Do Your Homework!

For over two years I've been making attempts to break in to a large and local Furniture retailer. Non of my usually successful methods seemed to be working. Then I came across the "IN". A local reseller/partner had this customer locked up. I started making it my mission to win over the partner. I shared contact information and collaborated on another project we had a mutual interest in. Then came the opportunity.

The Reseller invited me to take this prospect to lunch. I jumped on it! Before the meeting, the partner and I had brief but very valuable phone call. He shared the prospects attitude, buying-cycle, preferred method of doing business and most importantly; hos to make a good first impression.

This prospect likes to lead. They prefer to noodle on ideas first, make it their own idea, then come back to the vendors as if it was their idea all along.

Lunch was great, casual and we talked absolutely NO BUSINESS.

Afterwards, we headed back to their conference room. We sat their staring at one another for a few seconds and then I asked what they wanted me to cover. They told me. We did it, but in a very non-pushy (salesy) way. All through the discussion, they asked questions probed for more info and sought clarification. In the end, we casually suggested that when the time was right, they bring our product in for a test in their process, but that we would wait to hear back from them. I also told them that i would send a brief summary of our discussion within 24 hours as a refresher.

I did.

Not long after that meeting, the partner that had invited us in called me. He was literally ecstatic! He said that the prospect had called him into his office following the meeting and raved at how casual, productive and enjoyable the meeting had been. He also said, "That guy (me) was not your typical salesperson!" What a compliment!

In Summary:

Seek information about your prospects before an important meeting. Ask about:

1. Their personalities

2. Their interests

3. How they like to do business and with whom

4. Do they like to be lead or followed

5. Do they like formal Presentations or do they prefer a more free-flowing meeting

Successful Selling!!!

We Will Not Lose On Price

The Dreaded Statement: "We Won't Lose on Price"

Many of us have been through long and difficult sales efforts. A while back I was going through one of those nail-biters when I asked for management involvement to help close things out and provide air-cover to my efforts. Sometime customer just need to see a fresh face and know that there are other people that can support them in their efforts to be successful.

Negotiation is always a tricky business. It really should be classified as a science. It takes practice and finesse. It should always be viewed as a Win-Win.

On this occasion, I was hoping to breach an impasse with my client by bringing in Management to work out the final details on our negotiation and get some additional concessions from both sides to make it the Win-Win we all wanted. Unfortunately, I may have not been clear in my expectations. One of the first things out of my team's mouth as one of the objections was expressed by the customer was, ....."We will not lose on price!"

When this statement is made, you have lost a negotiation point. A very valuable point that should only be used once all other objections have been addressed. You have just coughed up margin and given away the farm. Major Feaux Paux!

Use the price as a negotiation point in conjunction with other benefits, services, reference requests, speaking engagements, follow-up product opportunities, long-term contracts and agreements and finally perceived value. It should be a balancing act and you should be able to assign and show value to your client for each of the items listed above before you settle on a price. Your competition may not be able to provide the same value or show it in a clear and concise manner. Before you commit to "Not lose on Price" make sure you are taking into account all the perceived value and monetizing it for your client. Don't play the price game! It is a Lose-Win at best and in some cases will be a lose-lose if the Client ends up settling for a cheaper solution.

I ended up having to eat an additional 10% off an already aggressive price, due to this little mistake. Even though my product was superior in reliability, references, support and performance, I lost out! None of those items mattered after that statement was made. We just committed to discount our perceived value away. :(