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Lets Talk About Improving Your Companies Sales

 
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Old 07-14-2007, 08:53 AM   #1
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Lets Talk About Improving Your Companies Sales


I'll start with a question, and explain later when I get some answers. What are the 3 key things you need to know from your customer in order to sell your goods and services?

PS. We all make these 3 key descisions every day when purchasing goods, and services. Wether it be buying gas, groceries, clothes etc....
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Old 07-14-2007, 12:40 PM   #2
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Re: Lets Talk About Improving Your Companies Sales


I'll take a shot at this, The things I look for are....

1) What are their needs, the minimum requirements.
2) What do they want, the wish list of things they would like to add to make the project excite them. This would include addressing likes and dislikes about the existing spaces they now have.
3) What price are they willing to pay to go from needs to wants. What upgrades do they place value on.

When I know these things I can usually decide if I can provide them with what they need, and whether they are a good fit for me.

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Old 07-14-2007, 07:57 PM   #3
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Re: Lets Talk About Improving Your Companies Sales


What are they going to buy?
Why are they going to buy it?
Why are they going to buy it from me?

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Old 07-15-2007, 03:27 AM   #4
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Re: Lets Talk About Improving Your Companies Sales


The three descisions everyone makes every time while making a purchase are.

Timing- What date is your potential customer looking to have the work performed?
Budget- How much is your customer looking to spend on this project?
Product- What type of product is your customer looking for?

Without knowing all of these 3 key pieces of information from your customers, you will have a hard time selling your services. Most of us are lead to believe that the Budget is all most customers are worried about, and thats simply not always the case.

What I like to do during all of my estimates is follow a step by step sales plan, ready to take in those 3 pieces of information, and make the sale. How do I do this? I follow these steps exactly every single time, and never do it any differently.

Keep in mind, I sell alot of Hardwood flooring products so, some of ya'll may need to change it up a bit to fit your company.

1. I show up at the door, and meet, and greet my potential customers. I make some quick small talk and ask them to show me the area of the project. Notice I don't bring in my samples yet, I leave them in the car.

2. While measuring and writing down the information I'll ask them "So when are you looking to do this?" Timing

3. After measuring I'll ask them for a seat at the table. I will proceed to draw up a floor diagram, and figure out the square footage, and other various materials they need for this project. Once I have all of this information in front of me, I will come up with 2 numbers. One being my cheapest (Sale) products, and the 2nd being my higher end products.

Knowing these 2 numbers I will then say to my customer. "Mr, and Mrs Smith For me to do this project this will cost you anywhere between $800 and $2,400 (fictional numbers but you get the idea) (lowest to highest) Where would you like to be?" This is the best way to get a customers budget from them.

Most of the time the customer will answer you with "somewhere in the middle", but if they give you an actual number thats great too. Using the fictional numbers from above I will then say to the customer "Ok Mr, and Mrs Smith so $1,600 sounds about right" I do this, because I want them to commit to that number.

4. Knowing that Mr and Mrs Smith are looking to spend $1,600 I will then go to the car, and take out all of my samples in the $1,600 range, but I don't only bring in just those.

5. I build value on my targeted products by bringing in 2-3 cheaper, and inferior samples to show them also.

6. Go back into the house, and show them the cheaper samples first, and explain the benefits of each product while building value up to their target product that fits their budget.

If you build value correctly you'll almost always find that they will pick one of the targeted samples.

7. Ask for the sale. If you have a customer that objects to you asking, simply go back and retrace your steps. Chances are you got one of the 3 key pieces of information wrong. For example If a customer tells me that they'll think about it. I will say " I don't understand Mr and Mrs. Smith I thought you liked this product right here for $1,600 and wanted it installed in 2 weeks? Don't be affraid to ask the question. This is when they will give you the real reason for their objection. Sometimes it can be a very small issue that you can go back and correct.

Make a similar system that fits your company, and stick to the plan everytime. Learn how to overcome objections with asking them open ended questions, and watch your closing ratios skyrocket. Leads are very expensive these days. Learn how to make the most out of them.

I close anywhere between 70-80 percent of all my leads using the system above. It works try it, you'll thank me for it

Last edited by lawndart; 07-15-2007 at 03:30 AM.
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Old 07-15-2007, 06:22 AM   #5
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Re: Lets Talk About Improving Your Companies Sales


When someone is buying a service, the service provider is a critical part of the decision process. If you look & smell nice, speak with confidence, and communicate that you are a pleasant person, your chances will be greatly improved.

Many times, these "soft skills" can win out over a lower-priced competitor. I know a low-priced contractor who does good work but is such an arrogant know-it-all that I don't hire him anymore.

Finally, we should all accept the fact there we can't be liked by everyone. If your prospect isn't liking & trusting you, there's a good chance the job will be going to someone else.
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Old 07-15-2007, 07:29 AM   #6
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Re: Lets Talk About Improving Your Companies Sales


Any time a salesman says to me......
Quote:
I don't understand Mr and Mrs. Smith I thought you liked this product right here for $1,600 and wanted it installed in 2 weeks?
They lose the sale....


I don't like those "salesman" tactics....I'm sure it is working for you...and that is great...and please don't take this the wrong way.....I'm not knocking your system, just giving a different point of view.

I prefer to be myself....let my knowledge of my product, my personality, and my honesty work together to sell my product. Do I have a 70-80% close rate? I doubt it...but I am more often than not the high bid...and I close between 40-60% of all my sales calls....

If you are having trouble making sales.....perhaps you are not a natural salesperson....nothing wrong with that, not all folks can sell..but if that is the case, it is important to recognize it and hire one quickly......to maximize your revenue and your salary...JMHO
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Old 07-15-2007, 09:54 AM   #7
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Re: Lets Talk About Improving Your Companies Sales


Quote:
Originally Posted by sprinklerguy View Post

If you are having trouble making sales.....perhaps you are not a natural salesperson....nothing wrong with that, not all folks can sell..but if that is the case, it is important to recognize it and hire one quickly......to maximize your revenue and your salary...JMHO
Good point.
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Old 07-15-2007, 11:08 AM   #8
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Re: Lets Talk About Improving Your Companies Sales


Quote:
Originally Posted by sprinklerguy View Post
Any time a salesman says that to me...... They lose the sale....


I don't like those "salesman" tactics....I'm sure it is working for you...and that is great...and please don't take this the wrong way.....I'm not knocking your system, just giving a different point of view.
In my years of using this system I've never once had a customer react akwardly to this question. You may call it a "tactic" if you want, but I have every right to ask that question if I'm spending a few hundred dollars in advertising to get a lead IMHO. Like I said above, when the question is asked the real objection always comes out. Sometimes it's a case of a few hundred dollars, and I can work with that, or sometimes they weren't crazy about the colors of my samples etc.....

As a salesman I try my best to get every sale, because my business depends on it. I firmly believe in booking a sale on the first appointment. Out of sight, out of mind in most cases.

Last edited by lawndart; 07-15-2007 at 11:13 AM.
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Old 07-15-2007, 11:58 AM   #9
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Re: Lets Talk About Improving Your Companies Sales


Quote:
Originally Posted by lawndart View Post
1. I show up at the door, and meet, and greet my potential customers. I make some quick small talk and ask them to show me the area of the project. Notice I don't bring in my samples yet, I leave them in the car.
Hopefully you haven't left your sales agreement, pen, and scheduling book in the car either.
If you like to be always closing, always have the tools you need to close your sale.

Quote:
2. While measuring and writing down the information I'll ask them "So when are you looking to do this?" Timing
Your "timing" is a little off. That is a test close and you should learn what your customer wants first before you ask them how soon they are looking to start the project. A better question there may be: "How long have you been planning this project?" or "Have you set a budget on this project?"
Once you find out what your client wants, then ask them how soon they are looking to start. Then you close your deal and get your committment.

Quote:
Knowing these 2 numbers I will then say to my customer. "Mr, and Mrs Smith For me to do this project this will cost you anywhere between $800 and $2,400 (fictional numbers but you get the idea) (lowest to highest) Where would you like to be?" This is the best way to get a customers budget from them.
I may word this a different way. Or just not give a wide spectrum and expect my customer to choose the sale amount.
I'd see what they like, then provide information on the best products to use to fit their needs, why they would benefit them, and how good a value they would be for this project.

Quote:
4. Knowing that Mr and Mrs Smith are looking to spend $1,600 I will then go to the car, and take out all of my samples in the $1,600 range, but I don't only bring in just those.
There goes your sales dollars. Show them your samples and see what they like, then sell them that material. That is upsurd to have a number and be forced into a use of that stated dollar amount. Do these customers even know the true cost of the materials you are suggesting? You're cutting your inventory.

Quote:
5. I build value on my targeted products by bringing in 2-3 cheaper, and inferior samples to show them also.
I'd do it the other way around, and bring in some with greater value and inform the customer on what makes that particular product more beneficial to the project at hand.

Quote:
I close anywhere between 70-80 percent of all my leads using the system above. It works try it, you'll thank me for it
That's because you're letting your customers dictate the sale. Seems like a lot of downselling. You're probably closing more, and letting more dollars sit on the table. That's a great close rate to have though.
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Old 07-16-2007, 06:45 AM   #10
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Re: Lets Talk About Improving Your Companies Sales


I always figured if my close rate was too high..I was too low....if I'm getting more than 1/2 of my quotes....I am doing something wrong...jmho...
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Old 07-24-2007, 10:08 PM   #11
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Re: Lets Talk About Improving Your Companies Sales


I thought you jsut show up to an appt and the prospect was supposed to have a check in their hand
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Old 07-29-2007, 06:45 AM   #12
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Re: Lets Talk About Improving Your Companies Sales


[quote=MattCoops;263565]Hopefully you haven't left your sales agreement, pen, and scheduling book in the car either.
If you like to be always closing, always have the tools you need to close your sale.



Matt no offense I really like your post and pointers but I read somewhere or heard at a seminar once that you should leave all samples, sales agreements, even note pad in car untill you establish a conversation / relationship... feel them out then get your things. I guess the reason being so you don't look like a salesman with your hands full when your at their door ready to meet them.
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Old 07-29-2007, 07:52 AM   #13
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Re: Lets Talk About Improving Your Companies Sales


To me, this discussion is an attempt to parrot simplified sales tactics right out of sales 101. If you're inexperienced at selling, by all means go to the bookstore and read some of the basics to build a background of knowledge. Once you understand the basics--you'll find that when you're face to face with someone, it's never as simple as reducing the whole process to "three things they look for" or some simple checklist. Most people who become stellar at sales take the basic scripts, steps, responses, etc. and tailor them to fit the client and project.

Obviously, there are vast differences between selling a $5,000 paint job and a $100,000 room addition--and any discussion here needs to take that into consideration. That said, I agree with sprinklerguy: If you're generating consistent leads, staying booked for several weeks/months in advance, and closing nearly every job you bid--then you're not charging enough. That may seem counter-intuitive for sales in general, but for a contractor I think it's one tool to keep your pricing where it needs to be.
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Old 08-07-2007, 06:11 PM   #14
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Re: Lets Talk About Improving Your Companies Sales


[QUOTE=ChrWright;269388] Once you understand the basics--you'll find that when you're face to face with someone, it's never as simple as reducing the whole process to "three things they look for" or some simple checklist. Most people who become stellar at sales take the basic scripts, steps, responses, etc. and tailor them to fit the client and project.

Obviously, there are vast differences between selling a $5,000 paint job and a $100,000 room addition--and any discussion here needs to take that into consideration. QUOTE]

Exactly.
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Old 08-07-2007, 07:50 PM   #15
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Re: Lets Talk About Improving Your Companies Sales


Quote:
Originally Posted by ChrWright View Post
Obviously, there are vast differences between selling a $5,000 paint job and a $100,000 room addition--and any discussion here needs to take that into consideration.


that's what i don't get with some of the guys around here. I am NOT knocking them or their tactics. Quite the opposite - I'm always intrigued how guys like Marc, etc will sign a contract on the first visit


but trying to close on a $70,000 project ...

the first night??

I just do not see it happening




hell, now that I think about it - anything over $3,000 I always wanna take at least a 1/2 hour and review the pricing - if not come up with an entire estimate first

and then there's always specialty subs that I may not deal with all the time and am needing updates on their pricing


and then there's materials - they may want a particular brand that I'm not used to , etc etc

bottom line - even if it's possible to close a $100,000 project in the first meeting

DO YOU REALLY WANT TO???
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Old 08-07-2007, 11:32 PM   #16
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Re: Lets Talk About Improving Your Companies Sales


This topic puts a silly smirk on my face.

I'm a sole prop, often I don't get the luxury of running home to change before estimates.
I think it's funny when we start over analyzing the technique of selling.
There is a technique, but there is also a such thing as too much of anything.
I spend virtually nothing on advertizing, if I did I'd have to expand, not in the plans just yet.
Most of my work is either repeat or referral business.
What has made the difference is speaking to them on their terms, be it polysyllabic, or "grunt", having a sense of humor and explaining their options, *thoroughly* listening to what they want.
I've gotten a few jobs based on the fact that they're more confident knowing that the shabby, yet well versed guy who "sells" the job is the one who's doing the job.
One customer actually telling me they'd felt like several of the other estimates were like used car dealers...well groomed, dressed like they were on the way to a golf game and overdoing it with the "slick" presentation.
I'm not saying I wouldn't benefit by sprucing up a bit, but when someone wants a tradesman to give them an estimate, I think they feel more comfortable when it actually is a tradesman.
This probably works well for my niche...residential.
Commercial is a different ballpark alltogether.
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Old 08-09-2007, 10:08 PM   #17
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Re: Lets Talk About Improving Your Companies Sales


Quote:
Originally Posted by Grumpyplumber View Post
This topic puts a silly smirk on my face.

I'm a sole prop, often I don't get the luxury of running home to change before estimates.
I think it's funny when we start over analyzing the technique of selling.
There is a technique, but there is also a such thing as too much of anything.
I spend virtually nothing on advertizing, if I did I'd have to expand, not in the plans just yet.
Most of my work is either repeat or referral business.
What has made the difference is speaking to them on their terms, be it polysyllabic, or "grunt", having a sense of humor and explaining their options, *thoroughly* listening to what they want.
I've gotten a few jobs based on the fact that they're more confident knowing that the shabby, yet well versed guy who "sells" the job is the one who's doing the job.
One customer actually telling me they'd felt like several of the other estimates were like used car dealers...well groomed, dressed like they were on the way to a golf game and overdoing it with the "slick" presentation.
I'm not saying I wouldn't benefit by sprucing up a bit, but when someone wants a tradesman to give them an estimate, I think they feel more comfortable when it actually is a tradesman.
This probably works well for my niche...residential.
Commercial is a different ballpark alltogether.
Grumpy, I'm in Residential Construction myself, and I've heard many of my customers complain about the "shabby" contractor who showed up at their door trying to get the job. There is nothing wrong with having a plan/system to selling your services. It doesen't make you a low down dirty salesman.

I originally posted this topic to get the rest of you to think about applying a sales type system to your company. Not to copy what I do. What works for me, won't work out the same way for the rest of you, but believe me or not I have a 70-80 percent closing ratio to go along with what I say. My advice here is free, just like all the others here in this forum. You can choose to apply it or not.

PS. My father is a tradesman for 37 years. When he was working for himself many years ago, he'd go to the estimate in work clothes armed with a pen, and paper. He is very "well versed" in his field, but apparently that didn't impress too many people, because his closing ratios combined with the soft sales approach was terrible. Start a conversation with him about sales, and he'll tell you to talk to me.

I started Finishline Construction in November of last year. I started working 3 days later, and haven't had a day off since. On top of that I'm booked solid through November, and making 5 times the ammount of anyone I know. I must be doing something right eh?

Last edited by lawndart; 08-09-2007 at 11:06 PM.
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Old 08-09-2007, 10:48 PM   #18
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Re: Lets Talk About Improving Your Companies Sales


I see that some of you think I might be lowballing my competition, because of my closing ratio. That said I wont touch a job unless I'm making a minimum of $5 a sq. ft. on top of my material cost. In my market the lowballers are only adding $1-$2. I'm comfortably priced right in the middle making very good money.

Last edited by lawndart; 08-09-2007 at 11:06 PM.
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Old 08-09-2007, 11:16 PM   #19
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Re: Lets Talk About Improving Your Companies Sales


I'm quite sure you're very impressive, my post wasn't intended to offend you, yet it seems like you were.
For that matter, it had nothing at all to do with you (I hope)....when I read the opening post I fully agreed.
In fact I could elaborate on those 3 items by stating the more you know about the three (especially product), the more ability you have to influence the decision...for example, instead of asking whether they'd like you to do the job, find a tactful way to ask them HOW, WHEN or WHAT (product) they'd like you to use (assumptive sale).
I'm sure you know that the more you get them into a discussion on those options as opposed to a "yes or no" decision, the more likely it is that you'll be doing the job.
As for your referrence to "shabby", I have heard the reference to "thugs" showing up for estimates as well.
I often show up in my work clothes and you cannot deny that NO attire can change a person.
(Picture a guy in expensive designer garb that can't pronounce three syllable words, or focuses more on getting a signature on a contract than listening to fine details on what the customer wants)
What I said was summed with:
Quote:
I think it's funny when we start over analyzing the technique of selling.
Quote:
There is a technique, but there is also a such thing as too much of anything.
I've seen guys emulate late night info-mercials or come off like a car salesman thinking thats the "role" they ought portray.
There IS a such thing as too much of anything...to either extreme.
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Old 08-10-2007, 04:14 AM   #20
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Re: Lets Talk About Improving Your Companies Sales


Wonderful thread.
I am a writer/journalist, not a salesperson. Yet I understand the principals of selling and in fact have found a system that works for my business to successfully hire talented sales reps.
Technique and systematic methodologies are important, of course, so is professionalism and common-sense. And so is following a mature, well-thought and natural approach that adapts our specific talents to the situation at hand.
If everything is in the selling, and nothing is in doing the job well, delivering value, and creating real lasting satisfaction, you are travelling down the road of business frustration and constant struggle.
Conversely, if you think everything is in delivering value, relying on word of mouth and referrals exclusively, and pricing to win every job, you are going to burn out or deny yourself your highest reasonable income potential.
We all fit somewhere within this range. Figure out where you are and hirie/contract or work with others so that you come out not in the middle but at BOTH extremes, and you'll probably have a phenomenal business with huge volumes, high margins, and really satisfied clients.

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