Winning in every meeting with a prospect is a great goal – and how would it make you feel – pretty successful right! This level of success generates high energy and the compounding effect is rippled through future meetings. And this is why we say that success breeds success.
So how do you do it? How do you become a 100%er?
The answer > Don’t limit your definition of a win to making a sale!
Yes, a sale is a win, absolutely! But it is only one of any number of possibilities. A win is also:
- Booking a meeting from a meeting (BAMFAM)
- Requesting and being given a referral
- Creating an amazing advocate for you
- Learning something that will add value to other clients – I always asked what the most successful strategy was that they have implemented in their business and why.
- Learning more about a particular industry
- Learning more about what it takes to get your proposal over the line
- Introducing another business into your sales pipeline
- Introducing another business to your business
These are all wins and there will be others – there will, in fact, be a win in every meeting. Reflect and identify what you have learned, how you have progressed your position with the prospect, or how you have promoted your business.
And then, work out how you will leverage off this “win” going forward. Remember to know and not to do, is not to know. Without leverage, the “win” loses its value and can no longer be considered a win.
So you can be a 100%er – you just have to take your narrow vision glasses off for a moment. Remember what you focus on you will see more of – so when you start identifying the wins, the more obscure (and sometimes more valuable) wins will become even more apparent.
The power of the 100%er mindset is in the confidence it builds and the subsequent belief in self that ensues. From another perspective, if your only definition of a win is to make a sale – every meeting that does not result in a sale is treated as a loss – this can have a devastating compounding effect on the energy and mindset of the “sales person”, particularly for someone new to the role.
This strategy is particularly effective for new sales people, however it must be companioned with these important qualifications:
- Changing the definition of a win must not dilute the importance of making a sale – that must be made very clear.
- The value of a learning is in the ability to take it into the next meeting, and
- The value of creating a new opportunity is in the follow through.
So, go forth, enjoy the wins, enjoy how winning makes you feel and make sure that you leverage off the compounding energetic effect in a way that breeds even more wins.
Why would you increase your sales price?
- You have been under valuing what you do for too long, and the price no longer covers costs;
- You want to decrease the number of clients and have a strategy to price buyers out of your market;
- You have added extra value to the product or service offering;
- Production costs have increased;
- Building a brand around exclusivity;
- You need to increase profit; or
- A myriad of other possible reasons.
In all cases, it is important that you know your numbers before you embark on a plan to increase prices.
Before adopting a strategy to increase prices you must examine your numbers to fully understand how much sales could decrease before it impacted on your gross profit position in dollar terms. This is your tipping point – the point at which the new sales volume does not generate an increase in gross profit.
Consider this scenario.
If your current Gross Profit % is 35% and you increase prices by 10%, your sales could fall by 22% without eroding your Gross Profit. Your tipping point is 22%.
With this knowledge, you can ask yourself – am I confident that a 10% price increase will not cause sales to fall by more than 22%?
This is important because anything more than a 22% decrease in sales will result in an erosion of gross profit.
Of course it is possible that sales volumes will increase as a result of a price increase due to market perception of value – a belief that a higher price translates to higher value to the buyer. Even if that is your expectation, it is good practice to know when margins will be impacted just in case the market doesn’t respond as you expect.
Download our free Pricing Increase Matrix and find your own tipping point.
Too often we ask for a sale before we have earned that right. Timing is everything – interact first – establish a relationship – articulate and agree the value – then ask for the sale. And here is a really simple, yet effective process to do just that.
Seth Godin tells the story of a guy (hence forth known as the Guy) in New York, back when old-school parking meters took quarters. The Guy asked Seth if he could give him a dollar for the 4 quarters he had. Seth did just that – handing over a dollar bill in exchange for the 4 quarters. The Guy then asked Seth if he could spare a quarter! Interesting approach??
So first, the Guy engaged Seth with a fair trade which may even have benefited Seth more because back then people were always looking for quarters for the parking meters. A relationship was formed.
Now the Guy knows Seth has a quarter (4 of them in fact). So his next request for a quarter is very hard to turn down. The Guy knows that Seth has 4 quarters and Seth knows that the Guy knows.
Compare this scenario to one where the Guy had just walked up to Seth and asked if he could spare a quarter. No engagement, no relationship – just a request for a “sale”.
Too often, we attempt to close a sale before we open it. Interact first, sell second.
How might this “story” play out in your business?
Let’s consider an advisory business.
You have reviewed the financial statements and noticed that there is a productivity issue – wages paid suggests available hours well in excess of hours billed – very easy to identify. You make recommendations which will increase charged and billed time or reduce wages costs – in either case there is a positive impact on the bottom line of the business of around $20,000. You have added significant value and your client acknowledges it – you have effectively opened the sale.
Now is the time to introduce the next opportunity – a service which will add even more value for our client for an investment of $5,000 – just one quarter of your clients increased profitability which was generated compliments of your advice. You have asked for the quarter!
How often do you add value with recommendations and then neglect to quantify or articulate that value to your client? What you think is obvious is not necessarily so, from your clients perspective.
When you make observations or recommendations, always articulate both the financial and non-financial benefits to the client and get buy in.
Try my “VALUE LEDGER”
1. As you progress through the meeting with your client, note down your recommendations and observations, along with the agreed value.
2. Then, towards the end of the meeting, summarize – go through the LEDGER and ask your client if they intend to implement the strategies and if they agree with the benefits.
3. Add up the financial benefits and write down the total amount.
4. You have established the value you have added and gained your client’s acknowledgement of the quantum of the benefit. You have made the previously invisible, visible.
Now you have earned the right to ask for the sale – to introduce your new proposal!
Very simple… and very effective.
PLUS: You have a reason to follow up the client – to see how they are going with their implementation process – the VALUE LEDGER becomes the basis for an Action Sheet and an accountability tool.
NOTE: Don’t be tempted to get a VALUE LEDGER printed up or to pre-fill it – it is much more effective prepared as you go, hand written, appearing impromptu – it becomes a jointly prepared document – owned by both parties.
TIP: Be prepared – Prior to the meeting, be clear on the recommendations you will make and consider the value that will be added and how you will articulate this and gain client agreement. And remember, as the meeting progresses there may be new recommendations, new observations – add these as you go.
WARNING: Don’t “give away” all the value in one sitting – be careful that you don’t go over the top in an attempt to prove your worth in order to earn your right. The new opportunities may be best included in your new proposal.
A DOUBLE WHAMMY: The advisors I work with in a broad range of industries, including the accounting, consulting, banking, law and financial planning sectors, have found that this process has created a double whammy of value.
1. FOR THE CLIENT > The VALUE LEDGER enables advisors to prove up the value they add – to leave their client in no doubt as to the benefits of doing business with them, AND
2. FOR THE ADVISOR > The process also establishes the value of the sale to the advisor and as a consequence, there is less resistance around pricing from the advisor’s perspective. The first sale must always be to yourself (before you make the sale to your client) – and a this a great way of establishing that the value exists – that price = value added.
My ADVISING by DESIGN and CONVERSATIONS by DESIGN products incorporate this and many other tools and insights – if you would like to know more please email us on connect@openinggates.com – We’d love to hear from you.
Winning in every meeting with a prospect is a great goal – and how would it make you feel – pretty successful right! This level of success generates high energy and the compounding effect is rippled through future meetings. And this is why we say that success breeds success.
So how do you do it? How do you become a 100%er?
The answer > Don’t limit your definition of a win to making a sale!
Yes, a sale is a win, absolutely! But it is only one of any number of possibilities. A win is also:
- Booking a meeting from a meeting (BAMFAM);
- Requesting and being given a referral;
- Creating an amazing advocate for you;
- Learning something that will add value to other clients – I always asked what the most successful strategy was that they have implemented in their business and why;
- Learning more about a particular industry;
- Learning more about what it takes to get your proposal over the line;
- Introducing another business into your sales pipeline; and
- Introducing another business to your business.
These are all wins and there will be others – there will, in fact, be a win in every meeting. Reflect and identify what you have learned, how you have progressed your position with the prospect, or how you have promoted your business.
And then, work out how you will leverage off this “win” going forward. Remember to know and not to do, is not to know. Without leverage, the “win” loses its value and can no longer be considered a win.
So you can be a 100%er – you just have to take your narrow vision glasses off for a moment. Remember, what you focus on you will see more of – so when you start identifying the wins, the more obscure (and sometimes more valuable) wins will become even more apparent.
The power of the 100%er mindset is in the confidence it builds and the subsequent belief in self that ensues. From another perspective, if your only definition of a win is to make a sale – every meeting that does not result in a sale is treated as a loss – this can have a devastating compounding effect on the energy and mindset of the “sales person”, particularly for someone new to the role.
This strategy is particularly effective for new sales people, however it must always be qualified with these important stipulations:
- Changing the definition of a win must not dilute the importance of making a sale – that must be made very clear;
- The value of a learning is in the ability to take it into the next meeting; and
- The value of creating a new opportunity is in the follow through.
So, go forth, enjoy the wins, enjoy how winning makes you feel and make sure that you leverage off the compounding energetic effect in a way that breeds even more wins.
If you enjoyed this post, make sure you have a read of Getting Better Results.
