Are you or have you ever been a salesperson? In some cases, I imagine selling is a high speed, high pressure job. I have wondered how difficult it is to spend the entire day working a crowd to sell the latest “As Seen on TV” product.

My more common perception is that most sales jobs consist of hours of boring administrative activities, working the phones with only the occasional spurt of activity. Real Estate for example involves hours spent canvassing neighborhoods alone, keeping track of what is for sale, what is not and trying to find new listings. Have you ever wondered about car salesman? They say most cars sell on the weekends. If so, what do those people do the rest of the week? Insurance, furniture, and wholesale sales; why would we think these are any different?

In those precious moments when a customer is available there must be a rush of adrenaline with each chance to generate income. The  salesman’s challenge is changing a customer that is looking into a customer that is buying.

The Road to the Sale – revised

Many companies have developed unique sales processes to achieve their goal. “The Road to the Sale” as it is known, begins with the “meet and greet.” Sandwiched in between are the steps to identify the customer’s needs and present the features and benefits of your product. Ultimately, if all goes well, the salesperson gets to “close” (sell the product) the customer.

For a few salespeople, they will turn this traditional approach on its head. With the “Fulfill Your Dreams” technique, the salesperson bypasses product presentations or a needs analysis. After a brief meet and greet the salesman tries to “close” the sale quickly.

“If I could sell you the car you want, for a price you are willing to pay, would you buy it today?”

How could you not say “yes?” Customers are not likely to take these questions too seriously. After-all, if you could have a Veyron for less than six figures you would jump at the chance, right?

By answering in the affirmative, you would be telling the salesperson you are psychologically ready and willing to buy. Only after confirming a customer is willing to buy do they proceed with the other steps in the road to the sale.

The sales person’s responsibility is now to build the perception of value in their products before talking price. The sales person will want to begin with the highest number possible, providing the greatest room to maneuver.

Fighting Back

If you don’t want to give the salesperson the advantage, you have two choices:

1) Break the close – If you think quickly and don’t mind being direct you can stop a salesperson in their tracks with a firm and direct “no thank you.” Professional sales people will revert to a more traditional approach of building rapport and then attempting a different closing process if you allow them.

2) Lead the sale – After identifying this closing technique has been used on you, take control by confirming your intent to buy. With the first mention of price laugh it off as if the price is way too high. Counter with a price that is slightly less than half of the retail price.

During a normal economy a 50% discount on anything is not likely. But for each round of negotiation move your price up in 5 – 10% increments. Challenge the salesperson to drop the price further with each effort. If you make it past the third round without getting thrown out, explain politely that you have raised your prices (3 increments of 5-10%) 15% to 30% over your opening bid. Compare verbally your increases to their decreases illustrating how you have given more in this negotiation.

Personally the second option sounds much more fun!

Readers: Have you ever dragged a salesperson through their whole pitch knowing full well you would never buy? Did you ever sit through a sales demonstration so you could earn a free gift? Leave a comment below and tell us what it was.

If you like to be challenged to see things with a fresh perspective, if you like to learn new ideas and different concepts, sign up for my RSS feed or enter your email address here to receive updates directly to your in-box.

photo by The Pug Father

---

Daily Yakezie Short Carnival

Shopping for Mattresses: How Much Would You Spend? By The Well Heeled Blog

Frugal Getaways: 5 Ways To Treat Yourself With A Frugal Vacation by Canadian Finance

How I Knocked 5 ½ Years off my Loan and Saved $12,000 by Cool to be Frugal

These posts have been chosen as the best post of the month by the bloggers who submitted them, so check them out if you are looking to add more blogs to your reading list.

Combating the Closing Techniques is a new series at Eliminate the Muda! This series explores the tactics companies and salespeople use to separate us from our cash. For background, you may want to read the post that originated this concept, Marketing or Manipulation, featured on Financial Samurai.

The title of this closing technique is extremely descriptive of the approach. A salesperson assumes that you are going to buy. The success of this technique however is dependent on the quality of its execution.

A good salesperson can read a customer and identify those that are comfortable in the environment and those that are in a defensive state. This close only works well when we are relaxed. If rapport has been established this close is approached nonchalantly and works very well if set up correctly.

The Set-Up

The “set up” is straightforward, in involves a salesperson providing all the information about the product or service up front. They try their best to provide answers to any questions before the questions are asked.

This post was featured in the Yakezie Challenge Carnival at The Life of an Insurance Salesman. Please check it out for many other great articles on personal finance.

Through the process a salesperson may take advantage of unintentional clues that you provide. If you smile when they talk about how environmentally friendly the product is, they ask “do you feel good buying products that are eco-friendly?” When you nod your head at their descriptions of their products ability to make your life easier, they may inquire “Does having more free time sound good to you?” Maybe you lean slightly forward to look at a brochure as the salesperson describes the timeless styling. She may then question if you could see yourself using the product.

Each time a salesperson strategically elicits a confirmation out of you, each time you say yes, they look upon this event as a “trial close.” The more you say yes to the smaller questions the closer they believe they are to moving you toward a commitment to purchase.

The Assumption

Once a salesperson has confirmed several positive trial closes and presented the features and benefits the assumptive close begins. It is really quite simple.

The salesperson will pull out the buyers order or sales forms and begin filling them out. Even if they already know how to spell your name they may confirm the spelling again. If you don’t stop them, another trial close is confirmed. They will continue filling out all the necessary information to complete the sale.

At the end of the form, when all data is entered, a good salesperson will simply turn the documents to you, put a big X next to the signature line and hold the pen out for you to take it. A significant portion of relaxed buyers will follow this lead, take the pen and sign the form.

Fighting Back

In any sales process there are fundamentally only two types of consumers; those that had no intention to buy and those that do.

If you had no intention to buy why are giving the salesperson the time of day? Walk away.

If you do want to buy, you also want to get the most for your money. Make the salesperson understand from the beginning that they will need to earn your business by giving them as little information as possible. A salesperson is not and never will be your friend first, be polite, be respectful but there is no need to build a relationship, this is business.

Don’t be antagonistic; a good salesperson will use defensiveness against you. Think of buying like playing a game of poker; do not give away your hand. Leave them in the dark and make let them throw all their cards on the table leaving you with the advantage. If  you don’t nod or agree to impertinent comments they have no reason to think you are ready to buy. This will cause them to keep working harder to earn your business.

Use the Assumptive Close to Your Benefit

Especially when it comes to big purchases and commonly negotiated products or services such as real estate and cars the facts and figures that go on the contract are not rigid.

You could use this close to your advantage. Give the salesman his trial closes, not and say yes and let him believe you will buy. At the end when the real close comes, pick up the form, use a clipboard or book as a writing surface and hold the document up so the salesperson cannot see it. Engage them in some idle conversation about how their company will support you after the sale or some other topic. During this idle time change the terms documented. Cross out the selling price and enter your own. Eliminate the list of fees and charges of miscellaneous processes, but don’t sign.

Express how as you look at this quote it seems a little steep, ask if there is room to drop the price a little. Your definition of little and hers may be different but that is OK, the salesperson will believe so much that you are ready to sign they will probably agree thinking they will not a few dollars off.

Then take a minute to tell the salesperson a story about how angry you get at being nickeled and dimed with extra fees. Ask them if they can understand why and if it might be possible, “in the interest of making an easy sale” to eliminate these fees. Likely their response will include a promise to talk to their manager.

At this point you turn the documents back and say. Here is my final offer, take it or leave it. The key to your success is doing your research up front. You must have knowledge of pricing and margins for the product before you walk in. If your price is unreasonable they cannot sell the product. If it is reasonable you must be prepared to walk if they won’t play.

For more, read: Combat the Closing Technique – The Puppy Dog Close
Combat the Closing Technique – The Power of Suggestion

If you like to be challenged to see things with a fresh perspective, if you like to learn new ideas and different concepts, sign up for my RSS feed or enter your email address here to receive updates directly to your in-box.

photo by chrismear