1. © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

2. Obtaining Commitment How much emphasis should be placed on closing the sale? Why is obtaining the commitment important? When is the best time to obtain commitment? Which methods of securing commitment are appropriate for developing partnerships? 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? Some questions answered in this chapter are: 12-2 CHAPTER 11 McGraw-Hill/Irwin

3. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 12-3 McGraw-Hill/Irwin “Each step requires the customer to make a commitment of some kind as we move toward the close of the sale.” ~Juan Silvera

4. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Buyers want to buy, not be sold. Reliance on closing techniques may reduce the chance of making a sale. No commitment, no sale. Relationship commitment vs. single sale. 12-4 Obtaining Commitment Today McGraw-Hill/Irwin

5. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Part of the process –Salespeople actually gain commitment repeatedly –Important in moving the account through the relationship process The importance of securing commitment –Tells the salesperson what to do next –Defines the status of the client –Time to make a sale –Customer realization of benefits –Company good will and profit –Financial rewards for the salesperson 12-5 Obtaining Commitment Today (continued) McGraw-Hill/Irwin

6. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Financial Terms and Conditions Discounts –Quantity discounts Credit terms –Cash discounts for early payment Shipping costs –Free on board (FOB) –FOB destination –FOB shipping –FOB installed 12-6 McGraw-Hill/Irwin

7. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Presenting price –Usually discussed at the end –Price is carefully set after studying: The competitor’s offerings The value delivered by the product or service The cost of providing the product or service –Present with confidence –Not the focus of the presentation 12-7 Financial Terms and Conditions (continued) McGraw-Hill/Irwin

8. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. When to Attempt to Obtain Commitment Buyer comments –Buyer questions –Requirements –Benefit statements –Responses to trial closes Nonverbal cues –Facial expressions –Actions 12-8 McGraw-Hill/Irwin Requirements are conditions that have to be met before a purchase can take place.

9. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Maintain a positive attitude Let the customer set the pace Be assertive, not aggressive Sell the right item in the right amounts 12-9 How to Successfully Obtain Commitment McGraw-Hill/Irwin

10. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 12-10 How Aggressive, Submissive, and Assertive Salespeople Handle Sales Activities McGraw-Hill/Irwin

11. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Effective Methods The salesperson’s purpose is to sell the right product in the right amounts. The seller should sell in a fashion consistent with the way the buyer prefers to buy. Buyers need a choice. 12-11 McGraw-Hill/Irwin

12. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Direct request –Simply ask for it Benefit summary –Reminds the buyer of the agreed-on benefits of the proposal Balance sheet method –List pros and cons Probing method –Initially uses another method –Uses a series of probing questions –Consider cultural differences 12-12 Effective Methods (continued) McGraw-Hill/Irwin

13. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Alternative choice –Limit choices Other methods –Many methods tend to be ineffective with sophisticated customers –The buyer must trust the salesperson, the company, and the product 12-13 Effective Methods (continued) McGraw-Hill/Irwin

14. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Minor-point close Continuous yes close Assumptive close Standing-room only close Benefit-in-reverse close Emotional close 12-14 Some Traditional Closing Methods McGraw-Hill/Irwin

15. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. No surprises –Go over all important information Confirm the customer’s choice –Assure customers they have made an intelligent choice 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 12-15 If Commitment is Obtained McGraw-Hill/Irwin

16. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Show appreciation –Thank-you letter –Small gift –Genuine but not effusive Cultivate for future calls –How the salesperson treats the customer is the biggest determinant of future sales Review the actions to be taken –Avoid misunderstandings –Be sure the buyer gets what they were promised 12-16 If Commitment is Obtained (continued) McGraw-Hill/Irwin

17. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Some reasons for lost opportunities –Wrong attitudes –Poor presentation –Poor habits and skills Discovering the cause –Critical so that salespeople can proceed intelligently to eliminate the barriers 12-17 If Commitment is Not Obtained McGraw-Hill/Irwin

18. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. If Commitment is Not Obtained (continued) –Suggestions for dealing with rejection Maintain the proper perspective Recommend other sources Good manners are important 12-18 McGraw-Hill/Irwin

19. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Most sales take several calls to complete 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 12-19 Bringing the Interview to a Close McGraw-Hill/Irwin

20. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Commitment cannot be obtained by some magical or miraculous technique if the salesperson has failed to prepare the prospect to make this decision throughout the presentation. Commitments should result in a win-win situation for all parties. Pricing is an important element of any sale and is usually presented at the time of closing. There is no one “right” time to obtain commitment. 12-20 Summary McGraw-Hill/Irwin

21. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. To successfully obtain commitment, the salesperson needs to: –Maintain a positive attitude –Allow the customer to set the pace –Be assertive rather than aggressive –Sell the right item in the right amounts No one method of obtaining commitment works best for all buyers. If commitment was obtained, the salesperson should immediately assure the buyer that the choice was judicious. If commitment was not obtained, the salesperson should analyze the reasons. 12-21 Summary (continued) McGraw-Hill/Irwin