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SAVVY
SELLING - JUNE
30, 2006
Classic
Selling Mistakes
By Michelle Nichols
EXECUTIVE
OVERVIEW
A
refresher course on some basic
sales techniques like don't
push or insult your customer.
A surreal, error-ridden
exchange with a surly Web services
vendor is a case study on how
to avoid common sales slip ups
Sometimes fact is crazier than
fiction. I was reminded of this
recently when I was looking
to buy some Web services. I
always try to buy services from
local vendors, so I can meet
them in person and get a gut-check
before I invest my time and
money. I located a local specialized
provider, called him to briefly
discuss my situation, and set
a time to meet for coffee.
A few hours later, he surprised
me by sending me some research
results regarding my site. He
went on to describe additional
services he could do for me
and quoted me one price for
all the work rolled together.
Then the absurdity began. "If
you choose NOT to go with me
on this job, you can pay my
usual consultant fee of $500
and use the info contained in
this e-mail any way you want.”
To top it off, he gave me his
PayPal account info and his
personal bank routing details!
RED FLAGS. This guy made several
classic selling mistakes. He
tried to blackmail me into sending
him $500, upsold me by adding
additional services without
my approval, and attempted to
close the sale way too early
in the process.
Naturally, I cancelled our
meeting. Instead of learning
from his overeagerness, he defended
it. He argued, "You must
have misunderstood my email.
On my Web site I have my fees
clearly posted…I ask people
not to call me unless they are
serious. I thought you were
serious, not window shopping….
You said you read my Web site.
I expect to be paid for my work.
Sorry you do not agree….Asking
you for a consultation fee is
not out of line. If you think
so, you are mistaken.”
This time, he made a few more
selling mistakes. He assumed
that since he posted his prices
on his Web site, I had agreed
to them. In addition, he implied
I was stupid, not a serious
customer, wanted him to work
without paying him, and was
mistaken about current business
practices. Frankly, it boggles
my mind to think this guy stays
in business.
His error-filled selling style
reminded me of some important
sales lessons:
1. Money precedes work.
If qualified potential customers
ask for a meeting, don't do
any customized work on their
behalf before the meeting. Of
course, you should do some background
research on their needs and
buying styles. Just don't do
any billable work until you
have a signed agreement in your
hand and their deposit check
in your bank account. Doing
work before contracts and money
were exchanged also gave this
guy a martyr complex. It wasn't
my fault he did some research.
Now he was trying to make it
my problem. Who needs that aggravation?
2. Don't be greedy.
Upselling customers to buy more
than they asked for is a great
way to increase your sales,
but quote those prices separately
and only after they've agreed
to buy what they came to you
for in the first place. Let's
say you sell pickup trucks.
Narrow down exactly which kind
of truck would fit your customer's
needs best and agree to a price.
Then you can sell him a heavy-duty
bedliner, GPS system, and anti-fog
headlamps. Otherwise, you risk
losing the sale of the truck
over the sale of the add-ons.
3. No high pressure.
You can't badger intelligent
customers into paying for something
they didn't order. You might
win the selling-through-intimidation
game occasionally, but it's
not worth the stress, bad reputation,
and lawsuits. Forget it.
4. Beware of assumptions.
There's a classic sales technique
called, "Assume the close.”
It suggests at the end of your
sales presentation that you
act as if your clients have
agreed to purchase. You say
something like, "Would
you like it in red or blue?”
or "Would you like us to
deliver your first pallet of
products on next Tuesday or
the following Wednesday?”
If your customers say yes to
your question, they've said
yes to the entire sale.
While this is still an excellent
closing technique, it is only
appropriate at the close of
the sale—not, as in my
case, before you even sit down
for the first sip of java. In
my example, giving me his financial
account information was not
only inappropriate and unprofessional,
it was downright risky. This
information should only be exchanged
over a secure site, not in an
introductory sales letter.
5. Make pricing relevant
to value. The main
purpose of most Web sites and
sales flyers is to get customers
to talk to you about their specific
needs and situation. Then you
can establish the value of your
offering and talk about your
pricing. Notice that price comes
last in the sales process. That's
because price alone is meaningless;
it's what your customers get
for their money that they really
care about.
6. Be the fall guy
or gal. When communication
errors occur, take responsibility
for them. Apologize and move
on. Never imply your customers
were wrong or they will get
defensive and your sale will
be over. I wrote a column about
this idea three years ago, and
I am still getting mail about
it (see BusinessWeek.com, 07/14/03,
"Dead Right—and 100%
Wrong").
The most important lesson you
can take from this crazy and
misguided sales exchange is
that selling is much more than
just telling the facts. Selling
starts with building connections
to your customers, understanding
their needs, and walking them
through your sales process.
At the end of this path is your
pot of gold—more money
in the bank and more happy customers—and
there's nothing crazy about
that. Happy selling!
Michelle Nichols is a
professional sales speaker and
consultant based in Reno, Nevada.
She welcomes your questions
and comments. You can visit
her web site at www.savvyselling.com
or contact her at michelle.nichols@savvyselling.com.
Her toll-free number is (877)
352-9684.
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