In a sales training session this week an ephiphany occurred…
I was with a group of Retail Sales people and one of the team was a new guy..
He had worked with the company several years ago and had recently rejoined.
He had been in the installation side of the business but now he had joined the sales team.
So he knew a bit about the product… but not so much about sales.
As I was working through the material on the sales process, building rapport, standing out from the competition, selling on value, dealing with objections etc, first of all his body language was that of someone who didn’t agree with me… and secondly, he kept bringing up lines like:
‘But we always get beaten on price…’
‘Everyone always wants the cheapest price…’
‘If we’re not the cheapest…. we’re going to get beaten…’
He must have referred to ‘price’, ‘being the cheapest’ at least 4 times in the first hour or so..
So what was going on here?
What impact was that thinking having on his sales?
Firstly, the store he is in has had a significant drop off in sales since last year..
Secondly, his mindset was the first thing that needed to be challenged…
THIS GUY NEEDED PRICE SELLER REHAB…
I asked…’do you believe everyone buys on price?’
His answer….. ‘of course… yes…. that’s what I do….’
There it was now out in the open…
The enemy of so many people in business..
The assumption that just because they are price shoppers, that everyone else is a price shopper..
Well guess what?
Not everyone is a price shopper..
I said to this fellow
‘Do you realise…..
Not everyone is like you?….
Not everyone buys the same way you do… not everyone has your BUYING CRITERIA…’
(Buying Criteria – the criteria someone uses to make a purchase..)
His face went blank..
He’d never considered that not everyone was like him..
I went on with my Price Seller Rehab coaching…
‘Some people always look for QUALITY
Other people look for BRAND NAME
Others look for COMFORT…
Others use LOOK as the most important buying criteria..
Only SOME use PRICE as the sole and only criteria…
What if you treat everyone as a price shopper…? What are the consequences?
YOU ALWAYS SELL ON PRICE….
YOU ALWAYS RIP YOURSELF OFF…
STOP IT…. NOW…
Go COLD TURKEY… before it kills you..
‘People buy for their reasons.. NOT YOURS…’
Your job is to find out what those reasons are…
SOME EVEN WANT TO SPEND MORE…
Believe it or not…
There are even people who are proud to spend the most..
I have many clients and friends who are proud to to say ‘that’s the BEST sound system you can buy…’ ‘that spa cost me $25,000… its the best money can buy…’
Don’t get me wrong…. EVERYONE WANTS A DEAL…. but that doesn’t mean EVERYONE WANTS THE CHEAPEST..
Your job as a sales person is to make the buyer feel like a winner and at the same time MAXIMISE THE MARGIN..
You need to get rid of your CHEAP SKATE MENTALITY..
If you sell as if everyone is a price shopping cheapskate… you’ll be working too hard for your money..
You need a mindset that says..
‘There is plenty of business out there… (an abundance not scarcity mentality..)
‘We give unbelievable value…. no-one else offers the products and service the way we do…
Our products and services are worth way more than we charge… but we are not the cheapest..’
‘Only 10% of people buy only on price…. 90% buy on emotion and value…’
(That’s a fact… that only 10% of the market buy on price… and unless you have high margins at low prices, we don’t recommend you go chasing that 10% price shopper demographic… There will always be some idiot willing to cut their margins even more and go lower than you on price. Then you get yourself into a discounting war and you’re working harder and harder for less and less money while you go out of business..
We recommend you aim for the 90% who buy on emotion and value…)
MILLION DOLLAR PRICE SELLER REHAB TIPS…. (IF YOU’RE CRAZY ENOUGH TO GO COLD TURKEY..)
Here are some tips that may sound crazy to the Price Shopper Retailer…
But if you have the courage to follow them… they’ll revolutionise the way you do business..
Don’t advertise that you are the CHEAPEST… you’ll attract price shoppers..
Talk of BEST VALUE…. Right Advice, Best Service… Fastest Delivery… Best Quality… Guaranteed..
What you put out, you’ll attract..
Even tell people…. ‘We are NOT the cheapest… But we are the Best Value…’
Don’t do FREE Quotes… charge a small fee for them..
Stop this ‘give me a quote’ Merry Go Round About..
If it takes you more than 5 minutes to do a quote…STOP GIVING OUT FREE QUOTES..
My client takes 2 hours to do a quote…. and does them for FREE.. I have told them to stop the insanity…
Explain to the prospect the work that will go into the ‘PLAN’ (not Quote) and charge a small fee that will come off the cost of the product ‘once you give the go ahead….’ (assumed sale..)
It will filter out the Price Shoppers from those who are serious..
When a prospect asks ‘what’s your price for a….(spa…. car….toaster…. coffee maker…bed.. Flat screen TV..?)
… Don’t give it out…
Ask questions instead..
‘So I can help you…. can I just ask a couple of questions about the car… TV… bed.. you are looking for?’
You’ll need a script and practice to get this right and feel confident and comfortable to pull it off..
We work with clients to script the 5-10 Golden questions sales people should be asking on the phone and face to face to not only get clear on what the prospect is looking for, but get their BUYING TEMPERATURE up, and their focus on the SOLUTION, the VALUE and the imagined BENEFITS of the product…. and AWAY FROM PRICE..
THE MORE BENEFITS YOU TALK ABOUT, THE LESS PRICE IS IMPORTANT
You need to train your team in how to BUILD VALUE before you reveal price..
‘You get this… and this… and this… all for only $299 and that will mean you can do this… and this.. and this.. how does that sound to you..’
We call it the PRICE SANDWICH with a Check..
Sandwich the price between features and benefits then ask a Check Question..
You need to make sure your team are drilled in this (and more) before you let them loose on paying prospects..
If you don’t.. you can be sure people are selling on price… and giving away margin..
REMEMBER… not everyone is a Price Shopper…. and Cheapskate Retailers will work too hard..
As we say… ‘It’s not Rocket Science… But it is Science…’
Want to know more…?
Come to our next New Sales Science Seminar on November 1st
Register at www.bluerocketlive.com or simply click here..
Have a good week.