Hey, Scott from The Sales Mastermind here. Today’s edition only takes 3 minutes.
Just like everything, sales has rules.
Here are 7 Rules of Sales (in no particular order):
1. Sell what they want to buy, deliver what they need to succeed
You are an expert in solving specific problems. You know what your customers need to succeed.
Most people don’t want to buy what they need.
Great sellers create an offer that buyers want to buy.
Then deliver on the offer your buyers want to buy. AND deliver on what your buyers need to succeed.
If you can nail both, you’ll have an abundance of new customers and repeat business.
2. Qualification is about saving you time later on
Most sellers suck at qualification as they do not understand it.
The qualification step answers two ideas:
- Does this buyer have the problem/s we solve, and do they want to solve it/them?
- Do I want to invest in this buyer?
The first idea is easy, straightforward, and well-understood.
The second idea is because your time, your energy, and your focus are valuable.
For every minute you spend with a buyer, there is typically another minute of work (prep, post, or paperwork).
Take a simple 3-step sales process:
- Discovery - ½ hour call, ½ hour prep
- Demo - 1 hour call, 1 hour prep
- Quoting - 2 hours of prep
- 1 hour + 2 hours + 2 hours = 5 hours
During qualification, sellers must decide to invest at least 5 hours. That’s over half a working day. Is this buyer worth your time?
3. The customer is never wrong, but they aren’t always right
As an expert, a seller’s job is to walk the fine line between correcting your buyer and softly nudging the buyer in the right direction.
Ask questions to push the buyer to correct themselves.
As you improve with this fine line, you’ll see your close rates explode.
4. Sales is a numbers game. Get their phone number
Phone calls move conversations forward.
Yet many sellers are caving to buyers who want email. It's a low-pressure, low-risk, safe option (for the buyer). Yes, it’s easier. And yes, you will close fewer deals with a lower average revenue per deal.
It’s also a good test. If you can’t get the buyer on the phone (within reason), the problems you’re trying to solve are low priority.
Pick up the phone.
5. Design your product for the Economic Buyer
(To understand more about the buying personas see Newsletter #016 here)
Assuming you get every other stakeholder onboard, you’ll still have to convince the economic buyer.
Instead, optimize for the economic buyer as they’re the only ones who can say “Yes.”
Am I saying to ignore other stakeholders? No. Simply, do not optimize for them, as only one persona can say yes.
6. You have far more competitors than you think
Most sellers think about competition the wrong way.
Your competitors are anything your buyer could spend money on and any other way they could solve their problems.
First, win the “Why should I care” discussion. Then start the “Why should I buy from you” discussion.
7. Your most significant competitor is inaction
Just because you do it better doesn’t mean they will change. Before you came along, the problem was being solved.
I sold software to yoga studios.
My biggest competitor was “not wanting software.” There were a million reasons why they believed they didn’t need software.
Some real examples:
- I don’t own a computer
- I don’t have internet at my studio
- I don’t want my customers to book themselves
- I don’t make decisions when Mercury is in retrograde (true story)
These are, mostly, legitimate reasons not to change.
Sellers must overcome these scenarios with a product, story, and sales process so good buyers can’t ignore it.
BONUS: Not all deals are worth closing
In almost all businesses, the first sale is not profitable. Repeat purchases are where you profit.
Many “customers” are not worth doing business with.
The most challenging are often the least profitable customers.
Others are not a good fit and will stop before buying again. IE before you make money.
Choose your customers as carefully as your staff or your expenses.
Some are not worth it.
LinkedIn Posts of the Week
From Me
Buyers and sellers have misaligned incentives
From Richard Smith
Things your prospect tells you and what it really means
Let me know what you think! it to a friend
Until next week,
Scott Cowley
PS If you're ready, I have just started conducting:
Sales Tear Downs
Is your business closing some deals, but not enough? I work with many sales leaders to do a top to bottom tear down of what is working, what isn't and what to do about it. Sound interesting?
(Next opening December)
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