need someone more than just a shorthand typist. And you want to get the best that’s available? That’s for sure. That’s the reason I suggested a series of four. You’ll be sure of getting sufficient replies from which to make a short-list. And, if you fail to get satisfaction after the four insertions, we insert a fifth one free of charge. However, once you are satisfied, you can cancel any of the remaining insertions and you only pay for the ones you’ve had. You mean that if I don’t get someone after four advertisements I get a €240 advert free? Yes. Or, if you decide to take a larger space—I’m not suggesting this—but if you did, you’d get the same size ad repeated at no charge. I must say though that such is the pulling power of this section, it is unlikely that you’ll need four insertions. If I order four and get someone after say, two have appeared, I can cancel the others and it will only cost me the two insertions? Exactly. But I don’t have anything prepared to put in the ad. I’m so busy. I don’t have the time to do it. I think I’ll have just a couple of lines. If the copy were ready Mr Peters and all you had to do was to let me know the salary range etc. that would get over that difficulty wouldn’t it? Yes. But, like I said, I’ve no one here to do it. Mr Peters I’m used to this situation. Our art department is preparing layouts all the time. It’s all part of our service. If I have the facts, we can soon knock it

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into shape. I could call round to see you this afternoon or tomorrow morning and you could have the ad in the next issue. Which would be more convenient? Joan Black was monitored during this phone conversation. It was a potential customer who had not used her paper previously. She started with the objective of getting the showroom to insert a special ad for the MR2—the car she had seen advertised elsewhere. When she learned that it had been sold, she changed tack and introduced the idea of the special car feature. On learning of the loss of the secretary, she changed tack again and decided that she should try to sell advertising for a replacement. This newspaper has separate departments for different types of business but all sales staff are continuously trained to offer the services of other departments if the need arises. If she had not been thoroughly trained, not well briefed on the paper’s total advertising plans, and unable to sell the services of the paper’s art department, she would not have made the sale. Questions up to Chapter 8 8/1 You should never make an offer to a prospective customer until…until when? 8/2 When you pick up the phone to make a sales call, what should you have to hand? 8/3 If you lose orders, it will be because you are failing to close strongly. Do you agree? If so, why, if not, why not? 8/4 What do you think is meant by ‘talking yourself out of the order’?

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CHAPTER 9 ASSESSMENT OF THE OFFER—DEALING WITH OBJECTIONS You are phoning your prospect, after the usual salutation, opened the presentation, explored and probed real needs, articulated these and got the prospect to understand them. The prospect has resolved to satisfy the need and you have made the offer. Then come the objections! Always there will be objections. It is part of the buyer’s job to purchase the quality appropriate to specification as keenly as possible. Buyers are not doing their job unless they buy the quality required at the lowest possible price. Raising objections is second nature to buyers. You will never hear a buyer say: ‘I like your product but the price is too low. If you could raise it by about ten per cent, I’ll place the business with you.’ Always your price is too high. Always they want a discount. Even when you have gone beyond that stage, shaded the price a little, and agreed terms, the purchasing director enters the stage and wants to justify his position by proving that he can get a little extra per cent discount! Get used to receiving objections. They are as natural as the wind. Sometimes they are gentle and refreshing, other times they are like a howling gale and you can do nothing about it. However, do not take the view advocated in some texts of welcoming objections on the mistaken idea that they prove the prospect is interested in your product. It is not true. However, if the prospect is stating one or two objections, at least the sales conversation is still active! Helping the buyer Objections are a normal part of the selling process. Once you accept this, you develop a sounder attitude to dealing with them. It is your job as a sales person to help the buyer to make a decision. If you are trying to get an appointment, help the prospect to agree to see you. Make it easy for the prospect to fit you in. When selling something, often you are asking the prospect to change behaviour. They have been using one system and you are asking them to change to another. They have been driving a Ford and you are asking them to change to a Toyota. People seldom change behaviour without resistance. Most of us are opposed to change. The old way is easiest, the old product is a trusted friend; we do not know the new, it is untried; we fear it. Instinctively, prospects assume a defensive attitude. The more ‘attacks’ they are subjected to from sales people, the more pronounced is their defensive attitude. This can progress into antagonism towards anyone trying to sell them anything. A much-tried prospect may actually take the offensive and force you to assume a defensive, disadvantageous posture. If you are trying for an appointment, make it easy for the prospect to agree to see you. Don’t do what one salesman did on the phone: Sales: Customer: Sales:

Mr Prospect, I can call any time to suit you. When may I come along? This Thursday at eight-thirty would be fine. Ah! That’s a little awkward for me…I’m afraid I can’t manage that.

Then why did he say he could call any time to suit? To suit himself obviously! Stick to what you say and share any exceptions before you put the point to the prospect. I can call any time to suit you except Thursday morning before eleven. This is a real story that was learned from a salesman who was recounting the incident to colleagues. His attitude was just as obtuse: ‘Of all the times I could have seen him, he chose the one day when I had to take the kids to school.’

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It is also an example of Murphy’s Law. You will meet it frequently. If there’s only one time when it’s really inconvenient for you, that’s the time the other person will choose! When you have made an offer to the prospect that, as far as you can ascertain, fits the prospect’s needs, you will have reached the stage of assessment. It is usually at this point that the prospect raises objections. Objections are signposts Prospects who raise objections may be helping you by letting you know how far you are from your closing objective. Also, additional information may be given to guide further approaches. During the sales presentation, test frequently to detect the thoughts of the prospect: You agree?, That would suit you wouldn’t it? That particular feature would be of great use? Sometimes prospects remain unconvinced because you have failed to overcome an objection or to deal adequately with one point. Avoid arguments in handling objections There is a greater tendency to become involved in arguments when dealing with objections than with any other selling activity. To become involved, spells disaster for your presentation. Irrespective of the force with which a prospect expresses disagreements and objections, it is fatal to argue. Always remember that you are helping the prospect to buy. Stay firmly outside any argument and offer suggestions. A gram of suggestion is worth a tonne of argument. If you argue, you are trying to force the prospect to adopt your conclusions. If you suggest, you are inviting the prospect to arrive at his/her own conclusion, which corresponds with yours. Few people, especially women, are won over with argument. Anti-argument phrases Phrases and sales points used in handling questions and objections must be anti-argument. That is, do not say ‘This fire prevention service is the best in the country’, say, ‘From what other clients tell me, they think it is the best on the market’. When told that your price is too high, don’t argue, do not say it isn’t! Say ‘I can understand your saying that. Others have thought so until they used it’. Do not say, ‘This system will save you ten per cent,’ say, ‘This system saves other users an average of ten per cent.’ An error in a sales presentation is to listen to a prospect’s objection and then try to find some point in it with which to argue. The better method is to listen carefully and try to find some point with which you can agree, and then go on from there. Valid and invalid objections To appreciate these two main types of objections it is necessary to understand the meaning of the word valid. Valid does not necessarily mean true. An argument can be valid, that is, a correct conclusion following logically from given premises, but not true. Thus, objections need very careful handling. You must first decide whether the objection is valid and then whether it is true. In either case, you cannot argue with the prospect. Before looking at specific objections, consider basic validity and truth. Valid, not true: All offers made on the telephone are doubtful You are making this offer by telephone Therefore it is a doubtful offer. The argument is logically correct but the premise that all phone calls are doubtful is not true.

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Invalid: The telephone can be used to make false offers This offer is being made by telephone Therefore it is false. The premise is true but the argument invalid. It is one of the more common illogical arguments of the form: All A is B This is B Therefore it is A When clad with words, the invalidity is clear: All Frenchmen are Europeans This man is a European Therefore this man is as Frenchman. Valid, and true: I never buy anything on the telephone You are making an offer on the telephone Therefore I will not buy. This could be responded to with the valid and true argument: All services I offer by telephone I guarantee satisfaction I am offering this service on the telephone Therefore it I guarantee satisfaction. Valid objections are genuine and follow logically and correctly from what has been said but are only true if the premises on which they are based are true. Invalid objections are incorrect. You cannot deal with valid objections by simple answers. They usually take the form of ‘We have no budget for it’, We do not need it. These two responses are also widely used as smoke screens to conceal real objections. In the same way that people have two reasons for doing anything, the good reason and the real reason, so do objectors have two sorts of objections, a good one and the real one. Unfortunately, you have no way of knowing whether an objection is genuine or a stall. Deal with objections by treating every objection as valid and responding to it appropriately. Never assume that the objection raised is a stall—there is no way you can know this for sure. If you react as though you think it is a stall, you will antagonise the prospect. Whereas, if you treat the object as valid and respond professionally, the prospect cannot take offence. In fact, you can frequently manoeuvre this to your advantage. If you treat an objection on its merits and the prospect really was raising it as a stall, the prospect might feel the need to compensate later in the discussion. Let us examine some of the more usual objections and suggestions for dealing with them. Objection: We’re satisfied thank you One of the most frequently raised objections is We’re satisfied with our present supplier. If they are 100 per cent satisfied you’re knocking your head against a brick wall if you try to overcome the objection with simple responses. Your objective must be to persuade the buyer that second sourcing is advisable. Do not try to sell against this objection but suggest how the buyer might organise company purchases should a shortage of supplies ever occur. Try to discover who is the present supplier. You:

May I ask who supplies you Mr Prospect.

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Customer: You:

[Names supplier] They’re a good company. Many of my customers also use them. One of my best customers splits his business between them and us. Whenever one of us has difficulties with servicing or deliveries, which can happen to all of us, he is never caught short. Second sourcing policy is a sound policy. May I put our latest catalogue in the post? You could review which products you need to consider as a back up.

Another tack can sometimes be used to get information: You:

Oh! A first class company Mr Prospect. Some of my customers think similarly about mine; others think so about the company you use. Tell me sir, what do you particularly like about that company?

Where you go from here depends on your product and the response you get. Your call objective must be to get the opportunity of quoting. Sometimes a good strategy is to get the prospect to agree to a trial usage. Prospect: You:

We’ve used a Simpson for a long time and prefer it. A first-class machine, Mr Prospect. It gives good results. I would like to know more about it in comparison with ours. You’re a fair-minded person, Mr Prospect. I’d appreciate it if you would give our machine a fair trial and let me know how it compares with the other. May I call and discuss it?

With some products, it is impracticable to arrange for a trial. And, if the customer has been using the same product for a long time, changing attitudes can be extremely difficult. Your best course of action here is to search for those reasons why the prospect maintains loyalty to the competitive product. You:

A first-class product, Mr Prospect. My customers think similarly about mine, others think so about the one you use [or sell]. Tell me sir, what is it you particularly like about that product.

By getting the prospect to outline the features about the competition, you may be able to modify your subsequent presentations knowing what to stress in you product. You will also learn whether such loyalty to the competitive product is based on sound reasons or is a manifestation of prejudice or habit. Objection: No need because we are overstocked The only way you can help the prospect to overcome this objection is to close for an appointment and then see how you can help to move the stock. Sometimes, not only do you have to sell in, you have to help to sell out. Prospect: You:

Sorry, but until we can shift some of our present stocks we’re not buying any more. Mr Prospect, you will know far better than I that products held in stock cost money—they don’t earn money. I have one or two ideas that might help you to shift them. Would it be all right if I looked in tomorrow morning [or whenever] and discuss it with you? Or would tomorrow afternoon be more suitable?

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Objection: We have no call for your product A common objection especially when selling to dealers. There are a number of ways to deal with this: You:

I don’t want to be rude Mr Prospect but don’t suppose you have any call for haircuts. But, if you put a large illuminated sign outside of the store, you would. Our packaging is so well known that if you display it you’d sell it.

You:

If we only stocked those goods we get a call for Mr Prospect, our business would come to a standstill. If you get a call for a product before you stock it, would your customer wait until you receive supplies? I doubt it. The customer would buy from your competitor and that would open up the opportunity for buying other things. Before you know it, you’ve lost a customer.

Objection: No room for a new line Most dealers and retailers, especially pharmaceutical chemists, who have all their available space being used, raise this. The stocking of goods is a problem of selection. Dealers must stock those good that are going to sell. If they stop buying when their available space is filled up, how do they know that they have the variety of goods that will sell? Some of their lines may be out-staying their welcome and occupying space that could otherwise be utilised by your product. You:

Of course you don’t have any room Mr Prospect. You wouldn’t be as good a businessman as you are if you did have room. No one should stock a new line until they know what it will make per square metre for them. When I show you the evidence of what returns can be made on the new product—all backed by the experience of others—I think you’ll want to sell it. They all attest that it doesn’t stay in stock long

Objection: We know of a problem… The buyer continues to say that they know of another company that had problems, was not happy with your service, or it gave trouble, etc. You cannot deny this. You do not know the facts. Get the complaint into the open. Ask specifically what was the problem. You:

This is the first I’ve heard of this Mr Prospect. I’ll take it up with the customer right away. May I ask who it is? Customer: It was Wilsons. I don’t know all the facts. But they had trouble with your product. Objections are sometimes like complaints. Don’t deny them, don’t contradict them, or ridicule them. Listen, establish the facts, and stay cheerful. Be glad that you can put things right, say you will deal with it immediately. And do so. Sometimes product objections are broad-based attitudes or opinions tinged with prejudice. You cannot deal with this over the telephone. Go for an appointment close because you must try to get a personal interview with the objector. Classification of objections • Imagined objections • Pretend objections—excuses • Real, sincere objections Your first task is to find out the real nature of the objection. To do this adequately you must consider it in relation to the objective you have set yourself. Reviewing some of the things we are trying to achieve when we make a phone call:

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• To obtain information. • To make an appointment to call on the prospect. • To sell something, which really means getting authorisation to deliver something to the prospect in the expectation that it will be paid for. • To obtain agreement to submit a quotation. • To have our company’s name put on their potential suppliers’ list. • To progress the sale. Never be rigid about your objective. You might start out with one objective and find during the conversation that it is appropriate to change it. Here is a simple example: Executive: Customer:

Good afternoon Mr Prospect. Keith Darby of CRI. I’m in your area next week and wonder if it would be convenient to call. Ah! Good afternoon Keith. Glad you phoned. We are looking for two consultants to oversee the installation of a new system. Have you got anyone available for about 80 man-days?

They don’t often happen like this but obviously Keith will change his call objective. And recall how Joan Black, the saleswoman on the newspaper quickly spotted a new need for the car dealer and sold him on a series of ads for a new secretary. Imagined objections Prospects often raise objections that have no substance. These are imaginary and usually the result of faulty communication. You can probably detect an imagined objective if it does not follow from what you have been saying, is not valid, or is the result of someone having given the prospect misinformation. Sales:

[Call objective is to arrange an on-site demonstration] That’s how we could improve your design and manufacturing system Mr Prospect. Customer: I’m sorry there’s no way we could undertake a major investment at this time. There’s no point in your putting on a demonstration. Sales: [Deciding it’s an imaginary objection] Mr Prospect, what do you understand to be the minimum investment necessary to start this system? Customer: Well...er...from how you’ve described it...er...I suppose we’re in the halfmillion bracket. The cost of the initial stage is between €4,000 and €5,000, so it is an imagined objection, possibly fed by a competitor trying to sell on price. You don’t scoff and say that your system doesn’t cost anything like that. You allow the prospect to save face. Also, be alert to the possibility of using the linked-benefit technique. Sales:

Customer: Sales: Customer: Sales:

Mr Prospect you’d be unwise to consider an investment of that magnitude without careful consideration. It must be done in a controlled manner over a period. Not only do your design and product people need to learn to handle the new technology but also there must be minimum interruption of your current production. The initial stage I’m suggesting need not involve you in more than about ten thousand. Hm! Once installed, you can decide on a controlled upgrade as funds permit. Hm! Tell me, is €10,000 stretching your budget too far at this time? Because if it is, you could lease the equipment and upgrade as necessary. May I suggest that you have a look at the demonstration first? Obviously, you’re not committing

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your company in any way and then you can decide where we go from there. What about, say three weeks on Tuesday? The fourth? Another imagined objection: Customer: Sales:

No! We prefer not to install your equipment. It doesn’t run as fast as the Bourton machines. That’s perfectly true Mr Prospect. Our equipment only has to be serviced twice a year. We have compromised slightly on speed to increase total usage time. As you know, downtime with this equipment is a costly business, so we designed it with total operating cost in mind. If you ran the two side-by-side for a year, do you have any idea of the saving that our equipment would show you over any other equipment on the market?

I am not going to give you a series of success stories and demonstrate that you can overcome every imaginary objection. Imagination is a very powerful human ability. You must remain flexible and responsive to every objection. If you judge it an imaginary objection, then it is likely that the prospect does not have sufficient data, or does not fully understand the proposition. Your line of response must be based on open probes followed by closed questions so that you can explore hidden or unknown reasons and narrow down the objection made to its real root. Pretend objections These are not real but part of the prospect’s natural defence mechanism. The best way to deal with them is to treat them as real and deal with them accordingly. This is calling the prospect’s bluff. Here is an extreme example: Sales: Customer: Sales: Customer: Sales: Customer: Sales:

[Is in the reception area and has been invited to talk on the internal phone to the prospect] Hello Mr Prospect. Hello. I’m afraid I’m too busy to see you now. Please leave it for a month or so. Certainly sir. You’d like to leave it for the time being? [Using the barrier building technique] If you don’t mind. Of course not. Do you have your diary handy? Yes. What about…[pausing and stating a date about three months away]…the seventh of [whatever] How are you fixed?

The prospect is not sure now whether the sales person is serious or not. Provided the sales person remains cool and collected it may be possible to organise an earlier appointment. Here is another too busy excuse: Customer: Sales:

[On the internal phone] Sounds fine but, really, I don’t have the time today. I understand sir. Would it be any use joining me for a quick lunch? Is there somewhere close to the office where we could be served quickly? I don’t need the whole lunchtime to tell you my story—just about five minutes so I won’t be boring you.

Always offer coffee or something, implying that you re ready to buy something stronger. If you offer a drink, you might easily offend the customer who has strong views about drinking

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alcohol especially during the lunch hour. Similarly, never drink alcohol during your own lunchtime. You overcome pretend objections by listening and developing more information for the prospect to think about. For important companies, maintain records of personal preferences of the main contacts. This should ensure that you could always get on their wavelength and make suggestions that will accord with their inclinations. If this contact has a liking for certain foods, you can probably suggest an appropriate place without having to resort to asking for any preference. Often, the receptionist is a useful source for this kind of information. Customer: Sales: Customer: Sales: Customer: Sales:

Thanks very much but I just have a sandwich here. I see. Every day? Mostly. Do you like home cooking? [laughing] Yes. Mr Prospect, why not have a change today as my guest? I know a little place quite near to the office where I often have a midday snack. Their steak and kidney pie is really first-class. Why not let me pick you up around half twelve?

The salesman has changed his objective. He is now trying for a social appointment Customer: Sales:

It’s nice of you but I really don’t think I can today. All right Mr Prospect. I realise you’re busy. Maybe you can join me another time. Tell me when could you fit in about half-an-hour or so to see me?

Don’t give up. When you get excuses, probe and get to the real root of the objection. When you think it appropriate, call the customer’s bluff but listen carefully to responses. Often the ‘too busy to see you’ is a defensive excuse; you’ll hear this often. Irrelevant objections Don’t be led into a contentious area on points that are not relevant to the proposition you are making. Occasionally, a prospect is prejudiced and holds odd or extreme views. Your job is not proselytisation or conversion. You must be interested only in the prospect’s views of the proposition. Do not get drawn into side issues. You will gain little by being drawn into discussions about irrelevant issues especially if they concern politics, religion, local problems, controversial people in the news, and other red hot topics. Unless the objection deals directly with the proposition, do not take issue with the prospect’s remarks. If the prospect says, the world is flat, so be it; it certainly looks as though it is! Another side issue comes in the form of dissonance reduction. Dissonance reduction People always seek to justify their attitudes, opinions, and actions. One method of doing this is by reduction of dissonance. This relates to the theory of cognitive dissonance developed by Leon Festinger in the 1950s. It was based on experiments showing that the grass is not usually greener on the other side of the fence, nor are grapes within easy reach the most sour. People who have purchased a product often seek to justify their acquisition by reducing or removing any inconsistencies or doubts that may linger after buying it. A man who has bought a certain model of car takes great pride in reading about the same model winning an important rally. A woman who has purchased a domestic appliance is attracted to any subsequent advertising she sees or hears for it. Those who have adopted certain viewpoints and opinions or have suffered indignities, contradictions, or irritations through the acts of

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others, will seek to reduce their dissonance. They want you on their side. They will explain what happened, how they have been aggrieved, and how right they were and how wrong the other person. They are seeking to reduce dissonance by getting you to agree with them. The salesman earlier who offered an ‘any time’ appointment to a buyer who chose Thursday morning at eight-thirty was subsequently attempting to reduce dissonance by seeking agreement from his colleagues. It is also one of Murphy’s Laws of Planning. You’ll meet them frequently. If there’s only one thing that can go wrong, that’s the one that goes wrong. If there’s just one time, when it’s really inconvenient for you to do something, that’s the time the other party will choose! Real objections Answer objections at once but don’t play ping-pong. That is, don’t always react immediately to an objection. This would be verbal table tennis with objections and rebuttals flowing backwards and forwards between you and the prospect. You would not be progressing your sales presentation because you would be engaged in a duel of argument and counterargument. Think about the objection and respond to it quickly. If you forget or neglect to return to it, the prospect will think that you are unable to deal with it. Unanswered objections stay festering with prospects and are often the real, hidden reasons for your not being able to close a sale. You must be thoroughly conversant with your product and its uses so that objections though real, can sometimes be turned to good use: Sales: Customer: Sales: Customer: Sales: Customer: Sales: Customer: Sales:

[In the reception area talking on the internal phone to the engineer] Mr Prospect, I’m with the Norwich Valve company. I wondered if I could see you for a few minutes. Ah! I don’t buy valves But you use several valves in the company don’t you? Yes. But I don’t buy valves. But if you had to say which valves gave you the most headaches would you say it would be the variable pressure outlets? Yes. True, but like I said, I don’t buy the valves. Do you think the buyer who buys them would be interested in a variable pressure valve that would reduce downtime because of faults? Of course. Could you tell me whom I should speak to sir? And may I tell him that I’ve had a brief word with you on the subject?

A real customer objection, which the salesman uses to alter course. He turns it to his advantage because he knows his product and the industry. Price objections Most real objections are to price. You can always reduce price; buyers will be only too pleased. It is part of their job to buy as keenly as possible. You: Customer:

[After the preliminaries] I trust you received our quotation. Yes thank you. We like your product but I’m afraid you’re out on price.

What an unusual response! Nevertheless, suppose that this is a real objection and the price is too high. The question you would really like to be answered is ‘How much are we out?’ But, this is the one question you should never ask unless you know the prospect very, very well. If you know the prospect really well you can ask a direct question. But, no matter how well you know the prospect, it is better to act professionally. By using a competent approach, you can

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hone your selling skills for the times when you do not know the prospect and you are searching for information about price. Here are salesman Bill and prospect Fred, well known to each other: Bill: Fred: Bill: Fred:

How much are we out Fred? About two hundred. Hm!…Okay. We’ll match it. [Being the good buyer he is, keeps his options open] Fine Bill. We’ll be placing the order by the end of the month. I’ll be in touch.

Bill has not used any selling skill but relied on his friendship with Fred; he has dropped price too quickly and Fred will now use this against another supplier. While they may be acquaintances, even friends—business is business. Sales people should always be professional even, or perhaps more so, when dealing with friends. To cope with the inevitable objection to price you must know your product and its capabilities, its different applications, be thoroughly conversant with price structure, discounts, the market, and competition. The general response to an objection to price is: Sales:

What do you consider should be the price for this product?

There are four possible responses: (a) Similar to ‘you tell me’. (b) A ridiculously low price. (c) A reasonable price but lower than you can accept. (d) A price you could accept there and then. Response (a) similar to you tell me. This response must be treated with care because you could be put on the defensive and you must never defend your price. You want the answer to the question you do not ask: How much are we out on price? So, with this you tell me type of response, you must get back to your original question: Sales: Customer:

Well Mr Prospect, in a way, I have told you what I think is a reasonable price. It’s the price we’ve quoted. You obviously think this is too high and I wondered what you considered should be the price? Yes. I know you did, but it’s too high.

A wily buyer putting you on the defensive again. Try to use the buyer’s cleverness against him. Sales:

Well, let’s say [stating a price about 20 per cent lower].

Now, this is the point where sales people should have learned when not to speak. There are many situations where that point is reached. A statement has been made, a question asked, an offer put forward for consideration. In general, the first one who speaks loses! The salesperson has arrived at that situation here and the ball is now in the buyer’s court. After stating a price reduced by approximately 20 per cent this salesperson must keep quiet and resist the temptation to continue perhaps saying, how does that appeal? or, what do you think? Whenever you get a response similar to the (a) type, get back on the original track of getting the buyer to state what s/he thinks is a reasonable price, even if you are forced to suggest one.

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Response (b) a ridiculously low price is quoted. Occasionally, the quoted price is so low that the prospect may be trying it on. Whatever the reason, it is an objection that you accept as genuine. In effect, the prospect is saying that the product can be bought for less. This is why you must know all the competitive products and their prices and we assume that the price you have quoted is keen and reasonable. You have had an objection against your price and been told that the same quality can be bought for less. Sales:

Really? Much lower? That interests me. Would you mind telling me which model you can get at that price?

Either he knows or he doesn’t. If he doesn’t know you must be able to state the important comparable products and their prices to prove that you know the market and the products that compete with yours. If he does know and mentions the product, you may have unearthed a marketing problem. The very low-priced product he mentions may be of a different quality but satisfactory for their needs. Your company must be notified because they may need to revise product policy. There is no sense in operating in a market with products of too high a quality. Alternatively, the competitor may have priced the product at a very low price to buy market share. If this is a real objection, it is a marketing problem for your company and not a selling problem. There is also the possibility that the buyer may need to be educated in the uses of the product. He may not be able to differentiate your product from the one he says he can buy for less. While your product may possess more attributes than the competitive model, not all of them may be product benefits for that customer. While product differentiation is a characteristic that often exists in the buyer’s mind and not in the product, with professional buyers, this is far less marked than it is with consumers. The prospect may be saying ‘It’s not worth the price you are asking.’ He is then not so much comparing with competition but possibly displaying his ignorance of the market. If he thinks it’s not worth it, his understanding of quality is lower than your price and those prevailing in the market. It isn’t that your price is too high; his idea of quality is too low. Justifying price A powerful method of dealing with price objections is to show that by using the product or service, the price is recovered in a reasonable period from the savings made. Another approach is to break price into smaller units. Most products can be presented as so much a week, a day, or per operation. Response (c) a reasonable price is quoted but lower than you can accept. If you receive this objection, you have to justify, but not defend, your price. This subtle distinction means that you do not try to say why your price is so high but to explain all aspects of price and how it is made up. You explore initial price, installation costs if appropriate, delivery, warranty and guarantee, allowances, trade-ins, credit, payment terms, after sales service—the whole range of costs. The idea you have to get over to the prospect is the cost of ownership. It isn’t the initial outlay. It’s also the cost of running, the cost of maintenance to keep it in first-class working condition. The buying magnet Response (d) a price you could accept there and then. This response allows you to use the buying magnet technique. This combines barrier building with the linked-benefit technique: Sales: Customer:

What would you consider should be the price for this product? We wouldn’t pay more than a five hundred euros for it.

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You can accept this price—but do not jump in and say ‘That’s fine, I’ll agree that price.’ Prepare the prospect, combine linked-benefit with the barrier. Sales: Customer: Sales:

Hm! You’re saying that five hundred euros is about the right price for this product. [Linked-benefit] Yes. Hm!…(pause)…if I could offer it at a five hundred euros…(pause)…you could have placed the order. [Building the barrier]

Note the pauses and phrasing of the question, if I could offer, and could have placed the order. Customer: Sales:

Yes. [This is now a barrier behind which the prospect cannot retreat.] …[Pauses]…OK sir. I’m prepared to put the order through at five hundred euros, but I’ll need an order number to justify this special price.

The essence of this technique is making sure that prospects understand exactly what they have said; agree that they have said it, and that it is a genuine agreement. One genuine objection The objection, we can’t afford it is perhaps the one genuine objection (assuming it is true). The line to take is that assuming the prospect had the available money, he would buy the product. You should have previously calculated some attractive financing packages by which the product could be purchased at your price. Customer: No! It’s too high. Sales: You’re saying, Mr Prospect that you would like to have our system but the cost is over your budget. Customer: Yes, I’m afraid it is [barrier built]. Sales: We could arrange for a leasing agreement through our own finance company if this would help. You would then also have a tax advantage by including the leasing costs in your operating costs. Quality is remembered long after the price has faded into the background. If a quality product has been purchased its price becomes part of the pride of possession. People often ask when showing a product they have bought, ‘What do you think of it?’ and, after expected murmurs of approval and perhaps envy add, ‘You know, that cost me —!’ Remove objections Remove the objection, or the idea that something is to be objected to, from the prospect’s mind without giving offence. Remove any feeling of guilt from prospects, let them save face, with ‘I didn’t explain that properly,’ ‘Sorry I misled you but…’ ‘It’s easy to misunderstand this because…’ Make concessions before you respond. If the prospect rebuts something you have said, don’t argue but say, ‘That’s true, however…’ ‘That’s a good point, I wonder if …’ Flatter prospects by letting them think that their ideas are on the ball. Agree with them and then add one or two points of your own. Don’t patronise prospects’ thoughts and ideas and certainly do not give the impression of belittling them. Say, ‘I’d like to think that through if I may. It’s a good point.’ Let prospects know they’re in good company, ‘Several people have that opinion, however…’ ‘A lot of people take that view, however…’

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Don’t answer these objections There are three important situations when you can postpone the rebuttal of objections: • Price objection early in the interview. • Rebuttal of an objection that you could use more effectively later in the presentation. • Sham or petty objections. An early objection to price would be before you have raised any desire for the product or service. To rebut it is simply playing with figures. However, if the prospect insists raising a price objection before you have developed your presentation, ask along the lines of, ‘How much do you want to pay for it?’ if it were possible for you to match the price, then use the buying magnet technique. You can sometimes turn an objection that you could rebut into good use but use it when the iron is hot. Maybe the rebuttal is a good point, perhaps a sound buying point. If it’s unique to your product all the better. You introduce the rebuttal when it’s appropriate by saying, the point you raised a little while ago about the [whatever], you did say [whatever], didn’t you? Let me show you how we have tackled that. You may find it of considerable interest. Five ways of handling objections Occasionally, prospects will raise objections that you could not foresee. They are reasons for not buying to justify unwillingness to conclude. You cannot always overcome objections. If the prospect does not have the money to buy your product or the product will not answer the real needs, you will not arrive at a successful conclusion. For the honest objections, there are five main ways of handling them: • Direct denial • Indirect denial • The reversal • Compensation • Question Direct denial There should be a warning attached to the direct denial method, Restricted use only. Great care is needed in using it. You can easily create antagonism and render the sales interview useless. Only use it when an indisputable fact has been queried. Assume that you are showing a new compressed air fire extinguisher to a prospect who says: Customer: Sales:

Yes, all very well but the cost of consumables is astronomic. I understand that replacement cartridges are nearly a hundred euros. [Using direct denial] A replacement cartridge for this machine is ten euros. Here is a cartridge. [Showing it] Here is the price on the side.

Another example: Customer:

A nice system but the servicing costs are high.

The sales person should not ask how much the prospect thought the servicing costs were but use the direct denial method. Sales:

It needs servicing every six months at the fixed cost of three euros a fire point. Other systems are serviced more often but when you compare the lower frequency of servicing of our product, the servicing cost of this system is lowest. Here are comparable figures to prove that.

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The sales person does not say you are wrong, or that is not true. In each case, the correct figure is mentioned immediately. This is important in the direct denial method of countering an objection. Its use should be limited to minor points because it is better to use another method to progress the sales presentation. Soften the direct denial method so that you are not telling the prospect s/he is wrong. Even if they are wrong, they will not like being told they are— especially when this is confirmed independently. Be simple and sincere in your use of the direct denial—you are just correcting a minor point made by the prospect. Don’t use a direct denial if the prospects are pompous, fond of their own opinions or give the air of knowing it all. Don’t use the direct denial if you are not entirely experienced in your job. Don’t use direct denial if there is any ego involvement in the objection. Never put the prospect in a position of having to defend the indefensible, or to maintain an erroneous point. Better to use the direct denial when the objection is in the form of a question, such as, ‘But won’t it deteriorate without more frequent servicing?’ ‘But it’s so small it doesn’t look man enough for the job’ ‘I think it’s too small a capacity’. Indirect denial This method fits most situations and recognises that no one likes being flatly contradicted. The basic form of the indirect denial is, yes, but—, or yes, however—, although it is better not to use the word but if it can be avoided. Better constructions of the ‘Yes, but…’ theme are: ‘Yes…[pause], I suppose using it in this way would…’ ‘Agreed, using it that way it would. However…’ ‘Yes, no argument. One of the beauties of this is that…’ ‘Yes—agreed, neither would I, unless…’ With experience, you can use this method with considerable impact, especially if dealing with a professional buyer. You can pause when the objection is raised. The prospect has advanced an objection that you intimate is not usually raised. You can appear baffled by the objection; you can frown and look a little perplexed. You impart the impression that the prospect is a skilled operator and knows what s/he is talking about. After you have given sufficient thought to the objection, introduce your answer in a way that will require the prospect to consider it carefully and respect your professionalism. The indirect denial method is a major tool to counter objections. It courteously removes the objection from the prospect without giving offence. It should be used in every instance where the objection can be shown not to be applicable. Reversal This method of handling objections is reversing the objection to the prospect as the very reason s/he should buy. It is sometimes called the boomerang because the objection returns to the prospect, or translation method because the objection is translated into a reason for buying. A common objection that can be reversed is that your company spends too much on advertising and if it were reduced, prices would be lower. But that is the very reason for our high sales. Customers already know our quality before they purchase. One of the most frequent objections is that the prospect is too busy. ‘But you’re just the one I want to see. Busy people know the value of time and money. I have a real time-saver.’

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The reversal method is useful against weak objections unsupported by facts. The prospect must not get the impression that his/her objection is of little consequence. Use reversals when you are experienced. This is particular appropriate when the prospect has got hold of the wrong end of the stick. The reversal should be natural and expressed sincerely. Compensation A useful method to rebut a valid objection. The objection is admitted and then a product advantage that compensates for the objection is pointed out. While prospects never complain about price being too low, objections may be made about quality. A prospect wanting to purchase some luggage might object to the fact that the leather was rather thin. This is agreed and then it is pointed out that if it were thicker, not only would it double the price, it would be very much heavier to carry. The luggage has been designed for travellers who prefer to travel light, and especially by air. ‘Why didn’t they put bells and whistles on it?’ objects a prospective buyer. ‘A good idea,’ replies the sales person. ‘How much more do you think customers would pay for them? That’s the reason they’re not there. We found they wouldn’t pay the higher price. At this price it has a steady sale.’ The compensation method can be used when the objection is valid and can be admitted by the sales person. Question method Sometimes, when an objection has been raised and dealt with by an ordinary rebuttal or statement of fact, it leads to further objections. Using the question method of dealing with them invites further objections that may be used to get the prospect to answer the objections raised! Customer:

I like the system. I’ve always wanted a [whatever] but two thousand is a lot of money.

Many questions could be used to counter this objection from the simple to the complex: ‘Don’t you think it’s worth that?’ ‘How much do you consider it’s really worth to you?’ ‘Do you know the output you’d get from it?’ ‘If you invested the same amount in a fund that gives 100 per cent return wouldn’t you be willing?’ Fundamental to the question method is Why? You are asking the prospect in different words why s/he has made that objection. Naturally, you don’t use a blunt Why? but in appropriate words. If a prospect said that, your product was far too light. You wouldn’t ask Why? you would ask, ‘Too light for what?’ which invites the prospect to expand on the objection and give you the opportunity to show that it is not really too light. The question method is ideal for use when objections are unclear or vague, where they lack logic or appear to be inconsistent. It can be most useful to develop the sales presentation by getting prospects to answer their own objections. Remember that good selling is good buying. You should help the prospect to assess the offer you have made. Ensure that you have financial justifications available to back your proposition. If the customer will save money by using your product or service, have evidence to support this. You should know competitive offers sufficiently to show how those products offer good value but compare the advantages of your product and how the buyer will be getting better value by purchasing yours. Whenever you meet an objection to price and the prospect says that s/he likes your product but that you are out on price, what you want to know is, By how much? or What do you really mean? If, after all your endeavours to close, the prospect still asks ‘Fine, but can I have a discount?’ there are only three possible answers: No, Yes, and I don’t know. Replying No, you risk everything. You have to restate in summary form why s/he should place the business with

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you. You should ask if the product could be modified or anything removed so that the price could be shaded slightly. As it stands you cannot offer any discount. Yes, means that you must have pre-calculated and know what it is you can offer. Don’t give this too early in the negotiations or you will be asked for more! I don’t know, is your last chance to retrieve the situation. As far as you are concerned you tell the prospect, you are unable to offer a discount. If you are negotiating a worthwhile order and there is still the objection to price and a discount is demanded, you can suggest a meeting is arranged with one of your more senior executives. All thee comments assume that your price is a fair one for the product. Above all, be convincing when you mention price. Don’t be afraid of your price and do not use vague words such as more or less, roughly, approximately, almost, and sort of. Be concrete. Over a hundred years ago, John Ruskin wrote, ‘There is hardly anything in the world that some man cannot make a little worse and sell a little cheaper, and the people who consider price only are that man’s lawful prey.’ Questions up to Chapter 9 9/1 Do you think that you should help prospects to assess the proposition you have put to them? 9/2 What possible ways might the prospect answer your question, ‘What would you consider to be an acceptable price?’ 9/3 During the sales presentation when are objection most likely to arise? 9/4 What is the best way to deal with objections?

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CHAPTER 10 GETTING THE DECISION A characteristic of a decision is that it can only be judged in retrospect. You cannot say, This is a good decision, only, that was a good decision. So, when making a sales presentation, the decision you must aim for is directed to your objectives. Getting the decision does not mean getting the order. It means achieving the objective you set yourself before you started. This is why having a main and subsidiary objectives before making sales presentations are so vital. When you close a sale, you achieve what you set out to do. When you consider the vast number of sales situations, and the amount of time and effort that must be invested to get a customer’s business, you will appreciate that closing the sale is seldom, if ever, done by a sole salesperson meeting with one buyer. With substantial purchases and capital acquisitions, the sale is closed, that is, a decision to purchase is made in the boardroom or in a committee in the customer’s organisation. No matter how technical or complex the product or service, or how professional and skilled the purchasing process, the emotional element is always present. This means that you must aim to make yourself a nice person to do business with. When it comes to an equal choice of one or two companies, your company will gain the business if you are good people to work with. From the start, this means that you make friends with everyone in the prospect’s organisation from the initial receptionist to the managing director. When talking with your various contacts try always to create the right state of mind. Maintain a positive attitude and, listen…listen…listen…and follow the five main stages: • Prospect must be in a receptive mood and relaxed. • Prospect hears all the facts. • Prospect understands the proposition. • Tell the prospect what will happen next. • Repeat the key points of your presentation. Get the prospect relaxed If your prospect is agitated over some personal or internal company problem, s/he is not in an amenable mood ready to receive your suggestions. This antipathy will create a natural obstacle to agreement with you. If it is in your power, put the prospect at ease so that s/he does not feel that something is being suggested is against her or his will. With telephone conversations, you cannot sense the atmosphere or observe body language. You have only tone of voice, and responses. Be on your guard against such antipathy and listen carefully. You: Customer: You: Customer: You: Customer: You:

I trust you had a good break. Excellent. Did you have any rain? Not really, just a few spots one day. It was over twenty degrees most days. And the food was fine. Superb—and the wine was cheap. Perhaps you’ll let me have the address of the hotel sometime. I’d like to go there.

People love to give advice and information. By this simple but sincere enquiry, you create a relaxed atmosphere. If you knew where the prospect was going on holiday (you should have previously noted this so that your questions were more relevant): ‘I trust that you enjoyed your holiday in Greece?’ Beware of the situation where you unwittingly open a can or worms. You: I trust you had a good break. Customer: Disaster.

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You: Customer:

What happened? [Relates the horror story at length].

Listen carefully because the prospect is going to use a lot of the time to let off steam. You have to respond with understanding. You:

So you don’t feel as though you’ve had a holiday at all?

It’s not a complaint against your company but treat it with respect just the same. Hear it out but don’t agree with the prospect. Be sympathetic and understanding. Ask for explanations and of course, never strike an attitude of ‘I told you so’, or ‘I could have told you if you’d only asked’. Here is how to pour petrol on the flames: You: Customer: You:

I trust you had a good break. Disaster. Oh yes! You went to Malidorm didn’t you? I’ve seldom heard a good report about that place. A pal of mine was there earlier in the year…

How not to win friends and influence people! If it is an important prospect, from the point in the response, ‘So you don’t feel as though you’ve had a holiday at all?’ you could take the opportunity of inviting the prospect to be your guest at an appropriate restaurant. If a very important prospect, maybe include his wife in the invitation. You can continue, moving away from the holiday experience stating the relevant facts about your proposition. Ensure prospects hear all the relevant facts You: Oh! I am sorry, [Or, glad you had a good time]. You’ll have seen our quotation. Have you had time to consider it? Does the specification match what you are looking for? Customer: Yes. Although your price is a little high. You: [Ignoring the objection] There are only two others on the market that can match your needs exactly; especially the high-pressure sprinklers. Customer: Yes that’s vital. You: It’s probably why our reconditioned equipment keeps its value. Customer: I didn’t know you did reconditioned equipment. You: Yes. Many of our customers upgrade as they expand premises. You know, come to think of it, we never sell new equipment. All of it is thoroughly tested and used before we install it. All the quality control in the world isn’t a substitute for equipment actually being used. That’s why the equipment we take back keeps its value. The proposition must be understood. You: As I said Mr Prospect, I’ll call and make a quick survey with you and the maintenance engineer. This will take about an hour. Then we could agree a convenient time for a demonstration. [Checking that prospect has understood] For my survey, can we agree on a day next week? Customer: Yes. Thursday will be a good day. Arthur will be available too. You: Fine. For the demonstration, you will need to have appropriate people attend; and we’d need about a week to organise it our end. Would the 25th or 26th be OK?

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Say what will happen next ‘Fine Mr Morris. I’ll arrange for Mr Grant to call on Tuesday. He can measure up and tell you exactly how much is required. Then, you can select the sizes and patterns from those he’ll suggest are most suitable. They’re all marked and priced so you’ll have a clear idea of the cost. He will be with you about half-ten—is that all right?’ ‘Right Mr Kempton. I’ll put the timetable in the post to you tomorrow; you’ll reserve the hotel room for Wednesday 28th and arrange for morning coffee, lunch and afternoon tea. We’ll need an overhead projector, spare lamp, acetate roll or separate sheets and a screen. We’ll also need a couple of stands with display paper and black pens.’ Repeat key points Repeat the main points, not necessarily using identical words but to stress the important issues. As you repeat them, the whole message begins to take shape in the prospect’s mind. This is why the prospect should be attentive, relaxed and not disturbed by other matters. Having summarised the key points, shut up and listen. There is great value in silence. You have heard politicians who, on being asked a question, make a statement that sometimes relates to it but is what they would really like to have been asked. They construct a loose reply to the doubt raised by their statement, reinforce it with evidence that is often at a distance from the original topic but appears to add credence to what has been said so far. They justify the manner of their response and add a paragraph or two of comments, which means they end up facing the opposite direction from where they started! This will not do in selling especially in telephone selling. Give short, succinct responses to the point…then stop! Here are the key points from the previous statements: ‘Mr Grant will have his equipment and samples. After he’s measured up, you can select patterns and check costs. He’ll see you at ten-thirty Tuesday morning.’ ‘Okay Mr Kempton. You’ll book the room and accommodation for Wednesday 28th, arrange for the OHP and display charts. I’ll bring the handouts, and other aids. I can organise the room layout when I get there. We start at nine.’ Maintain a positive attitude, positive towards the prospect, your product or service, and your company. Avoid negative attitudes like the plague. Don’t follow and join prospects into the negative areas where they go. Listen carefully and see what positive points can be extracted from the situation. All the time listen for closing signals—prospects’ remarks that suggest they have decided to take matters further: ‘You would be prepared to do this next week?’ ‘Would you need the works engineer present?’ ‘Delivery would be guaranteed in ten working days?’ ‘And it would take about an hour?’ ‘I do have a little time available on Tuesday.’ ‘I wouldn’t have the time to visit your premises.’ ‘Closing’ signals come in all shapes and sizes. It depends on the product or service, the offer made, the personality of the prospect and the way you have presented your case. You detect a closing signal by…L I S T E N I N G !

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Questions up to Chapter 10 10/1 When you open a conversation with a well-known customer who tells you of his poor holiday, should you sympathise with him? 10/2 What is one of the most difficult things for a sales person to do during a sales presentation? 10/3 All the time you are speaking with a prospect, you are advised to do something continually. What best answers this question? 10/4 What is the value of repeating the main points of your sales presentation?

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CHAPTER 11 HOW TO COMMUNICATE EFFECTIVELY Communication is a means to an end and not an end in itself. Most activities would cease if there were no communications. There are degrees of importance of communication. Consider the difference between Fire! and Take the cake out of the oven when it is golden brown. When someone shouts Fire! it is expected that action will be taken immediately. You do not enter into a discussion about it; you make for the nearest exit. Fire is not negotiable. When talking on the phone with someone, both of you expect a reasonably quick reaction to requests and questions. This means that your presentation must be well prepared, simple to understand and easy to act upon. The risk of a communication breakdown when using the phone is reduced because you are operating on a one-to-one basis and can keep a continual check to ensure that the respondent understands. Check that the main points of your conversation are understood by using this five-point plan: • What is suggested to be done? • When, where and, if necessary, how? • Who is going to do it? • At what cost? • Benefits—cash and non-cash. These cover all the main issues of any proposal. If you have to prepare a written report, this five-point plan will help you to cover the main things that have to be considered. When saying anything that requires understanding and especially on the telephone, remember to check that respondents know what you are proposing, when and where it will happen, if appropriate, how it will be done. Then, whether you or someone else is to do it, at what cost and with what expected results. This will tie everything up. Specimen survey conversation Here is a conversation between a consultant and her customer who has commissioned her to survey some of the customers’ clients. The five-point plan—what, when, who, cost, benefits —is used as a basis for checking that all is agreed. Customer: Consultant: Customer: Consultant: Customer: Consultant: Customer: Consultant: Customer: Consultant: Customer: Consultant:

Could you spend two consecutive weeks in the area talking with clients in one go, rather than taking two separate weeks? Yes. I’d prefer that. I’ll travel on the Sunday so that I can start first thing Monday. You’ll have arranged all the interviews by then won’t you. Yes. That’s no problem. We can fix about twelve for each week. Good. Twenty-four over the two weeks. Will they all be in the same general area? No. Some will be in the north but the main ones will be near Glasgow or Edinburgh. Fine. To reduce travelling, I take it you’d book me into the most convenient hotels near to the clients? Yes. I think we need to put you in at two, one just north of Glasgow and one north of Edinburgh. Somewhere quiet, I expect you’d prefer. Thank you. Yes. Can we meet on the Sunday evening? Perhaps dinner? Certainly. I’d like to have a full brief on the clients. I’ll be seeing for Monday, Tuesday and Wednesday. That’s no problem. Good. We’ve agreed the fee. How would you like the hotel bills paid? Will you see to it, or shall I pay and let you have the bills?

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Customer: Consultant:

Customer: Consultant: Customer: Consultant: Customer:

Which ever you like. I’ll pay, then and let you have them at the end of each week. Then, any private phone calls or other personal items I can settle separately. I’d like to have progress meetings with you on the Wednesday and Friday evenings to make sure that we’re all talking the same language. Sure. That’s fine. At the end of the two weeks I’ll prepare a report on each of your client, and any others that I see during the period and suggest the action to be taken. Splendid. Now. I’ll be driving up, arriving at the hotel about six Sunday evening. That’s the fourteenth. And see you for dinner. Say about seven-thirty? Yes. That’s OK.

Notice how the five-point plan has been used to cover the main points and that the respondent —the customer—has agreed those points. There’s one other thing you should always introduce—an insurance policy. Consider: Consultant:

If you need to contact me before I see you on the Sunday will you note these numbers please—01494, that’s High Wycombe, 638920 and my mobile is 07986 62 1948 OK? [Listens to the repeating of the numbers] and where could I get hold of you if I’m held up for any reason? [Listens, repeats the number as writing it down.]

Sales sentences Develop a number of sales sentences for each section of your presentation. To start with, you should develop a range of openings and have these prominently displayed in front of you when telephoning. You will find that you naturally develop just two or three. Here I am developing an opening that I could use if I were to phone you and try to sell you a course on telephone selling: ‘If you were able to develop more sales by using the telephone in your present job, would this be of interest to you?’ ‘If you were able to get more sales by a more persuasive use of the phone, would this help you in your present job?’ ‘Do you find that using the telephone helps you in your job to get sales?’ ‘Would using the phone to get more business be a cost saving for you?’ ‘Is it possible to increase you sales by stronger selling on the telephone?’ ‘Would it be possible to increase your sales by greater use of the telephone?’ ‘How much do you use your telephone now to help get business?’ ‘How much do you use the telephone now to get business?’ ‘Do you use the telephone now to get business?’ ‘Do you use the telephone to get business?’

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‘Do you ever use the telephone to get business?’ While I prefer some to others, I am still not entirely satisfied that I have the best opening. What is important, my personal preference does not count. I will ensure that I can say the opening flawlessly but the ‘best’ openings are those that get interested responses from prospects. Develop sales sentences, especially opening statements and questions by steadily working away at them. You should burnish them and your sales presentation as if they were a set of jewels. By doing this, you will acquire a natural, polished presentation and what is more, you will communicate more readily with prospects. After you have what you think are some good openings, practice them. When lecturing on marketing, I have a saying Remember that you make money from people—not from products. Just once, I slipped up and said, Remember that you make money from products—not from people…. Practice all important selling sentences by saying them aloud. Make your telephone conversation sparkle Your voice and choice of words do the selling—especially on the phone. Try to make them sparkle. Use words that stand out from the ordinary, that crystallise an idea in a phrase. You can achieve this by working at it with enthusiasm and practice to increase your vocabulary. You must be interested in the occasional use of words that are out of the usual run of everyday speech but not so out of touch that your listener needs a dictionary. Avoid using overworked words—they are dull and tired. Do not use the same word to describe everything. The word smashing used to be popular. I had a smashing holiday. He’s a smashing chap. That was a smashing meal. Use more appropriately descriptive adjectives and you will make your sentences sparkle: ‘I had a [restful, relaxing, exhilarating] holiday.’ ‘He’s a [considerate, generous, thoughtful] chap.’ ‘That was a [delicious, memorable, most satisfying] meal.’ To construct good, understandable modern prose you have to write tight, that is, it must not be loose, verbose, or circumlocutory. (Write tightly, would be grammatically correct but the shortened, write tight emphasises the point being made.) Similarly in speech, you should talk tight. Never use the following phrases unless they are essential for your meaning: • It is important to remember that … • In my view … • To be able to … • It’s clear that … • That’s very true [Very is not needed because it can only be true or not. It’s a like a woman being a little bit pregnant.] • In the case of …(only if literally, a case of wine, mistaken identity, commodity, etc.) Develop word command Write down some of your sales sentences and then re-write them with other words. Use different sentences when you are talking. Here a few statements about a software program supplied by a computer systems company: ‘The program is versatile.’ ‘The program is flexible.’

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‘The program can be adapted to most work processes.’ ‘You are not restricted to the one use.’ ‘The program can be adapted to any use you need now or might do in the future.’ ‘This program is probably the most versatile available today—in the US as well as in Europe.’ ‘You cannot obtain a better program. Its versatility is unsurpassed.’ ‘You will only need this one program. It is so powerful and adaptable for your needs.’ Comparatives and superlatives Do not use too many superlatives in your conversation or you lose credibility. If your product is the largest, the cheapest, the most comprehensive, and these are customer benefits, then say so. Generally, use comparatives rather than superlatives and your listener will be more inclined to accept the points you make. Use the comparative larger in preference to largest, faster instead of fastest. Tell the prospect that your product is one of the better buys on the market rather than the best buy. However, be careful not to reduce your sales presentation to an insipid, colourless tale. There is an obvious danger that by always using comparatives your conversation will sound unenthusiastic. The secret is to reserve the use of the superlative for your important selling sentences that contain the more, perhaps even the most, important benefits. If, during the sales presentation, you have detected that the internal size of the product is critical and that the prospect wants the largest volume possible, then if your product has the largest interior volume on the market say so. Here you wouldn’t use the comparative but the superlative. Another reason why you must listen carefully to the comments made by the prospect—so that you can use the appropriate sales sentences when they will do the most good. When using a superlative, have verbal evidence available to support it. If this support requires your showing or demonstrating the product, you would be unwise to go in that direction on the telephone. Consider all your selling sentences and prune them of superlatives that you cannot substantiate without some form of visual aid. Enthusiasm You must believe in what you are doing. You must like what you are doing. Monday mornings should provide a new interest, a new challenge for you. There are many words of similar meaning to enthusiastic—eager, zealous, avid, lively, keen, fervent. Be all of these in turn. Increasing your vocabulary Like everything that is worth doing, you must practise the use of words and break them in as you would a new pair of shoes. You will not be able to develop the skilful and accurate use of words overnight. Try to learn a new word as often as you can recall its meaning. When you come across the unfamiliar word in an article, newspaper or book, mark it and look up its meaning as soon as possible. Check, that the author has used it as indicated in the dictionary, thesaurus, or other reference book you are using. Insert new words in your dairy for that week. Don’t be over-ambitious. You will be doing well if you learn to use one or two new words most months. Words are your tools. While you should avoid using long, complex words when short ones will do, take every opportunity of expanding your vocabulary. Some years ago, a research was

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conducted on university graduates before their graduation and, subsequently in their employment. There was a high statistical correlation between the size of their salaries and the size of their vocabularies. A diamond sparkles because of the different facets of its cut; your speech should sparkle because of the variety of living words you use. Express yourself in language that tells prospects what the product looks like and what it will do for them. Here are thirty words noted in recently published articles—they represent about six months work to learn to use them: Adjure vb. solemn, earnest request to do something Afferent adj. conducted inwards or towards something Cathartic adj. psychological relief through open expression of strong emotions Costive adj. slow or reluctant in speech or action; unforthcoming Dirigisme n. State control of economic and social matters Execrable adj. extremely bad or unpleasant Glaucous adj. dull greyish-green or blue colour Heuristic adj. & n. enabling persons to learn/discover something for themselves Hiatus n. pause/gap in sequence, series, or process Hubris n. excessive pride, arrogance, or self-confidence Inchoate adj. rudimentary; just begun and not so fully formed/developed Inimical adj. tending to obstruct or harm Oblate adj. spheroid flattened at poles (like an orange) Oxymoron n. figure of speech, apparent opposites for effect (bitter-sweet) Paradigm n. typical pattern/example/model of something Paradigm shift n. fundamental change in approach or underlying assumptions Polemic n. strong verbal/written attack on someone/thing usu. polemics Prepossessing adj. creating a favourable impression; attractive Prescient adj.–ciencen. having/showing knowledge of events before they occur. Propitious adj. giving/indicating a good chance of success; favourable Putative adj. generally considered/reputed to be Risible adj. such as to provoke laughter Salient adj. most noticeable or important Sanguine adj. 1. cheerfully optimistic. 2. Poet/literary blood-red colour. Serendipity n. occurrence/development of happy/beneficial events Solecism n. grammatical mistake in speech/writing; social blunder Sophistry n. use of fallacious arguments esp. with intention of deceiving Vapid adj. offering nothing that is stimulating or challenging Vicarious adj. experienced in imagination through feelings/actions of others Visceral adj. relating to deep inward feelings rather than the intellect Avoid using words with various meanings, such as costive, which also means constipated— you could commit a solecism. Preparing a selling note sheet First, write down the attributes of the product or service. Consider each of these in turn and decide which are not only attributes but of benefit to the prospective customer. Many will be of general benefit, and some will be of specific benefit to certain customers. The benefits have to be proven and this is done with the aid of carefully worked out proof statements. Here is an example of proof statements that were being developed when floppy disks were first marketed by a company:

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Attribute Compatibility

Benefit Interchangeable with certain other equipment

Proof statement You are not restricted to just this one make Most of our customers have it connected with other manufacturers’ equipment.

Reinforced centre drive

1. Longer life 2. Stability of operation

*The disk will outlast ordinary disks. Some of our present customers have been using these disks continuously for over five years and never experienced any trouble with them. Because of the reinforced centre you

never get disk flutter. *Rejected because it only repeats the benefit—it doesn’t sparkle! Here is another way to develop proof statements by noting positive and negative benefits for the same attribute depending on the prospect’s needs before attempting to develop proof statements specific to prospect:

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Attribute Benefit Proof statement  Equipment Heavy Weighs 2 kilos Solid, heavy construction Adequate weight for the job Won’t blow away Light

Light, easy to use Effortless in operation Readily portable A child could carry it  Machine measures 6cms x 4cms

Small

Fits neatly in the hand Ideal for the purse Unobtrusive but powerful

Large

Won’t be lost in your tool box Easily seen Sensible size for easy use  Jobbing gardener

Possesses university degree in horticulture

Complete garden design Most suitable plants Plants for year-round beauty Easy-gardening planning Regular expert maintenance

Use of correct language Words that are pronounced the same but spelled differently (homonyms) can be a barrier to effective communication. Take this conversation between a salesman and a small boatbuilder: Salesman: Builder:

I am sure that this product will improve your sales. Nonsense! The quality of our sails is known all over the world.

The confusion between sales and sails was eventually cleared up with amusement and actually helped to promote a better relationship between the two. People give priority to the first meaning of a given word or sound. It never occurred to this salesman that ‘improving sales’ could mean anything other than ‘increasing turnover’. The customer quickly reacted to any suggestion that his sails could be improved. Yet, the salesman knew he was talking to a boat-builder who also knew that he was talking to a salesman. Each jumped to the conclusion that the meaning conveyed was the one expected. Jumping to conclusions and making assumptions too quickly create some of the more difficult barriers to effective communications. The difficulty increases when unusual words or ordinary ones with unusual meanings are used. Almost every trade, industry and profession has its special words or special meanings for common words. The legal profession is a prime example of an occupational group with its own arcane language. Members of the profession grow so accustomed to using it that they tend to think it is normal. There is a story of a learned judge speaking severely to a lawyer in the Old Bailey, London:

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‘Your client’s evidence has been a waste of time. Surely he is familiar with the doctrine, de minimis non curat lex?’ The Latin phrase means that the law does not concern itself with very small matters. The lawyer’s rejoinder is worth recording: ‘My lord, he talks of little else!’ The legal profession is not unique in this respect. Your own industry may have developed its private language that you may be using without realising it: ‘What about the LPHW job in Marlow, has it been commissioned yet?’ If you are in the heating and ventilation industry, you will recognise this as a conversation about a low-pressure hot water boiler with the enquirer asking whether it is installed and working. Control your voice and speech When you telephone a prospect you have never met before, your voice will be the first contact and will convey an image to the listener. To project a pleasing personality, you have to develop a pleasing, easy-to-understand voice and speech pattern. Your voice is your transmitting tool. It takes two to communicate and when you speak to someone, you are carrying out only one side of the activity—you are transmitting. For effective communication, the other person has to receive correctly what you transmit. You must ensure that your voice is in good condition and that you use words of the kind used by the listener. You do not need to force your voice to deliver some sort of Shakespearian oration. You are not going on the stage and you do not have to project what you say to the back of the hall. But, you do have to put over your messages so that they will be received by your listener as you intended. When you sell on the phone, you need to transmit your messages in succinct, controllable, passages, which require breath control. Try sitting in a chair similar to the one you use when phoning, take a moderate breath, breathe out, pause holding your breath, breathe in again moderately, then read aloud a passage from your daily paper. Consider how much you may sound like your favourite TV newscaster. Articulation It is good training to practise words that you do not often come across in ordinary, everyday reading. The reason is that you will often meet unusual customer and product names that have to be spoken clearly on the phone. The most important word you will speak to a prospect is her/his name, and some names can be difficult to pronounce. Never be afraid to ask someone how they spell their name, if is sounds difficult. Even a common English name such as Smith might be spelled Smythe. Make a note in your records if there is a special way of saying a name. Receptionists and telephone operators can be useful with the pronunciation of client’s names—and titles. Articulating clearly is making the mouth and tongue work correctly so that the words mean something. It is vitally important to you. Do not indulge in ‘slurvian’—sloppy speech. Even ordinary words in an unusual setting often fail to make sense. Read through the following couple of lines of doggerel, understand what it means and then ask someone to listen while you say it clearly in a conversational tone and rate: In mud eels are, in clay none; In fir, tar is, in oak, none. Ask if they know what language it is. The answer is usually Latin. As you can see, it is English but as you hear it is quite different.

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‘Slurvian’ Here are some English words that are frequently used but not always said in a way that can be readily understood. Vowels are run together, consonants are dropped, and sounds are slurred. 1. 2. 3. 4. 5. 6. 7.

lor lore bean plight sport fiscal par

8.

warr

9. 10.

goh-i itinry

law—often slurved when used with ‘law and order’. lower—two syllables. being—two syllables. polite—the ‘o’ often gets lost. support—two syllables with the second one stressed. physical—three syllables. power—somewhat affected when spoken as though there is only one syllable. water—dropping the ‘t’ is called the ‘glottal stop’ and is laziness often heard in the London area. got it—another example of the glottal stop. itinerary—often badly slurved word that has five syllables.

Questions up to Chapter 11 11/1 What are the six points in the suggested plan for structuring a presentation? 11/2 Why is it necessary to make your sales presentation sparkle? 11/3 Why is controlling your voice important? 11/4 What should you not use too much of, or too many of in your speech?

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CHAPTER 12 HOW TO TALK TO PEOPLE IN DIFFERENT MOODS The people you telephone in business may be unpredictable although, like people everywhere, the loquacious will keep the conversation going not necessarily in the direction you wish, while the taciturn can often make development of any discussion tortuous. Buyers cannot be put into different categories and dealt with by formulae. Be careful of over-classifying prospects into logical, overbearing, or some such category. If you have already met the person you are phoning, you will know something of their personality. If not, do not begin with any preconceived ideas. If you cultivate a pleasant, helpful and above all, polite manner, the prospect should get a good impression from your voice. You too, will get an idea of the kind of person to whom you are speaking by the voice and speech pattern. Irrespective of the way in which we normally speak, our general well-being and health will often project a good or bad mood. We consider some of the moods. Talkative mood You are hardly permitted to make your presentation. The prospect keeps talking and sidetracking you in all sorts of ways. It is very difficult to staunch the flow of words. The way to deal with this mood is to listen. It may be costly, but you still have to listen, positively, making notes where appropriate. Listen for something that is said that you can link with your presentation. Negative listening is rather like lying on the beach with the tide coming in and letting it wash backwards and forward over you. Positive listening is more like running into the water and swimming. It is relating everything that is said to your presentation and when a point registers, trying to get in and say Ah! And put your point. If you cannot put your proposal forward because the prospect is in full flood, remember to jot down notes of points as they are made. Eventually, the prospect will pause. You can then say, Ah! Mr Prospect, with regard to [point number one] and [point number two], and so on. Talkative moods are often possessed by what are called detail persons. They don’t so much tell you points or results, they tell you in minute detail all the ins and outs. This is their pleasure. You can often develop a first-class relationship with detail people by listening and putting the appropriate closed question and open probe to stimulate and maintain their flow. The reason for all the talking is that the prospect has not yet appreciated the strength and value of your proposal. Until you get the chance to tell it, you have to listen. Talkative moods may also be the result of the prospect being excited or enthusiastic about something that has happened. You must listen and try to find out if this is the reason; you may be able to use this to put your proposition in a favourable light. Silent mood The opposite of loquacious persona are prospects who, for their own reasons, are reluctant to say very much. They want to listen as though their thoughts are far away. Be alert to this mood because it could signal some serious in the prospect’s personal or private life. S/he may just have received painful news about the health of someone in the family and prefer to go home. You are unlikely to be told the details or taken into her or his confidence. If you consider the prospect is unusually silent, or apparently reluctant to respond, put an open probe and listen carefully to the answer. You cannot remain on the phone for too long, neither of you saying anything. If your open probes do not work, try one or two closed questions, and if you receive a suitable response, use an open probe to obtain more information.

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Happy mood It’s always pleasant to talk with someone who is obviously cheerful; reflect the mood and sound pleased yourself. Even if you have something to be unhappy about, don’t disclose this to the prospect. Few things are more disturbing and annoying when we are in a pleasant, cheerful mood than to encounter someone who is miserable. This attitude should rule your general business life—never take your troubles to your prospects. If your respondent is in a happy mood, you may have a better opportunity of putting your proposition across successfully. Miserable mood Often, you will phone someone in a miserable mood. Avoid getting involved or spending too much time here because, unless you have something that will counteract the reason for the mood you will get nowhere. If you know the person then you might use carefully constructed probes to find out the reason, but in the main, don’t get involved, curtail the conversation and phone again. The situation is worse if you meet a miserable prospect face-to-face because you can’t curtail the meeting as quickly as you can on the phone. When representing Vickers of the UK, I once telephoned Freddy Potts, a buyer for a cable manufacturer in South Wales and got an appointment for about an hour later. When I arrived, Freddy was in a decidedly unhappy state. ‘What’s the problem?’ I asked. He said that the purchasing director has just complemented him on increasing and maintaining production by getting material that was difficult to obtain at that time because it was during a period of intense raw materials shortages. He said, ‘I haven’t a cat-in-hell’s chance of maintaining production; supplies of raw materials are scarce. I’ve twisted everybody’s arm to get the last ounce. There’s no way I can maintain production at the same rate.’ Always the opportunist, I explored further: Me: FP: Me: FP: Me: FP: Me: FP: Me: FP:

What are you looking for? You can’t help. Vickers don’t supply it. Well, maybe not, but what is it you want? Like I told you, you don’t supply it; you can’t help. Yes, but I have friends. What are you short of? I’m looking for some DOP and TOP. What the hell’s that? I told you, you don’t supply it. It’s dioctylphthalate and trioctylphthalate. Could I write that down, ‘maybe I have a contact. How much are you looking for? As much as I can get hold of. Ten, twenty tons—or more.

I left the factory and telephoned a contact I had in London, the sales director of a chemicals organisation. I told him the facts—but not the name of the customer—and asked him if they could supply it. He said that they had about sixteen tons available in Belgium that could be delivered. We agreed that I would let Freddy Potts have the name and details of the supplier and that I would receive five per cent of the value of the order. Just before I put the phone down, I asked, ‘Oh! By the way, how much is this stuff?’ I shall never forget my thoughts, as he told me, ‘Five and seven-pence a pound,’ and I roughly calculated my five per cent commission on sixteen tons. It was an agreeable outcome all round after that phone call to a miserable buyer!

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Indecisive mood How often are we undecided! Confronted with a good menu in a restaurant and unable to make up our mind which of two equally attractive dishes to have. In a shop with, say two equally acceptable shirts, and we cannot make up our mind which to have. The prospect, in an indecisive mood, will say, ‘I’ll have a word with my colleague’, ‘I’ll ask my accountant,’ ‘I’ll definitely have it—later on’. If you are undecided about which course of action you will take, you can simply suffer. If the indecision is with a prospect, then you must try to help them come to a decision by accepting the onus of a wrong decision. The general method is to suggest a course of action and then, if appropriate, to guarantee that it can be reversed if it is the wrong decision. If the prospect’s secretary is undecided whether to make an appointment for you with her boss, then you should try to make the decision for her. ‘I appreciate your problem. You’re not sure of her movements. I’ll risk being disappointed and make it, say half ten on Tuesday morning as that’s the time you have nothing in her diary. If I call and she can’t see me, that’s my bad luck.’ ‘I understand your difficulty but I’ll tell you what. We’ll make it say half ten Tuesday and if she can’t see me perhaps you’d be kind enough to give me a ring.’ When you make decisions for prospects, do it in a manner that guarantees that things can be altered or reversed if necessary. You are then giving them a lifebelt if the decision has to be abandoned. Aggressive mood If you know the respondent, you will know whether aggression is the norm and will be able to deal with it accordingly. If the person is a stranger then do not make the mistake of thinking the normal briskness and desire to get on with things is aggression. If you are a normally quiet personality, anyone with a normally brisk manner will appear to you as aggressive. So, take care not to misinterpret the situation. People you have not previously met or spoken with and who sound very aggressive on the phone should be treated as you would obey a sergeant major if you were a recruit! He shouts: ‘Attention!’ and you should spring to attention. He fires at you: ‘When can I have your reply?’ and you say: ‘The day after tomorrow.’ Whatever questions, requests or commands you receive, respond crisply and avoid prefacing your reply with, ‘Well…’ Check this tendency to preface replies with well by listening to interviews on TV or radio. Practically always, before answering the question, the respondent says: ‘Well…’ Prospects who sound aggressive, whether or not they are, will respect short, crisp replies and will not take kindly to long, slow answers. Spring to attention! Answer or respond! Over-friendly mood Someone in this mood will usually agree with everything you say and be extremely hard to pin down. As likely as not, you will be addressed by your first name and receive promises that lead you think that nothing will ever materialise. You must take a firm line with such prospects and ask if they understand what is being agreed. If possible, put all the proposals into monetary terms—that usually has the over-friendly type listening and talking seriously. Questions up to Chapter 12 12/1 Should you, in general, reflect the customer’s mood? 12/2 Which are better to use with customers on the telephone, closed questions or open probes?

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12/3 12/4

You are talking with a customer who is normally pleasant but sounds decidedly miserable. How would you deal with the call? When should you make a definite offer to a prospective customer?

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CHAPTER 13 HANDLING COMPLAINTS Treat a customer complaint as you would treat a medical emergency. Give it priority. Regard it as you would a patient with cardiac arrest. Immediate, rapid attention is essential. This means that you must have an emergency kit to hand. It’s no use treating a customer with a complaint as a normal customer. You cannot give them the slightest excuse for further complaint. The emergency kit The emergency kit is the procedure to be adopted by you and all others in your organisation to placate and convince the complainant that the best treatment possible will be given. Do not respond by saying, ‘Just a moment madam [or sir] I’ll get one of our complaint forms…now, your name…’ If your organisation uses complaint forms, always have them available. Keep them handy as you would a first-aid kit, just in case the next phone call needs one! When a complainant comes on the phone and starts outlining the problem, get out the special form and start filling it in as the person is speaking. Don’t take the complainant through the form asking this question and that question, putting this point and that one. Listen, and enter remarks as necessary. As you listen, make sure you get the name, telephone number and address. If you have to listen to a long list of angry comments from the customer, wait until the first few blasts of anger have subsided before you ask for name, phone number, and address. Quench the fire of anger as soon as you can by saying, ‘What is your telephone number? Extension? [if appropriate] Name?’ Repeat these to make sure you have them correctly then say: ‘Thank you. My name is [give] let me call you back right away. You should not be paying for this phone call.’ The complainant may say no, and continue but that’s fine. You’ve made the offer. If it is accepted, phone back immediately—do not delay. No matter how aggressive the complainant, respond with politeness. Even if the person on the phone is rude and offensive, do not react in the same manner. There is nothing like a calm, understanding and utterly polite manner to defuse an irate customer. Do not take the complaint personally, but do listen! Complainant: You: Complainant: You: Complainant:

Hello! Hello! I’d like to speak to you managing director. Yes sir [madam]. May I say who is calling? My name is Fuller. Right Mr Fuller. And may I tell him the nature of your enquiry? Yes. We’ve got one of your systems and we have never experienced such difficulties. The thing is absolutely useless. It was installed last week and since then, we have had nothing but trouble. We simply haven’t been able to use it. You trained two of our staff for a half a day, but neither of them can make it work properly. Every time we phone your support desk, we get different advice. I’m absolutely fed up with the whole thing. It’s disgraceful that a company with your reputation should treat a customer like this. You: Mr Fuller. Please let me phone you back immediately. You shouldn’t be paying for this call. What is your number sir? Complainant: Oh! It doesn’t matter. The cost of the call is not important. What is important is that we were going to rely on this system so much and we are in a shambles. Yesterday…

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Let the customer continue. Don’t interrupt. Listen. Offer to phone back as soon as you have the opportunity. If the customer declines, at least you have made the offer and this helps to cool the situation a little. Continue to listen, making appropriate notes. When the complainant has run out of steam and has said as much as is felt necessary, then go into the company routine for providing service. You:

Mr Fuller, you’ve obviously had a lot of trouble. I’m sorry about that. I’m going to put you through to our Mr Roberts. He’s not the managing director but he has the authority to sort out your problem to your complete satisfaction. Please speak with him first and if you’re not satisfied with what he suggests he will put you back to me and I will connect you to Mr James the managing director. If I put you through to him first, he would want to know why your problem couldn’t be solved by Mr Roberts and this would delay our service to you.

Your emergency kit needs to be updated periodically especially if the company has different types of products and services. The complaints form should be a colour different from every other form with spaces for absolute essentials—name, initials, company, address, telephone number, date, time, nature of complain, who is going to take action, what the complainant has been told. If you should pick up the receiver and hear an enraged customer on the other end, always talk to them even though it may be nothing to do with you or your department. Ask questions. Because it may be nothing to do with you, you will need to find out a lot more than normal about it. Make sure that the customer knows who you are, what you will do and deal with the complaint in a competent manner. Tell the customer that you will start things moving, that it will be handled by someone else. If you know who will deal with the complaint, tell the customer, if you don’t know, tell the complainant that you will phone back and say who will be dealing with it and when. Give your name, telephone number and/or extension clearly so that the complainant is put at ease and can contact you should the need arise. Express your regret that the person has had to phone to complain but never agree that it is justified. Even though it may sound a genuine complaint from the facts stated by the customer, you are only hearing one side. Always pass the complaint to the person or department who will deal with it. After all, you haven’t heard the company’s side yet! It is not unknown for false complaints to be made in the hope that some extra service can be extracted! Checklist for handling complaints 1. Listen and take notes without commenting. If the company has complaint forms, ensure you always have one or two at hand by the phone. Hear the complainant out, completely. 2. Sympathise with the fact that the person has had to phone but do not apologise for the reason for the complaint or that it may not have been dealt with. Fault has not been established and regrets are superfluous. .3 Establish name, phone number, address of complainant. Record date and time of call. 4. Establish the facts and repeat them so that the complainant agrees with what you are recording. 5. Determine who has the knowledge and authority to deal with the complaint. 6. Decide on the best action to take. 7. Obtain customer’s approval of the action you propose. 8. Take that action. 9. Make a copy of the details for yourself. Follow up. 10. Learn from the experience for future actions.

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Questions up to Chapter 13 13/1 What is recommended as a good method of quenching the fire of a complainant’s anger? 13/2 What three main thing do you have to do when listening to a complaint from a customer on the phone? 13/3 Under what conditions would you agree with the customer that a complaint is justified? 13/4 How do you use the buying magnet?

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CHAPTER 14 HOW TO FIND CUSTOMERS The telephone is an important means with which to find out whether a sales lead is worth following up with a face-to-face call. In this way, it contributes greatly to finding customers. This process is called qualifying leads. Three factors To qualify a lead to determine whether a suspect might become a prospect and subsequently a customer, three factors have to be established: • Is there a budget to purchase the product or service? • When is the purchase to be made—immediately, in three months, or more? • Who is, or are the main people who will decide on the purchase? The first factor will be related to the size and value of the sales of a typical product and will quickly establish whether the person on the other end is aware of the cost. Many companies would like to buy desire products—those less essential than a want or a need, but do not have the means with which to buy them. A comprehensive work-flow computer system would undoubtedly be of use to many organisations but often, intending buyers are unaware of the initial investment and continuing support required. The second factor—timing of the purchase—is important once you have established that the prospective customer knows the likely cost and that funds have been earmarked for it. Companies who are currently thinking seriously about a product are red-hot prospects. They must be regarded differently from those who are considering the acquisition during the next financial year. The third factor is to find out who takes the decision to purchase; it is also advisable to determine who influences the purchasing decision. If it is for capital equipment, many people and several committees will be involved. It is normal that acquisition of substantial plant and equipment is discussed at production meetings, management meetings, budget meetings, and board meetings. The decision is a collective activity and many opinions sought before the decision is actually taken. If you are selling capital goods, you will need to develop wide contacts in the prospective customer’s organisation. The first person to whom you speak on the phone will obviously be able to help, but that is only a start; you will need to expand your contacts within the company after you have visited them. Similarly, if you are selling consumer products in bulk to a large chain of department stores, it is likely that you will be negotiating long-term contracts. But it is unlikely that there is just one person involved in the purchasing decision and you must find out who influences the buying decision. Even the most important buyers in a company have assistant buyers with whom they discuss movement of stock. Using the telephone to find customers Saleswoman: Good afternoon. My name’s Johnson of Smith Limited. We supply a number of customers in the north similar in size to you, with a range of speciality foods. Can you help me please? Do you stock a wide range of foodstuffs? Operator: Yes we do. We have a large food hall. Saleswoman: Is it possible to have a word with the buyer this afternoon? And, may I have the name? Operator: I’ll put you through to the department. Hold the line… Unknown: Good afternoon.

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Saleswoman: Good afternoon,. My name’s Liz Johnson of Smith Limited. We supply speciality foods mainly to the north of England and Scotland but we are expanding south. You stock various foodstuffs of course? Unknown: Yes we do. Saleswoman: When do you normally purchase? Unknown: Depends. Daily, weekly, monthly… Saleswoman: I see. Who should I try to see to discuss this? Unknown: Who did you say you are? Saleswoman: Smith Limited of Banff. My name’s Johnson, Liz Johnson, and you are…? Unknown: Perry—Frank Perry. Saleswoman: Well Mr Perry, whom would you suggest I see? Perry: Well, you wouldn’t want to see me. I don’t buy foodstuffs. You’ll need to see… And so on. Ask closed questions and open probes to find out if they stock, when they buy and who to see. Decision-making unit In every company, there is usually a group of people who influence the source and purchase of supplies. Sometimes this is on a formal basis often it is an informal collection of people. Such groups are called decision-making units DMUs. These DMUs are frequently involved in the construction of a procedure called vendor performance evaluation, or supplier performance evaluation. Your product may be the highest priced on the market because your quality is the best and you can deliver the next day. This does not mean that you will get the business. From working with many different companies, I have found that the main criteria for the buying decision are: • Price. • Reliability of supplier. • Ease of getting emergency supplies. • Service. • Quality. • Uniqueness of product or service. • Accessibility of supplier’s representative. • Delivery. These are not listed in order of importance but for the initial letters to spell the mnemonic PRESQUAD, a word that makes it easy to recall. A weighted-points method of evaluating suppliers is illustrated with these eight criteria:

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Criteria Price Reliability Emergency supplies Service Quality Uniqueness of product Accessibility of people Delivery

Weight* 10 6 4 6 10 3 4 7

Rating†

W× R

*Weights are usually decided by a committee or by reference to various department heads (or members of the decision-making unit) and applied to all suppliers and potential suppliers. In large organisations, there are usually many pages of criteria used to assess potential suppliers. †A rating is applied to individual suppliers. Each weight and rating has a maximum (in this example) of ten and the weights are made to sum to a convenient total. You can see that it is 50 so that the maximum total W× R is 500. When you have the opportunity, you should find out from some of your very good customers whether they have a supplier performance evaluation procedure and, if so, how your company scores. You can use the good points in subsequent sales presentations. The problem when putting propositions for capital goods and purchases that require a large outlay of funds is how to find the answers to the three key factors: Is there a budget? When will the purchase be made? Who decides? You need to work to a semi-structured questionnaire. This means that you will have prepared all the attributes, benefits and proof statements about your product and will have opening questions and statements written down so that you can refer to them. Assumptive questioning technique This is putting questions in the form of assumed answers. Here are some examples: ‘There will be more than one person involved in this decision?’ ‘You normally place your contract at this time of the year?’ ‘You would need two work stations?’ ‘It would have to be capable of graphics as well?’ ‘Your budget is limited to €100,000?’ ‘You know the flammable properties of expanded polystyrene?’ ‘You stock all sizes?’ ‘There are others in your company who should see the demonstration?’ ‘It will need to be in excess of five kilowatts?’ The prospect will either agree or correct your question/statement. Every newspaper, especially local ones, all the trade, technical and professional journals are sources of leads for prospective customers. Scan the appointments vacant columns for vacancies relevant to the

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business you are in. The fact that a company is advertising for a [whatever] may be relevant to your products. You will save a lot of time and expense by finding out on the phone if suspects could be prospects. Surfing the Internet is worthwhile; start with Google toolbar and type in the key words. Likely sources of customers will be found everywhere. Combining a direct mail and/or email approach with a telesales operation is also a way to unearth customers. The mail or email approach prepares the suspects in general; the telephoned follow up can focus on specifics. One company that markets building and construction equipment and tools makes great use of the phone in qualifying leads and they concentrate on local authorities. The following criteria are used: • What type of machinery and equipment is the organisation using and has it been using any equipment similar to the products of the enquiring company? • Has a budget been set for the next purchasing period? • Who is responsible for approving suppliers and authorising purchase decisions of such equipment? • Where are these decision-makers based? • Make an appointment for a visit with red-hot prospects and send literature to the others. Of the appointments made, more than 70 per cent eventually place orders with the company. Questions up to Chapter 14 14/1 What format is suggested to decide who are potential prospects? 14/2 When looking for customers, how do you select those you think you ought to phone? 14/3 What is the first thing to establish when qualifying a sales lead? 14/4 What are the second and third things to establish to qualify a sales lead?

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CHAPTER 15 HOW TO AROUSE THE BUYING INCLINATION Who makes the decision? The buying inclination is not limited to purchasing a product or service but also to the idea of agreeing to an appointment. The simplest situation is where you are phoning a one-man business—obviously, the following remarks apply equally to a one-woman business. That person makes the decisions. You phone, say who you are, explain your proposition and there is nobody else you have to consider before you get a decision. Easy! Or is it? Does one person make a decision in isolation? Are people influenced by nobody else? Do they simply decide to acquire a new piece of machinery and that is their decision alone? Or do they take advice? Most likely, they will have discussed it with their spouse and people they know, people in similar businesses. Undoubtedly with their accountants who will advise them on the wisdom of such an acquisition at that time. However, if the purchasing decision is to buy next year’s diary, a new set of filing equipment, a new calculator or phone, counsel is seldom taken from other people. Even with such small purchases however, we are influenced by what we have seen in other offices and factories, what we have read in journals and newspapers, what we have heard from others. In other words, the buying decision will have been the result of a number of influences. Consider an intention to buy such a simple thing as a replacement calculator. If we meet a person using a similar one that looks neat, easy-to-read and easy to manipulate, and ask the opinion of the owner, the reply is likely to influence our purchase. We will ask two main questions: ‘Where did you get it?’ and ‘What did it cost?’ An enthusiastic response from the owner will have a great effect. ‘It’s all right, but I find it difficult to operate’, will also have the opposite effect. The owner of the calculator may not be capable of handling it and its less-than-perfect operation may be entirely due to operator inefficiency rather than intrinsic calculator difficulties. Nevertheless, the reply will have conditioned our opinion. The more enthusiastic and sincere the comments made to us, the more we are inclined to accept them at face value, so it follows that, to arouse the buying inclination in people, we must really believe in what we are doing and talk about it with genuine enthusiasm. In many companies, the acquisition of operating materials and supplies is according to specification. When you phone to make an appointment to put your case, you have little chance of selling anything other than yourself and your company to the person on the phone. Buying an appointment If you have not previously supplied the prospect, you have to find out whether there is a specification and if so, whether your company can be given the opportunity of quoting. At best, you have to persuade the prospect to buy an appointment with you. At the very least, you have to sell the idea of sending them some explanatory literature. To reach a buying situation, you progress through stages, one of which is a personal meeting. In addition to buying day-to-day operating materials and supplies, companies purchase capital equipment, important services of consultants and advertising agencies. These important acquisitions are normally main board decisions and the board will wish to hear potential supplier presentations themselves. If the purchase is not so substantial, they will often make a decision based on the facts and opinions of their managers. Whatever the purchase, it is possible for your enthusiasm, knowledge and general manner to show through whether it is a face-to-face situation or through the medium of words on paper or words in ears. The buying decision

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Every decision-making unit (DMU) is a combination of individuals with varying degrees of formal and informal, direct and indirect influence in different product areas. If you fail to identify the people whose opinions matter, you could be spending too much time on those who have only moderate influence and are not key decision-makers or influencers. Also, bear in mind that departmental responsibilities often overlap. Buyers as well as production staff, have an influence on the purchase of raw materials; transport managers as well as buyers, on vehicles; health and safety executives as well as engineering managers on production equipment and so on. If there is one person who is the acknowledged decision-taker in a company, that person is still influenced by others in the organisation. If you win their support, you will increase your chances of success. Do not prejudge any situation by deciding that particular people are, or are not, important to the decision. Buying decisions by professional buyers are seldom entirely rational. Though most of them would dispute this, human beings act and react on emotions. Every buyer is subject to irrational and emotional influences and it is these that are so hard to isolate. Mainly, buyers seek security from their company’s suppliers. They make establishment decisions, that is, they do not venture too far from the norm when taking buying decisions and tend to stick with the long-standing supplier who is generally accepted by others in the company. Even if a new, smaller company offers a product that is higher quality and lower price, the large wellestablished supplier still has the advantage that is rooted in this emotional element in the purchasing decision. Ask any important appointed dealer about their supplying a company’s products and you will be told that they are the best on the market, the best design, best quality and price. If this were true, that supplying company would have the major share of the market, which is not always so. The reason is the considerable depth of the relationship that has been built up between the supply company and their dealers. An expenses-paid visit to the supply company’s headquarters makes a strong impression on the dealer. The whole package of appointed-dealer goodies has the effect of distorting the rational buying process. The emotional content is high and when the dealers sell to their own customers, the conditioned enthusiasm is transmitted to the customer. To arouse the buying inclination, develop empathy with the prospect and never forget the power of enthusiasm. It has the capacity of breaking down many buying barriers. Drives that stimulate action The main drives suggested by A H Maslow, the sociologist, are the following five needs: • Basic needs. • Security, or the need to feel safe. • Gregariousness, or the desire to belong to an appropriate group. • Status or the need to feel important. • Self-fulfilment needs. All of us have basic needs; the other drives vary with people. Overlay on this the concept of a hierarchy of wants that range from basic needs, through wants to desires and you have a structure for developing the buying inclination. Decide where in the hierarchy of needs, the respondent places your type of product/service. This will vary from what is considered as essential by one prospect to a luxury by another. Then consider some of Maslow’s drives1. Security needs—maybe the desire to hold on to our job and position—vary from person to person. This is why many buyers will stay with the supplier they know rather than risk going elsewhere. They don’t want to jeopardise their position in the company. The need to belong to a group, the desire to be accepted by others in that group can be a very strong motivating 1 Maslow, A. (1954) Motivation and Personality. Harper & Row.

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factor. Your prospects may be impressed by the fact that by dealing with you and your company places them in a group to which they aspire to belong. Status needs are those that drive people to improve and increase their own importance in the eyes of their family, their peers, and their employers. These needs often stimulate them into acquiring things that might be regarded as possessing high status and generally provide an outward show of their importance. If you consider how much the average executive is concerned with the make and model of car supplied by the company, you will understand how personal and powerful is the concept of status. Always talk to respondents as though they are important. In fact, all customers are important and there is everything to gain by letting them know this. Even flattery helps: ‘Ah! My favourite customer, Mr Jones. I trust you are well?’ ‘Hello Mr Muir. Always nice to talk with one of my shrewder customers. Business is fair I trust?’ ‘As I’ve always said, Miss Brown, if you stock our new lines when we introduce the, they must be good. You have a reputation for keen buying.’ Don’t overdo it! Just little touches here and there, like herbs and seasoning in cooking—with discretion. These complimentary comments will be remembered. Aim to make your respondents feel good. Self-fulfilment needs are the desire to do one’s own thing, to realise an ambition, achieve a certain position, to have a degree of power and so on. You cannot arouse the buying inclination until you know what motivates the other person. Therefore, you must question the prospect appropriately and listen to replies. Telephoning the ‘company’ man It is easier to understand the motivation of prospects employed in a large company. Although they work within rules, procedures and specifications, they have emotions. You have to transmit the understanding that they will not compromise their position by agreeing to see you with a view to doing business. You have to develop openings and further statements to prove that you have the knowledge so that you appeal to their reasoning as well as their feelings. Have a sound reason for suggesting anything. If you are trying to close on an appointment, give the prospect a worthwhile reason to see you. Where appropriate, you should create three things in the mind of the prospect: • Curiosity. • Involvement. • Confidence. Curiosity is a strong motivator and when you involve the respondent’s company, it is very powerful. You arouse curiosity by being different from other sales people with your knowledge of your product, the professional way in which you conduct the conversation and by your cheerful manner and keenness. Have an objective for every call. Keep this in mind as you speak and listen. Know what you are going to say and, as soon as you have opened the conversation, know what you might say in response to questions. Prepare and practise important openings, sales sentences and benefit statements. Have them available, easy to see, when on the phone. You will soon learn to say them without needing to refer to them too often. However, with experience you will find that you modify them over time. Involve respondents and their companies by always expressing sincere interest. Don’t try to sell to respondents but help them to explore your propositions. Answer questions quickly and

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truthfully but don’t volunteer data that is not asked for unless it progresses your presentation. Don’t confuse issues. Stick to the point under discussion. Make it easy for the respondent to take action. A clear lucid and simple presentation free from jargon will gradually create confidence in the respondent. Questions up to Chapter 15 15/1 Why do you think you should commit the main contents of your sales pitch to paper before making a telephone call? 15/2 Can flattery have any value in a sales presentation? 15/3 What three things should you aim to achieve when opening a sales conversation? 15/4 What is the five-point plan in structuring effective communication?

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CHAPTER 16 QUOTATIONS AND PROPOSALS A quotation is a traditional document; a proposal is a selling tool. The former is used to specify product, price, delivery and terms of payment. Often, printed on the reverse, are the ‘terms and conditions’ that state practically every reason why the customer should not buy from you. A proposal is a selling tool and contains the same information as a quotation but also the reasons why the prospective customer should buy from you. Five main sections of a proposal: • Customer’s objectives. • Your recommendations. • Additional benefits. • Financial justification. • Stated guarantee and service. Customer’s objectives Find out what the customer wants to achieve before accepting the invitation to quote. List the customer’s objectives in order of importance. Short statements of what the customer wants to achieve should ensure that the proposal is read. Recommendations State how each objective will be met by your recommendations. If the proposal is for complex equipment, a detailed specification should be appended with each section keyed to the proposal so it is clear which recommendation relates to which objective. Additional benefits Your recommendations will relate to the main objectives and suggest the main benefits. List any additional benefits that the customer will enjoy. Financial justification Set out the financial justification in simple terms so that it is clear in the first few sentences. If the financial justification is complicated, use a separate appendix and key the appropriate sections. If the purchase of your product pays for itself within a period, explain in the appendix with a modest example that does not rely on maximum usage of your product to pay for itself. While the customer will investigate and justify the expenditure, do not assume this. Illustrate the justification to show that you have given it adequate thought from the customer’s viewpoint. If there is more than one way to illustrate financial justification, use them. Guarantee and service Do not rely on the pale print on the back of your official quotation for your guarantee, warranty, and after-sales-service. State what you are prepared to do. Often, the fact that this is stated as a major part of the proposal, clinches the business. To underwrite what you offer for your guarantee and service, use third party references where appropriate. If necessary, the company’s official quotation should be included as an appendix. SPECIMEN PROPOSAL Your requirements: • To replace, and supplement for the time being, your existing system. • Operate automatically and increase current production by 50 per cent within six months. • Produce cores up to 300 mm diameter, 1,000 mm length.

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We recommend our model AB/100 with fully automatic controls. For the modest capital outlay and operating costs, it will achieve all these objectives and the following benefits: • Continuous cycle operation giving maximum output. • Automatic temperature control to provide a steady core texture. • Automatic sand system that replenishes itself after each cycle so only one operator is required. • Cores are ejected by air jets and vibrators into a box in front of the machine enabling the operator to check production. • Opening between the core faceplates can be set up to 150 mm to help easy ejection, clearance, and access. • Comprehensive filter system that prevents the valves and mechanism from excessive sand abrasion. • Faceplates are fine machined in cast iron and fitted with multiple tee-slots for the easiest possible fitting of a variety of core boxes. • All working parts are readily accessible permitting speedy maintenance. The AB/100 model has the following accessories: • Lighting torch • Blow-off gun • Silicone spray gun • Surface thermometer • Pair of heat resistance gloves • All air and gas hoses, gauges, clamps and fittings Installation will be carried out by our own engineers. We will commission the machine and train your operators in the running and maintenance. No foundation work is necessary as the machine stands on a normal concrete floor. Price delivered, installed, commissioned, and your operators trained: [State price in customer’s currency and in words] There are no extras. In terms of cost per core produced: • Your present plant produces 400 cores a day. • The new plant will produce 600 cores daily, an extra capacity of 44,000 cores a year. • If you use only, say, 75 per cent of this extra capacity (33,000 cores) the annual charge over five years is [stated in customer’s currency]. This shows that the capital cost per core produced will be [stated] to which must be added the unit cost of sand and gas. Attached is a discounted cash flow calculation at various discount rates for you to compare with other quotations [appended]. We specialise in quality equipment and produce plant to last. Our reputation for quality and service will help in ensuring your complete satisfaction in the use of the AB/100. Similar machines have been installed in the companies listed in the appendix. Please feel free to contact them for an opinion on the operation of our machines. I know that none of them will mind your making enquiries. Attached is our official quotation and technical literature that give the specification of the AB/100 model. What to do with the proposal

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When you have prepared the proposal, you have to decide how to present it to the prospect. It is a selling tool and not simply a formal quotation so you must use it to reinforce your selling proposition: There is just you and the decision-maker When you do business on a one-to-one basis with a decision-maker, a quotation is always demanded, especially after you have done a first-class selling presentation. The prospect is going to compare with someone else’s presentation therefore you need a proposal not a quotation. If there is little or no competition, the prospect wants to make sure that money is being spent wisely—you need a proposal not a quotation. Prospect is not entirely sure and has not decided yes or no. Wants time to consider and would say yes to your face but probably write no if given the opportunity. Don’t rely on a quotation, you need a proposal. Maybe that’s the way the company has always done business. It is policy to have a complete record in case anything goes wrong and they need to blame someone—other than the prospect! Whatever the reason, you sell more if you submit a proposal and not a quotation. Do not send a proposal by post, email, or fax, and under no circumstances be caught on the telephone having to tell the prospect the price. Present it personally and go through it in sequence. Enumerate the objectives and how they will be achieved, the benefits, financial justification, in essence, reinforce the sales presentation. When you’ve gone to the trouble of preparing a sound presentation and a good proposal for a substantial order—if you want to win, take it in. There is your contact and her/his boss Most prospects ask for a quotation because they are not the decision-makers. Their job is to get the best deal they can for their company. While you should be selling to their boss, you have to sell to the number two, and/or number three. You’ll seldom get to see the boss. Your contact has to persuade the boss that the deal is a good one. The prospect is your classic, unpaid, untrained, unmotivated amateur sales person. What do you want the prospect to say to the boss? What do you want emphasised? What benefits should be stressed? What things will attract the boss to your product and what not? You have supplied full information, sales literature, brochures, and technical data. How will your contact be able to find them when eventually talking to the boss? In fact, there will be little if any selling to the boss. You can appreciate the poor job your contact would have done had you submitted a quotation. You have to arm your contact with a selling proposal backed by specifications, relevant literature, and financial justification. It must be in a format that can be picked up and read with interest by the boss without needing explanations by your contact. You have no chance of getting the business if you submit just a quotation—you need to submit a proposal. There is your contact and the board The problems are the same as those when your contact has to sell to the boss. But now, it’s a bigger problem. There are several ‘bosses’ each with different backgrounds, intelligence, expertise, preferences, attitudes, apprehensions, and vested interests. If your proposal is technical, it will go over the head of some of them but they’ll understand the figures. They’ll expect to contribute to the decision-making process. The proposal to your contact who has to present it to the board of directors has to be written in a special form. The objectives, recommendations, benefits, justifications, and guarantees, must have introductory paragraphs in plain, simple language. The necessary explanations, technical

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specifications and clarifications follow in subsequent paragraphs. If appropriate, a final paragraph in each section should summarise the technical content in simple language. Thus, the structure of each section is: plain language, complex technical data, plain language. You will have ascertained that the contact has to deal with the board. A quotation is feeble —you must submit a proposal. With your contact’s knowledge and agreement, supply a copy for every board member. There is your contact, his or her boss, the board, the work’s committee, the unions, the bean counters... This situation occurs all the time. You sell to the prospect who has to sell to the boss and the others but, as he is also a member of the work’s committee and possibly the local union, a multiple selling job has to be done. The boss could talk with the work’s committee but he prefers to do this as little as necessary. The board and unions have to be kept informed while the bean counters on the side keep their fingers on everything. You have a conflict of interests, budget arguments, safety factors, environmental considerations, working practices, and cost-benefit analyses—the lot! If your proposal is designed to reduce labour requirements, your contact is likely to be the last person you should be selling to. You have to get as near as possible to the top. It is unlikely you could make a presentation to the board of directors, so you have to find a way to the top by talking to the decision influencers. It may be your contact’s boss or the head of resource management or purchasing; if your proposal has sound financial justification, it will be the finance director and sundry bean counters. There is the buying committee, and the groups with vested interests The buying committee is composed of heads of the various departments, each with its own self-interests and a deep mistrust of the others. Any proposal has to be very powerful to penetrate these. Submitting a quotation has no chance. You should know the various departments in the company and make sure that the proposal caters for each of their interests. A copy of the proposal should be sent to each member of the committee. Company buying committees are usually very proficient in their deliberations. General committees of many other organisations often comprise a diverse set of amateurs and professionals. Hospital boards, university committees, school-governing bodies, all have committee members widely varying in personal experience and ability. The chairman is often appointed or elected because s/he gives least offence to the largest number of committee members. Committee meetings follow the same pattern. After the formalities, the big, mostly technical projects come first. Only two or three members have any real knowledge of them, and monopolise discussions. The rest of the committee switch off and think of others things. Eventually, hands are raised to vote, approving vast expenditures after only superficial examination and blind faith in the experts on the committee. Structure your proposal for professionals and amateurs. Slightly different approach from that made to boards of directors. Because of committee composition, you pander to egos. Each section starts with technical data followed by plain language explanations. Write to the committee secretary enclosing a personalised copy of the proposal for every member. Selling by telephone is only the start! Questions up to Chapter 16 16/1 What is the suggested mnemonic for selling? 16/2 How would you defend the price of your product/service? 16/3 What is the difference between a quotation and a proposal? 16/4 How should you treat a complaint from a customer?

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ANSWERS TO QUESTIONS 1/1 1/2 1/3 1/4 2/1 2/2 2/3 2/4 3/1 3/2 3/3 3/4 4/1 4/2 4/3 4/4 5/1 5/2 5/3 5/4 6/1 6/2 6/3 6/4

7/1 7/2 7/3 7/4

Considering all the possible good points that can emerge from any situation. Make an appointment to see that prospect when you are next in the area, bid her or him well, in a pleasant manner and quickly look for the next prospective customer. Be interesting and enthusiastic in what you say and how you say it. Adopt a positive attitude in thought and word. Always be thoroughly prepared and when you meet an opportunity, use that preparation. Let the respondent know as quickly as necessary in your presentation that you are selling. Because you often have to get past the receptionist and the secretary before you can meet the prospect. Simply by making more telephone calls By treating them with respect for their job and making friends with them. Ask them for help. Because otherwise your conversation with the prospect is likely to be disjointed. Get to the point as quickly as you can when you start a conversation with a respondent. Give your name and the name of your company. Summarise the point of your call in the first sentence. As soon as the real needs have been identified, understood, and agreed by the prospect So that you can listen and write at the same time. Usually, the after-dinner speaker has been previously announced to the gathering and they are looking forward to hearing the speech. Also, the speaker is not interrupted. When speaking face-to-face with a prospect you can be seen and appraised. If you have a product with you, it can be seen. On the phone, you only have your voice to help you. Immediately after you have said your salutations and told the prospect about your company and the product you are hoping to sell. Pen, pencil, or ballpoint, pad, diary, product or service data, relevant correspondence, timepiece. Because you are never sure what the prospect might say in response. Actively listening to what the prospective customer says to you. By asking the filters for help in your quest. Because a good opening is the start of the sales presentation. Because it is restricted to the listener. When you wish to narrow the conversation down. When you want more information or are looking for possible needs that have not been adequately aired. Identify the real need. This means that you must develop your sales presentation using open probes and closed question as appropriate to reveal this need. Make sure that the prospect understands what it is, and then appreciates how your offer will satisfy that need. Because if the prospect has not resolved to satisfy the need you have aroused s/he will not be receptive to your offer. You have to listen carefully to what the prospect says so that you are able to select from what is said and use this information to build barriers. You should prepare a list of product benefits and, preferably, proof statements that support those benefits, because it is no use simply stating the benefit. You have to prove it to the listener by the supporting statement you make. Only after you have identified it, made sure that the prospect understands it, and have explicitly mentioned it.

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8/1 8/2 8/3

8/4 9/1

9/2 9/3 9/4 10/1

10/2 10/3 10/4 11/1

11/2 11/3 11/4 12/1 12/2 12/3 12/4 13/1 13/2

Until you have identified the need or needs, actually said it in words, and the prospect has understood, agreed and resolved either explicitly or implicitly to satisfy the needs or needs. A pen, pencil, or ballpoint, pad, diary, product or service data, relevant correspondence, timepiece. You should not agree, because losing orders, or perhaps, more accurately, not getting orders, is not simply because you have not closed properly. The prospect may not be able to afford it, may be assessing a number of other offers, maybe under instructions to place business with another organisation and many other reasons. Not shutting up when the prospect is ready to give the order, or not agreeing the objective that you set yourself before you picked up the phone. It means that the salesperson goes on talking and not listening. You may have answered this question Yes or No. I think that you should always be prepared to help the prospect to assess the proposition because this will ensure that you have covered your ground very thoroughly and know the advantages of your offer. A price that is acceptable to you there and then; a price that is quite high but lower than you can accept; a ridiculously low price. Anywhere, but perhaps most likely when you arrive at the price. To avoid them arising in the first place. As this is not always possible, respond to them immediately they are raised, or shortly after if more appropriate to your presentation and keep a record of them and how you dealt with them. If a customer, well known to you or not, tells you that s/he has had a poor holiday, while you might sympathise, you should not to become involved in being associated with her or his recent experience. Remember that the customer was responsible for selecting the holiday and anything you say that is critical of the country, town, or hotel, is in a way, denigrating the customer’s choice. It is better simply to listen and let the customer run out of steam and tell you all the problems. As soon as the complaint has been aired, you can say something along the lines of ‘Well, let’s talk about something more pleasant,’ and introduce the subject of your presentation. Remain silent! Listen intently to what they say and how they say it. Because you will impress them on the mind of your listener. [O] Opening the sale. [N] Finding out the real need and getting the prospect to understand it and agree with it. [R] Getting the prospect to resolve to satisfy that need. [O] Making the offer. [A] Helping the prospect to assess your offer. [D] Obtaining the decision. If your voice sounds as though you are pleasant and helpful, and the way you express yourself is interesting, the prospect is more likely to listen to you and your proposition. Because your respondent has to receive correctly what you transmit. You should not use too many superlatives or you will not be credible. Yes but change the conversation as soon as elegant. Both! You must listen and use open probes or closed questions depending on what you hear. Avoid being light-hearted. The respondent may have serious problems. When you have identified the need or needs, actually said it in words, the prospect has understood, agreed and resolved either explicitly or implicitly to satisfy the needs or needs. Ask for the complainant’s telephone number and offer to phone back immediately. Give the call priority; listen completely to the complaint and do not interrupt but jot down notes on your pad; tell the complainant what you propose to so.

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13/3 13/4

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Never agree with a complainant that a complaint is justified. This combines barrier building with the linked-benefit technique. When the prospect mentions a price that you could accept, don’t immediately say that you will accept it. Prepare the prospect; combine a linked-benefit with the barrier. Repeat that you understand that the prospect is saying that a certain price is the right price for the product. When prospect agrees, say that if it were possible for you to agree that price, s/he would place an order. When prospect says yes, the barrier is built. After an appropriate pause, say that you are prepared to accept the order at that price provided that an order number is given. The essence of the buying magnet is making sure that prospects understand exactly what they have said and agree that they have said it, and that it is a genuine agreement. Determine if the company uses the product or service. Do they have a budget for the purchase? Do they know the likely cost? Who is responsible for deciding to purchase? Don’t prejudge; telephone every shop in the village. In general, who are the most likely people to talk to about the matter? There are three main things: Is there a budget? When is the purchase to be made? Who makes the decision to purchase? The order in which you search for these data will depend on your type of product/service. Because you must practise them to give them the right amount of emphasis and meaning. If they are written down, you will be more able to say them correctly and subsequently modify them in the light of experience. Used judiciously with care, it usually has a good effect. Raise the curiosity of the listener; get the listener involved; create confidence. Your main conversation should follow the following structure: What is suggested to be done. When, where and if necessary how this should be done. Who is going to do it. At what cost. Benefits—cash and non-cash. ONROAD for opening, need, resolution, offer, assessment, decision. Never defend your price only justify it by enumerating the attributes and benefits. A quotation is a traditional document setting out specification and price. A proposal is a selling tool. Treat a complaint as a medical emergency that requires immediate attention.

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