In many ways, I’ve viewed my sales efforts and resources much like a CXO would view his/her precious assets – I want to use them just-in-time and at the right time, every time. One of the biggest and most precious assets in the sales process is the writing and delivery of a proposal. Because I’ve viewed proposals this way, I have enjoyed very impressive win rates throughout a long career once my proposals have been delivered. Here are five tips to live by if you’re looking to increase your win rate or that of your team:
1. In naval aviation circles, Navy pilots are taught to “get a good start” at the beginning of their landing approach to have any chance at catching the aircraft carrier’s arresting wire. We, as sales people, need “good starts” as well. So hire a lead qualifier tasked with three critical objectives to accomplish before any efforts at proposals are begun:
a. Develop and identify a compelling reason for the prospect to act on your goods and/or services (not from your perspective but from that of the prospect)
b. Identify each member of the decision-making group
c. Gain commitment for at least two members to be at an initial discovery meeting before any proposal is considered
If it’s not in the business plan for such a resource as a lead qualifier, do these things on your own before you start committing too many resources.
2. Avoid boilerplates at all costs. Yes, you’ll win some of those and maybe save some time, but you won’t get the improved results you need. Willy Loman Street is littered with boilerplate proposals thrown out by the prospect because:
a. A former prospect’s name is spread throughout the proposal
b. It shows no appreciation for the prospect’s unique challenges, i.e. “they didn’t listen to me.”
c. It shows no effort, i.e. “how will I be treated as a client?”
3. Show only the following in your proposal:
a. Summary
b. Findings
c. Feature-Benefit
d. Cost-Benefit
Remove the “fluff’. “Fluff” is “fluff” and it is rarely read or appreciated. If you’re hoping to “catch an eye” with some written word, that work should have been done at the discovery stage. Anything outside of (a)-(d) above is “fluff”.
4. Check, double-check and then triple-check for grammar, spelling, formatting etc. And always with at least a second set of eyes involved somewhere. If you are not good at this kind of attention-to-detail, hire someone who is, just like you did in college to type up your term papers!
5. If at all possible, deliver the proposal in person. GoToMeeting and tools like it are impressive and can be tremendous resource-savers, but there is no substitute for reading a prospect’s body language as the proposal is delivered. And it gives your prospect more trust in you to see you delivering points and answering questions with supreme confidence. If you send a proposal via mail or email, you are an amateur fisherman who saw some fish biting in that spot earlier in the day, and has no clue that the fish may have “moved on”.
If you follow these steps, you’ll deliver a resource-hungry asset known as the proposal to the right prospect, at the right time, every time, and improve your win-rate. You may even get back some precious personal time for you to go off and improve those fishing skills!
Tuesday, July 27, 2010
Wednesday, July 7, 2010
Five Probing Questions to Test Forecast Validity
Our last blog post suggested five attributes of good pipeline management. Follow those suggestions religiously and you will meet your quota AND your forecast more consistently. But try as we might as individual contributors, sometimes we are not totally honest with ourselves. As sales managers, we might not be supremely confident with the forecast picture that has been painted for us. The following five questions can work for both the individual contributor and sales management to build transparency through the sometimes over-optimistic forecasts we might deliver!
(Assume that the sales process is built on the following progression: suspect is qualified to become a prospect who is pursued for the purpose of an appointment to conduct discovery in order to present a proposal and then close. Each bold point is a critical step in the sales process and marks an advance through the pipeline and subsequent forecast.)
1. When, where, how and with whom was the discovery appointment conducted?
Based on your sales process and sales cycle, this question will often reveal the opportunity’s true place in the forecast. For instance, if your average sales cycle is 60 days from appointment to close, and the appointment occurred 90 days ago, this opportunity is possibly slipping and may not even deserve a place in the forecast. Also, if discovery was not conducted with all the major stakeholders, then perhaps there is more work to do and a less optimistic forecast should result.
2. What is the “compelling reason to act” in the proposal?
In other words, have we clearly identified the prospect’s pain point(s) in the proposal and matched the feature(s) of our product/service to create a benefit, or compelling reason to buy? Often I hear, “well, we are less expensive” or “they don’t like their current provider”. I’ve met thousands of prospects who retained a more expensive product/service even when they didn’t particularly “like” the current provider because the provider presented benefits elsewhere. If I can’t get better compelling reasons than these replies, the opportunity is removed from the forecast.
3. Who is the key decision-maker? And how do you know?
This is my favorite! Mostly the reply is this, “Well my contact is because they told me they are.” Ugh. Everyone in business is a self-proclaimed decision-maker! If we were not, we would only be worker-bees. And the person who will sign the contract is not always the key decision-maker either. Identifying the key decision-making person or group gets more difficult with more complex sales opportunities. I like the Miller Heiman framework for help in flushing out who that person or group might be for the complex sales opportunity.
4. Who and what is your competition? How would the prospect rank you against them?
I have seen way too many 30-day forecasted opportunities swept away by the competition at the last minute. Here’s a classic reply to this question, “Well, nobody, they are only looking at us!” And another, “I didn’t want to ask for fear of bringing up the idea of shopping us.” This is capitalist America, where choice and the right and duty to pursue choice are king! You better bet there is competition, if not from a direct competitor, than at least from a decision to source the solution internally or to make absolutely no decision at all. If we have not nailed down this crucial factor, the opportunity has no place in our forecast.
5. How do you know the opportunity is closed without signed contracts in hand?
The deal is never closed until the ink is dry on your contracts. Or in some sales processes, the deal may not even be closed until the product/service is delivered. In most sales processes, there is still a long way to go between a “verbal yes” and the point at which your company measures it as truly “closed”. Ensure that your sales process and associated forecasting ladder maps each and every critical step between the “verbal yes” and eventual closing.
Over the last two posts, you now have a way to manage your pipeline and to test the validity of your resultant forecast. I hope it helps you to beat quota and forecast every time!!
(Assume that the sales process is built on the following progression: suspect is qualified to become a prospect who is pursued for the purpose of an appointment to conduct discovery in order to present a proposal and then close. Each bold point is a critical step in the sales process and marks an advance through the pipeline and subsequent forecast.)
1. When, where, how and with whom was the discovery appointment conducted?
Based on your sales process and sales cycle, this question will often reveal the opportunity’s true place in the forecast. For instance, if your average sales cycle is 60 days from appointment to close, and the appointment occurred 90 days ago, this opportunity is possibly slipping and may not even deserve a place in the forecast. Also, if discovery was not conducted with all the major stakeholders, then perhaps there is more work to do and a less optimistic forecast should result.
2. What is the “compelling reason to act” in the proposal?
In other words, have we clearly identified the prospect’s pain point(s) in the proposal and matched the feature(s) of our product/service to create a benefit, or compelling reason to buy? Often I hear, “well, we are less expensive” or “they don’t like their current provider”. I’ve met thousands of prospects who retained a more expensive product/service even when they didn’t particularly “like” the current provider because the provider presented benefits elsewhere. If I can’t get better compelling reasons than these replies, the opportunity is removed from the forecast.
3. Who is the key decision-maker? And how do you know?
This is my favorite! Mostly the reply is this, “Well my contact is because they told me they are.” Ugh. Everyone in business is a self-proclaimed decision-maker! If we were not, we would only be worker-bees. And the person who will sign the contract is not always the key decision-maker either. Identifying the key decision-making person or group gets more difficult with more complex sales opportunities. I like the Miller Heiman framework for help in flushing out who that person or group might be for the complex sales opportunity.
4. Who and what is your competition? How would the prospect rank you against them?
I have seen way too many 30-day forecasted opportunities swept away by the competition at the last minute. Here’s a classic reply to this question, “Well, nobody, they are only looking at us!” And another, “I didn’t want to ask for fear of bringing up the idea of shopping us.” This is capitalist America, where choice and the right and duty to pursue choice are king! You better bet there is competition, if not from a direct competitor, than at least from a decision to source the solution internally or to make absolutely no decision at all. If we have not nailed down this crucial factor, the opportunity has no place in our forecast.
5. How do you know the opportunity is closed without signed contracts in hand?
The deal is never closed until the ink is dry on your contracts. Or in some sales processes, the deal may not even be closed until the product/service is delivered. In most sales processes, there is still a long way to go between a “verbal yes” and the point at which your company measures it as truly “closed”. Ensure that your sales process and associated forecasting ladder maps each and every critical step between the “verbal yes” and eventual closing.
Over the last two posts, you now have a way to manage your pipeline and to test the validity of your resultant forecast. I hope it helps you to beat quota and forecast every time!!
Thursday, June 3, 2010
Five Attributes of Strong Pipeline Management
Strong funnel or pipeline management results in the best chance of forecasting your results accurately and your best chance at exceeding your quotas. As we say in our profession, it is one thing to miss your objective. It is yet another step and a serious miscue to miss your forecast too, in the same month or quarter. The seriousness of this offense will grow the more senior in sales management you become. Do it too many times and you may find yourself in the Accounting office!
Before I suggest the five best attributes or indicators of strong pipeline management, it is important to understand the terms used in pipeline management. I see pipeline and funnel to be synonymous. Both are a depiction of each and every opportunity and its stage within your sales process (http://sellingwisdom.blogspot.com/2010/01/process.html). The stage-gate which the opportunity holds in your sales process should indicate its placement in the 30/60/90 day window since your sales process and average sales cycle should combine to become a predictor of time.
Your pipeline is not your forecast or “commit”, a term often used synonymously with forecast, although generally whatever is in the 30-day window should be your forecast or commit for the next 30 days. If at that stage in the sales process you cannot accurately predict its closure in the next 30 days, you should give consideration to placing the opportunity back into the 60 or 90-day window. Anything that could be signed in the upcoming measurement period, i.e. month or quarter, but is still somewhat tenuous in its placement along your sales process might be considered “upside” to which you are not willing to commit. Enough definitions!
Ok, so here goes. Here, from my experience, are the five best attributes or indicators of strong pipeline management:
•“The Good, The Bad, and The Ugly”. You can give good news late and bad news early. It gets real ugly if you can’t do either and you miss your quota. Even Clint Eastwood could not shed that reputation!
•“The Multiplier”. You have at least 2x, 3x and 4x your monthly revenue quota in the 30/60/90-day window respectively. Same can be said for the number of opportunities in each window, based on the average value of your sale. You need this buffer to protect against the unexpected. You have life insurance don’t you? Put those multiplication tables from the third grade to use!
•“Green, Yellow, Red”. From month-to-month, each opportunity moves at least from one window to the next (Green), never stalling more than 2-3 months (Yellow) in the same window. If the opportunity is stalling past 2-3 months, move it way back in your pipeline (Red). Where it is moved will depend on your sales process but I would suggest that since it is “Red” it is close to “Dead”. Find something new to work on. Better yet, ask for help.
•“Equal Opportunity”. Diversity, presented in terms of different companies or opportunities, products/services offered and revenue amounts associated, exists within the pipeline. Live by the elephant, die by the elephant if it decides to play elsewhere in the jungle!
•“Upside”. Forecast is at or near quota with enough upside to likely produce an exceeded-quota measurement period. Relying on the stretch of forecast only to get to quota is like asking for a quarter tank of gas to get you the manual-prescribed mileage for that quarter tank. Go get more gas, no matter the octane. Be safe with yourself and your passengers, i.e. your management!
So there you have it. Remember these five descriptors and paste them to your cubicle or PC/laptop for best pipeline management!
A word for sales management: if you have a closely defined sales process and stage-gates with specific criteria, and you combine this process and these stage-gates with careful probing of the sales person during forecast reviews and your first-hand knowledge of the prospect, you will meet your forecast almost every time. Just as important, you will quickly determine the sales effectiveness of your sales person, i.e. are they effectively executing the work necessary to fill the pipeline and advance opportunities, or are they “selling you on a bag-of-goods”. Many are sales people are good at the latter, far fewer are better at the former – these are our true Sales Pro’s!
Before I suggest the five best attributes or indicators of strong pipeline management, it is important to understand the terms used in pipeline management. I see pipeline and funnel to be synonymous. Both are a depiction of each and every opportunity and its stage within your sales process (http://sellingwisdom.blogspot.com/2010/01/process.html). The stage-gate which the opportunity holds in your sales process should indicate its placement in the 30/60/90 day window since your sales process and average sales cycle should combine to become a predictor of time.
Your pipeline is not your forecast or “commit”, a term often used synonymously with forecast, although generally whatever is in the 30-day window should be your forecast or commit for the next 30 days. If at that stage in the sales process you cannot accurately predict its closure in the next 30 days, you should give consideration to placing the opportunity back into the 60 or 90-day window. Anything that could be signed in the upcoming measurement period, i.e. month or quarter, but is still somewhat tenuous in its placement along your sales process might be considered “upside” to which you are not willing to commit. Enough definitions!
Ok, so here goes. Here, from my experience, are the five best attributes or indicators of strong pipeline management:
•“The Good, The Bad, and The Ugly”. You can give good news late and bad news early. It gets real ugly if you can’t do either and you miss your quota. Even Clint Eastwood could not shed that reputation!
•“The Multiplier”. You have at least 2x, 3x and 4x your monthly revenue quota in the 30/60/90-day window respectively. Same can be said for the number of opportunities in each window, based on the average value of your sale. You need this buffer to protect against the unexpected. You have life insurance don’t you? Put those multiplication tables from the third grade to use!
•“Green, Yellow, Red”. From month-to-month, each opportunity moves at least from one window to the next (Green), never stalling more than 2-3 months (Yellow) in the same window. If the opportunity is stalling past 2-3 months, move it way back in your pipeline (Red). Where it is moved will depend on your sales process but I would suggest that since it is “Red” it is close to “Dead”. Find something new to work on. Better yet, ask for help.
•“Equal Opportunity”. Diversity, presented in terms of different companies or opportunities, products/services offered and revenue amounts associated, exists within the pipeline. Live by the elephant, die by the elephant if it decides to play elsewhere in the jungle!
•“Upside”. Forecast is at or near quota with enough upside to likely produce an exceeded-quota measurement period. Relying on the stretch of forecast only to get to quota is like asking for a quarter tank of gas to get you the manual-prescribed mileage for that quarter tank. Go get more gas, no matter the octane. Be safe with yourself and your passengers, i.e. your management!
So there you have it. Remember these five descriptors and paste them to your cubicle or PC/laptop for best pipeline management!
A word for sales management: if you have a closely defined sales process and stage-gates with specific criteria, and you combine this process and these stage-gates with careful probing of the sales person during forecast reviews and your first-hand knowledge of the prospect, you will meet your forecast almost every time. Just as important, you will quickly determine the sales effectiveness of your sales person, i.e. are they effectively executing the work necessary to fill the pipeline and advance opportunities, or are they “selling you on a bag-of-goods”. Many are sales people are good at the latter, far fewer are better at the former – these are our true Sales Pro’s!
Friday, May 7, 2010
Is Selling The Same as Persuasion – Part II?
Let’s replay those definitions from last week’s post:
To sell:
“A recommendation to sell a particular security.
The process of liquidating an asset in exchange for money.”
To persuade:
“To prevail on (a person) to do something, as by advising or urging: We could not persuade him to wait.
To induce to believe by appealing to reason or understanding; convince: to persuade the judge of the prisoner's innocence”.
It is amazing to me how each definition is so narrowly defined. Sales Pro’s sell more than “securities” and do more than “liquidate assets”. I hope I never catch one of my Sales Pro’s liquidating assets! According to the definition of persuasion, one can only prevail “on a person”? I persuade my dog all of the time, through much urging, to use the bathroom outside. I must admit, I am not always successful.
Some big pieces are really missing here. “To sell” is more than a single act. It is a process, a series of steps, each step performed at an appropriate time with expertise, rigor and finesse (i.e. the art and science of selling).
Persuasion, as defined above, does not necessarily cover the sales process and therefore does not make selling and persuasion equal. Show me a sales person who, during the sales process, only “advises”, “urges”, “appeals to reason” and “convinces”, and I’ll show you a sales person who typifies the very low end of our profession, the ones who give us all a bad reputation. There is no room in persuasion for listening, empathy and probing, the very acts embodied in good selling.
Sure, there is always a point or two in the sales process where we may have to perform the act of persuasion, but persuasion is not selling. Selling is a far greater cause. It is a process that combines art and science, and a bit of persuasion here and there. If you throw too much persuasion onto your sales process, you will have thrown a bit too much flame on the beef and ruined a perfectly good steak. Selling is sometimes persuasion, but persuasion is never selling! What’s for dinner tonight?!
To sell:
“A recommendation to sell a particular security.
The process of liquidating an asset in exchange for money.”
To persuade:
“To prevail on (a person) to do something, as by advising or urging: We could not persuade him to wait.
To induce to believe by appealing to reason or understanding; convince: to persuade the judge of the prisoner's innocence”.
It is amazing to me how each definition is so narrowly defined. Sales Pro’s sell more than “securities” and do more than “liquidate assets”. I hope I never catch one of my Sales Pro’s liquidating assets! According to the definition of persuasion, one can only prevail “on a person”? I persuade my dog all of the time, through much urging, to use the bathroom outside. I must admit, I am not always successful.
Some big pieces are really missing here. “To sell” is more than a single act. It is a process, a series of steps, each step performed at an appropriate time with expertise, rigor and finesse (i.e. the art and science of selling).
Persuasion, as defined above, does not necessarily cover the sales process and therefore does not make selling and persuasion equal. Show me a sales person who, during the sales process, only “advises”, “urges”, “appeals to reason” and “convinces”, and I’ll show you a sales person who typifies the very low end of our profession, the ones who give us all a bad reputation. There is no room in persuasion for listening, empathy and probing, the very acts embodied in good selling.
Sure, there is always a point or two in the sales process where we may have to perform the act of persuasion, but persuasion is not selling. Selling is a far greater cause. It is a process that combines art and science, and a bit of persuasion here and there. If you throw too much persuasion onto your sales process, you will have thrown a bit too much flame on the beef and ruined a perfectly good steak. Selling is sometimes persuasion, but persuasion is never selling! What’s for dinner tonight?!
Tuesday, April 27, 2010
Is Selling The Same as Persuasion – Part I?
Did you ever buy a new car and then suddenly notice how many people on the road own your same make and model?
I was asked, in question form, the title of this posting during an interview recently and suddenly, I see the topic popping up everywhere on blogs and LinkedIn groups. So I thought I would add a nickel to the thought reservoir on this topic since my earlier “two cents” during the interview apparently was not enough to get the job. I am, after all, still writing this blog. Perhaps my “nickel of thought” will provoke a “dime of thought” from you!
Before engaging in a game of semantics, I consulted my trusty source of definitions on the web, Dictionary.com. The results were not inspiring. I sought out the verb definition of selling and persuasion, i.e. “to sell” and “to persuade”. Here is what I found:
To sell:
“A recommendation to sell a particular security.
The process of liquidating an asset in exchange for money.”
To persuade:
“To prevail on (a person) to do something, as by advising or urging: We could not persuade him to wait.
To induce to believe by appealing to reason or understanding; convince: to persuade the judge of the prisoner's innocence”.
Yecchhh. These definitions leave a Sales Pro wanting much more and feeling cheap. So it is natural then, to rest our response to such a question on the “art and science of selling”, the very premise of this blog!
So come back next time to “Part II” when I suggest that selling is sometimes persuasion, but persuasion is never selling.
I was asked, in question form, the title of this posting during an interview recently and suddenly, I see the topic popping up everywhere on blogs and LinkedIn groups. So I thought I would add a nickel to the thought reservoir on this topic since my earlier “two cents” during the interview apparently was not enough to get the job. I am, after all, still writing this blog. Perhaps my “nickel of thought” will provoke a “dime of thought” from you!
Before engaging in a game of semantics, I consulted my trusty source of definitions on the web, Dictionary.com. The results were not inspiring. I sought out the verb definition of selling and persuasion, i.e. “to sell” and “to persuade”. Here is what I found:
To sell:
“A recommendation to sell a particular security.
The process of liquidating an asset in exchange for money.”
To persuade:
“To prevail on (a person) to do something, as by advising or urging: We could not persuade him to wait.
To induce to believe by appealing to reason or understanding; convince: to persuade the judge of the prisoner's innocence”.
Yecchhh. These definitions leave a Sales Pro wanting much more and feeling cheap. So it is natural then, to rest our response to such a question on the “art and science of selling”, the very premise of this blog!
So come back next time to “Part II” when I suggest that selling is sometimes persuasion, but persuasion is never selling.
Thursday, April 22, 2010
"Sales and Service – Do They Mix? – Top Five Reasons Why"
There are certain things in corporate life that don’t mix well with Sales. Like Sales and Finance. Always seems to be a conflict there, i.e. “Why are you discounting the price?” Or Sales and Manufacturing, i.e. “Why did you sell it before we made it?” Or, my favorite, Sales and Marketing, “We paid for that lead, why can’t you convert on it?” While some might view this as conflict across the functional disciplines, I view this “conflict” as a healthy check and balance system for the corporate entity. It works if managed well by the senior leadership team. But what about the idea of Sales and Service? Are the two mutually exclusive? Should they compete with one another? Are they different disciplines?
My premise is this: Sales Pro’s should always be servicing, and Service Pro’s should always be selling. Dictionary.com defines Service as: an act of helpful activity; help; aid: to do someone a service. You are a Sales Pro, so you know how to define Sales. Can these skill sets be combined? I say they must. Here’s why:
1. Both Sales and Service Pro’s work with clients who have a need. No matter who we are, it is our job to fulfill it.
2. Prospects need to be assured that they will be serviced after the sale and judge that criteria based on their perceived level of service during the sales process.
3. Service Pro’s get the opportunity to engage with clients at a time of self-proclaimed need. After that need is satisfied, an opportunity presents itself to open up the conversation to uncover other hidden needs for an up-sell or cross-sell opportunity.
4. Sales Pro’s present and sell a solution that fulfills a need – is this not Service?
5. Interaction with a customer and/or prospect is a precious commodity. Sales and Service Pro’s are pressed up against the client or prospect and gain these interactions. Whether this interaction is for a sales or service purpose, it presents a wonderful opportunity to broaden the relationship. Take advantage!
I recently called my cable company for problems with a router. While they were quick to offer suggestions for a fix, they never asked me whether I was enjoying my experience with their offering. Like you, I receive marketing materials from them all of the time, only to toss them into the trash can or delete file on email. I am quite sure there are a couple of other channels out there that I have not heard of that I might enjoy, if only I had the benefit of a conversation. A lost opportunity for this provider!
My premise is this: Sales Pro’s should always be servicing, and Service Pro’s should always be selling. Dictionary.com defines Service as: an act of helpful activity; help; aid: to do someone a service. You are a Sales Pro, so you know how to define Sales. Can these skill sets be combined? I say they must. Here’s why:
1. Both Sales and Service Pro’s work with clients who have a need. No matter who we are, it is our job to fulfill it.
2. Prospects need to be assured that they will be serviced after the sale and judge that criteria based on their perceived level of service during the sales process.
3. Service Pro’s get the opportunity to engage with clients at a time of self-proclaimed need. After that need is satisfied, an opportunity presents itself to open up the conversation to uncover other hidden needs for an up-sell or cross-sell opportunity.
4. Sales Pro’s present and sell a solution that fulfills a need – is this not Service?
5. Interaction with a customer and/or prospect is a precious commodity. Sales and Service Pro’s are pressed up against the client or prospect and gain these interactions. Whether this interaction is for a sales or service purpose, it presents a wonderful opportunity to broaden the relationship. Take advantage!
I recently called my cable company for problems with a router. While they were quick to offer suggestions for a fix, they never asked me whether I was enjoying my experience with their offering. Like you, I receive marketing materials from them all of the time, only to toss them into the trash can or delete file on email. I am quite sure there are a couple of other channels out there that I have not heard of that I might enjoy, if only I had the benefit of a conversation. A lost opportunity for this provider!
Tuesday, April 13, 2010
"Discounts and Buyer Behavior - Where's The Logic?"
Everybody wants a deal. Even if the client is dead set on your product or service, you may very well have to provide a perceived price concession just to seal the deal. As a sales pro, you’ve been there before, haven’t you? Well here’s my question: when it comes to comparing costs and gaining price concessions, why does the buyer often favor the cost and/or concession when it is framed as a “discount” even though your effective price, after the discount, may still be higher than your competitor’s?
I have run into many situations where when it was time to consider price, the buyer compared only the discounts, not the list price or rack rate with the discount. Doesn’t it make perfect sense to do the latter and is it not foolish to do only the former? Look at marketing collateral everywhere – “discount!”, “discount!”, “discount!” is sometimes all that is printed. Why is the buyer in love with discounts, and not actual prices? I don’t get it.
I even try to put myself in the buyer’s shoes, I am one from time to time, and I still cannot develop the love affair with the discount in my choice of products and services. But it is always there! Back in my sales shoes, I experimented once and left discounts out of the cost page of my proposals and showed only actual pricing. I wanted to be simple and direct with my prospects in the belief that such an approach would improve my success. My win rate declined. Lesson learned there: always show your costs as a discount to something! And be prepared to bump the discount up a few points just to seal the deal. Everybody wants a deal.
In a perfect world, us sales pro’s would always be selling value and our buyers would always be buying value, thereby negating the need to spend much time on pricing and discounts. But it’s always there to consider. I just simply marvel over the attention a discount gets above and beyond that for the effective net price. Everybody wants a deal – “hey, I just got 30% off!” “Off of WHAT?!” I ask!!
I have run into many situations where when it was time to consider price, the buyer compared only the discounts, not the list price or rack rate with the discount. Doesn’t it make perfect sense to do the latter and is it not foolish to do only the former? Look at marketing collateral everywhere – “discount!”, “discount!”, “discount!” is sometimes all that is printed. Why is the buyer in love with discounts, and not actual prices? I don’t get it.
I even try to put myself in the buyer’s shoes, I am one from time to time, and I still cannot develop the love affair with the discount in my choice of products and services. But it is always there! Back in my sales shoes, I experimented once and left discounts out of the cost page of my proposals and showed only actual pricing. I wanted to be simple and direct with my prospects in the belief that such an approach would improve my success. My win rate declined. Lesson learned there: always show your costs as a discount to something! And be prepared to bump the discount up a few points just to seal the deal. Everybody wants a deal.
In a perfect world, us sales pro’s would always be selling value and our buyers would always be buying value, thereby negating the need to spend much time on pricing and discounts. But it’s always there to consider. I just simply marvel over the attention a discount gets above and beyond that for the effective net price. Everybody wants a deal – “hey, I just got 30% off!” “Off of WHAT?!” I ask!!
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