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Another sales situation...

by kemdev
15 replies
A little background info first - I met this gentleman last week after calling his used car lot cold. I went into the meeting, discussed his needs for about 30 minutes, and came to the conclusion that he needed both a new website and a Google Places listing, along with some starting links to get some traction to his website. He also had two other providers he was looking into - one of which he's been working with for a little over a year.

After talking with him, he decided to set up another meeting for today (couple hours ago) so I could look over his current website, suggest improvements, and call both of his other web design options (much larger companies than I) to figure out if they would be worth what he is paying.

Right away, I can tell you this guy values and trusts my opinion - both from what he's told me and what he's told others (ie. other workers in the shop) about me. Not only did he have me come in to give my expert opinion, he gladly paid me my hourly rate to do so.

After spending roughly two hours looking over all of his options, I came to the conclusion that I'm the best man for the job. The one provider he was leaning towards offered a simple HTML site with iframes, his other provider offered about zero options as far as true customization goes (title tags, featured inventory, landing pages, etc...)

So I give him my recommendation, talk it over with his son, and go over a few more details as far as time frames, goals, and expectations go. Price we had already discussed and wasn't an issue.

It comes time to ask for the sale - and I do. Almost 2K I asked for, up front, to start working on the project. But here's the problem... they are moving location within the month, and their inventory will cost them quite a bit to move. This is the issue I ran into, and the reason why, as he explained, he couldn't come up with the up front fee today.

Even so, he assured me I had his business and he was going to use my services.

I tried to work with him and offered to take 50% today, but he wasn't budging. So I walked out with a check for two hours of my hourly rate.

Some of you may have read my last post where I ran into similar situations. So I'm wondering... am I making the same mistakes? I seem to keep running into this roadblock with my sales recently and I have to admit it's becoming quite frustrating. Why can I do to counter this in the future... and more specifically, what can I do in THIS situation to save the sale and walk out with a check by next week?
#sales #situation
  • Profile picture of the author Claude Whitacre
    Originally Posted by kemdev View Post

    Even so, he assured me I had his business and he was going to use my services.

    I tried to work with him and offered to take 50% today, but he wasn't budging. So I walked out with a check for two hours of my hourly rate.

    Some of you may have read my last post where I ran into similar situations. So I'm wondering... am I making the same mistakes? I seem to keep running into this roadblock with my sales recently and I have to admit it's becoming quite frustrating. Why can I do to counter this in the future... and more specifically, what can I do in THIS situation to save the sale and walk out with a check by next week?
    The roadblock was that you didn't convince him that he really needed to get started with this. Yes, you are making the same mistakes. There was never a desire for the new website. He didn't have a "Want" for it. It's your job to create that "Want".

    There is no sale to save. After you left, that's the last time this guy gave it a thought. Call him in a week to convince yourself. Offer to do the work for half price, if he just gives you the OK. You'll see. He will always have a reason that now isn't the right time. Always.

    Part of qualifying in the beginning is getting them to tell you how valuable your service would be. Jason Kanigan has a WSO that covers all of that. It's $77 (I think). Buy it, and then you won't have this happen again.


    If I hear another "salesperson" say "He assured me I had his business and he was going to use my services." one..... more.... time........my head will explode.
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    • Profile picture of the author kemdev
      Originally Posted by Claude Whitacre View Post

      The roadblock was that you didn't convince him that he really needed to get started with this. Yes, you are making the same mistakes. There was never a desire for the new website. He didn't have a "Want" for it. It's your job to create that "Want".

      There is no sale to save. After you left, that's the last time this guy gave it a thought. Call him in a week to convince yourself. Offer to do the work for half price, if he just gives you the OK. You'll see. He will always have a reason that now isn't the right time. Always.

      Part of qualifying in the beginning is getting them to tell you how valuable your service would be. Jason Kanigan has a WSO that covers all of that. It's $77 (I think). Buy it, and then you won't have this happen again.


      If I hear another "salesperson" say "He assured me I had his business and he was going to use my services." one..... more.... time........my head will explode.
      I know the want is there, as well as the need. And that's not speculation, it's because he said it at least 10 times while we were talking today.

      Now that I think about it, I didn't convey that value in real dollars to him. I think that's in part because he had already conveyed a 'need' for the services and I thought for the most part he was sold. Clearly, assumptions aren't the best in sales LOL.

      I respect what you're saying Claude, but I think this sale can be saved. And I don't think I necessarily lost it. What would you suggest I say next time I call?
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      • Profile picture of the author tryinhere
        Originally Posted by kemdev View Post

        I respect what you're saying Claude, but I think this sale can be saved. And I don't think I necessarily lost it. What would you suggest I say next time I call?
        It will be rare the sale will be saved as mentioned, best move on and work more on qualifying the prospect early.

        "That all sounds great Bob, Tell me if we were able to work things out that we were both happy with is there any reason why we can not get started today"

        not word for word but along those lines, start to find out if there are any hidden nasties, and even then people will still lie and talk crap it can not be overcome some times no matter how good you get.


        so early before you give all your cards and quotes out

        "That all sounds great Bob, Tell me if we were able to work things out that we were both happy with is there any reason why we can not get started today"

        "we are shifting this month and may be tied up for funds"

        "OK I understand bob, given that you might be tied up for a while I will reschedule say 1 month from now when your settled and I can spend some time with you at that point to discuss your needs how does that sound"

        Again words not right but take the idea, you just got shopped for information and quotes so unless you change what your doing you will just keep getting shopped.
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      • Profile picture of the author Claude Whitacre
        Originally Posted by kemdev View Post

        I know the want is there, as well as the need. And that's not speculation, it's because he said it at least 10 times while we were talking today.

        Now that I think about it, I didn't convey that value in real dollars to him. I think that's in part because he had already conveyed a 'need' for the services and I thought for the most part he was sold. Clearly, assumptions aren't the best in sales LOL.

        I respect what you're saying Claude, but I think this sale can be saved. And I don't think I necessarily lost it. What would you suggest I say next time I call?
        Kemdev;7339323: I would do what Aaron suggests. Offer monthly payments for a year, with no interest, as long as he signs while you are there. (If he's local, just stop by). Give him a reason. Tell him you want to get referrals from him, but you can't until the work is done.

        If there is even a spark of interest, he'll jump at it.
        But after you invest this energy, don't lose the lesson here. After he says "No, I'd rather just pay it all at one time. I have your number. But I swear to almighty God, that I'll call you".......you'll know that these are not deals when they don't give you the money up front.

        Why?
        Because desire for what you offer never increases after you leave. It always...ALWAYS decreases.

        That's why they don't buy later. Seriously, I wish you luck. And I hope, this time, that I'm wrong.
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  • Profile picture of the author Aaron Doud
    If you are sure on the sale then the key is to qualify his objection.

    If his objection is really about cash flow why not split the payments up at an increased cost. Say 1/11th of the cost of over 12 months so you get paid 109% of your fee in the end. Simply for him to understand and if you trust him you should be ok.

    If he can't afford $180/mo there is clearly another issue.
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  • Profile picture of the author Josh T.
    kemdev, it might be a good idea to read Claude's story about 5 cents a month (located in the "crazy stuff you did to close deals" thread).

    Other than that, both of these guys are echoing my exact experiences when dealing with 'procrastinators'. You've given up position at this point, so coming back will be a challenge and overcoming that objection with a secondary offer will be hard.

    The way to avoid this happening in the future and getting the so-called 'same result', is to recognize when it's happening before it happens. Catch the signs early, and head them off.

    There's a 5 step process I use to a consultative sale like this.

    1. Intro
    2. Probing questions
    3. Transition
    4. Pitch
    5. Close

    You gather important information during probing that tells you whether or not there's enough desire to move on and pitch your product. The close is quick, because you have moved them through the process and qualified them every step of the way.

    The price objection is almost always b.s. period. But, that's been covered fairly well by the other two posters. As far as advice on avoiding this situation again, the simple answer is to prepare a response that puts your prospect to some sort of action. I find ridiculous offers to be a way to maintain my value better than lowering price.

    For instance, I'd rather get a commitment for $1 than cut my price in half. It's a bold move, but getting a signed agreement and a check (even for $1) is a way to move the process forward and get them in the habit of paying you as well as committing to you. Cutting your quote in half just means you were overcharging to begin with.

    Ask Claude. If you can't get a small commitment out of them, there's no commitment to be had. I put this very method into practice for a potentially "huge" client and it saved me months of stress and eventual heart ache.
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  • Profile picture of the author Tsnyder
    The customer says he's moving within the month and has
    cash flow issues due to that. I've been a professional salesperson
    for many decades... not everyone is bullshitting you.

    If the guy strikes you as sincere here's what I'd do....

    First, don't do anything you may regret like offering some
    silly price to test him... you may end up doing the work for
    a lot less than you deserve... or, more likely, you lose the guy's
    trust because he thinks you were trying to rip him the first
    time.

    I'd stay in touch with the guy... you sent him a thank you note, right?

    I wouldn't bug him about the sale... I'd stop by just to ask how everything
    is going... make small talk if they have the time... leave the sales pitch in
    the car...

    Or... I might even get crazy and test his intent by telling him I'll go
    ahead and get started on the design so he can hit the ground running
    once he's in the new location... then I'd watch his reaction/response
    very closely and decide his level of sincerity.

    You've put the bait out there... he's nibbling around the hook. If you
    want him to bite so you can reel him in be patient. Every customer is
    not a first call close no matter who you are or how good you think you
    are.
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  • Profile picture of the author hayfj2
    Originally Posted by kemdev View Post

    Right away, I can tell you this guy values and trusts my opinion....

    So I give him my recommendation....

    It comes time to ask for the sale....But here's the problem... they are moving location within the month...So I'm wondering... am I making the same mistakes? I seem to keep running into this roadblock with my sales recently and I have to admit it's becoming quite frustrating. Why can I do to counter this in the future... and more specifically, what can I do in THIS situation to save the sale and walk out with a check by next week?
    Of course he loves you - you're telling what he WANTS and NEEDS to know without him having to pay top whack for it.

    All prospects have pain NOW they want to fix

    Ask questions, to find out what it is. Quantify the cost/impact.

    All prospects have pain in the PAST they don't want to repeat

    Ask questions, to find out what it is. Quantify the cost/impact.

    All prospects have pain in the FUTURE they want to avoid

    Ask questions, to find out what it is. Quantify the cost/impact.

    Based on what you've told me, it appears you didn't spend enough time on identifying and confirming his "pain" and the impact/cost of it.

    If your SOLUTION costs less than their PAIN, you're half way to a home run without
    even having to pick up the bat.

    It appears you were too keen to share what you know/knew instead of spending longer on his "pain" and how you could allay his fears without giving away your "crown jewels".

    It appears you may have been to focussed on a BENEFIT based sale

    I maybe a cynic, but now he knows WHAT he needs to do, and youve given him a price so he may just used that to shop around.

    Paying you for 2hrs of your time and you really happy to tell what he needs to do seems like in future you might want to change your m.o.

    Demonstrate your expertise not by telling them waht to do, or giving them the benefits, but by ASKING good awkward relevant questions that highlight their pain and get them confirming they have a need.

    They will then ask you for a solution. Dont tell them what the solution is
    until after youve confirmed their need, they have the budget and they are the decision maker.

    e.g. What's is he going to do once he settles in the new location, and can't get people to find him?

    How much is going to cost him in total to do the "Move"?

    He'll want to make sure he gets the right ROI from it and that he'll get business in the new location, what promotion etc online has he done already? What will happen if he doesnt? etc etc

    Rule #1 - Dont tell them anything UNTIL AFTER youve confirmed their PAIN, the budget and that you're talking to the decision maker.

    They can have the desire, but if you havent re-affirmed what will happen if the dont sign (pain that they share with you), that they have the budget, and they can sign off on the payment, you aint gonnae walk out with a cheque. (but I may be wrong)

    Hope that makes sense (and helps)

    Regards


    Fraser
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    • Profile picture of the author Norbi
      To everyone saying that Kev needs a commitment, that he doesn't have a sale, etc..

      So I walked out with a check for two hours of my hourly rate.
      The business owner has already show commitment, albeit a small one, a commitment none the less, and not a discounted rate but at the normal rate.

      This is why I will lean with Tsnyder on this one. If the owner is moving within a month, there are certainly a lot of uncertainties. As a business owner during such a time, reserve capital is important in the case of unforeseen. This may just be one of those cases where literally the timing is bad.

      The only steps I would do at this point is try one more soft close and follow it up with strong rapport and a proper outline.

      If you are willing to take a risk because the long term value is worth it, then you could try something like deferred payment on a contract like others said. If you are not willing to take a risk the close I would try one last time is painting the pain of the lost customers because of the move.

      'Mr. Prospect, I understand your current situation. However, the services I am offering will help you prevent customers from thinking you closed your business or can't find you. After a move, it is the most important time that people be able to find because you need the most traction to get started right away.'

      If he doesn't close on that try, then at least establish a proper outline for the steps to come; when you will follow up, when you can expect him to sign a check, etc.
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  • Profile picture of the author Claude Whitacre
    Originally Posted by kemdev View Post

    So I walked out with a check for two hours of my hourly rate.
    Do you know what that is? Payment for guilt. Severence pay. The decision was made. To the "prospect" the deal is over.

    I may be wrong. But human behavior is very predictive.

    When you drive a girl home, and she leans over and kisses you on the cheek, it doesn't mean "This is a taste of things to come."

    It means "There. Now we're even".

    The 2 hour payment was a kiss on the cheek.

    The OP will call the prospect once more...just because there is a flicker of hope. But the deal is done.

    I would love to be wrong on this. Nothing would make me happier.
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    • Profile picture of the author Tsnyder
      Originally Posted by Claude Whitacre View Post

      Do you know what that is? Payment for guilt. Severence pay. The decision was made. To the "prospect" the deal is over.

      I may be wrong. But human behavior is very predictive.

      When you drive a girl home, and she leans over and kisses you on the cheek, it doesn't mean "This is a taste of things to come."

      It means "There. Now we're even".

      The 2 hour payment was a kiss on the cheek.

      The OP will call the prospect once more...just because there is a flicker of hope. But the deal is done.

      I would love to be wrong on this. Nothing would make me happier.
      You could very well be right... but experience has shown me that
      you could also very well be wrong. I'm tenacious at follow up... I've
      reeled a lot of them in that wouldn't hook the first time out.

      I think the variable here is the fact that the prospect is moving his
      entire business within the next month. I've done that. The last thing
      I wanted to deal with during the process is advertising salespeople.
      I think the 2 hour payment was a positive sign. He mentioned that
      the guy is a used car dealer. Let me know the next time you're able to
      shame a used car dealer into anything... lol

      And if he calls the guy on the phone as his next contact he doesn't deserve the deal!!

      My 2 cents and worth every penny... lol
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  • Profile picture of the author Jason Kanigan
    Sounds like you got paid 2 hours for applying your expertise to his situation.

    Send him a note or give him a call. Ask him to confirm the day of the move. Then ask, "So when do you think you'll have everything back on its feet, and be ready to implement these things we've talked about?"

    The answer he gives you may be BS; it may not be. Doesn't matter.

    "OK, Mr. Prospect. I don't want to be like the kid in the back seat of the car on a long trip, constantly asking, 'Are we there yet?' So here's what we'll do. I'll leave you alone and you'll complete your move. On (second date he gave you), I'll give you a call...or you can let me know you're ready...and we'll look at it then. Sound fair?"

    Of course it will. Calendar the call.

    Then you do not chase, you do not THINK of this prospect until that date.

    Make the call. You don't care whether you get this project or not.

    If he doesn't answer that first time, make three attempts to get ahold of him. That's it.

    On your third message, if it goes that far, you say, "Mr. Prospect, it's been a little while since you asked me to talk to you about our project. We haven't been able to connect, so I have to assume there are two possibilities here: either you're too busy, or you're not interested. If it's the second option, can you send me a quick email with the number 2 in the subject line, and that's it? Otherwise, can you let me know a time that you won't be so busy so we can talk?"

    Don't let him brush you off if he does talk to you before having to leave that message. "Oh, we need a few more weeks." Nail it down if that happens. "Sure. So can you share with me...what will have changed by that time?" BS answer = you drop it and never look back. If the guy shows up out of the woodwork later on, great; but you are not going to chase. You have better prospects to go talk to.

    See the process here? We don't chase. Either this guy wants to talk to you or you let him go and don't look back.
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    • Profile picture of the author payoman
      I related almost too well with the OP's post. The exact same thing has happened way too often recently, and its been grinding on my nerves.

      I am really growing to dislike 'enthusiastic' prospects. The ones that really go on about how 'they know they need to do something online' or 'they need a good website' etc etc

      Then you ask them to make a commiment, to make a deposit, to do SOMETHING. Then it's this and that excuse.

      I think the enthusiasm is just a venting of frustration of how business is slow or bad, and how they are 'hoping' for a solution, but are too scared to put money down to try something new.

      Anyway, this post has just been a bit of a rant, so I'll just finish by saying I feel the OP's pain and look forward to reading the solutions others have found.
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      • Profile picture of the author Jason Kanigan
        OK, next time you find yourself in this situation, Be Tough!

        Nurturingly: "Wait a second..." (scratch your head Colombo-style) "a few minutes ago, you yourself said you badly needed a good website. But now you seem to be saying it's not that important. Can you explain? I don't understand." And then don't say another word. This uncomfortableness is good. It's GREAT. You're getting somewhere.

        Don't let them off the hook.

        Just sit there and look at them pleasantly until they speak. This can go on for minutes. You have nothing to lose. If they were fishing for free information, and aren't your target, let 'em go. Wave. Find out sooner rather than later.

        There are value equations going on in their head. Things they aren't consciously aware of. You are knocking some of these around and forcing them to confront them, and find out what they really want. It's easy to say the platitudes, "Oh, yes, I need that." It's harder to make a decision.

        Originally Posted by payoman View Post

        I related almost too well with the OP's post. The exact same thing has happened way too often recently, and its been grinding on my nerves.

        I am really growing to dislike 'enthusiastic' prospects. The ones that really go on about how 'they know they need to do something online' or 'they need a good website' etc etc

        Then you ask them to make a commiment, to make a deposit, to do SOMETHING. Then it's this and that excuse.

        I think the enthusiasm is just a venting of frustration of how business is slow or bad, and how they are 'hoping' for a solution, but are too scared to put money down to try something new.

        Anyway, this post has just been a bit of a rant, so I'll just finish by saying I feel the OP's pain and look forward to reading the solutions others have found.
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      • Profile picture of the author Claude Whitacre
        Originally Posted by payoman View Post

        I am really growing to dislike 'enthusiastic' prospects. The ones that really go on about how 'they know they need to do something online' or 'they need a good website' etc etc

        Then you ask them to make a commiment, to make a deposit, to do SOMETHING. Then it's this and that excuse.

        I think the enthusiasm is just a venting of frustration of how business is slow or bad, and how they are 'hoping' for a solution, but are too scared to put money down to try something new.
        First, congratulations on your discovery. Most salespeople never make it that far. Overly enthusiastic prospects are often enthusiastic about talking about their problems. They are enthusiastic about discussing solutions. But they feel that talking about solutions is doing something.

        I've had hundreds of prospects say to me "Wow! You can bet, the next one we buy will be this one!" They imagine, that somehow, this is making you happy and making you like them more. It's their way to be friendly, be social. They have nothing to lose, because buying is never part of their thought process.

        It's a defense.

        There people are sometimes difficult to spot until you are far into your presentation.
        I say something like "I see you are enthusiastic about what we are talking about. If we find exactly what you want, can we wrap it up today?"
        They will immediately say something like "Oh, no....but I mean it when I say it..when we are ready...you're the guy!". And you are done.

        Or, the just may surprise you. The earlier you see a pattern like this, and test the waters, the better.

        If you miss the mark, and you get this at the end, use what Kanigan says. It's good advice.
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