In Part 1 of "Negotiating on the First Tee, we discussed the practice of negotiating with your prospect before you begin your presentation.  In Part 2, we continue this discussion and add more to the conversation.

In order to increase sales and close more deals, you must understand the client's business strategy, build a strong foundation for negotiation, and cross off all the boxes for a killer Sales DNA.

1. Establishing the ground rules for time of presentation are critical. Before we get to that though, you must have a transitional discussion
   • "Let me take a minute to review where I think we are..."
   • "You have the following issues a,b, and c that if not taken care of within this time frame will cause the following to happen and this outcome is a have to fix problem"
   • "Your capacity to invest time, money and effort to fix the problem is this…"
   • "And I’m assuming for a minute that if we are able to fix this for you, in the budget you’ve identified with the right criteria and priorities, you would also want me to be in a position to answer any and all questions at that time"
   • "Did I get this right?" (Buyer says yes)
   • "Good, assuming we can do this I will be prepared to do all those things. If I can’t, I will call in advance and cancel our presentation meeting.  Fair?" (Fair)
2. Ground rules discussion:
   • "It may not be effective here, but there is a process that we recommend to make sure we are all on the same page, can I share that with you?" (Yes)
   • I need for you to be prepared as well:
     • "As I am going through my presentation, you will be thinking one of 2 things: 1) this makes all the sense in the world; let’s do this, 2) This won’t work for me, the money is wrong or I don’t think there is a fit"
     • "When I’m finished, I’m going ask you which one you are thinking. What objections do you have to that process?"
   • Anticipate and prepare for objections when you complete step six. Keep in mind that  an objection, stall or questions does NOT mean they are telling you no. They just need more information or you need to find out more clarity about compelling issues, capacity to invest or clarity on decision making. At the end, you do your best to eliminate any TIOs (Think It Overs)
   • Let's assume for a minute that this works for you. You are not done minimizing the opportunity for negotiation at time of presentation.  When you finish this discussion, you must return to your  office and write out and send the "As we agreed to letter" that covers the 3 “Cs” and inform the buyer you will call to confirm the information you’ve sent.  Then call to confirm.
   • Presenting to get a decision is as much of a mindset as it is a process:
     • Review what you’ve discussed
     • Review the as we agreed to letter including money and decision process that will take place today
     • Ask, “What’s changed?”
     • Make the presentation starting with their priority item not the first page in your presentation
     • Answer all of their questions about each solution, get them to score that solution on a scale of 1-10. If you are 7 or better you are in good shape but still you need to get them to a ten.  Once you get the ‘10’ you check that item off.
     • Ask our closing question:
       • "What where you thinking as I went through this. Assume for this discussion they said, This is really great we should do this! 
       • You ask, what should we do now?

• Or your alternative is:
  1. Do you believe based on what we presented that we understand your business and what you are trying to accomplish?
  2. Do you feel we can help?
  3. Do you want our help?

6. Despite this great process and effort, you can expect buyers to ask you questions that they haven’t asked yet, raise objections, or present you with stalls.  The first thing is this: Be prepared by conducting pre-call strategy meetings and role play these challenges.  Always understand that prospects are looking out for their best interests and not yours. Do not get emotionally involved when they throw you the curve ball!

Now I bet you are thinking, Tony, where is all the negotiation stuff?  Well that’s it right there. You win the bet on the first tee.

In this blog post, we discuss the practice of negotiating with your prospect before you begin your presentation.  As is often said in golf, "All bets are won on the first tee," and you must be ready to negotiate price before you present to your client.

In order to increase sales and close more deals, you must understand the client's business strategy, build a strong foundation for negotiation, and cross off all the boxes for a killer Sales DNA.

I play golf. Not very well I might add and that is not something that I’m proud of, but it doesn’t bother me enough to do much about it, other than drop an “F” bomb when a shot goes awry.

Though I am a high handicapper, I do have the ability to put some pars up on the score card ever once in a while, and when I’m playing a low handicapper and I get a stroke or two, I sometimes manage to get a birdie. To you non-golfers, this means absolutely nothing. To those that play the game and occasionally have a friendly wager, you know how this can help you win a few bucks despite some average at best scores.

And so it is with my game and occasional winning of bets. The key however isn’t so much about what I do on the tee box, in the fairway, around the greens or on the putting surface; it has everything to do with what happens before the foursome steps up to the first tee. And that is the arranging, settling and negotiating "strokes" before we begin play.

“All bets are won on the first tee.”

The USGA GHIN helps with that: United States Golf Association Golf Handicap Index Number. I won’t go into the details on the math that creates a GHIN for golfers, I will just help you understand what the intention is. In layman’s terms, it helps level the playing field to end up with a competitive game based on "net" score rather than total score. You can find more information if you are bored and having nothing else to do here.

The theory that"all bets are won on the first tee" also holds true in selling. In other words, you will end up in a more favorable position when negotiating a sale if you do most of the negotiating before you start your presentation. If you have not fairly discussed and agreed to terms before you start then you are sure to lose. Negotiating at that time has cost:

• Lost time
• Lost money
• Lost confidence
• Lost reputation

Negotiating upfront helps create a better relationship with your new client, allows for a free-flowing discussion about the solutions you are presenting, and alleviates all the pressure of discussing and negotiating terms after you’ve presented. This is how it’s done.

1. Understanding the business strategy. What we know is that roughly 54% of executives say that their business strategy is to pursue profit. With regard to dealing with the competition, 80% of them say that their goal is to hold firm on pricing. This is important to you as a manager or salesperson because, in order to get the "backing" of your company to approve or close a deal, they want to know if their margins are protected. If getting company approval is important, then you have to make sure your sales strategy is consistent with the corporate strategy – hold firm.
2. Your own SALES DNA is critical for success. Using the Objective Management Group's Sales Force Evaluation we can predict with 92% certainty who will succeed in selling in your organization. If holding firm to price is critical they must reflect the top 10% of all salespeople in the areas of Need for Approval, Controls Emotions, Supportive Beliefs, Supportive Buy Cycle, Comfort discussing money and finally their ability to handle rejection. Think about those items and how important they would be in a negotiation setting.
3. Sales Competencies also come into play. How well would a salesperson negotiate if they are desperate for the business because they are not a Hunter? Imagine if they don’t score well in relationship building, consultative selling, or qualifying. But perhaps the strongest competency required is value selling.
4. Building a strong foundation for when negotiation does take place is a focus that takes place early on in the relationship and the sales process. There are certain strategies that are required in this foundation:
5. Think It Over (TIO) is not an option.
6. Confirm the decision-makers and decision-making processes.
7. Identify the capacity to invest MONEY and TIME and RESOURCES to make changes or make a purchase. Whenever possible you MUST meet with the money person.
8. The problem the prospect is talking to you about must be a ‘have to fix’ problem. Finally, you must discuss and have clarity on this question: “Who wins a tie?”

These may not take place in any particular order because the dialogue between buyer and seller must be "free-flowing." But when you get back into your car and you are mentally going over what just happened, you must be able to check each one of these areas as COMPLETED.

Failure to do so will lead to negotiating at the wrong time.

To be continued...

In today's blog post, we discuss the importance of calling a sales audible at the line of scrimmage.  Like an elite Quarterback, an elite salesperson must be willing to change things up when they're not working and be open to trying something completely different in the field.

We've all been there before and we all know the definition of insanity by this point.  So, what can you do about it when things aren't going your way and you are ready to increase sales?

An audible is, "A change in the offensive play called by the Quarterback at the line of scrimmage."

A few years ago , I thought of that definition in Chicago, IL, as my Uber driver made several deviations from her GPS directions in transporting me from the Midway Airport into downtown.

As I rode along with the windows down on a beautiful and sunny day in the Windy City, my thoughts turned from sightseeing to salespeople—specifically, the need for salespeople to make changes on the fly, whether that be during the initial phone call, the first meeting, or even at the time they present their solutions.  

Is there a better time than right now to try something different in your sales approach?

Anyone and everyone who has had any exposure to our company knows that we are completely sold on the importance of process.  We have table-pounding conviction around how important it is for a business driven by sales to have certain key processes in place regarding their sales infrastructure. 

And, of course, we believe that sales training creates the most return on a client’s investment when the salespeople and sales managers are following a sales process where opportunities are moving through the funnel in a stage-based and milestone-centric manner. 

We believe that firms who don’t have a consistent sales process (everyone following the same steps and using the same terms to describe stages in the sales process) but who implement such a process can often see a 15% to 20% increase in new business sales.

But, here is something worth remembering—life is complicated.  Ferris Bueller (I can’t come to Chicago and not think of him) told us to slow down or we might miss something. 

And the same is true with selling.  Sometimes you just need to slow down and do something unconventional.  Sometimes you need to do something that is contrary to what even your training has taught you to do. 

Sometimes you just need to call an audible.

To be clear, usually your training is going to be correct.  But, sometimes, you will need to remember that selling is both science and art, and the art part means you might need to listen to your heart and occasionally let that heart override your mind. 

Of course, the best in the business know when to listen to their head and when to listen to their heart.  And if they get it wrong every so often, so what? 

They get back up and they keep going.

So, listen to your heart.  Sometimes you will need to call an audible to get back on the saddle and to increase sales within your organization.

Sales pipelines are similar to the story of "Goldilocks and the Three Bears. " This one is too fat, this one is too skinny, and the rarest one of all; this one's just right. 

Why does this happen with pipelines and what should leaders be doing about it?  In today's blog, we discuss developing better pipelines to improve your coaching skills, increase sales within your organization, and to build better habits in 2020 and beyond.

Fat Pipelines

This usually results from the overly optimistic salesperson.  They call on a prospect and come back thinking some iteration of this, “We really hit it off . . . They really liked what we can do . . . We have a LOT in common”. 

Another cause for a fat pipeline is that it feels like comfort food.  Their pipeline has $X amount in it and they feel pretty good about it.  I mean, come on, some of it has to close doesn’t it?  This type of thinking gives them great comfort.  Pipelines need two things:

• The proper amount given their ability to win business (close ratio)
• It must be properly staged

Here is where your leadership plays a critical role.  Your skills at asking great questions are absolutely essential.  Tone and tonality are of paramount importance, AND they must be fierce and helpful.  Questions like:

• What did you hear the customer say that leads you to believe they would be a great customer for us?
• When you asked them the impact of not fixing this problem, what did they say?
• Who else in their organization will be impacted if they switch providers?
• What did they say when you asked about their decision making criteria (not process, criteria, there is a difference)
• When is the last time they chose a supplier that wasn’t the lowest cost?
• How much is in their budget to make this problem go away
• When asked them “How do you envision working with us”, what was their response?
• How did they choose their current provider?

Never EVER ask, “How’d the call go?” It’s a waste of time.  Be great at asking questions.  By asking great questions, you are coaching your salespeople.  The questions listed above are the type of questions they should be asking the prospect.  Your coaching session is nothing but a sales call.  Be curious and when you coach, simply keep this in mind when meeting with your team, “Am I asking questions or am I making statements?”

Also, by asking great questions to your team, you find out where your people need to be coached.  If you hear your salesperson say, “I didn’t ask that question” during your pipeline discussions, you need to find out if they are unable to ask those questions (they need more sales training) OR if are they unwilling to ask those questions.

Skinny Pipelines

There are two main reasons that a salesperson might have a “skinny pipeline”.  They are getting beat up if something doesn’t close, or their activity isn’t where it needs to be.  My question to you as a leader is, “When a piece of business doesn’t close, what does your lost business conversation sound like?” 

There is no sin in losing a sale, the only sin that occurs is if nothing is learned from it.  Don’t let one loss beat you twice.  A couple of quick questions “What did you learn?” and “How will you get better because of it?” 

The other reason for a skinny pipeline is activity.  What are you measuring, how frequently are you measuring it (you need to measure weekly), and are you allowing excuses for poor effort?  Salespeople fail for two reasons:  Lack of Effort and/or Lack of Execution.  You need to know which it is. 

Just Right Pipelines

These types of pipelines are the rarest of all because they require the salesperson and manager to have a great and open relationship, while staying committed to their sales process and understanding the metrics needed to win business.  For the salesperson, they need to understand what is their late-stage (close in 30 days) win ratio?  If their late-stage win ratio is 50% and their monthly goal is $100,000, they need to have a minimum of $200,000 in late-stage opportunity each month.   

The only reason a “Just Right” pipeline is possible because the salesperson is finding opportunities all-the-time.  They understand prospecting is an all-the-time thing.  They are constantly making calls, asking for introductions, and networking.  

It’s healthy to have a pipeline “flush” on a regular basis.  An opportunity moves through the pipeline or moves out of the pipeline on a regular basis.  If a salesperson wants to cling to an opportunity, and want to defend keeping it their pipeline, is probably because they have nothing else to take its place.   Coach them, encourage them, challenge them.

 

In today's blog, we discuss the notion that effective sales leadership requires leaders to meet the challenge during times of major change. 

In this article, we bring you 11 concepts to adopt for managing yourself and your salespeople; to help increase sales, productivity, and trust within your organizations.

1. What would you do if today where your first day on the job?
2. What kind of attitude would you have?
3. How would you respond to the responsibilities of your new job?
4. You would you interact with your new co-workers?
5. You come in the 2^nd day of your new job and the company asks you to do something different. How do you respond?
6. Who is more valuable in the marketplace, someone that adapts or someone that resists change?

Consider this: “You think you understand the situations, but what you don’t understand is the situation has changed.”  Putnam Investment advertisement

Concept #1 – Commitment is a gift you should give to yourself

• What are you committed to?
• If you are not committed to do whatever it takes to succeed and increase sales, then you must:
  • Set personal goals that are non-negotiable
  • Have a vision of where you want to go (and where you want to end up)
• Failure to do these things will lead to failure to fully commit 

Concept #2 – Senior management must empower all others to think like a CEO.  If senior management can accomplish this, then non-managers will think and act like they are CEOS; looking out for the entire company, and not only for themselves.

• Support people to make decisions
• Train them on how to make decisions
• If bad decisions are made, it is because of the following:
  • Leadership hired the wrong people
  • Failure to communicate well
  • Failure to train on decision-making

Concept #3 – The use of technology

• You must use it and demand it of yourself and your team!
• If you have people that have a belief that ‘You can’t treat old dogs new tricks’, get those people off of your stage

Concept #4 – Flexible thinking and changing beliefs are critical.  There are some truths that you will have to accept.

• Life isn’t fair!
• Life isn't fair!
• Life isn't fair!

Concept #5 – Companies are curious:

• How can you increase my top line?
• How can you add to the bottom line?
• How will you prove it via accountability to measurable achievements?

Concept #6 – Your company will be asking, “Why should I keep you”? 
You must demonstrate that:

• You are a good employee
• You work hard
• You get things done
• You are capable of learning
• You have experience that is valuable to YOU and to the future of the compnay

Concept #7 – Lifetime learning

• Information doubles every 5 years
• Power and speed of the microchip doubles every 18 months (Moore’s law)
• The cost of computing drops roughly 30% every year while working faster and better
  • Are you twice as smart today as you were 5 years ago?
  • Have doubled your capacity in the last 18 months?
  • What are you doing today to be twice as smart in 18 months?
  • How much are you costing the company? Are you a better “buy”

Concept #8 – Job security

• The ability to initiate new relationships
• Being able to create and sell creative solutions to qualified buyers
• Your ability to facilitate decisions to buy from you

Concept #9 – Make sure you contribute more value than you cost

• The company’s perception about contribution vs cost is the reality
• You are not entitled
• Prove your worth
• If you consider leaving, would the company do whatever it takes to keep you?
• How is your value measured by the company?
• How is your cost measured?
• The value of every company is outside the company (The marketplace) what are you doing to bring that value into the company?

---

Consider This: “The factory of the future will only have two employees, a man / woman and a dog.  The person will be there to feed the dog and the dog will be there to make sure the person doesn’t touch the equipment.”  Warren Bennis

---

Concept #9 – Serving others

• What does it take to please them (everyone in your sphere is a "them")
• How can you contribute to the success of others?
• The person at the next desk, down the hall on another floor; make no mistake they are your clients and customers.
• The "Best Bargain" is based on the value you bring. The consumer will seek and find the best bargain. They will either get it from you or from someone else. 

Concept #10 – Ownership / Responsibility / Accountability

• You are responsible for your attitude
• Philosophy > Attitude > Behavior

Concept #11 – Be a fixer, not a problem creator

• Create or find solutions vs. announce and identify problems
• Base conversations and actions on principles rather than your own personal position
• Focus on getting outcomes instead of creating rules regulations and procedures.

Consider This:  Who are you holding captive for your success, you or your employer?

How appropriate are these concepts today?  Everyone of these thoughts, ideas and action items can and will help you lead yourself and others through challenging times. 

What I think you might find interesting is that these notes are a result of a book I read by Pritchett and Associates titled: The Employee Handbook of NEW WORK HABITS FOR A RADICALLLY CHANGING WORLD.

Price Pritchett does a great job of outlining 13 ground rules for job success in the information age. The booklet was written in 1994!  However, the principles and ideas make as much sense today as they did back then.  Some of the technology data might be a bit off given the advancement of the IT science but if anything, the technology has gotten smarter and faster due to big data capabilities.