In my training and coaching practice, I have frequent occasions to question new clients as they’re on-boarded into my program.
A question that I always ask – and am never quite satisfied with the answer – is “Why do you do what you do?” Read more
In today’s episode of the Advanced Selling Podcast Bill Caskey and Bryan Neale answer some questions sent in by members of the Advanced Selling Podcast LinkedIn Group. The two important questions answered were first off, “why are certain Challengers more likely to be the top sales people and are they the future of new business?” The other question is “do you need to have another reason to call your client or is it okay to just check in?”
Make sure to join the Advanced Selling Podcast Linkedin Group and post your questions today. We would love to hear from you.
In the second episode of Hot Tip Thursday, Bryan Neale tells how to make your deals run smoother by using Calendar End Dates. Don’t miss this episode or the next, free of charge to all users.
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In the first episode of Hot Tip Thursday, Bill Caskey teaches a couple ways to close a Sales Call and ask the right questions before ending the conversation. Don’t miss this episode or the next, free of charge to all users.
Please Download the Advanced Selling Podcast App to continue receiving Hot Tip Thursday and other Exclusive content FREE of Charge. Available on iPhone and Android.
What kinds of pains/problems do you help people solve? Do you have a list of those? No? Shame on you.
How can you be a problem solver if you don’t even have a menu of the kind of problems you fix?
Start that list today.
A few years ago, I did a Webinar called “How to Sell A Premium Product in a Commodity Market.” It was one of our best attended webinars we’ve ever done.
Lots of interest in the topic – and I believe I know why.
In this article, I want to update some of the content and give you a couple more ideas. I picked this topic because it is an ongoing area of concern for sales people – how to sell a premium product into a market that sees price as THE main driver.
Why it’s so tough.
Think about it. We live in a “price leads” society. Advertisers have led us on a race to the bottom by the constant drumbeat of, “Lowest Prices In The Industry!” Or, “We’ll Beat ANY Price!” I know you’ll say, “But I’m not in the retail game.” No, you aren’t. But do you see the attitude that they’ve placed in the minds of buyers?
So the context is that even though your buyer might not jump to “What’s your price?” they certainly have it on their radar.
Here are four notions that I suggest you consider as you extract yourself form the “commodity dungeon” where the only important issue is price:
Interesting thing about positioning is that it’s not just about what you say – it’s about how you say it. Sales people spend so much time concerned with the “what” and ignore the “how.”
And that’s wrong.
Regardless of your word choice (you’ll have to decide that), the essence of your message should be centered around ‘the types of problems that you solve.’ That’s right – no enthusiastic sales pitches about how great you are – or how smart your team is. None of that.
Frame your ‘premium value’ around the pains and problems that prospects face. Some of those problems they know they have. Some they’re oblivious to. But either way, begin the conversation there.
Be a problem solver not a product seller. There is a trap waiting for you. The prospect sets it and you fall right into it. It happens when the prospect shows interest and you default to “the pitch.”
Instead, when your prospect shows interest in the types of problems you solve, refrain from pitching the product and spend more time diagnosing what that problem means to him. This one thing can do more to change your position (in the prospect’s mind) and help them see that your premium fee is worth it.
(If you don’t have Project Managers in your firm–and instead, have Customer Service agents or Technicians, then substitute that title for PMs)
Well of course, you know the answer to that question before we start.
But I’d like to share some observations that may make it easier for you to train your PM’s in communication skills. It seems that companies are relying more and more on their PM’s to manage the client relationships and generate referrals so this topic might be relevant for your firm.
One chapter in Same Game New Rules is titled Process Makes Perfect, and it’s about how engineers and technical sellers make the best sales people. Mainly because they are in the right place to bring tons of value.
1. Need for Good Communication. In most projects, there are many tiny details that can spin out of control. Since the relationship is only as good as the project process, then it is necessary for PM’s to know how to communicate issues to clients. The PM must have a “relationship awareness” all the way through.
This includes: bringing up sensitive topics PRIOR to them becoming problems; knowing how and to whom to communicate these issues at the client; knowing how to keep the atmosphere open and honest so bad matters don’t get worse; and having a paper stream of promises so that there is nothing left to memory.
2. Having a Problem-Solving Attitude. I like to think of selling as problem-solving. And nowhere does that get stated like it does in project management. The PM is always solving problems and keeping things on course. It may be that they don’t want to be in front line sales (and they shouldn’t) but it doesn’t mean that they can’t have the same attitude that the top flight sales person has.
3. Referral Generation. Most times, the PM is the exact person who should be cultivating referrals. In most B2B businesses, referrals make up 60-80% of new business. It’s a bit of a stretch to think that a sales person who sold the deal, but does NOT have the relationship, can waltz in and get referrals. It should be the PM. So any training you do for that group, should have ‘how to generate referrals’ as part of the curriculum.
Fewer Sales People-More PMs
Many companies are hiring fewer new account sales people, and relying on their subject matter experts (the PMs) to do more of the value communication. I think it makes sense in certain industries. Just make sure you train those people on the principles of selling and good communication. They ARE trainable. Just don’t try to turn them into sales people.
[Editors Note: I’m guilty of this next topic. So, before it starts to sound like a sermon, I want you to know that I struggle with this very issue.]Last week, a neighbor came over and was lamenting that his daughter was having trouble getting in to the college of her choice. He said, “All her friends got in, but her letter hasn’t come yet.” Next, I asked him the question that showed me the real problem. “What does she want to study?”
“Well,” he said, “she really doesn’t know yet. She just wants to go to XX University.” What? Doesn’t know yet? No inclination of what juices her?So she’s upset that she can’t spend $160,000 of your money going somewhere where all her friends are going.
Makes no sense. Yet it happens everyday. In fact it happens in another phase of adolescence – when there is temptation to take the wrong path (drugs/alcohol/deviant behavior).
I’m going to give it a name – and an explanation why it happens to all of us – adults, too. There is NO BRIGHT LIGHT.
The concept of NO BRIGHT LIGHT means there is no long term vision for what one wants their life to look like/feel like. When you have no long range goal – or vision – you get quite distracted by life’s choices. And when you make a wrong choice, it can screw you up (especially in the case of a young person in a tempting world).
A BRIGHT LIGHT is a vision for the future – a way you’d like your life to be – a place you’d like to live – a cause/profession that brings meaning to your days.
In business (sales), a BRIGHT LIGHT is what you’d like your customer base to look like. What you’d like your income to look like. What you’d like to accomplish in your business.
Brian Tracy talks about this when he says 80% of companies he sees have no long range vision. How can you get the troops behind a goal if it’s not clearly defined? You can’t. And when you’re tempted to sell to someone that doesn’t quite match what you expect your client vision to look like, then ask yourself why you’re doing it.
[This subject is covered in depth on our podcast at http://billcaskey.podshowcreator.com/podcasts.aspx?feedid=106 It’s about 15 minutes but it applies to you who compete against ANY low price competitor – not just offshore.]
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My friends tell me I take selling way too seriously. And that I break every problem down to a sales or communication issue. Well Bill, in Reagan’s words, “There you go again…”
I used to call on WalMart and other major retailers in a previous job, so I know how powerful their order-writing pens are. When they say to their suppliers, “JUMP” the response is usually, “YES SIR, HOW HIGH WOULD YOU LIKE ME TO JUMP?”
I can see it now…
…I can imagine a US toy company going in to sell WalMart their Christmas 2006 line of toys. After the presentation, the buyer says, “John, I like your offer. But I can get these from China for 30% less. You have to drop your price.” To which John concludes that it’s all about price (it never is, even at WalMart) and gets pulled down into the commodity conversation. He eventually can’t sell his products at a premium – so he loses the business.But as we see now, all toys are not created equally. They are not a commodity.
The problem occurred when the US toy guy couldn’t differentiate between his toys and the cheaper, lead-painted Chinese toys. My question is: Was it a selling problem?
You see, the consumer (even WalMart) does NOT just look at price. The sales organizations who don’t know how to sell any other way (except for low price) will NEVER admit that. Consequently, the admonition of “everyone buys on price” is a convenient way to prevent them from having to work on their message – or themselves. It’s a lot less effort to ‘sell cheap.’
Cheap Labor – Same Issue
I admit that cheap labor is quite enticing to businesses and customers. If I’m in the market for landscaping and I get three bids, chances are the one that uses the lowest-cost labor will probably be low bid. But is that what I’m buying? Just price?Hell, if the American consumer bought on price and price alone, they wouldn’t buy anything. Because doing nothing is ALWAYS CHEAPER than doing anything.
When will American companies understand that they offer value – that their value is tied up in things broader than price – that how they sell/market/communicate to the customer is as important – if not more so – than their price?
I’ll tell you exactly when – when they get out of their own way and start focusing on the customers – and how they can bring value to the customers – instead of how can we sell a bunch of toys? (In the world of retail there are many more important things than price – like retail profit margins, marketing campaigns for the item, store sell-through, in-store displays, etc.)
If you’re in a head-to-head combat with a low priced provider – and you get chewed up often on price – then look much deeper into your value. Get a third party assessment of the value of your solution.
Here’s What To Do
Spend time away from the office with your people – and some customers. Record every word of what they say. Have it transcribed. Study it more. And soon, you will come up with the 3-5 things that separate you from everyone else. And it won’t be price. Ask them this question: “What do you believe you give up when you decide not to do business with us?”If they say, “Nothing” then start worrying because you are nothing but a commodity.
Because if you don’t believe your value is worth 10% – 20% – 30% – 100% more than your competition (and you should) then you won’t be able to sell that value to the customer.
And they’ll buy offshore. And babies might be poisoned.