"Send A Price Quote To Me!" by Dan Adams

The phone rings. It's a new customer you have never met saying, "I need a quote tomorrow morning on your highest-quality product. Can you get that to me?"  How do you respond?

Let's consider two options a rep can take:



Option A, "The Special Assignment Option".  

Rep "A" will rush back to her office, yell for her specialist and burn the midnight oil churning out a fifty-five page response. She may toss in a brochure, include a national discount, mail it to the customer and cross her fingers. Isn't this what a typical/average rep  does?  In the workshops I conduct I call this the "Special Assignment" option which is a euphemism for a rep in a precarious employment position.   



My advice to Rep "A" is, "Don't be a quote machine." Special Assignment reps seem to adhere to the motto: "When in doubt, quote!" Most companies do a great job teaching reps their administrative duties, namely, how to produce bids. They generally don't do a very good job teaching high-quality consultative and strategic selling skills. Speaking from experience, after my initial sales training I could churn out bids better than anybody. The quotes were usually numbered with a letter suffix. I would start out with "A", and the quote would get altered so many times that if I was lucky enough to get the sale, the final quote would end in "Z". It was of no value to quote this way.



Ultimately you will probably have to generate quotes, but it should be at the end of your sales process. In fact, you should adopt the mindset that you will "never" quote. Instead, as a courtesy to the customer who is trying to put together a budget, you can provide budgetary letters and use the opportunity to act as a consultant to your customer. Of course, you will have to provide a detailed quote eventually, so the "never" isn't etched in stone.  Nonetheless, you want to put it off as long as possible.



A superstar knows it is never in her best interest to provide formal pricing early in the game. Rather, her goal in pricing is to delay for as long as possible.  Rep "B" understands that providing a formal price one week into a seven-month buying process is futile.  After all, at that point it is unlikely that she knows exactly what the customer needs or whether in fact her solution is the right one.



Let's assume that you do understand your customer's needs and believe that your solution is right for your customer. Even so, if you provide detailed formal pricing now, in months 5, 6, and 7 you will have to provide pricing again in response to additional customer requests. At that point you will be competing against yourself and your prior pricing bids.



Option B:  The Superstar Approach

When faced with the "give me a quote" customer demand, Rep "B" asks herself:  "Why do my customers need this quote and where are they in their buying process timeline?" Then she says to her customer: "Sure! Happy to assist.  Can you share with me why you need a price quote now, and where are you in your overall process of evaluating potential solutions?"

 

The two most logical responses from the customer would be:



1.    "I need a formal quote for the budget",

or:

2.    "We want to look at pricing and your competitor has given us a formal bid."



Let's take a look at how you would address each response:



1.     Budget Response:

You are on the left side of the Trust Triangle.  Your goal is to gain trust, NOT to dump a formal pricing contract on them.  You should use a delay strategy to position yourself as a true consultant by creating and driving a formal pricing process.



How do you delay providing formal final pricing?



Position a "formal budgetary price letter quote" (at list price with all options) in lieu of a formal quote. Provide the customer with reasons why providing formal pricing now is not in her best interests.

• A quote is a formal contract with legal implications and is only valid for 60 days.  "Ms. Customer, there are legal repercussions.  A quote is a formal legal document valid for only 60 days.  Our respective lawyers would have to review it.  Are you at that stage?"

• Providing a formal budgetary price letter quote prevents the budget shortfall headache. This is the headache you will cause your customer to endure if you provide formal discounted pricing now only to find out that it's not enough to cover their desired solution in the future.  Perhaps the future will bring budget cuts, potential price increases, new product updates or unanticipated options.   "Ms. Customer, you have not finalized your exact solution and required options.   If you take a formal bid to your CFO now, you'll be stuck with that number. Given potential price changes, new product announcements and budget cuts, you may be unable to obtain your preferred solution with the options you desire."

While deferring a formal quote at this point, the superstar begins positioning her ability to assist the customer with a formal pricing process which she will need to solicit price quotes from all vendors.   



2.     Time To Get Formal Pricing:

If you customer states that it is time to get formal pricing you can respond by stating:  "I'm happy to provide the pricing you are requesting.  In order to provide a solution that will meet your needs both today and in the future, I must first understand your project timetable, your business (if you don't already know it), your short and long-term challenges, opportunities, goals and objectives.  Without that information, I cannot prescribe a mutually beneficial solution that will meet your needs today and into the future." 



The superstar knows that providing formal pricing without this key background data would be like making an appointment with a doctor and greeting her by stating, "I want surgery. When can it be scheduled?"



Serve As A True Consultant:  Drive A Formal Pricing Process:

Significantly, the superstar will use this customer request as an "STP", or a Superstar Turning Point - a chance to distinguish yourself as a true consultant. A superstar is always looking to help her customer avoid headaches.  For example: bids are not apples to apples, bids arrive from different vendors weeks apart, bids arrive months before a decision is made, bids do not include key options, the solution does not meet future needs, etc. 



You must help your customer avoid difficulties by helping her establish a fair and formal bidding process.  This way you begin to enhance credibility and position yourself as a consultant and trusted advisor. You may say, "Ms. Customer, sounds like you need pricing from all the vendors you are currently considering. Let me say, respectfully, that I think you will bring on a major migraine if you request quotes from vendors without an established bidding process.  I can help you avoid that headache."



One key service you can offer your customer is to insure the proper timing of her pricing process. That is, she should understand that most bids are only good for 30-60 days, and the pricing process belongs at the very tail-end of the buying process, not at the beginning or middle. You need to step up and assist her with this key information.



You may also offer to provide templates for a Request for Proposal cover letter and a detailed Generic Bid Specification (See Building Trust, Growing Sales Secret Weapons) so the customer will have an apples-to-apples comparison of the various options. If she balks, mention occasions where other customers tried to simply ask for bids and were burned by the chaos. In those instances the vendors played games, the customers did not get what they wanted and nobody won.  For example, "You know, the CFO down the street just did what you are planning to do. After she received the three quotes, she spent hours on the weekend trying to compare the bids. It was a huge headache for her."  Then offer a chaos-free example or two of how things worked out beautifully using your RFP and cover letter templates.



Maura, I hope this helps when you receive those calls from customers who want a bid immediately.



Good luck, and Close 'Em.

About
the Author:

Daniel Adams, author of Building Trust, Growing Sales,
and creator of Trust Triangle Selling™ helps corporations
improve their profits by optimizing the performance of their sales
teams. He is a frequent and popular speaker at national sales
meetings, workshops and association events. You can visit his
web site and read his other articles at www.trusttriangleselling.com.

Reinventing your business in 2010 by Tim Connor, CSP

               Words of wisdom for this week.   

“Imagination in business is the ability to perceive opportunity.”  Abraham Zaleznik

OK, 2009 with all of its struggle, disappointment and frustration is now a memory but the question remains; what will you do to ensure that 2010 is filled with opportunity, prosperity, success and profitable growth?  Too many people today are stuck in the fears, failures and uncertainty of the past.  Letting these mindsets dictate your future will only ensure that 2010 is nothing but a repeat of last year.

Over the years I have observed numerous client organizations that have weathered a variety of economic highs and lows and one thing I have discovered is regardless of the organization’s; history, size, market, products or services and competition, there are those that are willing to reinvent their organization and there are those that choose to remain stuck in philosophies, policies, procedures and market approaches.  It’s a new world folks and it requites creativity, imagination, innovation and courage to step into the unknown with passion and confidence.

I will assume that if you have survived a turbulent year that you are doing more right than wrong  but on the flip side I will also assume that you could be doing more right and less wrong.  So the question for this week is; are you willing to re-visit everything in your organization; people, products, core business philosophy and everything else that impacts your long term success and profitability and your very existence?  If not, admit and accept the simple fact that you may be one of those business leaders who is ruled by your ego and past success.  If you are, I ask you, what are you willing to let go of to ensure that this time next year you will be able to look back with a smile and knowing – that you were willing to let go of sacred cows, poor performing employees, outdated policies and the attachment to any management style that may be counter productive.

Exactly what does re-invent mean when it comes to your business and its operations?  For starters I urge you to take a serious look at:

-Poor performing products.

-Employees who lack passion and creativity.

-Market segments that are not worthy of your continued resources.

-Your fundamental business model.

- What’s working and what isn’t.

-Delivery systems that need to be trashed or changed.

-Technology that is no longer adding value to your business proposition.

-Your fundamental approach to people.

-Your compensation philosophy.

-Your new product/service development approaches.

-Your potential corporate disconnect areas. (Read my latest best seller – Corporate Diusconnect)

-Your strategic planning philosophy and approach.

-Your employee development philosophy and investment.

There are many more critical areas that warrant further and on-going investigation but if you will spend adequate time with the above you will be well ahead of your competition and most businesses today as the average business leader, manager and executive is more stuck in survival tactics than planning and development or innovative and effective business approaches and strategies for the future.

I’m not suggesting that any of these need to change but I do believe they are worthy of a new set of eyes given the change in customer buying habits, needs, challenges and fundamental values.

So, the ball is in your hands for 2010.  What will the next 12 months bring as you move week by week into your future?  Healthy growth or becoming a statistic.

If you think you need a fresh set of eyes to look at any areas of your business that may have some dysfunction or are less than effective, give me a call.  I’ll be happy to discuss how I can assist you in an unbiased evaluation of any areas of your business that may be in need of assessment.

About
The Author:

Tim Connor, CSP World renowned Speaker, Trainer and best selling
author of 67 titles, Box 397, Davidson, N.C. 28036 USA, 704-895-1230
(voice) - 704-895-1231 (fax) - tim@timconnor.com (email) - www.timconnor.com (Website)

TO HIRE
TIM - CONTACT;

Tim Connor,
CSP

Speaker, Trainer, Best Selling Author

Box 397 Davidson, N.C. 28036 USA

704-895-1230 (voice) 704-895-1231 (fax)

tim@timconnor.com (email)

www.timconnor.com

12 Simple Ways to Increase Your Sales and Revenues This Year by Jim Domanski

Tough economy got you - and your sales - down?  It doesn't have to be that way.  Here are twelve, highly effective yet simple ways to blow the hinges off your sales this year.

1. Ruthlessly Disqualify Prospects

Don't waste your selling time on those who are not serious about buying. Get rid of those tire kickers by becoming ruthless at qualifying and disqualifying. Develop a list of key qualifying questions to determine if the prospect is a contender. If your prospect does not meet the criteria you set, disqualify them and move on to those who can and will buy.

2. Be Politely Persistent

Over 97% of sales reps give up after the second follow up. Don't be one of them. When you have a serious prospect be tenacious but polite in your follow up. This does not mean stalking. It means doing extras to create value - sending a thank you card, a value added article, something that keeps you 'front of mind' ; anything gives you a pre-text for follow up. But whatever you do, be thorough and tenacious in keeping in contact with your prospect.

3. Work Harder

Elbow grease pays. Start by making 10 more dials a day. That turns into fifty more a week, two hundred more a month, 2400 more in a year. You can bet all that activity will net more revenues. Come in fifteen minutes earlier; stay fifteen minutes later, cut fifteen minutes out of your lunch.  Do some work at home. Hard work won't kill you and the pay is great.

 4. Cross Sell More Often

Cross selling is easy because the client has already made the decision to buy and the wallet is already open.  Leverage the moment and learn to professionally cross sell and increase the average value of the sale. Be prepared with at least two products that can compliment the original purchase.

5. Increase the Quantity of a Sale

Up sell.  Increase the volume of the same product. If there are bulk discounts use them to entice the client. If there are no discounts, suggest they buy more anyway. Go for it. What's the worse that can happen?

6. Bundle Your Products

Get your boss or the marketing department to come up with a bundled rate for certain products. Sell them as a 'package.' This increases the average value of the sale for you and presents a great deal for your client. It also makes it easier to sell.

7. Learn to Sell Better

Buy a book on sales. Learn how to handle objections better. Check out websites. Purchase a CD or DVD on selling.  Get your manager to help by coaching. Find a mentor. Work with the best. Hang out with winners. Anything.  But do something to get better. The more you learn the more you will sell. Invest in yourself.

8. Ask for the Sale/Commitment Sooner

Just ask for the sale. Many reps wait too long.  Ask your questions, identify the need, present your solution and then ask for the sale. Alternatively, ask for commitment to the next step in the sales cycle. Get an agreement to a date and time for follow up. Keep things moving.

9. Sell More Profitable Products

Look at the products you do not sell. Are there more profitable items you could be selling? Or make bigger sales by selling higher priced products.  Get out of your comfort zone and try something new.You will get to your revenue goal faster.

10. Ask for Referrals

We all know that referrals sell faster and easier, so why not ask for referrals more often.  The worst the client will say when you ask is 'no.' Nothing ventured, nothing gained. Ask for a referral this way, "Mark, can you give me the name of someone who could possible use my services?" Asking for a name force the client to think specifically and this increase your odds of getting a good referral.

11. Prospect Every Single Day

Generate new sales and revenues with new 'blood.'  New customers broaden your customer base and more importantly, ensure that you never get complacent and dependent on existing clients. Spread the risk and make more sales.

12. Learn to Negotiate

Do not cut your price. On the other hand, if you provide a discount make sure you are getting something back. For example, you agree to a lower price but in return ask for a bigger purchase. (See the Up sell or Bundle suggestions above). If you do not know how to negotiate, see Tip #7!

You do not have to be a victim to the economy. Start implementing these proactive strategies now and watch your sales grow.

About The Author:

Teleconcepts Consulting works with companies and individuals who struggle to use the telephone more effectively to sell and market their products and services. For more information on consulting services and training programs, articles, and other resources visit  www.teleconceptsconsulting.com   or call 613 591 1998.

Four Ways to Handle the “I’m too busy” Brush Off By Mike Brooks, www.MrInsideSales.com

Let’s face it – we’re all busy.  This is especially true if you are cold calling and are lucky enough to actually get a decision maker on the phone.  Just like you, they’ll be in the middle of at least three things
and be on their way to or from a meeting.   Because of this, one of the
most frequent objections they use these days to brush you off the phone is the, “I’m too busy/don’t have the time objection.”

Now here’s the thing: while this may be true, it doesn’t necessarily mean they don’t need or aren’t interested in what you have to offer.  Like all initial resistance statements, what you must do with this objection is to quickly control the situation, assess whether or not your prospect is or can be interested, and then find a way to quickly qualify them.  Sound like a lot?  It is if you’re not prepared with proven and effective scripts like these:

Here are four ways to handle the: “I’m too busy, don’t have the time”
brush off:

Response #1:

“I know that feeling; my desk is full of things I need to do, too.  I’d be happy to schedule a time to call you back, but I don’t want to bother you if you’re really not interested.  Let me ask you a quick question and be honest with me: If I could show you a (system/product/service) that is proven to (reduce your overhead, generate more sales, etc.), would it be worth it for you and I to take for just 5 minutes to see how it could work for you?”

If NO: “No problem.  Before I go, who else do you know that might be able to use a system like this?”

If Yes: “Terrific.  Do you have 5 minutes right now?”

If No:  “I’m looking at my schedule, what is a good time later today?”

Response #2:

“___________ you probably get a lot of calls like I do, and my initial reaction is to say I’m too busy as well.  But I can explain this to you in just 3 minutes and if you think it can help you we can schedule more time later - and if you don’t we can part friends, is that fair?”

Response #3:

“I’m with you.  Before I schedule time to get back with you, just a quick
question: Is it a priority for you to (fix or improve what your product or service will do for them) this quarter?”

Response #4:

“I’m glad you’re busy, that means that you don’t have the time to waste looking at things you have no intention of taking advantage of.  Quick
question:  If I could show you a proven way to (get the benefits of your product or service), is that something that you would invest 5 minutes learning more about?”

If you found these scripts helpful, then invest in my “The Complete Book of Phone Scripts,” which is packed with many more word for word scripts and techniques that you can begin using today to make more appointments and more sales.  You can read about it by clicking here:http://www.mrinsidesales.com/scripts.htm

Mike Brooks, Mr. Inside Sales, works with business owners and inside sales reps nationwide teaching them the skills, strategies and techniques of top 20% performance. If you’re looking to catapult your sales, or create a sales team that actually makes their monthly revenues, then learn how by

visiting: http://www.MrInsideSales.com

Sales Versatility: Connecting with Customers Every Time by Michael Leimbach, Ph.D., Wilson Learning

As a sales leader, you probably debrief sales calls, review sales campaigns, analyze prospecting activity, and ride along on certain customer calls to observe or assist. No doubt you have noticed that each salesperson has some customers and prospects that they easily connect with, and others that they don’t.  And you might have seen cases where the same approach that succeeded with one prospect or customer caused another to become impatient and tense.  Perhaps certain salespeople appear to waste time on social chit chat or having coffee with a customer– and yet they seem to succeed in closing good business.  And some established customer relationships end up being downright difficult – fraught with tension and frequent communications issues and misunderstandings for reasons that are hard to understand.  

It is difficult finding a common thread that explains which salespeople communicate well with which customers.  The reasons for success seem as mysterious as the reasons for failure to connect.  But the ability to consistently build productive, trusting relationships with many types of customers is the best predictor for getting second appointments, closing important sales, acquiring referrals from customers who buy, and avoiding the wasteful process of damage control in rocky relationships.

What is it that makes the difference between those successful communications with customers and the difficult interactions that lead to failed calls and sales campaigns?

The 75% Problem

At first glance, some salespeople just seem to have a knack for reducing relationship tension and quickly putting almost anyone at ease in any situation.  They gain access to more contacts and enjoy greater customer loyalty, higher close rates, and more repeat business.  They are often described as possessing good “people skills” -- apparently inborn and hard for others to acquire.

But Wilson’s Social Styles research indicates that these fortunate few are so successful because they are using interpersonal versatility -- the ability to understand differences in communication preferences and adapt to make relationship interactions more productive.  Versatility is a skill that can be learned, and people who have it are measurably more capable of building and sustaining open, trusting relationships with a wide variety of different kinds of customers.

According to the Social Styles model,  everyone displays a recognizable set of preferences and habits in interactions with others.  These preferences add up to our social style.  The four primary styles are labeled as Driver, Expressive, Amiable, and Analytical. 

The Social Styles Model

 



As the model shows, the four styles vary in terms of behaviors reflecting the dimensions of Assertiveness (Tell versus Ask) and Responsiveness (People versus Task orientation).  Drivers and Expressives tend to be more Tell oriented, while Amiables and Analyticals are more Ask oriented.  Analyticals and Drivers are more Task oriented, while Amiables and Expressives are more People oriented. 

When salespeople find it easy and natural to communicate with a customer or prospect, the likelihood is that they share the same social style.  But only about 25% of people fall into each of the social style categories  this means they will likely share a social style with only about one quarter of the people they meet – and that there could be potential difficulties in communicating with the other 75%. 

Think of the implications if a salesperson can only interact successfully with customers using their own style.  If a salesperson is interacting with everyone in the same style, there’s a good chance there will be customers who, for example, will feel they are being given too much information – or too little.  Some customers will find the salesperson to be overly friendly, while others might perceive him as aloof or not friendly enough.  Other customers will want a lot of different options to consider, while others want to cut to the chase and know the bottom line right away.  These differences create tension in the relationship and can become barriers to making sales.

Versatility: The Key to Improved Business Results

In the current uncertain market, it’s especially difficult for sales leaders to manage all the variables affecting the ability to increase sales.  You may have little control over the external factors affecting the business, or the strategies adopted by executives in response.  You can, however, act to help your entire sales team become more versatile in how they interact with prospects, customers, and the internal support team and their own peers.  Imagine the results if your whole team could connect successfully with 100% of the prospects and customers they meet.

The good news is a sales team can experience dramatic, measurable improvements in performance when salespeople learn how to adapt to others’ social styles. In one study, building the versatility skills of the sales force yielded a 53% improvement in market share. To illustrate the impact of this kind of result, consider a company with 6.29% market share.  Suppose it has 1,000 customers, each purchasing $1,000 in product, making each one-percent increase in market share worth $158,982.  In this example, an improvement from a 6.29% market share to a 9.65% market share (or 3.36%) is equal to $534,179 in increased revenue.   For the pharmaceutical firm involved in the above study, improving the versatility of their sales force brought a highly profitable return on investment.

Depending on your company’s industry, product offering and market, increased versatility may make different kinds of contributions to the improvement of business results.  What are the critical issues that are most important in your organization right now?  Sales organizations challenged by the erosion of their existing customer base and price cutting competition can expand their opportunities by building stronger relationships with current contacts and developing a wider range of new business partnerships.  If the company is seeking to expand into new markets and increase prospecting activities to find new opportunities, versatility can make all the difference in establishing new relationships quickly and sustaining them to close sales and get repeat business. 

Increasing Versatility

For most of us, interpersonal behaviors and preferences are habitual and largely out of awareness.  The critical factor in becoming a more adaptable, versatile communicator is the powerful insight that we do have different styles and that each style has unique strengths.  As salespeople come to better understand their own style and recognize style differences, they also learn how to respond to their customers’ styles in a way that makes it easier to exchange information, reach mutually agreeable decisions, and work smoothly for successful sales closures, implementation and follow up.   Over time, as they develop higher levels of skill, salespeople become adept at recognizing the indicators of different styles and adapting to them.  This adaptation becomes an integral part of how they communicate.  A highly versatile individual is almost always perceived as a highly effective communicator – someone who has those “good people skills,” is a trusted business partner, and is a very successful negotiator.

While there are multiple ways to improve communication in a given situation, the single most important factor for enhancing communication effectiveness across the board is style versatility.  As salespeople must work harder for every sale, building this kind of capability provides a real competitive advantage for the team the company as a whole.

About the Author:

Michael Leimbach, Ph.D., is Vice President of Global Research and Design for Wilson Learning Worldwide. With over 25 years in the field, Michael provides leadership for researching and designing Wilson Learning’s diagnostic, learning, and performance improvement capabilities. Dr. Leimbach has managed major research studies in sales, leaderships and organizational effectiveness, and has developed Wilson Learning’s Impact Evaluation capability and return on investment models. Michael has served are a research consultant for a wide variety of global client organizations, is on the editorial boards for the ADHR professional journal, as well as serving a leadership role for the ISO technical committee TC232: Standards for Learning Service Providers. Michael has co-authored four books, has published numerous professional articles, and is a frequent speaker at national and global conferences.

"Consulting" with CxO's by Dan Adams

Q: Dan, I sell asset management for large corporate pension plans. As a result I regularly require access to CxO's, but it is not always easy to gain that access. Any advice?

Brendan

New York, NY



A.    Brendan, very good question. I could probably dedicate the next ten newsletters to your question. Let's start by understanding why you are interesting in cultivating relationships with the CxO's of your client base.



First of all, we need to put ourselves into the shoes of our CxO's. We need to appreciate the strategic thinking involved in the CxO's corporate role. After all, this officer is a decision maker in her company, navigating through daily economic and corporate challenges. She determines the long-term direction of the business, allowing her certain freedoms and discretion with respect to extended vendor partnerships and budget approvals, for instance.



If there is anyone in tune with the industry and business strategy, it is your CxO. After all, she sets budgets, determines her corporate strategy and drives corporate value. In one word, she has POWER. Given that we understand her business role, it is also important that we understand her personal characteristics. Persons in power, generally speaking, share the desire to control situations. Authority is very important to them. They are creative, concise, passionate about their business, and to-the-point. They understand the "big picture". This means you must elevate your game to meet their way of thinking. Imagine yourself as a CxO fielding a call from a rep.  Wouldn't you say, at least to yourself, "WHY SHOULD I GIVE YOU EVEN FIVE MINUTES OF MY TIME?"



Here is how you can meet that challenge.



1.    Understand the CxO's Top Concerns;

2.    Draft your own "Power Message" to address those concerns;

3.    Utilize the Three R's: Research, Reference, and Request.



CxO's Top Concerns

Do your homework.  Remember:

"If you want to know why the CxO buys what the CxO buys, then you must see the world through the CxO's eyes!" - Unknown

Analyze your CxO's industry! Prepare a list of your CxO's objectives and challenges. Although these concerns will vary according to the enterprise, some may include:

• Containing operational costs


• Increasing profitability and growth


• Providing safe solutions


• Differentiating their quality of service


• Improving client satisfaction


• Expediting processes


• Generating new revenue sources


• Capturing and increasing market share.

Power Message



Next, you must earn the right to meet your CxO. The most effective way to accomplish this is by way of a "Power Message." A Power Message is best established using a referral. If you have internal and external sources, utilize both! Remind your CxO of your excellent track record consulting with others in their company and/or others in their industry. Demonstrate your success!



Utilize the Three R's

To create an effective Power Message, utilize the Three R's:





Research:

• "I have done my homework" 


• "I believe that I know your issue/concern/challenge"

Reference:

• "We have had great results in tackling the same challenge for YXZ"


• 'I believe we can do the same for your company."  ("Situational Fluency")

Request "Opinion":

• "I would like to get your opinion on these results and how we may be able to help your company achieve similar or even greater results."

There are several other key tools to use when consulting with CxO's: Power Matrix, Power Letter, and a Power Script.  We will address those tools future newsletters.

About
the Author:

Daniel Adams, author of Building Trust, Growing Sales,
and creator of Trust Triangle Selling™ helps corporations
improve their profits by optimizing the performance of their sales
teams. He is a frequent and popular speaker at national sales
meetings, workshops and association events. You can visit his
web site and read his other articles at www.trusttriangleselling.com.

10 Management Mistakes to Avoid by Eric Slife

Too many companies lose money because their sales management team continues to make the same preventable mistakes. These common mistakes result in poor sales performance. The following are some of the most common sales management mistakes:

1. Confuse Product Training for Sales Training – Companies spend thousands of dollars and their sales people spend countless hours every year trying to keep up with all the new bells and whistles of their latest products. Unfortunately, this leaves fewer hours in the month for any sales development training.
   
   
   
   Sometimes a better allocation of resources is train your sales people how to uncover your prospects’ pain instead of memorizing another training manual. If anything, too much product knowledge can be your worst enemy, because your sales people regurgitate everything they know in the sales call instead of using that time to qualify or probe for information.

2. Hire Only Experienced Reps – Experience can be a great asset, but often it’s not. Too many reps have sold for years, but still possess terrible selling skills. They carry a lot of baggage, are difficult to manage, and use a lot of outdated sales techniques.
   
   
   
   Find the hungry rep who wants to improve, and isn’t complacent. When interviewing, find out what they have done in the past year to further their career and improve their sales skills.
   
   
   
   


3. Promote Top Salespeople to Management – Companies love to promote their top sales person to management. Unfortunately, this cuts twice because you take your best rep out of the field, and they may not be a good manager. Often top producers lack patience and understanding for individuals who may require more time and effort.
   
   
   
   A better choice might be the consistent producer that demonstrates a propensity to work well with others. They are organized, well-prepared, and communicate well. If you have a person in mind, have them lead a sales meeting to see how well they present, and how well they are received.

4. No Ongoing Training – You attend school until you are 18 at the very least, yet you don’t find it necessary to continue practicing your selling skills or learn new techniques. Sales are the lifeblood of every company, and it should be treated that way.
   
   
   
   By not providing ongoing sales training, your sales people earn less, your company’s earnings suffer, and ultimately you jeopardize the future of your company.
   
   
   
   Whether in sports, arts, or business; the top performers always strive harder to improve their skills.

5. No Accountability – Bill Brooks, one of my favorite sales speakers before he recently passed, used to say, “Don’t let the inmates run the asylum.” Too many sales managers make the excuse of not investing in sales training because they don’t believe their sales team will utilize it. Worse yet, they leave the decision up to each sales person.
   
   
   
   If you are a manager or small business owner, you are the coach and leader of your team. It’s your job to make sure your team is prepared to find new business, up sell current customers, and outsell the competition. This means you need to set the tone of what is expected. If reps won’t adhere to your standards, they need to go.

6. Hire Poorly - A good rule of thumb, “hire slowly.” Hiring a bad salesperson often costs companies tens and hundreds of thousands in expenses and lost revenue. You should constantly be looking for good sales people, so when the opportunity arises, you aren’t scrambling to find qualified candidates.
   
   
   
   In addition, take the time and expense to check references, provide job placement tests, and ask the right questions in order to hire a top sales person. Taking care of the seemingly little things can pay big dividends.

7. No Sales Training Budget – If you don’t provide your team with the tools and training they need to succeed, don’t blame them when sales are down or inconsistent.
   
   
   
   There are actually investment firms who evaluate companies based on how much they train their employees. They have discovered that companies who consistently invest in training for their employees outperform those that don’t make a commitment to training.

8. Lack of Planning and Organization – You need to make sure your sales team comes prepared to sell everyday. Here are some of the things they should always have:

• A list of their key accounts, and their strategy on how to penetrate, up sell, and/or retain them.


• Their daily, weekly, monthly, and yearly activity they must do to achieve quota.


• A complete understanding of the sales process.


• An automated follow up system.


• A clear understanding of the next step for each potential prospect.


• The name and position of each prospect’s decision maker(s) and influencer(s).
  
  
  
  At the end of every month sales people are scrambling to close business. As a result, companies lose a lot of money because the sales department caves on price just to make quota. With some organization and planning, you will be involved in more deals, and win more business at higher prices.

9. Don’t Practice – Practice doesn’t make perfect, but it sure gets you closer to it. There is simply too much competition and alternatives in today’s marketplace for sales reps not to be prepared for every sales call.
   
   
   
   Take an hour out of every week to role play how you would: respond to objections, ask probing questions, ask for the sale, give presentations, make mock initial and follow up phone calls, etc. This will result in big dividends.

10. No Sales Process – A clear sales methodology needs to be communicated and adhered to by your sales team. With a clear sales process, you and your sales rep always know where you are with each account.
    
    
    
    Mastering a sales process is far better, and results in fewer mistakes compared to just “winging it.” A sales process also makes it much easier to train new reps.

About The Author: Eric Slife is president of Slife Sales Training, Inc. They specialize in providing a comprehensive online sales training program that can be customized to fit a businesses sales team’s specific needs regardless of size. Visit their website www.salestrainingcentral.com today and receive a complimentary MP3 download, Top 10 Voicemail Blunders.