Selling In Tough Times

Here's some simple advice for staying on top of things.

by Brock Henderson Principal, Henderson & Associates [November 6, 2008]

Things seem to be scary in the marketplace today: banks failing, stock market acting like it's on a roller coaster, and businesses being very skittish about making purchases until some sense of normalcy returns. In times like these, are there things a salesperson can do to stay on top? Yes.

Stay Calm

First and foremost, you need to remain calm. Our free market economy is resilient and will make a comeback, and your calm demeanor, when talking to sales prospects, will put them at ease. Last week, I wrote about how your enthusiasm was contagious and will help make the sale; the same can be said for being calm. Your attitude is very important and should be used to your advantage.

In the initial encounter with the prospect, they may start bemoaning the current state of the economy, how money is tight, and a dozen other frenzied concerns. Remain calm. Resist the temptation to join the worry fest. Point out that the prospect has surely endured tough times in the past and survived, and they will make it through this as well. It might be scary now, but they will endure.

By being calm and focusing on the silver lining, you will relax your prospect and allow them to focus on you and your offering and not be distracted by the economic mayhem that they have no control over.

Businesses need internet access as much as they need air to breathe, so while they may hem and haw and pretend they don't want to buy, they need your services to survive, regardless of what the market is doing. Ten or twelve years ago, it might have been a different situation, but businesses today rely on connectivity for e-mail to and from customers, and your prospect isn't going to step back into the past. They can't afford to.

Don't Cut Your Prices

Salespeople will often panic and cut prices when pressed by the prospect. Everyone wants to get a deal, but when you start cutting your price, you are inadvertently telling the prospect, "our original pricing screws you". Do you really want to tell a prospect that?

If you cut the price of one service, it is only natural that the client will think you are willing and able to cut the price of every other service, and demand that you do so to retain their business. Now you are not only making less money on the original service sold, but everything else as well. You can't succeed like that.

Sell Value, Not Price

Price can be an issue, but it is rarely—if ever—"the" issue.

Given two seemingly identical products, people will buy the one that appears to offer the greatest value to them. Sometimes that's the least expensive item and sometimes it isn't.

Too often in sales, the salesperson focuses on features, not what those features can do for the customer. This is an especially common problem in our industry. The more expensive item may have lower operating expenses, thus saving the company money over the long haul. Present these cost savings in dollars so that the customer can fully appreciate just what your product will do for them.

I admit that there are times when you want to focus on price to make a sale, but letting price be the central figure in marketing all of your products and services is exceedingly dangerous.

When selling based on value, you are helping the customer understand what they are getting for their dollar. It's more than just the obvious product; it's everything it can do for the customer.

You can buy a Volkswagen Beetle or a Lincoln Town Car. Both will get you from one place to another, and each has value positions salespeople can sell to prospects. Understanding those value positions and communicating them to the prospect is imperative. Just because you understand a product's value doesn't mean the customer will automatically understand them. It doesn't hurt to quiz the prospect to ensure they fully understand the value of the product/service as opposed to the price.

Correct Thinking in Tough Times

• Networking is a valuable part of selling. Continue to network and build those contacts.
  
  
• Stay in touch with all your clients. At least once a month send your existing clients a note "touching base" with them to see if they are doing alright; you don't want to be surprised if a client isn't happy and switches to the competition.
  
  
• Stay in touch with all your prospects. At least once a month send your prospects a note "touching base" with them to see if they are doing alright; you never know when they might become dissatisfied with their current provider and want to move.
  
  
• Sell value. You should be doing this all the time, but if you aren't then now is the time to change your approach.
  
  
• Before a prospect buys your services they have to "buy" you. Always be calm, professional, well prepared, and above reproach.
  
  
• Testimonials sell, so always carry some copies of client testimonials to show (or even leave with) the prospect.
  
  
• Never ever over-promise. When a prospect needs a T1 installed in a week but you know that the Telco normally takes two to three weeks, don't make a promise you can't keep. Tell the prospect the truth and tell them that you will do everything you can to get the order expedited.
  
  
• If there is ever a problem let the client hear it from you first. Installation date set back … call them. Some other problem … call them. You should always be their first source for bad news, it tells them that you are trying to get things resolved and aren't hiding from the problem or them.

All of these points are things you should be doing in good times or bad, but they are even more critical to your economic success during bad times. By focusing on the basics, selling value, and keeping in touch with clients and prospects you will survive the current economic turmoil.

—End