by Art Waskey | Jul 13, 2020 | Art of Sales Weekly, Featured
We all know the value of a good contract, one that holds a customer to a solid, long-term business commitment. Getting a contract signed is therefore an important part of sales rep’s job.
Five Tips that Work!
- For a new customer, agree to hold prices firm for a year if he or she will sign a five-year contract.
- For an existing customer whose contract is about to be renewed, offer this option: an increase in price each year with no contract, or, a firm price each year with a five-year contract.
- For a long-time and valued customer, offer a price rollback for signing a multi-year contract.
- Highly sophisticated accounts often prefer to operate with contracts. You might suggest to the decision-maker you are working with that top management would be impressed by his forethought in getting contracts implemented.iH
- In accounts where you have excellent relationships in place, you might suggest that a contract would protect both companies if either experienced an internal change.
Best Practices to Remember (when negotiating)
- On a sales call, when confronted with a client who is locked into a deal with another company, always ask when their contract is due for renewal. Return two months before that date to remind the customer that the contract is due and ask if you can submit pricing. This demonstrates your determination to service that customer and tends to impress most decision-makers.
- Always ask to see competitive contracts. Customers often will let you review their contracts and give them your advice. Be aware, most contracts have an “evergreen clause,” meaning cancellation notification must be given by a set time prior to the anniversary or the contract automatically renews for another term.
- I also find it is good practice to give your customer an opportunity to renegotiate if they feel an existing contract with your company is one-sided. Remember, “You can get to the top by getting to the bottom of things.” Find out what the issues are and address them. A contract review generally yields greater customer satisfaction and sets you up for more opportunities going forward.
- Finally, always start the day by thinking about getting a contract signed. That way you will not return at day’s end empty handed!
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by Art Waskey | Jul 7, 2020 | Art of Sales Weekly
I remember when your word was your bond and was all that was needed to form an agreement. In the last 20 years, however, verbal contracts have all but disappeared within our litigious society and written contracts are the order of the day. Like all contracts, written or verbal, how well they work is up to you.
Everyone seems to have a story about a contract gone awry. My company faced a contract dispute when a customer made a management change and the new person in charge started buying from our competitor. To address the situation we took a copy of our contract to the new manager and asked him to reconsider his position. He would not and a letter from our attorney was sent to him. When the two lawyers (ours and theirs) got things straightened out, we had the business back. Three years later, we still serve that customer, the man who violated the original contract is gone, and a new agreement has been signed by his successor.
Here are 5 good reasons for writing contracts.
- As illustrated in the example above, a contract protects your business when companies make internal personnel changes. It also gives you time to build a relationship with new decision-makers.
- Contracts tend to keep competitors’ sales reps away. The words, “I have a contract,” have legal bearing and discourage the competition from repeat sales calls.
- Contracts protect you from the national account deals struck by “top management in faraway places,” people who may not understand the meaning or value of the service you provide locally.
- Contracts give you an anniversary date for a price increase reminder.
- Contracts give you a time advantage as you know when the contract is due for renewal and, in most cases, your competitor does not.
The use of effective contracting will let you sleep better at night knowing that when changes occur within your best accounts, you will not be left out in the cold. Today’s contracts guarantee a secure tomorrow, so be sure to take the time to strategize on how best to get and keep those documents in place.
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by Art Waskey | Jun 29, 2020 | Art of Sales Weekly
When I retired in November of 2018, I knew I wanted to continue to chase my other passions: writing, public speaking, and consulting. When I finished my third book on sales, “The Art of Sales, A Book of Sales Stories,” earlier this year, the publisher, Vicara Books, told me that I needed to get active with social media and I hired a savvy partner, Sean Newman, to help me do that. Then the pandemic hit.
Being confined at home mandated that our methods of communicating with others take entirely new directions. Prior to COVID-19, many of us may have occasionally held virtual-meetings or attended webinars online, but they were not central to our day. Now, platforms like Zoom, Facebook, LinkedIn, Microsoft Teams, etc. have become our primary way to conduct face-to-face business communications.
Bloomberg reported on June 3, “Zoom Video Communications Inc. demonstrated that paying customers have flocked to its virtual-meeting software, transforming the once-niche appmaker into a popular communication service and positioning it to benefit as the nature of work, school, and life is upended. Zoom reported sales soared in the three months ended April 30, when the coronavirus pandemic spurred a wave of stay-at-home orders for millions of people worldwide.”
Have We Tipped?
Malcom Gladwell in his book “The Tipping Point” demonstrated that when paradigms begin to shift there is a “stickiness” factor, a sudden break in the norm causing a tipping point and a change in the way we function. When the coronavirus is over, we will not be back to sales business as usual. All of us have been using virtual-meeting software more than ever before. We have entered a new paradigm.
During this crisis people read and “liked” my posts on LinkedIn and I began to request what I called “Zoom Coffee Chats.” These sessions allowed me to demonstrate my organizational skills program. Today, I am conducting weekly, 3-hour consulting sessions with small businesses and my new chat business is booming. Best of all, the cost of entry into this type of consulting was reduced from an expensive trip involving time and transportation to a one-hour face-to-face virtual chat.
What About You?
How are you taking advantage of the new virtual selling opportunities? Comment below. We would love to hear about your innovation.
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by Art Waskey | Jun 23, 2020 | Art of Sales Weekly
Our company has a great motto:
“Do what you say you are going to do, how you say you are going to do it, when you say you are going to do it, no matter what!”
Implementing these ideals, however, can sometimes lead to over promising and under delivering. It’s only natural to be excited about a new order. For example, after checking stock, you might let the customer know that his equipment can be delivered within two days, reasoning, fast delivery always makes customers happy. However, what if the customer replies that he really does not need the equipment until next week and you adjust the delivery schedule accordingly. Then upon delivery he asks what took so long. Inadvertently, you have over promised and under delivered.
A better approach would be to check on stock and provide the outside delivery date but see that the customer receives his product sooner. In that scenario, the customer is impressed and sees the salesperson as someone who can be counted on to exceed expectations! Just do it!
Here are some reasons to, “Do what you say you are going to do, how you say you are going to do it, when you say you are going to do it, no manner what!”
Why does it matter?
Trust and reliability – The biggest differentiator in sales is having a relationship of trust with your customers. Would your customers pass this compliment on to prospective clients — “You can trust [your name] to be there when you need him”?
Accountability – Everyone has a list of people they can count on when project deadlines loom large, people who can deliver. You want to be on that list and you get on it by giving your customers the best of yourself.
Respect and self-worth – You only see in others what you see in yourself. If you fail to meet a deadline, don’t blame others. Take responsibility and personally fix the problem! When your self-worth is where it belongs your enthusiasm will be contagious.
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by Art Waskey | Jun 13, 2020 | Art of Sales Weekly
I was traveling with one of our sales representatives when he informed me that we needed to stop at an account and pick up their annual bid request. Unfortunately, we had lost our contract with this particular company 10 years earlier, after having served them for many years. We recognized that we needed to do more than just pick up a piece of paper to win back their business. We had to rebuild a relationship and decided on a strategy of trying to get at least a half hour of some one-on-one time with the shop supervisor.
To our pleasant surprise our contact invited us into the conference room and a friendly conversation ensued. We learned that he had been with the company for 18 years and was born and raised locally.
Connections are Key
As we talked, we noticed a woman off to the side doing computer work and listening. I decided to try to draw her into the discussion and slipped into the conversation that we now had on-line order service. Bingo! This caught her attention. She ordered products via the internet every day. In fact, she was a second-generation owner with two partners, and very proud of the company’s recent accomplishments. She began to share other information with our salesperson. It turned out that they went to the same high school and had mutual acquaintances.
Once we got down to business, we were honest about the fact that ours would probably not be the lowest bid they received as service was a big component of our product delivery. We were quickly assured by the owner that service was more important than pricing.
The Importance of Relationship
Remember, when you are selling a commodity product, building a relationship is your best sales tool. If you can find a common, personal interest with your customer and are able to express genuine concern regarding their needs, you are more than likely to get their business. People do not care how much you know, until they know how much you care.
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by Art Waskey | Jun 7, 2020 | Art of Sales Weekly
My wife had recently noted that our bed was beginning to have two distinct sags, and so on my lunch break I stopped in a mattress store. A friendly and knowledgeable salesman approached me. Over the years I have learned that you can usually pick up a tip or two from a seasoned sales veteran of any product. This gentleman was definitely seasoned in both age and skill!
I began our conversation with, “Why do people buy mattresses from you?” Without a moment’s hesitation, he responded, “There are three reasons people come into our stores to buy mattresses: they are new in town; they just got married; or they need a replacement.” He continued, “Anyone that comes through that door is a potential sale. Why else would you come into a mattress store unless you intended to buy?”
Lesson 1: Know your client’s probable buying motive.
Then I asked, “How do you qualify which type of need your customer has?” He said, “I only have a short time to build a relationship and get the customer to trust me, so I thank them for coming, give them a quick compliment, and start asking questions.”
Lesson 2: Get to know your customer by building confidence and trust.
As we completed my sale, another customer came through the door, and the sales pro added, “I am working in this store because it is in a newly developing neighborhood. We average 8-10 walk-ins per day and I have to close at least 5 to make my commission and pay the rent.” With confidence, and determination, I watched him close his third sale of the day.
Lesson 3: Know your market and recognize what motivates buyers.
Before I left, the salesman asked if I would stay for just a moment more and share with him the latest book I had read on sales skills.
Lesson 4: Constantly work on sharpening your sales skills. Doing so improves your close rate.
Remember, even when off duty there will be learning opportunities for you. For me, interacting with a fellow sales pro was invigorating and I found myself looking forward to closing my next deal.
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