The Sales Challenge: Price

 

Think for a moment about the last sales deal you lost. Why did you lose? What was the reason? Were you late to the party? Was it the wrong product or solution?

 

If you ask most sales people what the number one reason that they lost a deal the majority will say price. In fact, in a recent poll of sales professionals conducted by Miller Heiman, an overwhelming majority of respondents perceived price to be the biggest cause of a lost sale. Additional research shows that 72% of salespeople cave in when the buyer resists price.

Unless you are without a doubt the lowest cost provider or producer, you cannot and should not sell merely on price. So, why is it that the first response of the majority of sales reps is to always reduce the price? We all know that while price can occasionally be a legitimate factor in a lost sale, it is never the only reason. If nobody wants what you’re selling, it doesn’t really matter what price you put on it.

What most people – your prospects included – really want is not necessarily the best price, but the best value. Value is the amount of benefit you get out of something vs. the total cost you’ll pay to get it. Bottom line (no pun intended), price is dependent upon value.

Our job as professional salespeople is to uncover what value means to a prospect, then to make sure our prospect understands that the value they’re getting from us exceeds the value they’d be getting from the alternative. By asking the right questions, your prospect will see both the value in solving their problem(s) and they will see the value in having a relationship with you. You are then in a position to help them justify a buying decision by adding more value, and thus reducing the price barrier. This all leads to a decision based on value and not on price.

As sales people, we are constantly faced with the pressure to negotiate price. All organizations and people will buy, and continue to buy, if they believe that value has been received as a result of the transaction. When faced with the proverbial price objection, steer the prospect away from the conversation of price and toward a discussion of VALUE.

What are your thoughts? Feel free to share your comments.

The Extra Second

 

Have you ever had one of the moments that figuratively slaps you in the face? A moment that makes you stop and think . . . one of those WOW moments.

It happened to me this morning.

 

I’m up early preparing for what will be a grueling three days on the road traveling to four different cities. As I am in my office gathering up on the things I need for my trip, I come across a piece of homework that my 15 year old had apparently placed on my desk last night. It was a paper that he had written for his freshman honors English class. Initially, I thought he had placed it there so that I could see his grade, an A.  Whether he had intended it or not, it had a much more profound effect.

So as I prepare to head out the door, I thought I would take an extra second to share it with you, my readers. My hope is that you will take the extra second to read it and reflect on your own circumstances. If you like what you read, please feel free to share your comments.

The Extra Second . . .  By Alex Zimmerman

I believe that time on earth is too short for our society to be rushing. When you see someone walking what do you see, do you see someone speeding to his or her destination, or do you see them admiring the smaller things around them?

Our world has turned into a foot-race; no one slows their pace to look at the bigger picture because apparently their life is too important to pause, and look at the daisies every once and a while. That doesn’t mean being late for an important business meeting is ok; it means to enjoy every moment you have on this planet, and to submerge your five senses into the succulent pool of reality. You need to stop, and take a second to really smell those beautiful red roses, and to admire that majestic animal crossing the road.

Our world is made up of so many different things, and we all focus on the wrong side of it. Our reality is brutally torn in half; the world tells us that we have to worry about things that don’t even matter in the big picture. Who is going to remember that wealthy, selfish, and disgustingly rude CEO who made millions at the dismay of thousands of people? No one will.  It’s not about making millions, or even billions, it’s about how wealthy you are in your memory.

The after life is a mystery, but we all know that you’re not allowed to take a Lamborghini there, so take the most valuable possession you have. . . your mind. Full of depression, confusion, fright, love, happiness, and every other emotion that has been mustered up. The mind is the greatest treasure in the universe. Life is about living, not surviving. Even though both words seem similar, they have almost the complete opposite meaning! Surviving is just making it by, or having the bare essentials to stay alive, but living is enjoying your time in this world, before the clock strikes zero and your time is up.

So take an extra second to stop and gander at what is in this life, and enjoy every moment that passes by. Before you know it you’ll be slowly descending into that hole while loved ones weep, and the only thing you’ll be taking with you are the memories you have squeezed out of your life… and of course the nice attire your relatives have put you in.

Sometimes, it’s the little things that matter.

 

Caught in the rat race, we often forget that little gestures can leave lasting impressions. We lose track of the little things we do and can do, to add meaning to those that we interact with. Whether you realize it or not, sometimes, it’s the little things that can have a lasting impact and shape the future.

I was served up a big dose of reality on this very topic  yesterday afternoon.

This past week was one of those weeks. Buried under an avalanche of work, the week actually started on the previous Saturday and include a weekend of preparing for an extremely important and busy week ahead. I had several major presentations accompanied by trips to multiple cities. Added to the mix, was a busy family week of activities and the start of my training schedule for my next race. To say it was a long week was an understatement.

Physically spent and mentally drained, I laid down on the couch looking for a reprieve from the trials and tribulations of the hectic week. A short five minutes into my escape, my phone rings. The caller ID displays a name of a former co-worker that I haven’t talk to in over a year. I reluctantly decided to answer the call.

The call starts off with the normal pleasantries then it gets to the point. Someone that I had known for 15 years had unexpectedly passed away and he wanted to let me know the details of the upcoming services. But more importantly, he wanted to share a story that this individual (Don) had shared with him a few short days prior to his passing.

Don shared how he and I had first met and how our relationship had developed over the years. He said that if it wasn’t for me and my help, he would never be where he was. He said that I was an “old school” sales professional that always did the little things to make him and others feel special. He went on to say he considered me to be the best sales person he had ever known.

Wow, not what I was expecting.

I first met Don in an account that I was trying to crack. He wasn’t a big shot or anything close. He was just a guy in operations that I met and was fortunate to get know over time. I would occasionally drop by with coffee or donuts for him and his co-workers. Talk with him about his family and the things that were going on in his life. I would also send an occasional note or card for special occasions. He ended up leaving that account and moved on to a new position in another company. Several years  later, I walked into a different account and there’s Don. We get caught up and promise to stay in touch. A reached out to him several times over the years and on one occasion I talked with him and he tells me he is getting laid off. I happened to know of an opening with my (former) company and I tell him to send me his resume and I would do what I could for him.

Long story short, Don gets the job and ends up working there until his passing. I didn’t know how much of an impact I really had on him until I got the call.

Lesson learned:

Sometimes, the little things make a big difference to the people in your life. Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring; all of which have the potential to turn a life around.

Since the little things are easy to do, they are also easy not to do. The little things that lead to success are mostly easy to do. You just have to do them.

Thanks for the reminder Don. I am humbled by your kind words and I am honored to have known you. RIP my friend.

Great moments are born out of great opportunities!

 

The weekend was great! Good times with family and friends. Then comes Sunday night. You start thinking about the week ahead. Need to do this, need to do that. It seems like your week has begun even before the weekend is “officially” over. You toss and turn and before you know it the alarm clock rings.

 

Monday, ah, Monday. The most dreaded day of the week. For some, Mondays are a challenge! Morning meetings, updates with the boss, problems to deal with, and yes those never ending stories from co-workers. Somebody please shoot me! Sound familiar? Maybe it’s time to change your tune.

To me, Monday is my favorite day of the week. I always wake up early, eager to start the day. Monday is the one day, more than any other, that I am at my peak mentally and emotionally. Monday represents a chance to start anew. New beginnings, new challenges, and yes, most importantly, new opportunities.

“Great moments are born out of great opportunities”

This quote is one of my personal favorites, it’s from the movie “Miracle”. For those of you who don’t know or follow hockey, “Miracle” is a story about the 1980 USA Hockey team and their unlikely upset of one of the most formidable hockey powers in the world, the Soviet Union. (sorry Moosh) As someone who has loved the game of hockey since I was a kid, I actually was watching this game on TV as it played out in 1980.

I decided that for this week’s Motivational Monday post, I would share the speech that  Kirk Russell (who played Herb Brooks) gave before the game. This one game forever changed the face of hockey in the US. Here’s hoping that this clip helps motivate you on this Monday morning.

Make Monday your day, your time! Now go out there and take it!

 

What’s your “Why”?

I was at a neighborhood gathering this past weekend and I ended up in a conversation regarding the use of social media. When I was asked about how and why I used it, I openly discussed my thoughts on the subject. There was this one guy, who I didn’t know, that kept asking why? Why twitter? Why I blog? Why I chose the topics I do? Why this and why not that?

It got me thinking about “Why”? Why we do what we do? Why somethings motivate us while others not some much.

If you really think about it, the word “Why” is a pretty compelling word.  Why as a noun, is a question concerning the cause or reason for which something is done or achieved. As an adverb, why is for what reason, cause, or purpose.

I once read that the “Why” is the magical fuel for motivation, performance and satisfaction. That “Why” invokes meaning. Without meaning we have no intention, no purpose, and no motivation.

In doing some research on “Why”, I came across a quote from Tony Robbins that said,  “If you have a strong enough “Why”, you’ll find the ‘How’”. It’s funny that we tend to spend so much time trying to break the code on the ‘how’ of our success that we forget about our “Why”.

As I sit here at my desk, I’m looking at what I call my vision board. It’s one of those digital picture frames that my wife gave me for Christmas a few years back. As I am looking at the pictures roll by, I came to the realization, a moment of clarity if you will, that this is my “Why”!

This is what I work for! These pictures are the reasons “Why” I do what I do. They are what compels me to persevere when things aren’t going my way. They are the “Why” that keeps me going when it seems the whole world is against me.

 

Make today your Motivational Monday! Get clear on what moves you forward. Create a vision of “Why” you do the things you do. Once you have the “Why”, no matter how unlikely, the how will become much easier and much more enjoyable.

Think and dream big. Pursue your “Why” with passion and excitement.

So what’s your “Why”

Strive for Five

The number five has long been considered a number of power and good fortune. It is the number of harmony and balance. It is also known as the number of the divine grace. The number Five is also called the Pentad. Known as the living principle, the number five indicates the action of the active principle of form.

The number 5 is also found on the human body: the five fingers of the hand and feet, the five senses (touch, taste, sense of smell, hearing and the sight), the five members (two arms, two legs and the head)

For the sales person, it only makes sense to utilize this number to your advantage. Why? It’s a powerful yet simple number. Generally speaking, most people think this way and it’s easy for most to focus on or remember five points. When I first started in sales, my mentor shared with me what he called his “Rule of Five”. He referred to it as his “secret sauce” of sales success. With today being 5/ 5, I thought it would be most appropriate for me to share his wisdom, and a little bit of mine, with you.

It’s what I call, Strive for Five.

Start your day, each and every day, before you walk out the door, with five positive thoughts! They can be any five you want, after all they are your thoughts, but make it five positive thoughts. Oh, by the way, revisit these five thoughts five times during your day. It will help to keep you going even if things aren’t going your way.

Strive for five in your understanding of your clients, as in the old five W’s (Who,What,When,Where, and Why)

Come up with five different methods of reaching out to or communicating with your clients.

Strive for five things or facts to know about your customer personally; 1) their birthday. 2) their hobbies &interest, 3) their hot buttons, 4) the family information, 5) their goals, both personal & professional

Change up your routine,when cold calling / prospecting, break it up into, you guessed it, fives, make five calls then take “five”, then do five more.

Have five different talks tracks or messages prepared to leave on voice mails.

In the case of objections, for the most common ones that you face, have five ready  responses.

Prepare and utilize five key proclamation statements (thank you Ron Karr) for your product and or service.

Have five success cases that you can reference and the five benefits that were realized from your offering.

Have five different methods for thanking your clients for the business.

Figure out five different ways to make your customer look like a Rock Star( thanks Jedi-Master) in their organization

From a personal branding standpoint, it’s important to remember you are being judged on 1) how you look, 2) how you act, 3) what you say, 4) how you say it, 5) where you say it.

Strive for five: Daily

Read at least five blogs or articles a day.

Make at least five comments, on blogs or on groups in LinkedIn.

Depending on your particular circumstances or role, strive for five new prospecting calls.

Strive for Five: Weekly

Invest at least 5 hours a week in your Professional development.

Take five meaningful and actionable steps toward the accomplishment of  goals.

Make five new connections a week.

Reach out and talk “live”  to five of your social media contacts a week.

The “Rule of Five” has served me well over my career. It has helped me to keep me positive, focused, and energized. Hopefully, this little bit of advice will help you along the way on your path to success. By the way, there are Five points on a Star. Coincidence, I think not! If you want to be a Star, Strive for Five!

If you liked this post, how about a high five?

Please share your thoughts and comments.

The Luckiest Man . . .

When I was going up I remember watching the movie,”Pride of the Yankees”.  Its the story about NY Yankee great Lou Gehrig. It was nominated for eleven Academy Awards in 1943, and is still regarded by many today as the finest baseball movie ever made. There is a scene in the movie where Lou Gehrig (played by Gary Cooper) is giving his farewell speech and he says:

 

“Fans, for the past two weeks you have been reading about a bad break I got. Yet today, I consider myself the luckiest man on the face of the earth.

Well today, that is exactly the way I feel. Yes, I have had my share of bad breaks over the last several months, (just like the scene from the movie) yet today, I consider myself the luckiest man on the face of the earth. Maybe it’s a tad bit of an exaggeration, (and probably little bit in bad taste to compare a dying mans tribute to my current circumstances) but I feel pretty damn lucky.

You see life is made up of series of events and happenings. Some good and some not so good. Some you wish you could block out forever. To be locked secretly away, permanently stashed, in your personal vault. Others times, you feel compared to share. Like a story that you absolutely know needs to be told. One that makes you want to climb to the top of the highest mountain and shout it out so everyone can hear.

Every now and again we are blessed with a special moment where you indeed “feel like the luckiest man on the face of the earth”. For me today is one of those days.

I just experienced the most incredible adventure! A wonderment of emotion, feeling, and enlightenment. A journey that will forever be in my memory.

No it wasn’t some extravagant vacation to an exotic island or far away land. Nor was it some kind of out of body experience.

Today, I had the opportunity to talk with (aka, interview) someone who I know will someday go down in history as a true sales legend! Someone who will ultimately be ranked up there with the sales greats; Zig Ziglar, Brian Tracy, Harvey McKay and the like.

A true, Sales Rock Star, the one and only (drum role please) Paul Castain.

 

 

 

 

Some of you may know him from his Rock Star blog, yoursalesplaybook.com Some of you may have even been fortunate to attend one of his sales training session. But for those of you who haven’t had the pleasure of being introduced to this Sale Rock Star, I want to strongly encourage you to learn more about him. Believe me, you won’t be sorry!

I personally was late to the party. Having only made the leap into social media a little over 18 months ago, I didn’t have a clue who this guy was. But once I discovered this incredible man and read his writings, I was hooked! He has lead me and thousands of others on an unbelievable journey. In preparation for my discussion with him today, I actual read every one of his blog post from the past 3 1/2 yrs. I’m here to tell you, it’s like reading the best book ever written. (no offense to the man upstairs)

So to my friends, fellow sales professional, and loyal readers here on my blog, I invite you, (if you haven’t already) to visit this Rock Star, Uncle Paul, at his website. I guarantee you won’t be disappointed. If fact, you will thank me!

PS – coming soon – “The Interview” staring none other than the JediMaster himself.

Please feel free to share you thoughts, comments, and lessons learn from this Rock Star.

 

It’s not personal, it’s just business . . . Always do the right thing

A few years back I had a major customer that was nearing the end of their 3 yr. contract. This account was an extremely large national account with locations through out the United States. I had worked my ass off to win the business in the first place and I certainly wasn’t about to let them not renew.

I had worked extremely hard over the term on the contract to insure that they were always happy. I had established meaningful and lasting customer relationships with multiple alliances and multiple points of contact across the organization. I thought I knew everything about almost everyone in the account. From the front desk to the executive suite, I made sure that every interaction with this account was exceptional.

I felt that I was well positioned as a valued resource and trust advisor.

Well about 6 months before the contract was up things suddenly changed. The company had a major shake up and leadership changed.  There was a “new sheriff in town” and he was looking to make his mark. He decided to really shake things up, change the status quo. He brought in his own posse, so to speak, and suddenly everything that I had work so hard for was in doubt.

For anyone that has been in sales for any length of time, you know that this is a really bad sign. The sheriff and his deputies decided to bid the contract and long story short, despite all of the “Zim-Master’s” (that’s me) magical efforts, they went with the lowest bidder. I did everything I possibly could to convince them they were making a huge mistake. I knew that the vendor that they had selected was in no way capable of delivering what they had committed to.

Everyone in my organization was, to put it bluntly, pissed off. All the way up the line, management took the attitude of “screw em” make it difficult for them for to change. Yes, it was a big revenue hit but as the line from the great movie the “Godfather” goes, “it’s not personal, it’s just business”. I knew that if I kept it professional, and delivered the same level of exceptional service, even in defeat, I could eventually win the business back.

I met with all the key players in the account and insured them that despite their decision, I would do everything I could, from my standpoint, to make sure the transition to the new vendor would be smooth. Matter of fact, I went out of my way, went the extra mile, to make it happen.

After the transition was complete, knowing that eventually the new vendor would falter, I stayed close with the account. I continued to provide them with the “Zim-Masters” exceptional service. I still dropped by with the occasional breakfast surprise of bagels and coffee, had lunch delivered to the management team, (aka, those idiots in the sheriff’s posse) and sent birthday and anniversary cards and wishes to various folks in the account.

After about six months, the problems began to surface. At first it was a minor problem, then one thing after another, one problem after another, the problems were compounding. Before I knew it, I was receiving calls from multiple contacts from various departments within the organization asking for my help. Finally, the call that I had been waiting for, the one that I knew would eventually come, happened. I saw the number come up on my phone, (don’t you just love caller ID?) but instead of answering, I let it go to voice mail. I knew what the call was about. After all the S*@T they put me through, I wanted to savor the moment.

When I finally got around to listening to the message, (after only a couple minutes) I was somewhat surprised as the call wasn’t from one of his deputies, it was from the sheriff. The Top Dog himself!

Houston, we have a problem, we need to schedule a meeting, I need your help. How soon can you be here?

Jack Pot!

Now I’m guessing you know how the meeting went and how the story ends. Yes, I ended up getting all the business back, but I also picked up incremental business in some of their subsidiaries and all at top dollar.

Lessons learned. . .  It’s not personal, it’s just business! Even in defeat, no matter how bad it might be, keep it professional and always do the right thing! You never know how things will turn out.

What’s your take on the situation? Would you have handled it differently?

Please feel free to leave your comments and thoughts.

Your Attitude is a choice, choose wisely!

News flash . . . . you can never have absolute control over the things that happen, but you do have control over the way you choose to think and respond to things. (aka, your attitude) The attitude with which you choose to greet the day, approach your work, and respond to the people around you will determine how high you go.

The most important decision we make in our lives is the attitude we choose to express each day when dealing with people or circumstances. Your attitude about any condition, present or future, is within your control. Attitude, positive or negative is a choice. This critical choice, goes a long way in determining success or failure, in life and especially in sales.

Question, do people who are happy and successful have a positive attitude because they are happy and successful OR are they happy and successful because they have a positive attitude?

Personally, I’ve never met anyone I would consider happy or successful at anything who had a negative attitude. Have you?

The one thing I’ve learned in life is that positive thoughts produce positive results and negative thoughts produce negative results. When it comes to the attitude of choice, which direction do you go? Which direction should you go?

A positive attitude is attractive and contagious. It can also be a predictor of job success. According to research done on the power of a Positive Mental Attitude: Only 25% of job success is predicted by IQ, while 75% of job success is predicted by your optimism level. Another interesting statistic, your brain at positive is 31% more productive than when your brain is at negative

Positive attitude has an even greater impact on the sales profession. A recent national survey examined why sales people fail. Here’s a clue, it wasn’t price or product related. Of the survey respondents, 15 percent attributed failure to “poor training,” another 15 percent said “poor management” and another 20 percent said “poor communication skills.” A full 50 percent, however, said that salespeople fail because of “lack of positive attitude”. In my humble opinion, the respondents that blamed “poor” training, “poor” communication skills, and “poor” management, reflected a “poor” or negative attitude. Add up the numbers and you come up with 100% failure rate without a “positive attitude”.

Hello . . . McFly!

When it comes to selling, your attitude, enthusiasm and passion can make all the difference. Ever hear the saying, “people can tell when you are smiling on the phone”?It’s because your approach and attitude effect everything. Customers prefer to buy from positive sales people who have confidence in what they are selling. It’s about believing in your company, in the products or services, and in yourself and positively communicating that attitude to the customer. If you have a poor attitude your customers will know it.  A positive attitude in sales is a very powerful tool. Attitude breeds attitude, which breeds success and rewards of a positive attitude are enormous. I can almost guarantee you are going to sell a hell of a lot more if you feel on top of the world!

Noted Author, Speaker, and Master Salesman Jeffrey Gitomer said it best when in his Little Gold Book of YES! Attitude he wrote, “At the beginning of any task, more than anything else, your attitude will affect its successful outcome.”

Attitude is a choice. Choose to be positive. A positive attitude in Sales is not just desirable or a nice to have, it is essential!

Positive attitudes and comments are welcome.

Sales Wisdom from the Zim-Master

So you’re new to the sales game, you’re young, eager, and ambitious. You’re looking to make your mark, to set the world on fire.  Well the old 80/20 rule tells us that most sales reps are average.  Not looking to be “average”, you wonder, what does it take for a young new hire to become a Sales Superstar?

Earlier this week, I started working with one of client’s newly hired group of sales folks. Understand that by “new”, I mean brand spanking new, deer in the headlights, sales neophytes. As day one came to a close, the VP of Sales came in to wrap up the session and to offer his thoughts and perspectives on the day. As he was finishing his remarks he turns to me and says, “In your opinion, what are the three key things to remember most, if you want to be a sales superstar over the long-term?”

I’m thinking to myself, “wow, three things, only three”? Now there are probably, at minimum, 20 or 25 different things that I could say. Mentally I’m scrambling, not wanting to disappoint, so I reached down deep into the Zim-Master’s (that’s me) magical bag of sales wisdom, and here’s what I came up with. (paraphrased)

#1 – LEARN AS MUCH AS YOU CAN AS FAST AS YOU CAN!  Learn as much as you can about your company, the competition, and your marketplace. Learn as much as you can about selling and all the different aspect involved. Adopt a motto of ABL, (Always Be Learning)and commit to “Continuous Innovation . . . Continuous Improvement”. The game of sales is constantly changing and involving so do whatever it takes to be at the top of your game at all times. Remember knowledge is power and to steal a line from my 3^rd grade teacher, “The more you know, the further you will go”.

 #2 – WORK YOUR ASS OFF!  I was fortunate that I developed a healthy work ethic from a very early age. (I had my 1^st job when I was 12) Yes, I believe in working smart but if you want to successful, if you truly want to be a superstar, you have to put in the time and effort. Look at any professional, (Doctor, Lawyer, Athlete, etc) and they will all say that most of their success was attributed to hard work.  Out work your peers, your competitors, and anyone and everyone else. If you want to be more than just an ordinary average sales guy, you have to really work at it!  So work your ass off!

# 3 – BE AUTHENTIC!  Nobody likes a phony! The best advice I ever received was to be myself. Sales Superstars come in all shapes and sizes and from all kinds of different backgrounds.  Be who you are and not who or what someone else might think you should be. I’m certainly not telling you to ignore all the great advice that the sales gurus, numerous sales trainers, and your sales mangers are telling you. What I am saying is take the information, the methodologies, and various selling techniques and mold them into your style. You need to be comfortable in your own skin before your clients will be comfortable with you.

It’s not too hard to pinpoint the difference between average performers and poor ones. The challenge is discerning the difference between good and great.

What makes some sales people superstars and others mediocre?  “What’s differentiates the great ones? As a young gun, how do you get to the top?  Start with these tidbits from the Zim-Master’s magical sales bag of wisdom.

Please feel free to share your thoughts and comments.