ACTG Sales Management Blog

Sales & Sales Management Expertise Blog  

Negotiating on the First Tee (Part 2)

Posted by Tony Cole on Fri, Jun 19, 2020

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.

green-grass-field-near-body-of-water-1608383

  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?
  1. 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.

Topics: compelling reasons to buy, communication, communicating expectations, cost of hiring mistakes, crucial elements, desire for success, consistent sales, commitment to succeed, commitment, decisions, desire, creating habits for success, coaching salespeople, evaluating salespeople, developing sales skills, evaluating sales teams, creating sales habits, core values and beliefs, creating advocates, consistent sales results, consultative selling, create & convert leads, complacency, contacting prospects, deal or no deal, creating new sales opportunities, consultative sales coaching, corporate sales training, consultative sales coaching cincinnati, consultative selling cincinnati, corporate sales training cincinnati

Would You Buy from This Salesperson?

Posted by Tony Cole on Wed, Apr 20, 2016

boss_think.jpg

Time for an Honest Assessment of Your Sales Team

There are many factors involved in the business of selling.  As any salesperson can attest, the sales process can be a complex and daunting experience fraught with obstacles like aggressive competition, tight markets, shrinking budgets and incumbent vendors.  While there are many obstacles like these that are outside a salesperson’s control, there are many others they can control.  So, as an effective sales manager, what do you need to do to understand how and why a salesperson is performing or not performing? 

The obvious metric to use to measure performance are the sales results of the individual. If they hit or exceed goal, all is good.  So, that takes care of about 10 to 15% of your sales force.  But how about the rest of them?  Sure, the results numbers tell you they are not performing but, as an effective sales manager, you need to find out why.  The only way to do that is to look at additional data points.

Data points that you must observe to measure performance:

  • Critical ratios in the success formula
    • Are they doing the right effort?  (dials, networking, LinkedIn)
    • How effective are they? What do the critical ratios tell you? (10% of the conversations turned into an appointment– that is an example of a critical ratio)
  • Observation
    • Joint calls – Are they executing the company sales steps/process?
    • Joint calls – Are they executing the fundamental sales skills…?
      • Asking enough questions
      • Asking the right questions
      • Using stories, analogies and metaphors to weave a story and be conversational
      • Effectively listening
      • Inquiring for further information to clearly understand the impact of problems described by the client
    • Role-playing
      • Do they understand the fundamentals of your sales steps/process?
      • Do they intellectually understand what you mean by consultative selling, challenger selling, and client-focused interviewing?
      • Do they demonstrate in the classroom what you expect them do to in the field?
    • Additional data
      • Pipeline data – Is the volume increasing? Is it becoming more reliable?
      • Stack ranking - Are the various quintiles in your organization performing better this quarter/year than last quarter/year?
      • Sales activity – Are they doing enough effort to give them enough at bats to be successful?

In particular, for this article, I want to share a thought on observing your people perform.  Either in role-play or in live selling situations, you immediately get a reaction when you observe your people perform.  My guess is that your reaction could fall into 1 of 4 categories:

  1. I would not buy from this person ever; in fact, I would love to compete against them.
  2. I would not buy from them right now based on what I just saw/heard.
  3. I’m on the fence post with them; I need more information or more time to make up my mind.
  4. I would buy from this person; they were compelling, they got me engaged, made me discover some things that bother me that I need to fix and got me to a point where I was thinking I could undo any current relationships, add a new relationship and spend money that I didn’t think I needed to spend.

I have a client that just had a sales meeting that included about an hour of role-play covering a very specific step in their sales process. One of the product line specialists/experts commented the following: “With the exception of 2 people that I observed, I don’t believe I would buy from anyone else that I saw in that one hour.”

Wow, what a courageous, honest assessment.

My comment or suggestion to the team is to go back and review all the video or audio recordings of the role-plays and grade them using the standards I suggested above. 

As a sales leader, effective performance management requires the following:

  • Supportive beliefs about what it takes to coach people and get them to perform. If you believe you can manage people better if they like you, then you’re in trouble.
  • Recovering from rejection – If you cannot recover from rejection or fear of rejection, then you probably won’t tell one of the salespeople you work with that you wouldn’t buy from them.
  • Knowledge of desire and commitment - If you believe that all of your people are trainable and coachable, then you will spend a great deal of time with the same people covering the same sales execution problems.
  • Data nutcase - If you don’t look at data, then you won’t be able to have any intentional coaching sessions.
  • Time allocation - If you don’t take time to do ride-a-longs or role-plays, then you are missing two important/non-negotiable data points.

These are just a few of the requirements of effective sales management, leadership and coaching.  The key point in the message though is to do an honest assessment of your talent and then have discussions with them about how you honestly feel about their performance.  Yes, it will be difficult.  Yes, you might lose somebody over this.  And, yes, you might actually get people to work harder at their craft.

Resources to help you improve performance management and intentional coaching:

To inquire about distance learning, call me or text me directly: 513.226.3913

Topics: sales performance, sales results, evaluating salespeople, managing salespeople

    Follow #ACTG

     

    About our Blog

    Founder and CLO Tony Cole has been working with financial firms for more than 25 years to help them close their sales opportunity gap.  He is a master at using science based data and finely honed coaching strategies to help build effective sales teams.  Don’t miss his weekly sales management blog insights.

     

    Subscribe Here

    Most Read

    Recent Blogs