Chap012 - Selling

8/13/2019 Chap012 - Selling

1/44


2/44

12 - 1

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods

When the buyersays yes

When the buyersays no

Terminology

Some questions answered inome questions answered inChapter 12Chapter 12

How much emphasis should be placed on closingthe sale?

Why is obtaining commitment important?

When is the best t ime to obtain commitment?

What methods of securing commitment areappropriate for developing partnerships?

How should pricing be presented?What should a salesperson do when the prospectsays yes? When the prospect says no?

What causes difficulties in obtaining commitment,and how can these issues be overcome?


3/44

12 - 2

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Obtaining commitmentObtaining commitment


4/4412 - 3

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Whats the firstthing that comes

to your mindwhen you hearthe word closing?

Can you think of amanipulative,

tacky, or deviousattempt a

salesperson usedon you?

Closing!Closing!

Wh Obt i i C it t iWh bt i i it t i


5/4412 - 4

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Why Obtaining Commitment isWhy btaining ommitment isImportant?Important?

The buyer

Realize the benefit of theproduct or service thatsatisfy his needs

The companyEarn a profit and futuresuccess

The salespersonFinancial (extrinsic)rewards and intrinsicrewards


6/4412 - 5

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Always Be Closing!Always Be Closing!

The ABCs of

closing are AlwaysBe Closing. Thismakes good sense

when selling in abusiness-to-business context.

TrueFalse

E l f it tE l f it t


7/4412 - 6

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Examples of commitmentsExamples of commitmentssalespeople may attempt to obtainsalespeople may attempt to obtain

To have the prospect agree to come to the localbranch sometime during the next two weeks for a

hands-on demonstration of the copier.

From Exhibit 12.1

To have the buyer agree to pass my informationalong to the buying committee with her/his

endorsement of my proposal.To set up another appointment for one week fromnow, at which time the buyer will allow me to do acomplete survey of his/her printing needs.

To have the prospect sign an order for 100 pair ofLevis jeans.

To schedule a co-op newspaper advertisingprogram to be implemented in the next month.


8/4412 - 7

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Solving real problemsSolving real problems

Buyers do have realneeds.

Thus, the goal should

be to help buyerssolve real problems,rather than just to get

the business.

Name some goods orservices that you

really needed topurchase.


9/4412 - 8

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Is the customer ready to buy?Is the customer ready to buy?

Which of the following customer responses wouldbe the best indication the customer is ready topurchase?

1. Is this available in red?

2. Wouldnt this take a longtime to get delivered?

3. The customer picks up aproduct brochure andplaces it in her purse.

4. Could I have the floormodel?

5. The customer begins to

reexamine the product.

Wh i th i ht ti t bt iWh i th i ht ti t bt iWh i th i ht ti t bt i


10/4412 - 9

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

When is the right time to obtaincommitment?

When is the right time to obtainWhen is the right time to obtaincommitment?commitment?

There is one psychologicalThere is one psychological

moment in which you have themoment in which you have the

best opportunity for obtainingbest opportunity for obtaining

commitment, if you bypass it orcommitment, if you bypass it ormiss it you canmiss it you can t easily securet easily secure

that commitmentthat commitment

Agree / DisagreeAgree / Disagree -- -- -- Comment !!!!Comment !!!!


11/44

When is the right timeWhen is the right time


12/44

12 - 11

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

When is the right timeWhen is the right timeto seek commitment?to seek commitment?

There is no one right time, but

Watch for nonverbal indicators

Reexamining product

Starting to figure with pencil orcalculator

Nodding the head, leaning forward, etc

Open and relaxed hands

Relaxed eyes, dilated pupil.

When is the right timeWhen is the right time


13/44

12 - 12

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

When is the right timeWhen is the right timeto seek commitment?to seek commitment?

There is no one right time, but

Buyers response to probing

Trial closes:Asking for the customers opinion

How does this sound to you?

What do you think about that?

Is there any thing else would you liketo know at this point?

How does this compare with theproduct you are using now?

If trial closes dont close the sale, it

will provide you with acceptance ofthe stated benefit.

If After You Close You Receive aI A ter You lose You Receive a


14/44

12 - 13

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

If After You Close You Receive aI A ter You lose You Receive aNegative, What Would You Do?Negative, What Would You Do?

PresentationPresentation

Trial CloseTrial Close

Determine ObjectionsDetermine Objections

Meet ObjectionsMeet Objections

Trial CloseTrial Close

CloseClose

ApproachApproach

How to Successfully ObtainHow to uccess ully btain


15/44

12 - 14

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

How to Successfully ObtainHow to uccess ully btainCommitment?Commitment?

44 principlesprinciples

1.1. Maintain a positiveMaintain a positiveattitudeattitude

Confidence is contagiousConfidence is contagious

2.2. Let the customer set theLet the customer set thepacepace

Practice adaptive sellingPractice adaptive selling

How to Successfully ObtainHow to uccess ully btain


16/44

12 - 15

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

44 principlesprinciples

3.3. Be assertive notBe assertive notaggressive nor submissiveaggressive nor submissive

SelfSelf--confidenceconfidence

4.4. Sell the right item in theSell the right item in theright amountright amount

Customers have longCustomers have longmemoriesmemories

Are you looking for repeatedAre you looking for repeated

sales and goodwill?sales and goodwill?

How to Successfully ObtainHow to uccess ully btainCommitment?Commitment?

Eff ti l i


17/44

12 - 16

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Effective closing

What would you say to a friend to getthem to agree to go on a Spring Break

trip using each method:Direct request

The most straightforward and effective

methodWorks best for drivers

Decisive customers want to get down to

business quickly.Try not to appear overly aggressive

Can I put you down for 100 boxes of ?

Will you start using our

Eff ti l i


18/44

12 - 17

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Effective closing

Benefit summaryFocus on the perceived benefits bythe customer

Do not use any benefit

Benefit helps the customer makewise decision

Benefit summary is helpful in long

presentation or several meetingsBenefit summary helps the customerremember all agreed-on benefits

You wanted . Weve seen that

Ch tCh t

Effecti e closing


19/44

12 - 18

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Effective closing

Balance sheet method Lets see if we can summarize thereasons for and against doing this

Helpful for analytical

Helpful for prospects cant make decision

Purchasing now or later

Purchasing the product or the competitorPurchasing or not purchasing at all

Draw a T or balance and put the pros and

consThen ask the prospect which one do youthink is the wisest choice?

Take care that your benefits could be lessthan the competitor

Ch tCh t

Effective closing


20/44

12 - 19

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Effective closing

Probing methodProbing methodIf direct request method is unsuccessful, thenIf direct request method is unsuccessful, thenuse series of questions probing to discoveruse series of questions probing to discoverthe reason for hesitationthe reason for hesitation

What ifWhat if I can successfully resolve thisI can successfully resolve thisconcern, would you be willing to commit?concern, would you be willing to commit?

Probing method is calledProbing method is called magic erasermagic eraserbecause it makes imaginary temporary eraserbecause it makes imaginary temporary eraser

if I can resolve this concern for you wouldif I can resolve this concern for you would

you purchase our productyou purchase our product You should not use eraser phrases more thanYou should not use eraser phrases more thanonce or twice otherwise it begins to soundonce or twice otherwise it begins to soundcannedcanned

May I ask what is holding you back?May I ask what is holding you back?

ChapterChapter

Effective closing


21/44

12 - 20

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Effective closing

Alternative choice methodAlternative choice methodIf you as a salesperson has multiple forms orIf you as a salesperson has multiple forms or

options to present to the customeroptions to present to the customerDo not overwhelm the customer by too manyDo not overwhelm the customer by too manyforms of your product at the same timeforms of your product at the same time

FocusFocusLimit the choices between your product oneLimit the choices between your product oneor two forms maximumor two forms maximum

Spend more time probing about the wantsSpend more time probing about the wantsand desiresand desires

Allow the prospect to express his preferenceAllow the prospect to express his preference

This will help the prospect to make his finalThis will help the prospect to make his finaldecisiondecision

ChapterChapter

Effective closing


22/44

12 - 21

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Effective closing

Did any of those methodsDid any of those methodsappear devious orappear devious ormanipulative?manipulative?

What method(s) do you preferWhat method(s) do you prefersalespeople use with you?salespeople use with you?

ChapterChapter

Traditional closing methodsTraditional closing methods


23/44

12 - 22

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Traditional closing methodsTraditional closing methods

The real estate agent told theprospective home buyers, You

seem to really like that last house

we looked at. She takes out acontract and says, Lets go ahead

and fill out the paperwork. How

much do want to offer on the

house?

The real estate agent is using

which closing method?

Emotional

Minor point

Direct action

Standing-room only

Assumptive

ChapterChapter

Traditional closing methods:Traditional closing methods:


24/44

12 - 23

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Traditional closing methods:Traditional closing methods:minor point closeminor point close

The seller assumes that it is easier to get

the prospect to decide on a very trivial

point than on the whole proposition:What color do you like, blue or red? If

the prospect makes the minor decision,

the seller assumes the sale is made andbegins writing up the order.

From Exhibit 12.3

This can upset a prospect who feels that

s/he is being manipulated. No one wants

to feel that they have been tricked into

making a commitment. Even

unsophisticated buyers easily spot this

technique.

ChapterChapter



25/44

12 - 24

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Traditional closing methods:Traditional closing methods:continuous yes closecontinuous yes close

The seller, throughout the presentation,

constantly asks questions for which the

prospect most logically would answer yes. Bythe end of the discussion, the buyer is so

accustomed to saying yes that when the order is

requested, the natural response is yes.

This method is based on self-perception theory.

As the presentation progresses, the buyer

begins to perceive him/herself as being

agreeable. At the close, the buyer wants tomaintain this self-image and almost

unthinkingly says yes. Use of this method can

destroy long-term relationships if the buyer

later feels manipulated.

From Exhibit 12.3

ChapterChapter



26/44

12 - 25

ChapterChapter1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Traditional closing methods:Traditional closing methods:assumptive closeassumptive close

The seller, without asking for the order,

simply begins to write it up. A variationis to fill out the order form as the

prospect answers questions.

This does not even give the buyer the

courtesy of agreeing. It can be perceived

as being very pushy and manipulative.

From Exhibit 12.3

ChapterChapter



27/44

12 - 26

Chapterp1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Traditional closing methods:Traditional closing methods:standing room only closestanding room only close

The seller attempts to obtaincommitment by describing the negative

consequences of waiting. For example,the seller may state, If you cant decidenow, Ill have to offer it to anothercustomer.

This method can be effective if thestatement is true. However, if theprospect really does need to act quickly,

this should probably be discussedearlier in the presentation. An earlierdiscussion would tend to reduce possiblemistrust and feelings of being pushed

without apparent necessity.

From Exhibit 12.3

ChapterChapter



28/44

12 - 27

pp1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Traditional closing methods:Traditional closing methods:benefitbenefit --inin--reserve closereserve close

First the seller attempts to obtain commitment

by another method. If unsuccessful, the seller

says, Oh, I forgot to tell you that if you ordertoday I can offer you an additional 5 percent for

your trade-in.

Although this method can be effective, it can

also backfire easily. The buyer tends to think,

If I had agreed to your first attempt to obtain

commitment, I would not have learned about

this new enticement. What else do you have upyour sleeves? If I wait longer, how much better

will your offer be? Use of this technique can

also cause the buyer to seek additional

concessions in every future sales attempt.

From Exhibit 12.3

ChapterChapter

Traditional closing methods:Traditional closing methods:i l l


29/44

12 - 28

pp1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

ggemotional closeemotional close

In this technique, the seller appeals to the

buyers emotions to close the sale. For

example, the seller may say, This really isa good deal. To be honest with you, I

desperately need to secure an order today. As

you know, I work on a straight commission

basis. My wife is going to have surgery nextweek, and our insurance just wont cover

Many obvious problems arise with this

method. It is an attempt to move awayfrom focusing on the prospects needs to

focusing entirely on your own personal

needs. It does not develop trust or

respect.

From Exhibit 12.3

ChapterChapter

ClosingClosing the natural next stepthe natural next step


30/44

12 - 29

1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

ClosingClosing the natural next stepthe natural next step

ChapterChapter12

How selling style relates to closingHow selling style relates to closing


31/44

12 - 30

1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

How selling style relates to closingHow selling style relates to closing

Aggressive selling styleOverwhelms the customer

Responds to objections without

attempting to understand them.

Assertive selling style

Respond to objections, leading

to a somewhat automatic close.

Submissive selling style

Assume customers willbuy when ready.

Adapted from Exhibit 12.2

ChapterChapter1212

I want time to think it overI want time to think it over


32/44

12 - 31

1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

You are selling bar-coding equipment to acompany. After

completing yourpresentation, the buyersays to you, What you

say sounds interesting,but I want some time tothink it over.

I want time to think it overI want time to think it over

Write a goodresponse that youcould use with this

buyer.

ChapterChapter1212

Effective closingEffective closing


33/44

12 - 32

1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology


Go over information the

customer will need to fullyenjoy the benefits of the

product.

Get the endorsement on theagreement.

Show appreciation. If it was the

first order, or a large one, send

a thank you letter.

Follow up. Make sure the order

was delivered, and that the

customer understands how touse the product.

What do you do if the buyer saysyes?

ChapterChapter1212

Closing termsClosing terms


34/44

12 - 33

1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Closing termsClosing terms

A customer orders 20 cases listed at $100 per case.

Customers who order more than 16 cases receive a15% quantity discount.

Terms are 2/10, n30.

The customer pays five days after getting theinvoice.

How much did the customer pay?

$1700$1666

$1660

$1530

Impossible to tell

ChapterChapter1212



35/44

12 - 34

1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology


Have you ever told a salesperson no?

Were you trying to be mean?

Did you do it because you didntlike the salesperson?

Did you do it because you didnt

trust the salesperson?

So what do you do if the buyer

says no?

ChapterChapter1212

If commitment is not obtainedIf commitment is not obtained


36/44

12 - 35

1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Some reasons for failure:Some reasons for failure:

Wrong attitude.Poor presentation

Poor habits and skil ls

Discovering the

cause /causes

If commitment is not obtained

ChapterChapter1212

Six Common MistakesSix Common Mistakes


37/44

12 - 36

1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Six Common MistakesSix Common Mistakes

1. Tells instead of sells; doesn1. Tells instead of sells; doesn t askt askenough questionsenough questions

2. Over2. Over--controls the call; asks too manycontrols the call; asks too manyclosedclosed--end questionsend questions

3. Doesn3. Doesn t respond to needs with benefitst respond to needs with benefits

4. Doesn4. Doesn t recognize needs ; givest recognize needs ; givesbenefits prematurelybenefits prematurely

5. Doesn5. Doesn t handle negative attitudest handle negative attitudes6. Makes weak closing statements;6. Makes weak closing statements;

doesndoesn t recognize when or how to closet recognize when or how to close

ChapterChapter1212

Keys to Improve SellingKeys to Improve Selling


38/44

12 - 37

1212

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Keys to Improve Sellingeys to p o e Se g

Ask questionsAsk questions

Recognize real needs andRecognize real needs andhow benefits satisfy ithow benefits satisfy it

Establish a twoEstablish a two--wayway

dialoguedialogue

Recognize and handleRecognize and handle

negative attitudesnegative attitudes Use a benefit summaryUse a benefit summary

when closingwhen closing


39/44

ChapterChapter1212

Successful Salespeople ShouldSuccessful Salespeople ShouldLearn to AcceptLearn to Accept NOsNOs NaturallyNaturally


40/44

12 - 39

Questionsanswered

What isclosing?

Whento close

Closingmethods



Terminology

Learn to AcceptLearn to Accept NOsNOs NaturallyNaturally

Thanks the prospect for his time.

Keep in contact with him/her by

phone calls or mailings.Leaving something with the

prospect to help him contacting

you in the future.Keep in touch, leave the door

open.

Act as a professional.

Showing disappointmentShowing disappointmentgain nothing!!!!!gain nothing!!!!!

ChapterChapter1212

Bringing The Interview to a CloseBringing The Interview to a Close


41/44

12 - 40

Questionsanswered

What isclosing?

Whento close

Closingmethods

When the buyer

says yes


Terminology

g gg g

Departure can't be abrupt.Departure can't be abrupt.

Complete the interview smoothly.Complete the interview smoothly.

Goodwill will never be built byGoodwill will never be built by

wasting the customerwasting the customers time afters time after

commitment.commitment.

ChapterChapter1212

Any questions about theAny questions about theterminology?terminology?


42/44

12 - 41

Questionsanswered

What isclosing?

Whento close

Closingmethods

When the buyer

says yes


Terminology

terminology?terminology?

Aggressive

Assertive

Balance sheet method

Benefit summary method

Buyers remorseBuying signals

Cash discount

Closing

Closing cues

Cumulative discount

Direct request method

Follow-up

Free on board (FOB)

Post-purchasedissonance

Probing method

Requirements

Submissive

Trial close

Trial order

ChapterChapter1212


43/44

12 - 42

Questionsanswered

What isclosing?

Whento close

Closingmethods

When the buyer

says yes


Terminology

ChapterChapter1212


44/44

12 - 43

Questionsanswered

What isclosing?

Whento close

Closingmethods

When the buyer

says yes


Terminology

Documents

Chap012 - Selling