“A Penny Saved is a Penny Earned” – Benjamin Franklin

“Always Get the Best Price, Therefore the Best Deal”

“Never Pay Retail, Always Pay Wholesale!”

In a perceived constricting economy coupled with dismal daily financial reporting, our customers’ and prospects’ desire to cut costs in any manner they can, is influencing their buying decisions more than ever before. This affects current, ongoing and newly projected purchases for 2009.

Reinforcing this picture, retail has a projection of 40% closure rates, including many household recognized names. Many economists are stating that overall there may be 20% shrinkage of private sector businesses, no matter what the field. This means that your current and perspective markets may shrink at that same rate. You’re not losing customers and prospects to competitors; you’re losing them to closure. This places greater pressure on your sales efforts to attain sales forecast at full margin, just to stay even with last year.

So how does this climate influence our businesses and your sales efforts? Well, knowing the enemy is the first step. Yes, there is pressure on all fronts to get the best price. No matter what your prospect states, this decision factor is playing a bigger and bigger role.

What is price – is it the same as cost? The answer is, of course, no. Very simply stated, price is what you pay for something, while cost is what you incur after purchasing.

The total cost of ownership needs to be addressed now more than ever before. So what are the components in determining this?

The True Components Effecting Cost

· Quality of product

· Ease of use or incorporation

· Timeliness in delivery

· Communication

· Support and expertise

Quality of product or service – Does it do what it is supposed to do the first time, or is there a constant reworking to fit the prospect’s requirements?

Ease of use – Is it “plug and play”? If not, does the supplier of the same provide the appropriate training so it appears so? Dealing with a provider shouldn’t be a chore.

Timeliness in delivery – When will it arrive is not a question that a client should be asking. They should know and be able to count on the stated schedule.

Communication – If there is an issue or difficulty, can I get the right answers when I need them; or does it seem that since the sale has been concluded, the client becomes a second-class citizen?

Support and Expertise – Does the provider really have the tools to deliver on their promises? Can they create what you need the first time, or do they take a “shelf-product of solutions” and make you conform to their requirements?

So let’s suppose that the saying, “You really do get what you pay for” is now more pertinent than ever. What happens when a disappointment occurs in any of these cost components? First of all, if a company buys or sells based upon being the lowest priced provider, what happens if and when things go wrong; and they always do?

Typically, if the product was sold on price, the provider generally does not have enough margin built into the price to care for and promptly fix any of the above-mentioned issues. In fact, since they sell on price, usually support and development capabilities are either very stretched or even mediocre. Low-profit margin companies rarely have the expertise, personnel, support or financial backing; they can’t afford them.

We need to be addressing, not the price prospects pay for products or services, but rather what they may experience when they are disappointed by a low-priced provider.

What do they experience when what they bought doesn’t work as they thought?

What support is provided when they need help?

What happens to their production and promises to their clients if they can’t deliver on time?

What does this cost?

When you add these real business experiences and associated costs, it gives us the true price, which is the “Total Cost of Ownership”.

Developing Your Prospecting Plan

The lifeblood of your sales is prospecting. Consistent high-level performance and revenue growth are impossible without a continuous flow of leads and, more important, a plan to obtain those leads. The professional salesperson needs to constantly engage in lead-generating activities; find a sufficient number of leads; convert those leads to prospects; then move the prospects through the sales cycle; and, finally, close business. Without a plan, a salesperson has no organized method to reach potential prospects.Without daily or weekly prospecting events, the salesperson easily gets lost in day-to-day activities and neglects prospecting. A strong prospecting plan will help you generate sufficient leads to reach your sales goals.

Common Prospecting Mistakes:

• Using only passive prospecting channels.

• Depending on only a single prospecting channel.

• Little time devoted to actively prospecting on a regular basis.

• No defined prospecting/action plan.

• Not keeping track of your prospecting sources and their effectiveness so you can adjust those sources accordingly.

The Right Mix for Your Prospecting Plan

By creating the right mix of prospecting activities you will:

• Increase the number of prospecting activities.

• Invest the most time with the most effective activities.

• Rotate various activities, taking the pressure off any one activity.

• Invest time to improve your skills of activities that make you uncomfortable.

• Redirect time spent on activities that yield marginal results.

Using active prospecting activities is the most important, most effective use of your time. Active prospecting activities are those that can be measured, that have results you can track and, most importantly, are ones over which you have control. Passive prospecting activities are those in which you wait for someone else to make the first move.You have little control of passive activities.

What is Active Prospecting?

Active prospecting occurs when the salesperson generates leads through his/her own activities: cold calls, direct mail campaigns with follow-up phone calls, networking, generating referrals, obtaining introductions, and creating alliance and partnering relationships.

What is Passive Prospecting?

Passive prospecting happens when the salesperson waits to receive leads from an external source: advertising, PR and marketing departments, news stories, telemarketers, promotions, trade shows, and seminars.

Referrals

Referrals are individuals whose names have been provided to a salesperson by a friend, acquaintance or client. You may know something about the referral and can mention the name of the person who referred you.

• Referrals are an ACTIVE prospecting tool.

• You can broaden your prospecting base by tapping into the contact base of those you know.

• You may feel more comfortable contacting someone who was referred to you.

• Because you have a mutual acquaintance, the referred person may be more willing to talk with you.

• Referrals can be self-perpetuating.

• You can control how many people from whom you ask for referrals, how often you ask, and if and how soon you contact the referred person.

Classes of Referrals

There are four different types of referrals:

• Cold: only name and phone number are provided.

• Cool: name, phone number, and title are provided, as well as one PAIN, budget or decision-making information.

• Introduction: individual provides name and phone number, then calls ahead to tell referred person about you, your business, and the kind of work you’ve done with him/her.

• Face-to-face introduction: same as an introduction, but individual also accompanies you to the appointment.

What you say in the initial contact with a suspect/prospect is critical

Your initial approach needs to:

• Get a prospect’s attention quickly.

• Explain what you do.

• Tell why your clients work with you.

• Discuss what PAIN they experienced prior to working with you.

• Qualify the prospect as a “fit,” based upon customer PAIN you resolve through your service or product.

• Qualify the prospect based upon his/her level of PAIN, and determine if the situation must really be corrected.

Networking

Networking occurs when you meet people in your own or other fields, formally or informally, to give and receive business leads; it can include the formation of strategic alliances.

• Networking is both an ACTIVE and a PASSIVE prospecting tool.

• Networking events enable you to meet other people, share leads, and learn who has the potential to do business with whom.

• Networking provides a chance to make cold calls in a friendly and non-threatening environment.

• Formal networking is usually associated with a specific group that meets regularly for members to get to know each other and their businesses so they will refer business to each other.

• Forming strategic alliances with sales professionals who sell non-competing or complementary products/services in your market is another way to network. Set regular meeting times and establish a process to exchange information.

The Art of Networking

Networking events can include breakfasts, lunches, dinners; occur during business or after hours; and involve such activities as joining different types of organizations and associations. By mastering the art of networking, you will build a solid network of business and personal contacts, in place and at your disposal, whenever you may need them.

To network successfully, you should:

• Set a goal for people, cards, etc., whom you will call/follow-up.

• Never try to sell anything or appear to be ready to pounce on anyone who will listen.

• Always go to networking functions prepared to give leads to others as well as get them for you.

• Focus on asking people why they are there and what business they are in before you tell them about you and your business.

• Be prepared when you have the opportunity to present your initial contact statement.

Strategic Partnering

Forming alliances with other non-competing salespeople in your market can be very beneficial. You offer each other an opportunity to be introduced to the other’s prospects/clients. You and your strategic partners will both profit from this relationship.

Strategic partners include salespeople who sell:

1. Products/services that are non-competing in your market:

• Commit formally to introduce each other to key players among your client base.

• Meet regularly to exchange information.

OR

2. Complementary products/services that enhance your product/service:

• Less formal relationship.

• If and when appropriate, introduce/recommend each other’s products/services.

What should you look for in a Strategic Partner?

When creating a strategic partnership, the partners should address several issues to ensure the relationship could work. Be aware that some attempts could fade quickly. The first step is to identify the right strategic partners so you don’t waste time.

Ask yourself these questions:

• Do both partners have the same type of prospects/clients?

• Are both partners actively prospecting for new business?

• Does each partner provide a service or product that impacts the prospect?

• Are both sales representatives in consultative positions? If the potential partner is in a retail selling position, that normally leads to decisions based predominately upon price. This will usually not be a good “fit.”

2009 will have its own challenges for us all. The key is to have a prospecting plan that you will enact, maintain and analyze. This structured approach to any marketplace is essential for success no matter what the financial climate may be.

The most important tools in marketing your company are the people representing you in your marketplace. Those most visible and usually the most important in the harvesting of your marketing efforts are your sales force. Wrong people … wrong results.

The real issue is how do we measure a prospective sales hire so we can feel we have hired the right person? Look at the criteria, work effort and skill sets that you know are necessary for success; then, manage to those criteria.

Our clients use an acronym to help them develop and drive the inspection of a new sales hire — SEARCH.

Skills – What skill sets are we looking for that directly relate to the job description?

Prospecting, phone skills, approaches used, decision maker contact, getting to the must reasons for working with a prospect, qualification, closing, and the ability to develop strong relationships quickly.

Experience – Actual experience in your market and in this position.

Has sold within the technical parameters required, background directly relates to industry; has sold at levels both in annual sales production and average per unit pricing; has been successful and understands the “Chain of Command” decision-making process of your market; is comfortable and understands the dynamic of your product sales cycle duration — multiple sales interviews versus single call closure.

Attitude – Belief in self and product benefit to clients.

Wealth orientation with desire to provide service to clients; entrepreneur versus employee mentality; sells based upon solution versus price; can sell beyond price; self and internal motivation.

Results – Has and can prove successful sales results at required volumes, pricing and consistency.

Compensation from past sales efforts directly relates to new opportunity; is a proven “Hunter – Killer” versus farmer or maintainer; can demonstrate easy navigation from the opening of a new business opportunity to closing; provides service level of deliverable and maintenance of new and established clients.

Cognitive Skills – Can learn quickly.

Ability to internalize products to market and understand the niche your product/service fills; has ability to communicate value of service and product beyond surface application; relates and projects ownership values; sells impact versus product.

Habits – Has goal and activity orientation.

Tracks new business activity and client development; creates and maintains written records directly related to goals; establishes and maintains game plan results for inspection and improvement.

The greater the candidate can validate the SEARCH criteria, the more likely you will have a successful hire!