Selling Building Partnership Chapter 9

Keep the Buyers Attention

consider the social style of the prospect and adapt the use of communication aids accordingly

Improves the buyer's understanding

Appeals should be more to as many of the senses (hearing, sight, touch, taste, and smell) as possible.

Multiple-sense appeals

appealing to more than one sense

Helps Buyer Remember What Was Said

well timed presentation is likely to be remembered

Offers proof of the salesperson's assertions

Most communication tools have proof to back to back up a salesperson's claim

Creates a sense of value

Product handling suggests its value

How to Strengthen the Presentation

• Use imagination and creativity to make vivid impression on a customers

• Make presentation different and stronger

• Strategically select methods and media that address the needs of the buyer.

Expressives(Respond to buyers unique social style)

Strong, intense colors and lots of photos, cartoons, fancy fonts, and positive images

Analyticals(Respond to buyers unique social style)

Clean and simple, a list of references, and lots of details

Amiables(Respond to buyers unique social style)

With people and a relatively slow-moving presentation

Drivers(Respond to buyers unique social style)

Crisp professional visuals with bold lettering to highlight important points

Strategizing Presentation

-How many people will attend

-Which stage of the buying process they are in

-What information they need

-What type of situation this is

Verbal tools

Word pictures and stories

Humor

Visual tools

Graphics and charts

Models, samples, and gifts

Catalogs and brochures

Photos, illustrations, ads, and maps

Testimonials

statements written by satisfied users of a product or service

Test results

Tests on the product or service, conducted by the seller's firm or some third-party organization help strengthen the presentation

Using media to display visual

Chose media appropriate for the situation

Portfolio

collection of visual aids

Digital collateral management systems or sales asset management systems

Used to archive, catalog, and retrieve digital media and text.

collateral

collection of documents that are designed to generate sales

Document cameras (visual presenters)

Capable of displaying any three-dimensional object without the use of a transparency

Electronic whiteboards

Used when working with customers who prefer to brainstorm an issue or problem

product demonstration

For effective demonstrations

-Be prepared and secure a proper place for the demonstration

-check the equipment before beginning the presentation

-get the prospect involved in a meaningful way

-relate product features to the buyers unique needs

-make it an integral part of the overall presentation

-keep the demonstration simple, concise, and clear

Handouts

written documents provided to help buyers remember what was said

Request for proposal

document issued by a prospective buyer asking for a proposal

Executive summary

a one or two page summary that provides the total cost minus the total savings, a brief description of the problem to be solved, and a brief description of the proposed solution

Writing Guidelines

- Use polished writing skills and skip buzzwords

- Focus on actual results that the prospect can gain from going with your proposal

Presenting the proposal

- Convince the prospect about the need for the product

- Compare the product and terms of sale with those of competitors

Quantifying the solution or value analysis

showing the prospect that the cost of the proposal is offset by added value

customer value proposition

the way in which a salesperson's product or service will meet the prospect's needs and how that is different from the offerings of competitors, especially the next-best-alternative

simple cost-benefit analysis

Lists the costs to the buyer and the savings the buyer can expect from the investment

comparative cost-benefit analysis

Comparing the present situation's costs with the value of the proposed solution or the seller's product with a competitor's product

Return on Investment (ROI)

Expressed as a percentage of the investment

ROI=Net profits (or saving)/ Investment

Payback Period

length of time it takes for the investment cash outflow to be returned in the form of cash inflows or saving.

payback period= investment/ savings (or profits) per year

Net Present Value

Future cash inflows discounted into today's dollars - Investment

Net present value=future cash inflows - investment

opportunity cost

return on investment earned from a different use of the same investment capital

Profit margin

the net profit the reseller makes, expressed as a percentage of sales

Profit margin = (𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒−𝑐𝑜𝑠𝑡)/(𝑠𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒) * 100%

Profit margin = (𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 𝑜𝑟 𝑃𝑟𝑜𝑓𝑖𝑡)/𝑅𝑒𝑣𝑒𝑛𝑢𝑒 * 100%

Inventory turnover

Measures how fast a product sells relative to how much inventory has to be carried

-how efficiently a reseller manages its inventory

•Inventory turnover ($) = (Annual sales ($) )/(Average Inventory ($))

•Inventory turnover (in units) = (Annual sales units)/(Average inventory in units)

Cash Discount

An incentive that a seller offers to a buyer in return for paying a bill owned before the scheduled due date.

Cash Discount = Price - Discount Rate

Net Amount Paid = Price - Cash Discount

Purpose for Cash Discounts

• The discount is an incentive given to the buyer to pay early.

• Encourages buyer’s prompt payments on invoice

Three Ways to Calculate Cash Discount

1. Ordinary dating method (From the invoice date)

2. End of the month method (EOM)

3. Receipt of goods dating method

Ordinary dating method (From the invoice date)

Credit terms 2/10, n/30 (two ten, net-thirty). This means that the buyer get a 2% discount if they pay within 10 days of receiving the invoice. The net thirty means that the net price is due in 30 days or you start to incur interest charges or late fee based on agreed terms

End of the month method (EOM)

Credit term is 2/10, n/30 E.O.M. This means you get a 2% discount if you pay within the first 10 days of the next month (You start counting from Day 1 of the Following month). You must pay the bill within the first 30 days of the next month or you start to incur interest charges.

Receipt of goods dating method

Credit Terms is 2/10 R.O.G. This means you get a 2% discount if you pay within the first 10 days after the goods are received (Start counting from the day after

the goods are received).

Dual Axis Chart

They can help users compare two variable with different scales or units on the same graph, helping to reveal relationships, correlations, and trend

Bar Graph

They can help users compare data between different groups or to track changes over time.

Line Graph

They can help users track changes over short and long periods. They reveal trends or progress over time

Return on Space

A key investment metric that resellers use to evaluate the return based on the amount of space the merchandise occupies. It is usually expressed in sales per square foot or sales per shelf foot.