Statements are NOT Questions. Don't Answer Them

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The STORY:
After making the best possible presentation and after spending most of the night before preparing an extensive written proposal, Tim waited with bated breath for the prospect to say "yes." The silence in the office was broken only by the prospect leafing through the written proposal. Tim was tied in knots.

"Well," said the prospect looking up with a smile, "you have given me the best presentation that I ever had."

Tim wanted to relax, but he knew something was coming. The last objection! Get ready! Here it comes!

The prospect leaned back in her chair, looked Tim in the face and stated, "Your price is too high."

Tim was ready. Before the prospect could utter another word, the words came out, "I really want to make this happen; I'll take off 10% if you sign today."

"That's really nice," said the prospect leaning over the paperwork, pen in hand. As she signed, she went on, "You know, I would have paid full price because your product is exactly what I need. Thanks for the discount."

The RESULT:
Well, Tim is going to get his commission, but it's going to be 10% less than what he had earned. Tim chose to earn less because he assumed the prospect was objecting to the price. The price was not an objection. The prospect made a statement. What do you think would have happened if Tim had responded to the statement about the price with, "The price is too high, which means . . . ?"

Tim would have heard that the product was exactly what was needed and worth the price. And, Tim would have taken another 10% to the bank.

DISCUSSION:
It is absolutely amazing how many statements a prospect makes that a salesperson will automatically assume are questions and/or objections. In our story, "Your price is too high," is a statement. It is NOT a question. The salesperson does not have to answer it.

If you want to see just how easy it is to manipulate a salesperson, go into any car dealership, get a price on a car and then state, "Your price is too high." Nine times out of ten, assuming that you just stare and do absolutely nothing else, the salesperson will automatically start redoing the numbers to get you a lower price or ask you how much you want to spend.

APPROACH:
When a prospect makes a statement, you have to decide one of two things. Are you going to take what he said and ask "Which means?", or, are you going to just sit and wait until a question is asked. Either approach is okay.

THOUGHT:
Statements do not require answers. If you want to know why a statement was made, ask the prospect a question.

Courtesy of Sandler Training

Comments

0 #10 2009-09-26 06:22

Richard,
Can you offer any tips on how to better read prospects?
Thanks

0 #9 2009-09-26 05:43

it takes time to go from customer to client. the majority of customers don\'t \"make the cut\" in a manner of speaking.

I treat everyone \"customer\" with respect and give my best price right up front. No negotiating. There\'s a sale or I move on. Yet, I\'ll do all I can other than negotiate my price to try and make the sale and eventually turn the customer into a client.

Here\'s a tip: if you negotiate with a customer on price then three things happen. 1. You always will negotiate wtih the customer on every deal on every price. 2. The customer will NEVER be a client. 3. The customer will ALWAYS buy from the lowest cost provider.

0 #8 2009-09-25 16:02

Tim Isn\'t going to loose 10% of his commission. HE IS GOING TO LOOSE 25% - 50%!!! Just look at the figures. If, for example, the order total was $1000 on a \"C\". His profit if he owns the company is $400. A 10% discount on the order of $1000 is $100 which is 25% of the profit!!! If he is a commissioned salesperson with a 50/50 split, his commission would be $200 of which he just gave away $100 or 50%!!!!! Don\'t price cut! The percentages lost in profit/commission are far greater than the percentage cut!!!

0 #7 2009-09-25 11:24

Problems can occur whether working with customers or suppliers. Distributors need to remain professional and set boundaries with both, and when necessary take appropriate action.
Distributors want clients who offer repeat business and referrals, rather than collect a list of customers that place one-time orders. Likewise, distributors need to have relationships with suppliers who treat them like clients rather than customers. In those scenarios, less time is wasted, orders are fulfilled correctly and on time, and frustration is greatly reduced. Quality customer service always trumps price when it comes to customer retention; whether you are the distributor or the supplier.

0 #6 2009-09-25 09:51

Only in our industry I say. You can\'t go to your dentist and say your price is to high I refuse to pay xx amount of dollars to get my teeth cleaned. Why is it that people will bend over backwards to pay some lawyers outrageous fees and other are barely scrapping by. I\'ll tell you because people know the lawyers that charge outrageous fees are the best at what they do. Just like in our industry, if you are providing your clients with great products and great service, price will never be an issue. Now we will all have those tire kickers that\'s from time to time it\'s inevitable.

0 #5 2009-09-25 09:27

Several years ago, I worked on an embedded project with a customer. I supplied a preproduction sample which was approved by my client and the project went into production. Once delivered, the product was NOT anywhere near the prepro sample and I lost the job to a competitor and eventually lost my client. Supplier assured me I would be reimbursed for the entire project and I waited 7 months for the check. I recently placed an order for POP plastic shelves which arrived broken in the box. So I thought this could happen to anyone. So I reordered them for my client several times and always had a problem. Something was fishy and I did some checking and found out it was the same supplier that did the embeddments but had changed company name! So, besides losing clients to a LOWBALL company, we can lose clients from Hidden Bad suppliers.

0 #4 2009-09-25 07:57

Prospects have used and abused our company in the past. We once worked on a comprehensive project investing hours of time, being creative and coming up with great items that met the customers needs. In the end, they bought the stuff on line. This is very frustrating and it\'s happen a few times over the years.

I\'ve learned now to try to better \"read\" these prospects. I don\'t just give away my time assuming I will get the business. Hopefully others can learn from this story.

This Statements are Not Questions article is brilliant! I\'m going to have all my sales people read it. These days, everyone is so scared to lose business, we lose sight of our good business sense.

Thank you for presenting such relevant information. This was an excellent PromoTip!!!

0 #3 2009-09-24 22:44

I hate when this stuff happens. This has happened to us several times and when it blows up on the loser \"former\" customer it\'s great. We\'ve done research for people and then they go on line for a cheaper price. I wish these people well! Loyal clients who appreciate what we do are a blessing.

0 #2 2009-09-24 21:41

Responding the Lowball business story, I\'ve had people play me against others MANY times. Sometimes you can\'t control what customers do. (I loved your why you want clients and not customers article!)

What I have learned through the years is to shake the dust off your feet and move on to more productive business. It hurts to get burned.