By Jim Hingst
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| This photograph is in the public domain. |
This article appears in the July 2017 issue of Sign Builder Illustrated.
Walk-in business is usually
easy money. That’s because it is more about the customer buying than about you
selling. Real selling, in which you must hunt for new business, isn’t so easy.
It fact, it can be a complex process. First you need to track down viable
prospects: those who need your products and services and have the ability to
pay for them. Then you must identify the prospect’s needs and develop a
graphics solution that satisfies those needs.
easy money. That’s because it is more about the customer buying than about you
selling. Real selling, in which you must hunt for new business, isn’t so easy.
It fact, it can be a complex process. First you need to track down viable
prospects: those who need your products and services and have the ability to
pay for them. Then you must identify the prospect’s needs and develop a
graphics solution that satisfies those needs.
Now here is the tough part
that differentiates them buying from you selling. You have to close the
deal. In the 1992 movie, Glengarry Glen Ross, Blake, the sales
manager from hell played by Alec Baldwin, explains in no uncertain terms what
selling is all about. He berates his sales
people telling them that the name of the game is to get the prospect to sign on
the dotted line.
that differentiates them buying from you selling. You have to close the
deal. In the 1992 movie, Glengarry Glen Ross, Blake, the sales
manager from hell played by Alec Baldwin, explains in no uncertain terms what
selling is all about. He berates his sales
people telling them that the name of the game is to get the prospect to sign on
the dotted line.
Everything that you do in the
selling process from planning to intelligence gathering to needs analysis to
your proposal should lead to the climax in your performance – closing the deal.
selling process from planning to intelligence gathering to needs analysis to
your proposal should lead to the climax in your performance – closing the deal.
Pre
Call Planning: How to Prepare for a Sale
Before your first meeting
with a prospect, you should gather information about the prospect’s company,
their industry and their competitors. As you build an account profile, you also
need to identify those people within the organization who influence the company’s
buying process.
with a prospect, you should gather information about the prospect’s company,
their industry and their competitors. As you build an account profile, you also
need to identify those people within the organization who influence the company’s
buying process.
Each organization is a
little different. To help you find your way within larger organizations as well
as avoid any potential landmines that could sabotage your efforts, it helps
greatly to find an ally or sponsor within the account.
little different. To help you find your way within larger organizations as well
as avoid any potential landmines that could sabotage your efforts, it helps
greatly to find an ally or sponsor within the account.
Much of this research can be
done online and through phone prospecting. You can supplement this initial
research with information gathered through networking with other salesmen in
the industry. The help that I received from truck leasing salesmen was
invaluable.
done online and through phone prospecting. You can supplement this initial
research with information gathered through networking with other salesmen in
the industry. The help that I received from truck leasing salesmen was
invaluable.
Leasing salesmen will know
long before you ever will who is in the market for equipment. They can also
help in making introductions with key contacts within the account. Just as
important, they can include the sales of the graphics in the leasing package. This
helps everyone involved. The cost of an expensive graphics package can be
amortized over the duration of the lease, making it easier for the customer to
buy your program. The salesman’s commission increases with every add-on to the
lease agreement. The graphics salesman is happy, too. Not only is it easier for
you to sell big programs, but vendors must be paid before the equipment is
turned over to the customer.
long before you ever will who is in the market for equipment. They can also
help in making introductions with key contacts within the account. Just as
important, they can include the sales of the graphics in the leasing package. This
helps everyone involved. The cost of an expensive graphics package can be
amortized over the duration of the lease, making it easier for the customer to
buy your program. The salesman’s commission increases with every add-on to the
lease agreement. The graphics salesman is happy, too. Not only is it easier for
you to sell big programs, but vendors must be paid before the equipment is
turned over to the customer.
Why
Site Surveys are Important
Site surveys are also an
essential part of pre call planning whether you are selling building graphics
or vehicle wraps. By inspecting the graphics you can uncover problems. In your
inspection, take plenty of pictures to document your findings.
essential part of pre call planning whether you are selling building graphics
or vehicle wraps. By inspecting the graphics you can uncover problems. In your
inspection, take plenty of pictures to document your findings.
By asking questions during
your survey you can probe for any dissatisfaction, which you can use to drive a
wedge between the customer and the incumbent vendor. Keep in mind that if the
prospect is completely satisfied with his current graphics supplier, you have
absolutely no chance of making a sale.
your survey you can probe for any dissatisfaction, which you can use to drive a
wedge between the customer and the incumbent vendor. Keep in mind that if the
prospect is completely satisfied with his current graphics supplier, you have
absolutely no chance of making a sale.
Problems too look for
include fading graphics, edge peeling and inconsistency in application of the
corporate imagery. By questioning, you can try to uncover any problems with the
way their program has been implemented in the past.
include fading graphics, edge peeling and inconsistency in application of the
corporate imagery. By questioning, you can try to uncover any problems with the
way their program has been implemented in the past.
Prepare
Your Questions
As part of your pre-call
planning process, prepare a list of key questions to raise in your meeting. The
most important question is: what is the goal of the meeting? Unless you are
focused on specific outcomes, the sales call usually becomes an aimless but
congenial sales conversation. You end up leaving the meeting scratching your
head, wondering what you accomplished.
planning process, prepare a list of key questions to raise in your meeting. The
most important question is: what is the goal of the meeting? Unless you are
focused on specific outcomes, the sales call usually becomes an aimless but
congenial sales conversation. You end up leaving the meeting scratching your
head, wondering what you accomplished.
If there is something
specific that you want to learn from the prospect, prepare your questions in
advance of the meeting the way a good journalist prepares before an interview.
As important as your objectives are, put yourself in the prospect’s shoes and
imagine what he or she would like as an outcome of the meeting. Ask yourself,
what questions will the prospect likely ask?
specific that you want to learn from the prospect, prepare your questions in
advance of the meeting the way a good journalist prepares before an interview.
As important as your objectives are, put yourself in the prospect’s shoes and
imagine what he or she would like as an outcome of the meeting. Ask yourself,
what questions will the prospect likely ask?
When the meeting concludes,
the final question in your preparation is: what is the next step in the
negotiation of the deal? You can pose this question in a number of different
ways. You can simply put the ball in the prospect’s court and ask his advice on
what you need to do next to move forward on the program. His answer to that question opens the door to
the follow up meeting.
the final question in your preparation is: what is the next step in the
negotiation of the deal? You can pose this question in a number of different
ways. You can simply put the ball in the prospect’s court and ask his advice on
what you need to do next to move forward on the program. His answer to that question opens the door to
the follow up meeting.
The
Introductory Sales Call
In the introductory sales
call, you need to accomplish a number of key objectives. These objectives should include identifying
the prospect’s problems and needs; understanding the prospects business goals;
discovering who your competitors are; and determining the potential for your
company. Above all, the most important task is to identify the key decision
makers and influencers within the account. By establishing an initial
relationship with someone willing to assist you, that person can sponsor your
efforts by introducing you to key contacts; warning you of potential landmines
that could sabotage your efforts; and can help direct your sales actions.
call, you need to accomplish a number of key objectives. These objectives should include identifying
the prospect’s problems and needs; understanding the prospects business goals;
discovering who your competitors are; and determining the potential for your
company. Above all, the most important task is to identify the key decision
makers and influencers within the account. By establishing an initial
relationship with someone willing to assist you, that person can sponsor your
efforts by introducing you to key contacts; warning you of potential landmines
that could sabotage your efforts; and can help direct your sales actions.
Why
a Win-Win Agreement is Important
Any type of agreement
between you and your customer must result in a win-win conclusion. You must
make a fair profit and your customer must feel that they are getting reasonable
value for the money that his company is spending. No other outcome is
acceptable. Otherwise, someone walks away from the negotiating table feeling
that they got the short end of the stick.
between you and your customer must result in a win-win conclusion. You must
make a fair profit and your customer must feel that they are getting reasonable
value for the money that his company is spending. No other outcome is
acceptable. Otherwise, someone walks away from the negotiating table feeling
that they got the short end of the stick.
If the buyer feels that he
paid too much for his graphics, your chances for repeat business are slim and
next to none. As veteran salesmen are fond of saying, “anyone can make the
first sale; a real salesman gets the next order”.
paid too much for his graphics, your chances for repeat business are slim and
next to none. As veteran salesmen are fond of saying, “anyone can make the
first sale; a real salesman gets the next order”.
Making a few concessions in
the bargaining process can go a long way in building lasting customer
relationships. I am not saying that you need to give away the store. What I am
suggesting is that you can build in a little leeway in your estimate, which
allows you to give in on a couple of minor points. A concession on payment terms might be one
way to make your customer feel that they made a good deal.
the bargaining process can go a long way in building lasting customer
relationships. I am not saying that you need to give away the store. What I am
suggesting is that you can build in a little leeway in your estimate, which
allows you to give in on a couple of minor points. A concession on payment terms might be one
way to make your customer feel that they made a good deal.
What
is Quid Pro Quo Selling?
The key is to make sure that
after you make a concession that you immediately ask for something in return.
This negotiating technique is often referred to as quid pro quo selling. “Quid
pro quo” is a Latin phrase that literally means “this for that”. In selling it
is one of the best ways to establish an agreement: if I do this for you, you
agree to do that for me. It is also an effective technique when you use it to
close a deal.
after you make a concession that you immediately ask for something in return.
This negotiating technique is often referred to as quid pro quo selling. “Quid
pro quo” is a Latin phrase that literally means “this for that”. In selling it
is one of the best ways to establish an agreement: if I do this for you, you
agree to do that for me. It is also an effective technique when you use it to
close a deal.
Here’s an example of quid
pro quo selling. On one large fleet
graphics sale I had quoted the pricing on two different quantities of trailer
graphics – 50 sets and 100 sets. The prospect could only afford 50 sets at that
time. However, in six months he would need another 50 sets. To close the deal,
I agreed to sell the 50 sets at the 100 set price, with the agreement that he
would buy the additional material six months down the road.
pro quo selling. On one large fleet
graphics sale I had quoted the pricing on two different quantities of trailer
graphics – 50 sets and 100 sets. The prospect could only afford 50 sets at that
time. However, in six months he would need another 50 sets. To close the deal,
I agreed to sell the 50 sets at the 100 set price, with the agreement that he
would buy the additional material six months down the road.
Both the customer and I were
happy with this deal. He purchased the graphics at a fair price and my company
made a reasonable profit. For a minor concession, I secured the business with
this account for the year. For me it was a win just to get the deal at all,
because I was the high bidder.
happy with this deal. He purchased the graphics at a fair price and my company
made a reasonable profit. For a minor concession, I secured the business with
this account for the year. For me it was a win just to get the deal at all,
because I was the high bidder.
By meeting the customer
halfway and closing the sale right then and there, I prevented my competitors
from getting another opportunity to modify their offer and make their own deal.
Always work to close the deal now. If you allow negotiations to drag out, your
chances diminish rapidly and it becomes less likely that you will be awarded
the business.
halfway and closing the sale right then and there, I prevented my competitors
from getting another opportunity to modify their offer and make their own deal.
Always work to close the deal now. If you allow negotiations to drag out, your
chances diminish rapidly and it becomes less likely that you will be awarded
the business.
The quid pro quo selling
technique is also a great way to stop a prospect from nibbling away at your
initial offer by asking for one concession after another. Nibbling is a
loathsome technique that buyers will use on unsuspecting salesmen to get just
one more concession at the conclusion of negotiations.
technique is also a great way to stop a prospect from nibbling away at your
initial offer by asking for one concession after another. Nibbling is a
loathsome technique that buyers will use on unsuspecting salesmen to get just
one more concession at the conclusion of negotiations.
Your
Sales Proposal
After you determine the
customer’s needs, it is time to make your proposal. In selling a graphics
program, it often involves presenting design concepts. In making a presentation I always felt more
comfortable covering all of the details in writing. That way I did not miss a
trick. If a customer raised an objection, I could turn to the section in my
proposal that provided him with the information that cleared up any question.
Most importantly, people believe what is written.
customer’s needs, it is time to make your proposal. In selling a graphics
program, it often involves presenting design concepts. In making a presentation I always felt more
comfortable covering all of the details in writing. That way I did not miss a
trick. If a customer raised an objection, I could turn to the section in my
proposal that provided him with the information that cleared up any question.
Most importantly, people believe what is written.
I only had one customer that
challenged me regarding the tome that I had prepared for meeting. I answered
his challenge explaining that this document constituted a legal contract which
offered what my company was obliged to do in implementing his program. That was
the only explanation that he need. At that point he was prepared to sign the
contract. I didn’t even need to ask.
challenged me regarding the tome that I had prepared for meeting. I answered
his challenge explaining that this document constituted a legal contract which
offered what my company was obliged to do in implementing his program. That was
the only explanation that he need. At that point he was prepared to sign the
contract. I didn’t even need to ask.
Presenting
Your Pricing
In presenting a price
proposal, many successful sales people begin with a high price. There are two
reasons for doing this. The first reason is that you just might get what you
ask for. The second reason is that you can very easily make a concession and reduce
your price. If your prospect doesn’t like your offer, they probably let you
know. On the other hand, once you have started to negotiate on price, it is
nearly impossible to increase your opening offer.
proposal, many successful sales people begin with a high price. There are two
reasons for doing this. The first reason is that you just might get what you
ask for. The second reason is that you can very easily make a concession and reduce
your price. If your prospect doesn’t like your offer, they probably let you
know. On the other hand, once you have started to negotiate on price, it is
nearly impossible to increase your opening offer.
You will note that I said
“nearly impossible”. The only time that
I would be as bold as to ask for a higher amount is to stop the prospect from nibbling away at initial proposed opening price. What I am
referring to is a prospect that is asking for concession after concession. At some point you have to draw a line in the
sand.
“nearly impossible”. The only time that
I would be as bold as to ask for a higher amount is to stop the prospect from nibbling away at initial proposed opening price. What I am
referring to is a prospect that is asking for concession after concession. At some point you have to draw a line in the
sand.
Before you make a proposal,
make sure that you have decided in your own mind the lowest amount that you are
willing to settle upon. The negotiation must result in a win/win. Your customer
needs a price commensurate with the value that you provide in your graphics
package. As a sales person, you are
responsible to demonstrate to your prospect how your proposal satisfies his
needs.
make sure that you have decided in your own mind the lowest amount that you are
willing to settle upon. The negotiation must result in a win/win. Your customer
needs a price commensurate with the value that you provide in your graphics
package. As a sales person, you are
responsible to demonstrate to your prospect how your proposal satisfies his
needs.
Just as important as a win
for the customer, your company must also win. In other words, the agreed upon
price must also be beneficial to your company.
That price must not only cover any burdened costs (labor, material and
an apportioned amount of overhead), but it must also provide your business with
a profit.
for the customer, your company must also win. In other words, the agreed upon
price must also be beneficial to your company.
That price must not only cover any burdened costs (labor, material and
an apportioned amount of overhead), but it must also provide your business with
a profit.
A win/win outcome is
critical for developing long term business relationships. No other scenario
makes sense. A successful negotiation
should inevitably lead to the next negotiation.
If you cannot settle on a deal that provides value for the customer’s
dollar and profit for your business, it is often best to walk away from the
deal.
critical for developing long term business relationships. No other scenario
makes sense. A successful negotiation
should inevitably lead to the next negotiation.
If you cannot settle on a deal that provides value for the customer’s
dollar and profit for your business, it is often best to walk away from the
deal.
Don’t
Be Afraid to Walk Away
If you have invested
considerable time and design talent in putting a together a graphics program,
it is becomes increasingly difficult to walk away from the negotiating table
the longer the sales takes. A smart buyer
knows this. As a salesman, you need to be aware of this and how a prospect can
use this to his advantage and your disadvantage.
considerable time and design talent in putting a together a graphics program,
it is becomes increasingly difficult to walk away from the negotiating table
the longer the sales takes. A smart buyer
knows this. As a salesman, you need to be aware of this and how a prospect can
use this to his advantage and your disadvantage.
As a sales negotiation drags
on, the more desperate many salesmen become and the more likely they are to
cave into making concessions. The concessions not only include price, but also
payment terms as well as concessions involving installation of the graphics.
on, the more desperate many salesmen become and the more likely they are to
cave into making concessions. The concessions not only include price, but also
payment terms as well as concessions involving installation of the graphics.
Closing
Techniques: Getting to Yes
Many sales people are not
comfortable with what has been derisively termed manipulative selling. While old school selling techniques can smack
of the deceptive sales trickery that a con artist would use, the fact is that many
of these selling tactics actually work quite well. In the follow paragraphs I will
cover several of the closing techniques that I have used to seal deals.
comfortable with what has been derisively termed manipulative selling. While old school selling techniques can smack
of the deceptive sales trickery that a con artist would use, the fact is that many
of these selling tactics actually work quite well. In the follow paragraphs I will
cover several of the closing techniques that I have used to seal deals.
Settle
the Minor Issues First
To paraphrase Donald Trump:
big deals are often comprised of many small agreements. In selling it is often
much easier to first settle the minor issues such as the design, colors,
delivery and timing of the graphics installation. After coming to agreement on all
of the details of the program, only one decision remains: “when can we get started?”
big deals are often comprised of many small agreements. In selling it is often
much easier to first settle the minor issues such as the design, colors,
delivery and timing of the graphics installation. After coming to agreement on all
of the details of the program, only one decision remains: “when can we get started?”
After you ask a question
like that, keep your mouth shut. Wait until the customer gives you an answer.
like that, keep your mouth shut. Wait until the customer gives you an answer.
Alternate
Choice Close
In gaining settling on the
details of the program, use the alternate choice close. The quickest way to reach an agreement is to
present the prospect with two choices. Which color do you like, the red or the
blue? Which design do you like?
details of the program, use the alternate choice close. The quickest way to reach an agreement is to
present the prospect with two choices. Which color do you like, the red or the
blue? Which design do you like?
The key to using this
technique is never give them more than two options. Otherwise the decision
making process can drag on and on.
technique is never give them more than two options. Otherwise the decision
making process can drag on and on.
Take
Action
I have used the tactic of
taking action in the customer’s office to close many deals. It starts with a
question. That question could be as simple as: “when do you need the graphics
to be delivered?” After the prospect gives you a date, my response was “I don’t
know if we can do the job by then, but let me find out.”
taking action in the customer’s office to close many deals. It starts with a
question. That question could be as simple as: “when do you need the graphics
to be delivered?” After the prospect gives you a date, my response was “I don’t
know if we can do the job by then, but let me find out.”
I usually knew that we could
produce the job in time but I would call the plant manager and ask. It’s always
good if the plant manager knows what you are doing. I would then tell the
prospect: “the plant is really busy right now, but we can fit your job in if we
get your approval now.” In many cases, the prospect will proceed with the order.
produce the job in time but I would call the plant manager and ask. It’s always
good if the plant manager knows what you are doing. I would then tell the
prospect: “the plant is really busy right now, but we can fit your job in if we
get your approval now.” In many cases, the prospect will proceed with the order.
Contingency
Close
If the prospect doesn’t
close then, follow up with the contingency close. Here’s how it works. Have the
contract prepared in advance stipulating
that the “order is contingent upon approval of color matches and the full size artwork”.
Point this provision out to the prospect. Conclude with “all I need is your OK
and we can get started”.
close then, follow up with the contingency close. Here’s how it works. Have the
contract prepared in advance stipulating
that the “order is contingent upon approval of color matches and the full size artwork”.
Point this provision out to the prospect. Conclude with “all I need is your OK
and we can get started”.
Conclusion
Using the closing
techniques suggested can help shorten the sales cycle. These aren’t the only
ways that salesmen get to yes in a negotiation. You need to find what you feel
comfortable with and what works for you. What’s most important is that you find
a way to finalize the deal as quickly as
fast as possible before your competitors has a chance to respond.
techniques suggested can help shorten the sales cycle. These aren’t the only
ways that salesmen get to yes in a negotiation. You need to find what you feel
comfortable with and what works for you. What’s most important is that you find
a way to finalize the deal as quickly as
fast as possible before your competitors has a chance to respond.
Good
Luck Selling!
Luck Selling!
About Jim Hingst: After fourteen years as Business Development Manager at RTape, Jim Hingst retired. He was involved in many facets of the company’s business, including marketing, sales, product development and technical service.
Hingst began his career 42 years ago in the graphic arts field creating and producing advertising and promotional materials for a large test equipment manufacturer. Working for offset printers, large format screen printers, vinyl film manufacturers, and application tape companies, his experience included estimating, production planning, purchasing and production art, as well as sales and marketing. In his capacity as a salesman, Hingst was recognized with numerous sales achievement awards.
Drawing on his experience in production and as graphics installation subcontractor, Hingst provided the industry with practical advice, publishing more than 150 articles for publications, such as Signs Canada, SignCraft, Signs of the Times, Screen Printing, Sign and Digital Graphics and Sign Builder Illustrated. He also posted more than 400 stories on his blog (hingstssignpost.blogspot.com). In 2007 Hingst’s book, Vinyl Sign Techniques, was published. Vinyl Sign Techniques is available at sign supply distributors and at Amazon.
