Topics for Today’s Program ä Is your company really Selling ? ä Do you differentiate yourself and sell your added value ? ä Are you selling the right people ?
Cards you all have to play ä An understanding of the game ä An understanding of Construction ä A core group of customers ä A reputation: ä To live up to ä To live down ä Leads from some source (Suppliers, Ads, Yellow pages, word of mouth, and etc. ä A crew or crews ä Equipment and facilities
Cards everyone gets: ä A chance to make a first impression ä The benefit of the doubt. ä A choice on who to sell to. ä A choice on what to sell. ä A choice of business partners (suppliers). ä Are you really selling if you don’t carefully play these cards. ä Are you letting the customers play your cards for you in the way they want to.
What is your sales strategy? ä The question is important to understand. ä Because it determines how you play the game. ä To control: ä Requires you set the rules in order to differentiate yourself and you must sell your added value to succeed. ä To react: ä Requires you be the low cost producer forever and share the added value with someone else. ä Both strategies work but doing both doesn’t.
Two important sales elements ä Base price of the basic product – buyer always starts here. ä What you add to basic product – what the buyer actually is purchasing.
Basic observation ä Most of you spend the majority of your time controlling costs, you are obsessed with being the low cost producer. ä Most are looking for a silver bullet idea that usually revolves around costs. ä In my 26 years, by observation, I would say most business failures were striving to be low cost producers. ä Naturally confusing because cost control is how you maintain the profit projected in your sale. ä The balance: To be effective we have to wear lots of hats but only one at a time. (Comments)
Concentrating on Sales ä Sales people are a different breed ä They can concentrate on the sales process ä They don’t have the rest of the company to worry about ä Focus on customer needs ä Healthy to have customer advocate
What buyers buy ä How many of you drive a basic (no accessories) automobile ? ä If not, why not. ä Question: Could the dealer exist selling basic model cars ? ä Basic car buyers are driven by price alone, yet dealers rarely have a basic car to sell. (they all up sell and differentiate with (value add) packages.
My recent car buying experience ä Heated seats ä Color ä If we are going there, I want this on it. ä We spent more but without regrets. ä But, I did make sure the basic car was a good quality value before looking at the car.
The buying process ä People buying a tennis court first look for the value of the basic court. ä You must establish that you have a good basic price on the basic court itself. but but People buy what is different “Your Value add” “Your Value add” ä You must have your Value Add ready to sell. Most do this but do not realize it, and it is not a conscience effort on your part to sell it.
Your basic price ? ä It will get you the date but not the good night kiss. ä Is not where you will make your money. ä Most of your profit comes from up selling, changes, and other value adds after you have the trust and commitment of the buyer.
Basic Points (Summary) ä To be effective we have to wear lots of hats but only one at a time. ä People buy what is different and unique to you. ä Most of your profit comes from the value add you sell. Are you spending enough of your time organizing and presenting this value add.
Ways to add value. ä Through value of company name ä Through long term service ä Through your people ä Through your knowledge ä Through supplier support ä Through technology ä Comments (around the room)
Selling in the bid process. ä At least: Three chances to sell in bid mode ä 1) Up front through the specification ä 2) Through options and alternatives during the bid ä 3) Up selling after you have the basic bid. ä Do these things work every time? No but they will never work if not executed.
Time vs. Sales ä Key Accounts ä 10 – 20% of your account base ä 80% of you GP$ ä Receives less than 50% of your resources
Time vs. Sales ä Maintenance Accounts ä 40 – 45% of your account base ä 10 – 15% of your GP$ ä Receives 30 – 40% of your resources
Time vs. Sales ä Target Accounts (your competition’s key accounts) ä Gets very little attention
Time vs. Sales ä Why Bother? Accounts ä 30 – 40% of your account base ä Less than 5% of your GP$ ä Receives 20 – 30% of your resources ä Creates 90% of your “headaches”
Should you fire some of your customers ä If so, here’s how ä Tim ä Questions
Questions
Know your competitors ä Know your competitors weaknesses and expose them by being different. ä Know his specialties and make your niche different. ä Match yourself up to what the customer expects ASAP. ä Don’t fake it, people see through that quickly. ä Don’t knock your competitor, let his weaknesses be exposed by setting him up so they are obvious.
Proposals ä Always customize the proposal ä Give lots of detail and explain that its there so there won’t be misunderstandings ä Study his property, take pictures, it reassures the customer that you know what your doing ä USE CHOICE PROPOSALS ä If you know it will be bid, don’t be first to bid ä Never leave drawings, pictures, or other hard to duplicate information unless you have a contract
Ideal Sales Calls (at least two) ä Qualify customer before first call ä Learn as much about his reason as you can ä Study that reason ä Anticipate his biggest problem (zoning, locating the court, landscaping, etc.) and you address it first ä Bring visual ideas to first meeting ä Use technology if appropriate. ä Come prepared to close with details and custom drawing, pictures and proposal. ä Be his consultant and partner with your attitude. ä Know the closing answers like final price, extras, when you can start, etc. ä Show him your work but don’t leave work without the contract.
Why Customers Leave Poor Service 69% Product dissatisfaction 13% Better Prices 9% Other 9% Keep happy customers
Questions
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