Stephen B. Castleberry | John F. Tanner Jr. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. CHAPTER 11 OBTAINING COMMITMENT

LEARNING OBJECTIVES How much emphasis should be placed on closing the sale? Why is obtaining commitment important? When is the best time to obtain commitment? Which methods of securing commitment are appropriate for developing partnerships? 11-2

LEARNING OBJECTIVES How should pricing be presented? What should a salesperson do when the prospect says yes? When the prospect says no? What causes difficulties in obtaining commitment, and how can these issues be overcome? 11-3

SECURING COMMITMENT Closing: Asking for the buyer’s business Traditional emphasis on getting the sale no matter what: Damages trust Insults the buyer’s intelligence Raises the possibility of losing commitment Should be the natural, logical progression of any sales call 11-4

IMPORTANCE OF SECURING COMMITMENT Tells the salesperson what to do next Defines the status of the client Failing to obtain commitment results in: Taking longer to obtain sale Affecting the requirements of the prospect Results in financial rewards for the salesperson 11-5

FINANCIAL TERMS AND CONDITIONS Discounts based on: Type of customer Quantity purchased Other factors Quantity discounts Single-order discount Cumulative discount: Transaction for a long period and offering discounts 11-6

FINANCIAL TERMS AND CONDITIONS Credit terms Cash discounts Allowed for early payment, and are the last discount taken 2/10, n/30 discount - Deducting 2 percent from the bill if paid within 10 days of invoice, otherwise paying full amount in 30 days 2/10, EOM discount - 10-day period begins at the end of the month Important in capital equipment sales Easy credit terms help salespeople close sales 11-7

FINANCIAL TERMS AND CONDITIONS Shipping costs Free on board (FOB) - The buyer assumes responsibility for both the goods and the costs of shipping them FOB destination - Buyer takes responsibility for the goods once they reach the buyer’s location, the seller pays the freight FOB installed - Title and responsibility do not transfer until the equipment is installed and operating properly 11-8

PRESENTING PRICE Set the price for buyer after studying: Competitor’s offerings Value delivered by the product or service Cost of providing the product or service Should be discussed at the end 11-9

BUYING SIGNALS Closing cues: Indications that the buyer is ready to buy Buyer questions - Signal readiness to buy if the question concerns implementing the purchase and points toward when purchase is implemented Requirements: Conditions to be satisfied before a purchase can take place Benefit statements - Reflect strong feelings in support of the purchase 11-10

BUYING SIGNALS Trial Closes: Questions regarding the prospect’s readiness to buy Nonverbal cues - Important indicators of the customer’s state of mind and are evident through: Facial expressions Actions 11-11

HOW TO SUCCESSFULLY OBTAIN COMMITMENT Maintain a positive attitude Let the customer set the pace Be assertive, not aggressive Aggressive: Control the sales interaction but fail to gain commitment Submissive: Excel as socializers but rarely try to obtain commitment Assertive: Self-confident and positive Sell the right item in the right amounts 11-12

EXHIBIT HOW AGGRESSIVE, SUBMISSIVE, AND ASSERTIVE SALESPEOPLE HANDLE SALES ACTIVITIES 11-13

EFFECTIVE METHODS Asking the buyer for commitment Direct request method Reminding the buyer of the agreed-on benefits of the proposal Benefit summary method Helping prospects who cannot make a decision, even when the reason for their behavior is not apparent Balance sheet method Using a series of probing questions to discover the reason for the hesitation Probing method 11-14

EFFECTIVE METHODS Trial offers Based on the idea that once a product taken home, one might not want to give it up Suggestions to use Set a specific time for training and make sure the user is comfortable with the product Document that the decision criteria are concrete and that the trial is needed to achieve those criteria Agree on when a decision will be made 11-15

TRADITIONAL CLOSING METHODS Minor-point closeContinuous yes closeAssumptive closeStanding-room-only closeBenefit-in-reserveEmotional close 11-16

RESPONSIBILITIES AFTER COMMITMENT IS OBTAINED No surprises Provide all the information customer will need to fully enjoy the benefits of the product or service Confirm the customer’s choice Assure customers they have made an intelligent choice Buyer’s remorse: Feeling of insecurity after important decisions, concerns regarding worth of product 11-17

RESPONSIBILITIES AFTER COMMITMENT IS OBTAINED Get the signature Make the actual signing an easy, routine procedure Fill out the order blank accurately and promptly Be careful not to exhibit any excess eagerness or excitement at signing time Show appreciation Write a letter or give a small gift and thank genuinely 11-18

RESPONSIBILITIES AFTER COMMITMENT IS OBTAINED Cultivate for future calls Follow-up: What a salesperson does after achieving commitment Deliver the product and set up as promised Review the actions to be taken Review what each party has agreed to do Be considerate of all the parties involved Avoid misunderstandings and ensure that buyer gets what was promised 11-19

WHEN COMMITMENT IS NOT OBTAINED Identify reasons for lost opportunities Wrong attitudes Poor presentation Poor habits and skills Discover the cause Real reasons for not obtaining commitment must be uncovered 11-20

SUGGESTIONS FOR DEALING WITH REJECTION Maintain proper perspectiveRecommend other sourcesGood manners are important 11-21

BRINGING THE INTERVIEW TO A CLOSE Leave with a clear plan for all parties Review what you will do next What the customer will do next When you will meet again Follow-up promptly with a thank-you and reminder note 11-22