How would your business benefit from building profitable deals? Would your life be easier, would you need to complete fewer deals? I’m sure it would. The reason you are unable to build profitable deals comes down to you. The profit in the deal is yours to give away.
Imagine for a moment, that the price you offered your customer, was the one they accepted. Well with a great sales process in the front end, will give you a higher opportunity of this occurring. Now, there are many ways you can increase the chances of your customer accepting your first offer and this will help you build profitable deals. One of the best ways to do this, is to build trust with your customer, whilst showing great value to the customer.
Building Value To Ensure That Price Is Not Their Only Concern
Whilst working with a customer on a transaction. It is your objective to extract the reasons why the customer wants a solution. You need to dig deep into the underlying issue, that buying your product or service will fix. Once you find these issues, you can tailor your pitch to help address these issues.
“John is looking for a dental implant as he has cracked his tooth and now has almost his complete tooth missing.”
Now, in most cases, there will be a number of concerns, that most people would have in this situation. Though what is important to some people, may not be of concern to someone else. So you will need to ask probing questions, to see what is important to your customer.
Here is a list of a few issues, that John may be experiencing. Which will act as drivers in the purchase of his dental implant procedure:
· May have an exposed nerve that is causing him discomfort
· Could have an upcoming job interview or date, that he needs to impress someone with his appearance
· May be so self-conscious, that he cannot bear to have anyone see him like this
· Might find he now has an annoying whistle when trying to say things
These are all possible reasons, that John may be in a hurry, to fix his current problem
So you would ask loaded probing questions like this:
1. Are you in any discomfort at the moment?
2. Do you have any important meetings, where not having a tooth might affect you?
3. How do you feel about people seeing you, with your missing tooth?
4. Have you noticed any difference, with your speech since cracking your tooth?
We are now seeing if any of these factors are a concern to John. We are building up the issue and asking him to focus on the reasons, why he has to fix the problem. This helps us add value as we know the areas we can focus on, to fix the issue. This will go a long way in helping with a quick decision and build profitable deals.
What we are also doing here, is showing that we really know what we are talking about. This creates a level of trust for the customer as he can see that we are quite knowledgeable in the area he requires assistance.
Don’t Offer Your Lowest Price Straight Away
When you are offering pricing, it is best to start at the upper end of the scale. That way if your customer is looking for a better price, you have room to move. The issue with quoting a price too low to start with is it can only go down from there. Once you have that price out on the table, that is the maximum a person will pay for your product or service.
Don’t be afraid to start with a higher price as this will help build profitable deals. It makes your client feel better when they negotiate a better price. It gives your customer the sense that they have just had a small win. You will be surprised how far you can push this first price that you offer. Now I’m not saying to start with a ridiculous price triple what they can buy it from your competition. If you get caught out like this, you may not have had a chance to adjust your price and will lose the deal
Gauging Your Customers Response
This is where the real magic happens! Once you have put forward your best price, you are then waiting to gauge the customer’s reaction. A few things will happen at this point, they will be either startled by your price or accepting of it.
Now if the customer accepts the pricing you have offered them, without much of a response. This will either mean one of two things, they are not that interested or are happy and the price is within their budget or expected range. You will obviously need to be picking up, on the way they react to a range of things, that have transpired in the initial sales process. It’s from these tell-tale signs, you will make the call if they are interested or not.
Secondly, if the customer reacts in a way that they are startled by the price, you have put forward. Then this is when you know you have some work to do on the price. At this point, you will want to act like you are a little bit startled, that they would not be happy with the price. You want to show the customer with confidence that this is the price point, where most customers buy. At this point, you will want to reiterate the fact, that you have superior benefits over your competition and are usually a little more expensive.
Now at this point, a lot of people will tell you what they have been quoted or expected. If they do not volunteer this information, you should probe further and ask: “Are you comparing my price to something” or “Have you been quoted something already”. This is the point where you are fishing for an indication, of what price your customer is considering buying at.
Earning The Right To Close Will Build Profitable deals
We all want to be master closers. It’s probably the most exciting part of the sale. It’s the part, where the adrenaline starts pumping and we get to ask those final questions around if the customer is ready to buy.
It’s at this point you really have to make sure, that your customer has all the information they require. You need to have answered all of their queries and overcome any of the outstanding objections. It’s only at this point, have you earnt the right to ask your final closing questions. If you have completed the process well, built value, overcome their objections, answered all of their concerns and have the price right. It’s at this point that you can ask for the order and 9 times out of 10 if they are a serious buyer, they will say yes at this point.
I like to ask an easy question like: “Are you happy to proceed?” It’s really that simple.
Closing At The Right Point Is The Key
I can’t stress it enough, you need to complete the whole sales process before you ask for the order. I’ll give you an example of when I was a trainee salesman and my General Manager pulled me into the office and told me “what’s going on? You were getting all these orders and now you can’t close?”
He proceeded to ask me a list of situations and asked me to close him on them. I fired back with reasonably good answers and proved I had no problem closing him for an order. It’s at that point, he started to probe further into the entire sales process, I was conducting. He asked how I was setting the customer up from start to finish. It’s at that point, he realized it wasn’t closing, I was having an issue with. It was, that I was too eager to close the sale, though not completing the upfront work required, to ask for the order.
I have run through this little scenario, to show you how important it is to complete the full sales process, before closing the deal. This will help you win more business and also help you build more value into the transaction, in return building more profitable deals.