I was on the phone to John last night on the way back from a meeting in Fremantle.
We were talking about the weeks client coaching and sales training sessions.
John is suffering from a bad bout of the flu (so I was glad he was at the other end of the phone while I was driving past the setting sun at Cottesloe Beach on a lovely West Australian Winter’s clear blue sky Friday afternoon..)
I was telling John how the previous night in a sales training session with a client I had to make two very important points. Points you might use with yourself or your team at some point.
1. I can either be a SOFT COACH or a HARD COACH.
What are you paying me for?
Do you want me to say ‘oh you poor thing, you didn’t do any of the projects you said you were going to do. But that’s all right. Or do you want me to say, ‘you’re paying us to help you get results.
You can either give yourself and me (and your family) EXCUSES or RESULTS?’
EXCUSES OR RESULTS?
They really are the choices aren’t they?
As the old Irish Proverb goes ‘”You will never plough a field if you only turn it over in your mind.”
Get into action and DO SOMETHING…
Nike put it well with their ‘JUST DO IT…’
‘Sometimes I think he thinketh too much..’
If you want RESULTS you actually have to DO something..
Sitting around THINKING is useful.. but not if you spend more time thinking of EXCUSES rather than making the list of the TOP 3 things you need to DO to move ahead.
(I now have to stop using the words MOVING FORWARD as Julia Guillard has now burnt their use in the Land of Oz vernacular for at least the next few years).
2. DON’T DO THE KNEE JERK PRICE DROP
Another client during the week told me of a client negotiation where he immediately offered a 10% discount just to speed up the deal.
I said ‘Don’t drop you pants at the first sign of a wink..’
(Actually I didn’t say that, but I am trying to make the point. Don’t drop your price at the first sign the customer is interested.)
Actually I said something like ‘what do you think was wrong with that?’
He had to stop and think for a moment.
‘I offered a discount before the client even asked for one..’
‘That’s right…. You just ripped yourself off…’
In 90% of cases, the seller is more concerned and focused on price than the buyer..’
Make it a rule, let the customer ask for a discount.
Don’t you offer a discount UNPROVOKED.
(In most cases they are just trying it on.. they will buy anyway. I tried it on when buying my son a pair of Adidas tracksuit pants in Rebel Sports the other night…The girl at the cash register did the right thing.. She did what I’m about to tell you to do..).
Then, give them reasons why it is good value and restate the price and why it is a great buy today anyway.
50% or more of customers will take your reasons and buy – so you’ve just saved a ton of money there.
The other 50% might need a sweetener.
ADDING A SWEETENER THAT COSTS YOU LITTLE OR NOTHING
We recommend, offering value add rather than price drop. Eg: free home delivery, free installation, free cleaning, free something that doesn’t cost you hard cash.. rather than REAL, HARD CASH IN THE FORM OF A DISCOUNT..
Value build first, then talk price, then talk benefits, then ask the check question..
People buy value.
In fact they buy PERCEIVED VALUE…
They buy how they imagine using that product or service will make them feel..
THE POWER OF ‘IMAGINE’
So use words like ‘imagine …..
‘Imagine what it will be like to drive that car..
‘Imagine sitting in your lounge room listening to that sound system..’
‘Imagine this office furniture in your office. How much better you will feel. How much better you will be able to operate and get things done.. What will that be worth to you?
Now you have got them in a state where they are far more willing to part with their hard earned (or not so hard earned) cash..
VALUE BUILDING is far more profitable than PRICE DROPPING.
A 10% discount might mean a 50% reduction in profit (depending on your margins..)
Don’t just throw away margin. Train your people (and yourself) to Value Build.
Anyway. I’m off to a meeting, but get ready for our latest newsletter. There are some brilliant tips and tools, give aways and rewards in there.
HOW TO WIN AN IPAD
You’ll discover how you can win a free Apple Ipad… so stay tuned.