When should you discuss money on a sales call?

This is always a touchy subject and there is always pushback when I suggest what you should do. In this article I will give you the answer right away; I will explain why you should do it; then I will explain why you will feel resistance to doing it.

You should discuss money with some level of specificity early in the sales cycle and almost without exception on the first call. This is obviously true in a one call close situation, but it is just as true for long cycle complex sales as well. I had a client last week who was finally converted to amending his sales process to talking money on the first call. He had a two call situation and he did not discuss money at the first meeting. He had a prospect with a seemingly compelling reason to move forward and he was excited to set a second meeting with him to explain the service he was selling, go over the price, and close the deal. It seemed like a sure sale. You probably guessed by now that when he got to the second meeting went through the presentation and got to the close, the prospect had no money at all. He was just starting out as a realtor and had gone through all of his start up capital and was living hand to mouth hoping for his next client to come along and keep him in the business for another month or two. Watch the video that goes with this article for a similar example in a long cycle high dollar deal. Prospects have problems and they like looking at new exciting ways to solve them. It is for that very reason that you must talk about money to make sure they are qualified for you to spend your precious time and corporate resources on. If you don’t, your pipeline will be bloated with unqualified prospects and your forecasts will be extremely unreliable and your closing rate will be low.

If you are feeling resistance to doing it, it might be because you are one of the 65% of salespeople who have a money weakness meaning that they are uncomfortable talking about money. It might also be that since discussing money early seems a little aggressive you are afraid of upsetting the prospect. If that is true then you are one of the 42% of salespeople who have too much need for approval. Need for approval means you are more worried about whether the prospect likes you than whether or not they do business with you. These are two of the five hidden obstacles to sales success. If you are feeling any pushback at all buy my book Attributes of The Optimal Salesperson® How to master the mindset of Sales Superstars and Overachievers wherein I discuss these weaknesses in more depth and tell you how to overcome them.

To get more sales tips click here to sign up for the free OPTMAL SELLING™ weekly video sales tip.

Dan Caramanico is a salesforce development expert and he is the author of Attributes of The Optimal Salesperson® One of Selling power’s top ten books for 2010 and Optimal Selling, Sales Conversations of the Optimal Salesperson.

How do you describe your ideal prospect?

Identifying your prospect is critical if you are to grow your book of business rapidly and efficiently. When I ask salespeople to describe their ideal prospect, I often get vague answer s or answers which are not very useful. They say things like “I sell widgets to small and medium sized companies in the Midwest.” Or they say “I work with people with a net worth of $10 million and up to get them a better return”. How can I refer to either of these people? I don’t know what kind of company uses widgets or who in the company buys them or who my friend wants to be introduced to. And how am I supposed to know what someone’s net worth is?

Every salesperson should identify their typical ideal prospect in writing. The ideal prospect is a company who values your opinion, uses a full range of your products and pays you a fair price. Your description should include:

Problems that you solve for this type of company.

What the general demographic characteristics are.

Who you need to make contact with.

It is important to describe in some detail what problems you solve for this type of company because problems are what will cause the prospect to buy from you. It also allows them to relate better to what you do. This will be important in many different situations. If someone asks you what you do you should say “We work with Presidents of small to medium sized companies who are struggling with how to reduce their energy bills.” The person asking the question can relate to that. They might even say, “Hey my uncle runs a company and they are always complaining about the energy bills.” However, if you were to say “We perform energy audits. Our expertise is in Thermodynamics and heat transfer calculations.” No one would have any idea what you actually do. And, more importantly, would have no idea who to refer to you. They would probably say something like “that sounds interesting.”

If you start thinking in terms of what problems you solve rather than what you actually do, you will find that your conversations with prospect go easier, your referral sources will have a better idea of who to refer you to, and it will be easier to find the prospects that you need to fill up your pipeline.

Dan Caramanico is a salesforce development expert and he is the author of The Optimal Salesperson® One of Selling power’s top ten books for 2010. Get his weekly 1-minute video sales tips and some free sales training www.optimalsalesperson.net

Get Rejected – It’s Good For Sales

Fear of rejection is one of the most common weaknesses among salespeople and it is a major reason people give for avoiding the selling profession altogether. It is closely related to what psychologists call the abandonment fear. Abandonment fear is a primal response all humans have to some degree. In ancient and pre-historic times if you were abandoned or rejected by your community you most likely starved to death or lost the protection from predators that the community afforded. But that fear is misplaced in the modern day salesperson. Nobody starves to death or is eaten by a saber-toothed tiger because a prospect decided not to buy from them.

Salespeople who fear rejection make fewer sales calls because they spend a lot of time working up the courage to make the call. Then, if they are not successful, they spend time recovering from the experience. They take a break. They analyze what just happened. They rationalize the situation. They blame themselves. They blame the company or outside factors like the economy the government or the Federal Reserve Bank. Eventually they make another call, usually with lowered expectations and the ensuing unhappy result. They repeat this over and over expending vast amount of emotional energy in the process.

Salespeople without fear of rejection make one call after the other with little or no downtime between calls. They realize that the prospect’s decision not to buy from them or to talk to them or to meet with them is not personal. The prospect may be busy or not have a need.  What seems like rejection may be due to any one of several other factors. But it is not an attack on the salesperson. They are not going to starve because this one person could not see the benefit of doing business with or talking to them. They know that there are other prospects right around the corner to talk to. They also know that outside factors have little to do with their overall success. Sure the economy, the government and even their own company create situations they have to deal with. But they adjust their approach and go on selling and succeeding anyway. They also realize that sometimes they make a mistake in their approach or they miss cues that the prospect gives them and they lose an opportunity to business due to their own failure in that instance. But they realize the mistake and move on trying not to make that mistake again. They know that no one is perfect – not even them.

So the lesson for today is to increase the amount of rejection you experience. If you do, your sales will increase dramatically and the rejection isn’t about you anway. Watch this video to understand more about how that works.

To get more sales tips click here to sign up for the free OPTMAL SELLING™ weekly video sales tip.

Dan Caramanico is a salesforce development expert and he is the author of Attributes of The Optimal Salesperson® One of Selling power’s top ten books for 2010 and Optimal Selling, Sales Conversations of the Optimal Salesperson.

Save The Ultimate Asset For Yourself

This is great advice about downtime for those who never seem to get any.

The Ten Biggest Mistakes When Hiring Salespeople (Part 2)

Getting your sales force hiring decisions wrong – can drastically drag down your top line revenues – as well as negatively impact your operational planning. A primer on getting those decisions right.

The Ten Biggest Mistakes When Hiring Salespeople (Part 1)

Getting your sales force hiring decisions wrong – can drastically drag down your top line revenues – as well as negatively impact your operational planning. A primer on getting those decisions right.

Do The Work

The title of this article sounds like direction your parents or your teachers or your boss might have given you. It goes right along with the advice to work hard and keep your nose to the grindstone. Of course, when you matured a little they revised the advice to work “smart” not hard and use your head. All of that is good advice, but it is not the kind of work that I am talking about. The most successful salespeople work optimally. The Optimal Salesperson® is motivated to put energy into the right area. They develop the key attributes in themselves, which will allow them to excel in their field and meet their personal goals. Those key attributes allow them to achieve a state of effortless high performance. To illustrate, let me describe two different people, the Optimal Salesperson® earning at the top of the profession and the typical average salesperson who is not starving but not struggling and not meeting his goals.

Hard Working Harry – Harry is a very hard worker but he is missing some of the key attributes of the Optimal Salesperson. He gets up every day and makes thirty cold calls. He talks to anyone who will listen and books 8 appointments per week with prospects too low in the hierarchy to make a decision to spend money. When he visits his prospect, he is the picture of the professional salesperson. He asks a few need based questions and gives his presentation in a professional manner. He generates 5 opportunities requiring proposals and 3 people want him to follow-up in a month or so. Harry agrees to all of that even though the prospects won’t tell him what they want to spend exactly, or if a decision will ever be made. He closes 15% of his proposals and his profit margin is thin. He doesn’t get many referrals because he is afraid to ask. Harry is working 60 hours per week and he gets by … barely. His head is always on the chopping block, but management keeps him around because of his work ethic and they think that eventually the hard work will pay off.

Optimal Olivia – Olivia is the Optimal Salesperson®.She earns four times what Harry earns. She makes no cold calls, she doesn’t call on people who have no authority to spend money and is a trusted advisor to the C-suite of her target market. She is constantly introduced from one decision maker to the next. She only writes four proposals per month, but closes virtually every one. She doesn’t really make presentations but rather has a conversation about the challenges facing the senior executives she meets with. Then she explains (sometimes with the aid of a PowerPoint and sometimes not) Her profit margins are high and she always knows what clients want to spend and the time frame for the prospect’s decision. She sees all of her kid’s soccer games and management leaves her alone and wishes they had four more like her.

The Difference – If you ask Harry, he would tell you that Olivia gets the best accounts, has the best territory, is just lucky or was endowed with some magical list of contacts. The truth is that Olivia started from the same place as Harry. She was afraid to ask for a referral. She lived by the PowerPoint presentation and she had a low closing rate, low profit margins and called on the wrong people. However, somewhere along the line Olivia came to understand that the problems she was facing were all of her own making.

She Worked Hard In a Different Way – Olivia became The Optimal Salesperson® through hard work.Rather than just put her head down and make more calls in the same ineffective manner, she figured out how her beliefs were getting in her way. She did the emotional work to face her fear of calling at the top. Once she became comfortable with that, she worked on discussing money with prospects. Once she overcame that discomfort, she worked on her fear of asking for a referral. Harry on the other hand never wanted to face the inner fears that were getting in his way. He put his head down and worked harder at what he was doing. Olivia learned that if you put your effort into understanding how your belief systems are defeating you and then work hard to change them, selling becomes easy. Harry never wanted to do the hard work of facing his inner fears so he is doomed to a lifetime of working hard at sales.

Dan Caramanico is a sales development expert and is president of Caramanico Maguire Associates, Inc. If you want to learn more about self-limiting beliefs and the key attributes of the Optimal Salesperson® go to www.optimalsalesperson.net   

Networking for Business

Guy Dunn is an inveterate networker and he has captured the basics for how to build your business through networking. The book is filled with down to earth advice on what to do and what not to do based on his own success at building his business. I know Guy personally and I know that he practices what he preaches. It is a great compendium of the fundamentals and is easy to read.

networking_for_business

4 Things Top Salespeople Do Every Week

The Optimal Salesperson® has a blast on a day to day basis. Sure there is some drudgery involved. I mean who really likes writing proposals or filling out forms to prepare quotes? Then there are a few management reports and the odd internal meeting or two. But you should be having fun every day. You meet new and interesting people regularly, you help people solve problems, you are not trapped behind a desk, you are your own boss most of the time, you have control of your own destiny, you make a lot of money and you can usually find a way to see your kid’s soccer games. If you are not having fun, then you are doing something wrong. But amid the crush of daily activity, many salespeople forget some very important things that need to be done regularly to get to the top and stay there. Most salespeople will follow up on leads they receive and prospects in their pipeline, and all salespeople will respond to urgent requests from clients and management. But here are four things top producers make sure they do on at least a weekly basis which mediocre salespeople ignore.

  1. Connect With Goals and Purpose – It’s easy to forget why you are doing what you do. As much fun as sales can be, it still requires tremendous amounts of emotional energy on a daily basis to overcome internal obstacles and fight through personal barriers to get the job done. The work just doesn’t come to you, you have to go and get it. It’s easy to become distracted and demoralized. You should review your goals at least weekly to remind yourself why you are working and what your priorities are. It will keep you motivated, on track and happy.
  2. Improve Skills – The Optimal Salesperson® constantly strives to get better. They know what skills need improvement and they work on them. They take classes, they study and they practice. They also know what internal obstacles are holding them back and they put out the energy to try to overcome those obstacles.
  3. Prospect – The Optimal Salesperson® prospects consistently and relentlessly. The secret to sales success is consistent weekly prospecting; not wild periods of activity interspersed with long periods of doing nothing. You should know how much prospecting you need to do on a weekly basis and never let a week go by without doing it.
  4. Track Sales Activity – Top salespeople keep track of how much sales activity they do on a daily basis and they report it … even if they only report it to themselves. Accountants, Engineers, bakers and even day laborers know how much work they have to do in a given time period. They know how much they have done and they know how much they have left to do. Should you do any less? If you are not tracking it you are probably not doing it!

If you add these four important activities to your weekly routine you will find yourself more motivated and less distracted. You will have more money and be happier. And as an added bonus … you will probably see more of your kid’s soccer games.

Salesperson Time Waster #1 – Following up

Ninety five percent of time salespeople spend following up is a colossal waste of time. I know, I know!! Many of you reading this article are saying “is he crazy”? “Persistence in following up is one of my greatest assets. I never give up and a few of my clients bought from me just because of that persistence.” In fact the sales literature is filled with stirring examples of the indefatigable salesperson dogging a prospect until they finally give in and buy something. These make great inspirational stories, but I wouldn’t want to build a career on that strategy. It wastes too much of your valuable time and will wear you out before you can make any real money. The top salespeople don’t need to follow up because they close the business now and no follow up is needed. Or they determine that there is no real need to follow up because there is no business to be had from that prospect. Again no follow up is needed. Here are some reasons salespeople waste time following up:

  1. Happy ears – The sales person hears what they want to hear. The prospect gives them some faint praise about their presentation and the salesperson interprets through his happy ear filter that they love the product and will buy it. He becomes so excited that he agrees to get back to the prospect with more information. He fails to understand that the prospect is just being nice and there is no compelling reason to buy. The prospect is giving them an indirect message that they are not interested enough to buy but the salesperson can’t take a hint.
  2. Not qualifying hard enough – The salesperson mistakes passing interest for a compelling reason to buy or they fail to establish that the prospect has enough money to afford the product or service. The prospect puts them off for a month or two as a way to avoid saying no and the salesperson starts a long follow up sequence that will eventually lead nowhere.

There plenty of examples that are similar to the two given here but they are all fairly similar and spring from the salesperson not being able to distinguish a real prospect from one who is just interested or too weak to tell you the truth.

So what is the remedy? It is simple really. Make the prospect prove to you that they have a compelling reason to move forward and have the ability and desire to consummate a deal if you get that far. Make sure that if they are not buying today, that you end the first meeting with a specific action that will take place at a specific point in time in the future. However, the most important asset you can have to avoid wasting time is a firm belief that your time is valuable and that you shouldn’t waste it on unqualified prospects. That belief and an effective selling process will let you end pursuits as soon as they lose the compelling reason to buy or more importantly not begin long follow up sequences with prospects who are too nice to tell you no.

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