Many salespeople make a serious mistake in scheduling that can make the difference between success and failure. It’s an error of priorities when it comes to prospecting.
Great salespeople prospect first and then schedule the rest of their day. Weaker salespeople work their day and then prospect in their “spare time”. The problem is that for many us, there is no spare time and the prospecting is never done. This also leads to doing your prospecting when you have a few minutes and not at the time that will be most effective.
The truth is that if we wait until all other tasks have been completed, there ill be very little time for prospecting. If you own your own business, you know this. Many days you barely handle top priority items and then realize that you have done almost no prospecting the entire day.
No time for prospecting leads to wild swings in income. When business is really bad, you have time to prospect. You get leads and get sales. Then, you may be too busy with delivery, installation, financing and paperwork to[Read more →]
If you or I received a recorded message on our phone trying to sell us something, we’d be mad and hang up. Right? Wrong! In many cases if they receive the right list, many businesses and consumers want to find out more. Voice broadcasting was used extensively in the 2008 Presidential election by both parties. It was wildly successful! Voice broadcast marketing can be quite effective for you as well if you follow some important rules.
The Right List
The goal is to call people or businesses that have a good chance of being interested in your product or service. Be sure to get your list from a company that allows targeting of homeowners or non-homeowners by zip code for consumer campaigns and businesses by SIC code for business campaigns. Be sure the numbers to call are very inexpensive or even included in your monthly fee as you will be making lots of calls and buying numbers to call can become quite expensive. Also, be sure the supplier washes the list of numbers against the “do not call” list and removes those who do not want to be contacted.
The Right Type Of Reception
Be sure to use a service that allows you to send your broadcast to live calls (calls answered by a live[Read more →]
Dealers often tell me that if they can get into houses to do a demo they can sell. Many don’t achieve the success they deserve because they don’t do enough demos. How can a smaller dealers do the hundreds of task on his plate and still have time to prospect? Now you can use advanced technology to do your prospecting for you with voice sales messages. Best of all, it works on any budget. Voice broadcasting will help you get the leads appointments and demos you need with very little work on your part and very little investment. I use voice broadcasting and it is by far the best way to generate leads, sell more and create a successful business.
Voice broadcasting involves recording a short sales message and using technology to easily broadcast that message to thousands or millions of prospects. Our system gives you the phone numbers which you [Read more →]
I have received a lot of calls, since the economic melt-down began, from dealers with the same tale of woe. They can still sell water equipment (but it’s tougher) but many of their customers are turned down by their finance sources.
Some customers cannot be financed due to irresponsible use of past credit. However, as the line of acceptable credit scores continues to move up, we will discuss ways to finance almost every customer. If you don’t need these ways because you have financing you are satisfied, by all means stay with it; but for those of you abandoned by financial sources, here are some emergency techniques to consider.
Get Down Payments
For many years, a down payment of 20% or 40% was expected. In the last decade, nothing down[Read more →]
Many salespeople miss a critical step in overcoming objections. They act too quickly before taking a step that gets a lot closer to a sale. It’s understandable that when an objection is raised, we cannot wait to challenge it. Maybe it’s an adrenalin thing. Maybe fast action is caused by fear of losing the sale. Maybe we just want to show how much we know. Whatever the reason, top producers know that there is an important step between hearing and understanding the objection and charging forward to solve it and close.
This critical step is asking if there is any other objection. If you proceed before the customer has told us the objection is the only thing preventing a deal, we risk an unconvinced customer after we have dealt with the objection.
As an example, let’s assume the customer raised the dreaded price objection. If you successfully[Read more →]
Many top producers use a technique called “reverse” to help overcome objections. This technique should be one of many tools you take to every sales situation. It can be very effective provided the proper foundation as been set. By that, we mean that no objection technique will work if you have accidentally alienated the customer or if you have not done a great presentation with lots of trial closes. We discuss these techniques more fully in other articles. Assuming the correct foundation has been laid, reverses work very well.
A reverse is a way of turning an objection around and asking the customer to solve their own injection. To illustrate, let’s look at a common objection and then see how a reverse can be applied.
Customer: “Your product is just too expensive. You are $400.00 more than I can get the same thing from Company X and we just cannot pay that premium.”
Salesperson1: “Fine. You get what you pay for and you will regret buying cheap. Good day.”
Salesperson 2:“That’s just our list price. I will give you $400.00 off.”
Neither if those techniques is effective very often and technique #2, while the most common, lowers the sales price without committing the customer or getting closer to the sale.
Let’s look at that objection using a cushion and a reverse.
Customer: “Your product is just too expensive. You are $400.00 more than I can get the same thing from Company X and we just cannot pay that premium.”
Salesperson: “I understand and I agree that price is important.” (This statement is a “cushion” designed to lower buying resistance by agreeing instead of arguing) “Even though you are correct that our price is $400.00 more than our competitor, our company is chosen by hundreds more businesspeople like you than our competitors as their supplier. Why do you think that is?”
This tactic reverses the need to answer or reply from the salesperson, back to the customer. It is important that you do not say anything else after using a reverse…no matter how long it takes to get the customer to speak. It is a simple and gentle way to use leverage to put the answer back in the customer’s court. Tension will mount (but it’s a good tension) as the customer gets a reply ready.
Whatever the customer replies, you agree with it and close the sale. Here is the most common reply to the reverse.
Customer “I guess it’s the warranty and customer service”
Salesperson “That’s right; and I know that you too will find our service and warranty is worth far more than the $400.00 difference. I’ll get the paperwork started.”
Remember that whatever answer they give is what you agree with and use to close the sale by writing the order without further discussion. There is no need for a big presentation or looking at pictures or models. Just put your head down and start writing the order.
Naturally, this technique does not work with every customer. Some buyers will refuse to answer or will say something that does not lead to the sale. However, the technique works well in most cases if the customer wants the product or service and is looking for a way to justify the purchase.
This is a powerful and successful technique that can add 20% to 40% to your sales and income. It is an advanced technique and should be practiced to be effective. With all new techniques you try, we suggest you practice and then use them for 90 days before making a decision as to their effectiveness. It takes that long to be comfortable and successful with any new technique.
Cushions and reverses have worked very well for many of my clients. If you add cushions and reverses to your selling tools, I know you will find they are worth the effort.
This article is part of a three part series that looks at the performance of manufacturers and suppliers, dealership owners and sales staff to see if they are pulling their weight and adding to the success of the industry. It’s a check up from the neck up but is not meant as criticism. We hope you will use it to evaluate your situation and see if there are things that can be done at all three levels to increase sales and profitability in the industry. The first article in the series allows you to rate your manufacturer/supplier.
Score 10 points for each area below that your manufacturer does a good job. See how they stack up. Remember that the better your supplier is in these areas, the more they will expect from their dealers.
It goes without saying that your manufacturer or supplier should sell you good equipment with a good warranty. Let’s take a look at the top ten ancillary areas we believe need to be assessed and compared to other industries.
1 ) Building & Signage Designs
In many other industries, the manufacturers have building designs ready to go for their dealers. Some even have building design and finance programs. Having a building designed for water equipment sales and rentals and for sales of bottled water and salt is becoming more and more important for profitability and in recruiting good staff. Having a building also allows dealers to accumulate real estate assets and to enjoy rises in real estate values. Standardized buildings also build brand recognition.We believe your manufacturer and supplier should have a series of building sizes and choices available for dealers along with a program to make them easy to acquire and easy to finance. Score 10 points of your ,manufacturer/supplier has these programs and zero if they do not.
2) Account Representatives That Really Contribute On Frequent Visits
In the heyday of our industry, manufactures and suppliers sent representatives to dealers on a regular basis for visits. During these visits, these reps would actually take new recruits out to prospect, demo and close. They also assisted the dealer with recruiting and marketing. They knew the territory and the competition. They were coaches who helped the dealer devise a business plan that matched his territory and helped him achieve it.
These representatives were top salespeople and had actual dealership experience. If you are paying good money for a name brand, you deserve this kind of support. Score 10 points if you have this kind of support and zero if you do not.
3) Sales Training
Before you invest your time and effort in manufacturer sales training, take a look at who designed it and who delivers it. Manufacturers are great at manufacturing but sales training should be done by someone who has actually knocked on doors, prospected, done demos and overcome price objections. Sometimes training looks great in the board room but fails in real life when used at kitchen tables across the continent. If your manufacturer’s training is written and delivered by someone who could go out tonight , do a demo and get a sale, score 10 points, if not score zero.
4) Marketing & Lead Generation
Is your manufacturer or supplier helping you with effective lead generation programs that actually work? Be sure the programs we designed by someone with actual water dealership experience and success. Beware of being shown a new program every month or so as constant switching from direct mail to a phone room to a ballot program will only burn up money, All advertising and marketing works best when you stick with a plan for 90 to 120 days and then evaluate it. Also, beware of programs that were designed by corporate ad agencies or the boardroom. If it was not designed by someone with actual dealer success, you are the guinea pig. Ask for proof that any new program is working before you participate. If your manufacturer/supplier has helped you within the last 30 days with marketing programs that successfully generated sales, score 10. If not, score zero.
5) Vehicle Graphics & Corporate Clothing
Your supplier or manufacturer has the skills and staff to design corporate clothing, vehicle wraps and more. Image is very important to today’s customer. If your manufacturer or supplier has these types of programs, be sure to use them as they affect sales greatly. This is an area where you manufacturer or supplier can improve your image and make you part of a national or regional team for selling and recruiting. If your manufacturer/supplier has this type of support, score 10 points. If not, score zero.
6) Financial Training & Support
We work in several industries and it appears to us that the water equipment industry has less financial training and support than most. Your manufacturer or supplier should be assisting with the support you need to succeed. All dealers need to produce in conjunction with their manufacturer’s representative, a five year business plan and a yearly budget that you approve. Then, your representative should review your results with you at least quarterly to help you achieve your goals. Many suppliers and manufacturers have service people at the factory you can call with service issues, but do they have financial support staff you can call when you need help to raise prices, design a pay program or decide how much to spend on advertising? If they do, score 10 points. If not, score zero.
7) 20 Groups
Almost all big ticket sales and service industries have 20 Groups. As far as I know, these groups do not exist in our industry. 20 Groups are groups of about 20 dealers who are spread out geographically so they are not afraid to reveal financial data, ideas and techniques. Every month, each member sends their financial results to a company that makes sure they use similar accounts, puts them on a spreadsheet and emails these group reports to all members. This gives each dealer the opportunity to see how 19 other dealers are doing compared to them and to call them and ask how they do things and what works.
I have learned a huge amount of what I know about business from 20 Groups and I believe every manufacturer/supplier should provide this service to their dealers. If yours has this service, score 10 points. If not, score zero.
High Standards For Dealers
Find out how high your manufacturer/supplier standards for dealers are. Will they assign a huge territory for just a small order of product? Will they set up dealers with insufficient capital, no financial statements or a history that is less than successful?The lowest standard your manufacturer accepts is an indication of how they do business. Give them 10 points of you feel their standards are high enough to pull you up, not drag you down. If not, score zero.
9) Finance, Rental & Recruiting Plans
Your manufacturer/supplier should keep you ahead of your competitors with innovative ways for you to finance your retail customers and your inventory in stock.. They should also have assistance for you in renting equipment as rentals are the key to long term profitability and equity. Finally, they should have recruiting assistance and support, because having great installers, service people, accounting staff, salespeople and managers is necessary to your success. If your manufacturer successfully supports your rental and recruiting plans, score 10 points. If not, score zero.
10) Do Your Goals Match?
The final assessment we propose is to look at how closely your goals match. Your manufacturer may feel that moving units is important to their profitability and that you making a profit is entirely up to you. Perhaps you agree. Perhaps you feel your should both prosper by building a solid business where you both succeed.
What is important to you? Is it training? Is it financial support? Is it warranty and customer service? Maybe it is having a large exclusive territory you hold in writing in exchange for meeting sales and stocking goals.Make a list of what is important to you and score 10 points if you manufacturer/supplier matches your goals with effective action.
Conclusion
This report card will help you quantify how good a job your manufacturer/supplier is doing for you. In our next article, we will have a similar test for the owner/manager of a water equipment dealership and in our final article, we will look at a report card for sales staff. Stay tuned for more. If you have questions or reactions, feel free to send them to reactions@carldavidson.com.
Every day, we read about the economic melt down. The worst crisis since the great depression. I am getting calls and emails from salespeople asking what will happen to them. They seem convinced that no one will buy. Worst yet, they fear that when they get sales, they won’t be able to finance them. This article discusses some of the things you can do to survive, thrive and prosper in any economic crises.
Choose Where You Prospect
When you rely on call-ins or walk-ins for sales leads, you deal with a cross section of humanity. Remember that credit tightens but it never disappears. There will always be people and companies who have cash and who have good credit. In tough economic times, you need to assess carefully who still has income and credit and spend time prospecting these people. There will always be people who can buy. Your job is to find them. Do not spend time commiserating with people who can no longer buy. It’s depressing and unproductive. Through targeted prospecting, find the ones who can buy and concentrate on them. Even during the Great Depression, Hollywood and entertainment companies saw huge increases in profits. People who invested in bonds, not stocks prospered. There are always businesses and individuals who do well. Find them and sell them.
Get to The Top Of Their Priority List
When selling in tough economic times, remember that people still buy things but you have to get higher on their priority list to sell when money is tight. To do this, concentrate on asking questions to find your customers’ wants, needs and fears before you start presenting. One key to success is tough economic times is doing a better job of interviewing clients and then presenting your product as the solution they need. No matter how tough times get, if you needed an operation to save your life, would you spend the money to get it? Would you borrow, sell assets and do whatever was necessary to acquire that service? We all do what we have to in order to get the things we need based on our priority list. During tough times, work harder to be higher on that list and your sales will continue.
Present Savings, Security & Special Benefits
Changes in the economy require changes in the benefits we present to customers. If times get really tough (and no one predicts they will get this bad) suburbanites may grow more food in their gardens. This will require tools, fertilizers, books on gardening, things for preserving food and much more. These new needs will become sales opportunities. Take a look at your product and services and see how you can position yourself as the answer to the fears and needs of your clients. You do this by presenting benefits that will result in security, savings and items that will get your customers through the disasters they fear are coming.
Increase Your Average Closes By One
All salespeople have a number of closes they are comfortable with. Maybe you ask prospects to buy once and then hand them your card and brochure. Maybe you are used to asking three times before you bail. Whatever your average was before the melt down, increase it by one and you will increase your sales enough to weather the storm. If you normally ask three times, try to average four times at every call. You will be amazed at the difference this makes to your closing rate.
Practice Melt Down Objections
You are going to face different objections during the crises. These may include, “we aren’t buying anything right now”, “our budget has been slashed”, “I can’t buy until I am sure I won’t lose my job” and many others. Make a list of what you will face in your industry and start to practice, drill and rehearse 10 ways to overcome each objection. Being prepared will make you confident and will increase sales. Only salespeople who do not prepare and change will find their closing rate drops as the market changes.
Don’t Worry Too Much
Avoid listening to the news. Avoid conversations where friends and relatives are being negative and depressed, It’s hard to get a sale after an hour of depressing news or conversation. Do more of what makes money and less of what doesn’t. In good times, most of us do things that cost sales but times are good and we don’t notice the time and sales we are wasting. Now is the time to go the extra mile to earn more and sell more.
There have been many tough periods affecting our economy. I sold RVs (which no one actually needs) when people were shooting each other in gas stations because of fuel shortages in the 1970’s.I sold cars when unemployment was 20% in my market and when interest was so high it was actually against the law to lend money in several states. Our economy has been through hundreds of good times and bad times in this country and we always survive. Some even prosper.
Native Americans have a saying. “Life is like a bear. You eat it or it eats you” You will decide be your actions and attitude if you will move ahead and prosper or cut your income and accept excuses. Much of our world is what we make of it. I hope these techniques will help you look back on this crisis as an opportunity to increase your skills and prosper.
It might be worth your time this month to take a minute to really appreciate the business you are in. Sometimes we ask ourselves if there is an easier way to make a living, but the truth is, we already are in the promised land. Think about it. We sell good health, long life and saving money. Those are all topics that people want to talk about. Imagine how depressed you could get selling disability insurance, cemetery plots or nursing home suites.
In addition to the fact that we sell an up-beat product, we sell one that everyone needs. If you sell health insurance, you quickly find that 40 percent of the people in our country won’t buy it. If you sell women’s clothes, only slightly more than 50 percent of the population wears them. That means more than half the people you speak to would have no need for the product.
The good news for us all is that everyone needs pure water, and they need it every day. We have the biggest population of people who need our product–everyone on earth. Couple this with the fact that only about 10 percent of U.S. homes have water improvement equipment and you have an unparalleled opportunity to sell.
But do we try to sell as many people as we can? Most of us do not. If you view talking with people as work or selling, you will never be as successful as if you view it as helping them make a health improving, life-lengthening, money-making decision. Here are a few examples of great salespeople who loved to help people improve their lives.
About 10 years ago, I was at a home show. I was tired and grumpy. I needed a break, starting with a visit to the men’s room. Two men were washing their hands. One of them turned and used the opening line I have recommended, “Excuse me sir, you don’t let your family drink from the tap at home do you?” He started a sales introduction and got an appointment. This salesperson did not even take a break on breaks. He couldn’t wait to tell people about the equipment.
About five years ago, my boss sent me out to rent a second office for the company. I was accompanied by Doug, an excellent salesman. The real estate agent showed us around a vacant office, and I was picturing the training room, phone room, etc. Doug said to the agent, “You don’t drink from the tap at home, do you?” He started to sell and got an appointment with the real estate agent. He sold the agent a softener and RO and got an appointment to talk with 60 agents at their sales meeting. From that, he received 10 appointments and sold five systems. All I did was see the building. Doug saw everything as an opportunity to tell people how much he could help them.
Around this same time, Doug and I were working a booth in a mall. We took a break and headed to a restaurant for lunch. I was famished and started munching as soon as my food came. Doug asked to see the manager. When the manager arrived, Doug pointed out the spots on the silverware and asked the manager, “If I could show you a way to get rid of these spots with no work and to save hundreds of dollars on soap, could I have 10 minutes of your time next week?” Doug got an appointment, I got indigestion.
Last week, I was speaking at a seminar in Phoenix. We talked about believing in the product and looking for opportunities to help everyone you meet. The next day, Mike returned a call which he received on his cell phone. When he returned the call, he found it was a wrong number. Instead of simply hanging up, he said, “You folks aren’t drinking from the tap, are you?” and started to sell. From his skill, effort and enthusiasm, he got an appointment and made a sale.
These are just a few examples of how great salespeople are sold enough to see opportunity everywhere. Some salespeople wait for the company to provide them with appointments. Those who believe we actually are helping people and making their lives better cannot wait to tell others the good news. Take a look around and you will see opportunity wherever you gaze.
Just Released, All New Residential Water Equipment Sales Training
Carl Davidson has released an all new DVD water equipment sales training series on successfully performing a residential water equipment demonstration. This DVD series has several improvements over past training. It has an all new up-beat style that is proven to be easier to learn from. It shows actual customers reactions and much more. The program is guaranteed to increase sales or fully refunded. The video below is a 4 minute preview. For more information, visit www.carldavidson.com/lpdemo.htm or call 800-941-0068
High Standards For Dealers