ACTG Sales Management Blog

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Solution vs. Budget

Posted by Jack Kasel on Wed, Feb 27, 2019

Typically, when a salesperson doesn't win an account it's due to a few different factors; the prospect didn't have a compelling reason to make a change, the salesperson didn't do enough to uncover their capacity to invest, or the incumbent wasn't properly eliminated from the running.

In this article, we discuss the 3 Rules every successful salesperson must follow in order to eliminate stalls and objections during the sales process.

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There is an age-old debate about which came first, the chicken or the egg. While that debate may never be solved, there is one “which comes first” situation that shouldn’t be up for debate and that is “see the solution first or know the budget first?” 

In my work with helping client’s develop their sales talent, I know there are two topics that get avoided on a regular basis, and both are to the detriment of the sales person. Those two “taboo topics” are discussing the incumbent and uncovering the budget. I will address the incumbent discussion in a later blog.

When I refer to the budget, I am referring to it in three categories commonly known as ‘TMR’—Time, Money, and Resources. What are they willing to commit, in the context of time, money and/or resources to make their problem go away? It is my experience that the stronger sales professionals don’t shy away from that discussion. They are successful because they follow these rules.

Rule 1#

Have the conversation. The 800 lbs. budget gorilla is in the room so talk about it. Don’t make it part of your opening conversation, but don’t ignore it either. If the need is big enough, and your solutions fixes it, most of the time, they will find the money.

Rule #2

Provide context. Regardless of the investment your prospect needs to make to fix their problem, it needs to be framed in the context of their pain and your ability to eliminate it. If the pain is minimal, then your solution won’t seem that great. We’ve had prospects tell us their problem is a “two-comma problem” meaning their cost of turnover was over $1 million dollars. That’s context.  Know their cost before you proceed

Rule #3

Don’t show your solution until you know the budget. It’s really that simple. If you have ever provided a solution to a prospect only to hear them say “that’s more than we intended to spend”, then you have an issue discussing the budget. Does it make sense to know their appetite for change, including budget, before you provide your solution? Here is where the strong sales professional is different. If the prospect doesn’t want to discuss budget, they know it can be for one of two reasons. They haven’t uncovered enough pain or the prospect simply wants to use you as a pencil sharpener for the competition. You don’t get paid to be a pencil sharpener so don’t become one.

In closing don’t be afraid of the conversation. In the history of sales, no one died from discussing budget. I doubt you will be the first.

Topics: how to get a commitment to buy, consultative selling, providing value to customers, qualified leads, sales acceleration, sell faster, overcoming rejection

Asking “Is It Over?” Can Lead to Greater Sales Success

Posted by Alex Cole on Wed, Feb 06, 2019

Part of being a highly successful and effective salesperson is having the ability to walk away from an opportunity. After numerous attempts to contact a prospect and close a deal, there will be a time when you as a professional must determine when and how to call it quits.

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As the quote says, “Those who cannot learn from history are doomed to repeat it.”

There is always something to be learned when it comes to a sale we have lost. One of the most distinguishing traits of successful salespeople is that they always learn from the mistakes they make in selling. And, generally speaking, they will not make the same mistake twice.

One of the mistakes that I observe salespeople making is they fail to ask what I have termed, “The Animal House” questions. Do you remember the 1978 movie, Animal House? Of course, you do- it’s a cinematic classic. Think of the scene near the end of the movie when the Delta fraternity members are being kicked out of school when Bluto says, “Great… 7 years of college down the drain. Over?!? Did you say it’s over?!?!  Nothing is over until we decide it is. Was it over when the Germans bombed Pearl Harbor?”

Now, while Bluto was just a little off in his recall of history, he DOES give us an excellent reminder that there are times when we need to simply ask our prospect, “Hey, is it over? Are we done here?”

Perhaps they’ve promised you some information and you still don’t have it. Perhaps they’ve promised to set up a meeting but it still hasn’t been set. Or maybe they’ve promised to make a decision and now we’re two weeks past that deadline and they’ve gone radio silent. Do yourself a favor- sell like Bluto. Muster up the courage to ask the Animal House questions, “Is it over? Are we done here?”

Find out, and if you are done, maintain control of your sales process and move on. Don’t let the rejection get in your way of pressing forward, learning from your mistakes and hunting for real qualified prospects.

Topics: sales skill, qualified leads, how to prospect, sales advice, sales acceleration, think it overs, salespeople, overcoming rejection

The Two Truths and a Lie of Prospecting

Posted by Tony Cole on Fri, Jan 11, 2019

Prospecting for salespeople is often a struggle due to varying factors including their ability to stay committed to the process and overcome rejection.

In this article, we cover the dreaded,  but mandatory, task of sourcing and creating new sales opportunities.

deceive-1299043_1280Salespeople have to prospect – that’s the truth. Salespeople can find their prospects through a variety of different avenues, including; introductions, direct mail, internet offers, networking, internal referrals from business partners, cold calling, campaigns, association memberships, and business networking groups. 

What is also true is that, no matter how a sales person gets a name, the next step is to contact them. You can contact them by mail (email or snail mail) or by phone (the most common method). If you are going to have any chance to schedule time to talk with them about their current situation to determine if they are a prospect for you, you must have contact. That’s the truth.

Prospecting is FUN! Now, that’s a lie. Prospecting isn’t fun. It’s not intended to be fun. Anyone that says it’s fun is lying. If you are a manager, don’t tell your people to “just pick up the phone and have fun with it”. They will know you don’t know what you are talking about.

They’ve had fun before: Water skiing, swimming, hiking, going to a play or the opera, having a picnic, watching a ballgame, getting a promotion, a raise, or recognition for a job well done. All FUN! However, facing rejection, not talking to anyone, having people curse or hang up on you, having people who schedule appointments and then cancel or don’t show up?  ZERO FUN.

If prospecting isn’t fun, then what is it? Back in the day when I was still trying to figure out how to be successful in selling, my coach told me this:  “You don’t have to like it; you just have to do it!” And that is prospecting.  It’s called work and not play for a reason. It is work. You have to put a lot of preparation, emotion, intellect and skill into being successful at prospecting. David Kurlan from Objective Management Group has found that the single biggest contributor to sales success is the ability to be rejection-proof. Even with all the skill, techniques, scripts and preparation, if you cannot handle the rejection and emotional roller coaster of prospecting, then you will struggle, be inconsistent and fail more than you succeed.

The bottom line is that this isn’t about making it fun. It’s about getting the job done so you have solid appointments that turn into solid opportunities that turn into closed business. THAT’S where the fun is!

Topics: Prospecting, introductions, Cold Calling, sales management, commitment, networking, salespeople, overcoming rejection

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    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.

     

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