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Proven And Tested Tips For Aspiring Salespersons
Sean: Talking about pre-qualification. There are still those potential clients that slip through. They just slipped through your process. They might be the wrong client and you find yourself being low-balled. Like they want your stuff. They like you, they want to buy, but they’re telling you that they just can’t make the cut with your pricing.
And they’re asking you if you could lower it down for them, what would be David, and I’m asking you, what will be your negotiation tactics? How do you negotiate?
David: So I think a lot of things depend on products. There’s two mindsets there. If you are selling a car. And you’ve got a $20,000 car. You bought it for 20,000.
You’re selling it for 25 and you sell a lot of cars if they come in at 24,000, that’s 24, that’s still 4,000 profit. Right? So there’s a mindset that that works, but in most service industries, I don’t believe in it. Because actually you can take that car and another car on your lot and turn that into more money.
I value my product. Now I do offers. It’s a marketing technique. I don’t lie about that. That’s true. Like I’m cool with, I’ve got people out there that have paid 25,000 pounds to have my service. And do you know what they got great from it? Because they’ve got a huge amount of people and it’s help them advise do better, but they would have rather paid 8 grand, but that’s what happens.
We’ve all brought over and it was X amount produced that, and we are well happy. So I’m going to help them and pay full price, they would not walk in and call you for it. That’s just life. You have to know the value of your product. When we’re talking about the exchange on a purchase, think about something you buy. Think about this. Imagine this car for 30,000, you want the car, you like the car, you have the money for the car, but you only see 30,000 pounds in your bank.
So there’s a choice here. Keep the 30,000 pound in my bank and I’ve got 30,000 or exchange it for a 30,000 pound car that I like, and the problem being here, you know, as soon as you pick that car up, you’re not gonna be able to sell it for 30,000. You’ll sell it for say 28 to say, if I buy a car from you at 30,000 today and I can sell it on to 28,000 pounds tomorrow.
Well, I’m actually exchanging 30,000 pounds for 28,000. So the value has to be so high that it makes it worth, exchanging the money for less. Does that make sense? A lot of people see buying a 30,000 pound car, I got 30,000 and I’ll pay you 30,000 for it.
Look at it another way. I’m going to buy – do you know an AC Cobra, the AC Cobra made in the States, cool kit. And I sort of, I, I love these cars. So if you’re going to buy that 30,000, that’s a bargain because the value is likely to increase. And then the temptation to buy is more, cause I’m still going to get to drive it. I love the car. I want the car, and the potential to make money is there.
So that’s more appealing to buy that car because you are probably potentially making more and you love it more. So the value is there, if you’re going to swap it for something that you’re going to vanish that way. It’s pointless. So my point being, when we’re talking to people, I’m going to try to do it.
Some people just like to try and haggle on the price. That’s what we like to do. Some people you can just laugh it off. “Really?” You can read. I say that really. Okay. Anyway, I had this guy before he was all. “Can I pay 50?” No, I’m not gonna even think about it. “Oh, well I can’t afford it” what kind of – I just can’t help that. But if you can’t afford, if you’re telling me this is a price and you want to pay here, and I don’t like it, I’m in a position where that’s fine with me, but that’s because I don’t need the business.
I value every person that wants to start with me. But I have a pipeline that is thick enough, so I don’t need the business. If you are worried about whether you should take the business or lower your price, because your pipeline isn’t thick enough, you don’t have enough people out there that want to work with you.
So it’s not a price problem. It’s a prospect problem. Because you’ve mentioned now, if you’ve got someone on the phone right now and they’re like, “Can I have this for X” and you’re like, “Ohhh.” If you go someone else lined up that you can talk to you straight away – “farewell, have a think about it. Come back to me. Let me know.”
I’m just going to call it just to let you know, he was trying to low ball me on this, but I know that the value is there. Let’s have a chat. Now you can then follow up with that person. Do I want people to, do I teach people to train them for that quid. No, of course not. So if your pipeline is fat, you can have follow-up systems where you don’t need to worry about that, or you go into it and you practice out that. And this is what I do to a lot of people.
If you will go in for the price and they’re freaking out, mostly because they don’t see the value or they’re just being a chance. So you need to re-identify just because it looks like a cat doesn’t mean it’s a cat in sales. You look at a normal cat in real life. It’s a cat.
But because it looks like a prospect doesn’t mean they are. People walk in Bentley car dealers everyday, but only few can buy. It doesn’t even mean they can’t afford it. They can get finance for it. It doesn’t mean they could afford the payments, or it doesn’t mean that their wife would let them, or a husband would let her, or it could be the fact that they want to get a two-seater sports car, but they’ve got kids.
So it’s impractical and they’re never going to buy a sports car as the second car does not have enough space, you know what I’m saying. So a prospect isn’t always a prospect, just because you can afford something. I can afford a Ferrari, and I want some Ferrari, but I live in a densely populated city where I’ve already got one parking space. I’ve got kids very hard for me to go and buy a Ferrari because I need a family car too – you know what I’m saying? And that is by not asking the right questions at the start.
Well, some questions to find out if a prospect and they are, but it’s also a massive hurdle. It’s very, you struggled to come up with, unless you’re going to find them another parking space. If you were smart with this and you asked great questions, and you said your vision, “where would you park this?” “I didn’t even think about that, I have no idea.”
“Why? Well, what do you mean?”
“Well, I live here, and I already got one space blah blah.”
“If I can find you somewhere to keep the Ferrari within half a mile of your house, you’re not going to drive it everyday”
Right now. Great. You have to find somewhere and you go in there by foot. You know what I’m saying? That’s thinking outside the box, that’s identifying the problem. Because they wanted to drive. They have the money for the car. They want the Ferrari, they love the idea of the Ferrari. But not at the expense of not taking their kids to school.
Sean: Yep. Yep. Makes sense.
David: So it’s having these strategies. So when people talk about value, we have to go through – we identify with, ‘is this prospect actually a prospect that we can close in the current state where they need and what we can deliver on?’ If all of these boxes are checked and I am just sitting on this bed because they don’t even know you well enough, they don’t like you enough, or they don’t trust you or something else is going on, they haven’t done it.
So the best thing to do is go through a series and steps, which you can go through to isolate each objection. And imagine that you’re, you’re trying to herd sheep down a corridor with loads of balls. You’re ahead of the sheep. And you literally shut one door. If you shut that door, it stops in going through it. So one door in a sale will be interesting. Okay. Listen, before we go any further, what I want to do is I’ve gone down this road before and it’s turned out actually, this wasn’t a good fit.
“Let me ask you. I have 10. How interested are you in the product?”
” Oh, demo, an eight, okay, cool.”
“What would take you to get to a nine?”
“It would take, blah, blah, blah.”
Cool. now we know where you are. Okay, cool.
“So how will this get implemented in your business? What would be the main problems if you did this in the business?”
“Oh none, I love it.”
Okay, great now we move to the last one, cool.
“Now you said you’re the only person who makes the decision. Is there anyone else out there we need to consult? So if you decided right now, you’re going to do this. You want it to fly? Literally. Here’s the pen and get started. Is there anyone you need to call before the pack trunks before it happens?”
“Actually, I need to speak to the finance director.”
“Okay. Cool, it’s great. Really clear, what does he know about this?
“Oh, he knows about it.”
“Okay. Have you spoken about getting started?”
“Has he signed off on it?”
“Well, he said he’s going to, but he hasn’t yet. He’s away because he’s got…”
Now we’re here, now we put a ring around now we go, no, you don’t handle this now. Now we go through all our other sections. So we’ve gone through money, insurance, prospecting, the delivery, the distance, on how you sell your product are what you’ve got.
Now you’ve got everything. Now we know it’s just the finance code. Cool. So then you recap.
“Okay, so we’ve covered this. We’re good at that, right? Yeah. Yep. Yeah. Yeah.”
Now, you know, all you need to do is talk to the finance director. Now this is your own fault because you should have pre-qualified them properly on this anyway.
Right. This is a pre-call problem, but now we’re in the sale. We have to address it. We have to fix it. You also need to put a little note In your head, change our question, change our pre-call to make sure this happens never again. Or if it does have a third, then you just handle that. So that means you need to deal , get them in on the call with you whatever it is.
Sean: That’s awesome. That’s so much information that we can just use for low ball. Now, I wanna, I want to stem from that question though, because there are people who realize it’s just not a good client or a good customer, or they’re not going to be a good fit. Have you ever walked away from a lucrative or potentially lucrative sales deal?
Because you felt like that, like this is not going to be a good client.
David: Depends on the product you sell, but in coaching especially – a service-based product. 100%. You can have product people out there. I will give you an example of why this can quite simply work. So with the coaching I do now, so I have an online platform.
That’s not a big deal. There’s no bad clients really on the platform. For example, say if you’re a terrible client already a terrible client in certain areas. Say you want to learn, but you’re a bit of a pain, you talk forever. I literally, if I get like you call me every minute, like you’re always messaging me, asking me questions.
If you ask if, if you just have access to the platform? Yeah. There’s 400 videos, 20 files of content. It’s all interactive, you can do it on your phone, your tablet. That doesn’t matter. As long as the platform is working, you’ll buy access to that. So if you email me, “can I ask you a question? That’s all over the platform, blah, blah, blah.”
If you want to upgrade to coaching, we can speak. Right? If this person is in coaching, that’s a problem point. Because then they message you everyday and I want you to do this and that. And they message you eight times in a day. Okay. I’ve seen it in place, but my clients get my time. Like we said earlier, I love what I do.
Like I genuinely enjoy it. So if I’ve got, I was speaking to a client yesterday and I was, we were chatting on the phone, which we were doing our, our training because we’re doing all the processes of a staff, the automated texts and this, that, and the other. She messaged me a question now, of course I am answering it later, and she sent me a WhatsApp, “Hey, by blah, blah, blah.”
And answer that straight away. Imagine she messaged me. 8 times a day. 10 times a day, 15 times, and she’s doing it every day. The value of the work you’re putting into that might not equate to what you’re charging. If you’ve got someone who’s buying – if you sell an Iphone and you call it shop sales phones. Imagine if anyone could send back a phone every week saying it’s faulty every week now you’ve sent him 40 phones or iPhones, thousand pounds, 1200 pounds.
The potential on revenue loss is far greater than that one client now is that there’s some people listening to stuff. And there are some unfair points if he’s told it, I’m not saying if it’s, if it’s faulty, it’s my problem. Because my product is faulty. But if it’s just a fact that people say “the battery is really slow” but it’s really not. “The Internet doesn’t work,” but actually it does. Eventually he decided to tell us “I don’t think that my fix is good for you.”
Or you have to have rules in place. And that’s also what happens with experience and you recap it if you get a sense. That If I get a sense with someone where I do meetings, especially with zooms now for businesses, for certain things. And I had an agreement with a company about, I would do one sales meeting a week.
They want it on a Monday. And they wanted it from 9-10. And so that’s in my calendar, blocked that every week. So 8:45 I’d have nothing before 9:15. So it’s an hour and a half of my day and it’s booked every Monday. I have quite big clients and it’s time for me and I enjoy it. It’s a good meeting.
Suddenly, “We’ve changed it. We’ve got to do meetings every day.” “Okay, cool here’s your invoice.” “What do you mean? We want it everyday but we’re not going to pay more. The agreement was an hour of sales call every Monday. Plus you got access to the platform, I have some of the scripts and handles for you as well. That was the agreement. “Yeah, I know, but we need more.”
“Okay, cool. So pay more.” Then imagine if I’m going to train you every day, five. So we’re going to go from one hour a week to five hours a week. Four hours a month to 20 hours a month. But you want to get the same? Is that well? Yeah, he said, “well, we’re already your client.” I said, “but you don’t own me. Like, I want to help you, but you also want me to do this every day so you’re bringing more business in.” So we ended up having this interesting conversation about it and he was very much like he felt that I was, I mean, this guy’s great. This company is brilliant. And they are a great company, but it’s also very easy. But once we get familiar with people, once we get used to dealing with people, we think we can get more.
I’ve got guys that do my ads and I messaged them sometimes a lot and they must be like “shut up. ” Cause I’m excitable. And then I messaged him and said, “listen, I’m really sorry. No, I’ve been harassing you boys for the last few days. It’s not going to continue. We’ll do this and also you’ll have a bit of extra money. Because that’s time it’s giving and takes some time.
You can’t suddenly be at a bank and call everyone all the time. That’s not what you were bringing the blocks. And again, if you don’t have an agreement in place, it’s hard to do so yeah. In short, there are bad clients, but I also think it stands on your own lack of preparation. There are some you don’t have a control from, but you have to work out the value of a client.
If you’re a small business and you don’t have a lot of figures out there, actually what would that client bring. If you look after that client, right and you say to him, “listen, I am going over and above with you, but this isn’t no.” You have to tell them, “I don’t mind doing this. I just, I want you to realize you’ll get in me on my A-game and more than other people because I don’t have a lot of business.
What I’m going to ask in return, is actually, you got to tell your friends and business partners about this, I actually can get more business from it. Is that fair? Because then it’s good. Cause then that hassle is rewarded. If you’re just getting hassled. Imagine if your neighbor is just hanging on the wall every day. That’s a no win, no ones ever going to buy your house 30% above asking price in six months. You’d probably be banging on the wall because you’re only there for six more months you’re going to make loads of money. Every time they bang on the wall you’re just thinking about the more money you’ll make . So what seems like a hassle sometimes is a reward. And also what seems like a reward can also sometimes look like a hassle.
Sean: That’s awesome. I’m learning a lot. I assure you guys, especially those of you, entrepreneurs and leaders in sales have already gotten a huge boatload of value from this. And as Dave mentioned earlier, and as I, as, as I like to say, if you don’t pay, you don’t pay attention, but I hope you guys have been paying attention and have been taking notes.
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