Selling Building Partnerships Chapter 11

Closing

is the act of obtaining commitments.

Traditional emphasis on getting the sale no matter what:

-Damages Trust

-Insults the buyer's intelligence

-Raises the possibility of losing commitment

importance of securing commitment

-Tells the salesperson what to do next

-Defines the status of the client

-Results in financial rewards for the salesperson

Failing to obtain commitment results in

-Taking longer to obtain sale

-Affecting the requirements of the prospect.

discounts based on

-Type of customer

-Quantity purchased(the greater of quantity the better the deal)

-Other factors

quantity discount

Encourage customers to buy in larger amounts by passing along savings resulting from reduced processing costs.

cumulative discounts

Transaction for a long period and offering discounts

Cash discounts

-Allowed for early payment, and are the last discount taken.

- 2/10, n/30 discounts- Deducting 2 percent from the bill if paid within 10 days of invoice,otherwise paying full amount in 30 days

Free on board(shipping costs)

The buyer assumes responsibility for both the goods and the costs of shipping them

FOB destination

Buyer takes responsibility for the goods once they reach the buyer's location, the seller pays the frieght

FOB installed

Title and responsibility do not transfer until the equipment is installed and operating properly

Set the price for buyer after studying (Presenting price)

Competitor's offerings

Value delivered by the product or service

Cost of providing the product or service

(Should be discussed at the end)

Buying Signals (Closing cues)

Indications that the buyer is ready to buy,

Verbal Buying Signals

Positive feedback – “I like the new features you described.”

Asking Questions – “What colors does it come in?”

Seeking other opinions – “Who are some other firms that have bought your product recently?”

Purchase requirements – “My orders must be split among four warehouses.”

Nonverbal Buying Signals

Relaxed, friendly, open

Bringing out paperwork to consummate purchase

Exhibiting positive gestures/expressions

Picking up sample and/or literature and examining it

Buyer questions

Signal readiness to buy if the question concerns implementing the purchase and points toward when purchase is implemented

Requirements

Conditions to be satisfied before a purchase can take place

Benefit statements

Reflect strong feelings in support of the purchase

Trial closes

questions regarding the prospect's readiness to buy.(ex: What variety do you like?)

Nonverbal cues

important indicators of the customer's state of mind and are evident through facial expressions and actions

How to successfully obtain commitment

Maintain a positive attitude

Let the customer set the pace

Be assertive, not aggressive

Sell the right item in the right amounts

Aggressive

Control the sales interaction but fail to gain commitment

Submissive

Excel as socializers but rarely try to obtain commitment

Assertive

Self-confident and positive

Closing methods

Direct  Request Close

Assumptive Close

Minor Point Close

Alternative Choice Close

Summary-of-Benefits Close

Continuous Yes Close

Balance Sheet Close

Buy-Now Close

Direct request method

asking the buyer for commitment

Example of a direct request close statement

“It sounds to me as though you are ready to make the buy. Let’s get the order into the system.”

Assumptive Close

Allows the salesperson to verbalize the assumption to see if it’s correct.

Example of an assumptive close statement

“You need Model 455 to meet your specifications. I’ll call and reserve one for you.

Minor Point Close

Focuses the buyer on a small element of the decision

Example of a minor point close statement

“When would you like our technical crew to do the installation?”

Alternative Choice Close

Gives the buyer multiple viable options.

Example of an alternative choice close statement

“Which works best for your application, Model 22 or Model 35?”

Summary-of-Benefits Close

Reviews the benefits accepted, reminds buyer why they are important (show how your product meets their needs), then asks for the order

Example of summary-of-benefits close statement

“Ms. Buyer, we’ve agreed that our product will substantially upgrade your technical capabilities, allow you to attract new business, and all the while save you money, isn’t that right? Let’s go ahead and place the order today. I will have my service technician out to train your staff next week.”

Balance sheet method

Two column list: “Reasons for Buying” and “Remaining Questions.” Helps find out what’s holding the prospect back.

Example of a balance sheet close statement

“Mr. Buyer, let’s take a few minutes to list out and summarize the reasons this purchase makes sense for you, and also list any remaining questions you may have. This will help us make the right decision.”

Buy-now close

Creates a sense of urgency with the buyer (reason must be honest).

Example of a buy-now close statement

“We have a price increase on this product effective in two weeks. Orders placed today can be guaranteed to ship at the current price.”

Continuous Yes Close

The salesperson asks a series of benefit-related questions designed to elicit positive responses (yes) from the prospect, building a positive frame of mind and increasing the likelihood of commitment to the purchase.

Example of a continuous yes close statement

Me: “Ken, you said increasing gross sales was important. Is that right?”

Ken: “Yes, that’s right.”

Me: “And you said, increasing sales per square foot was also important. Right?”

Ken: “Yes, absolutely.”

Me: “Well then, since gross sales and sales per square foot are important, I suggest….” (Close using summary of benefits close)

Probing method

Using a series of probing questions to discover the reason for the hesitation

Trial offers

For companies that allow prospects to use their products and services on a trial basis because it is easy to use, a trial offer can be an effective closing method because it will ease the prospects concerns about the benefits at no risks to them.

Responsibilities after commitment is obtained

-Provide all the information customer will need to fully enjoy the benefits of the product or services.

- Confirm the customer's choice

-Assure customers they have made an intelligent

-Get the signature

-Show appreciation( Write a letter or give a small gift and thank genuinely)

-Cultivate for future calls

-Review the actions to be taken

Buyer's remorse

Feeling of insecurity after important decisions, concerns regarding worth of product

Follow-up

What a salesperson does after achieving commitment

When commitment is not obtained

Identify reasons for lost opportunities

- Wrong attitudes

- Poor presentation

- Poor habits and skills

Discover the cause

- Real reasons for not obtaining commitment must be uncovered

Suggestions for dealing with rejection

-maintain proper perspective

-recommend other sources

-good manners are important

Bringing the Interview to a Close

Leave with a clear plan for all parties

- Review what you will do next

- What the customer will do next

- When you will meet again

Follow-up promptly with a thank-you and reminder note