General Sales
Last Updated: Mar 24th, 2004 - 14:08:30
(Note:
If you missed Sam Manfer’s teleseminar Take
Me To Your Leader, you can now get the recording
on cd or as a download. For more information visit: http://www.salestrainingcamp.com/products_main_teleseminar_sam.htm)
Sales
begin from the bottom-up or the top-down. They can begin internally
from a perceived need, or they can begin externally from a marketing
presentation. No matter how the sale initiates it ends with
the executive in charge of the decision saying yes or no.
Sales
can turn into large accounts if the executives impacted associate
you and your company with solutions that benefit each of them.
If so, you will be able to use this credibility for more sales
and referrals, quicker and easier. If not, your stuff will be
considered a commodity and the subordinates will be under tremendous
pressure to reduce your price and/or switch vendors. Therefore
your goal is to be recognized by the leaders.
Executive
Make Decisions. Subordinates Recommend
Most
sales people believe that sales, especially technical sales,
are made at lower levels. They argue that the executive is just
a rubber stamp. If the executive is so perfunctory, then why
is the information about your offering taken to him or her for
approval? It’s because this executive is intimately involved
in the outcome. He or she may have been the thrust behind the
bigger solution of which your product plays a part. Most importantly
they will take the hit if it fails.
If
one believes that the senior techie or subordinate makes the
decision, then you have relinquished control of your sale to
the techie. What if the boss says no to the techie’s recommendation?
What if this subordinate doesn’t understand the bigger
picture? Then you’re dead. Subordinates are important
to you because they can affect you positively or negatively,
but they do not call the shots. They approve the specs and requirements.
Senior managers approve the deal and being connected in where
they live gives sales people the opportunity to influence the
real issues. Being connected in the executive living quarters
also gives sales people the opportunity to influence other associates.
These associates are important because at the upper levels they
talk and listen to each other. Subordinates can be dismissed,
but same and higher levels will not be dismissed. Execs eat
lunch together. They sit in staff meetings and discuss strategies
that involve your solutions. The better known you are by these
suite members, the better your chances for success.
How
Executives Decide
Decisions
are based on risk and effort involved compared to the perceived
benefit to the individual executives. They hate risk and avoid
unnecessary battles. If something is working, why change? 80%
of high level managers are risk avoiders. So knowing what each
fears is critical to understanding what it will take to overcome
a no or a stalled decision. Additionally, leaders seek concurrence
from their associates. Rarely will they go it alone or without
trial balloons. Politics are crucial and personal gains are
the root of politics. All the more reason to know what the other
executives are thinking.
Executives
are paid to make decisions to help the company prosper and/or
survive. If they make good decisions they keep their job and
all its rewards or move up the organizational ladder to more
rewards. While making their decisions, they gather information,
analyze it, filter it through their intelligence/experience
and political mechanisms and then decide. Decisions they make
are good for the company, but real good for themselves. Even
those really nice, salts of the earth, corporate team players,
decide based on what’s in it for her/him. If they say
no to a decision, they may use the company, the economy or budgets,
as excuses. Bottom line, the gain is not big enough for the
risk and/or effort involved.
Think
about a sale you worked on hard and didn’t get. If you
knew what the executive in charge of the decision feared or
was afraid of losing, you would have had the real reason the
sale stalled, stopped or was lost. If you knew, you could have
possibly built a strategy to relieve the fear and/or perceived
effort. You probably rationalized the loss on price. Sales are
not lost on price. Price is an easy justification – usually
passed-on by the subordinate.
So
What Do You Do?
Understanding
what’s good for the executive, from the executive’s
perspective, is going to be your #1 key to winning over executives.
To do this you must gain access to the executives and learn
what’s in it for each, the risk for each and the effort
for each.. The magnitude of these and the impact to each will
dictate the involvement/influence of the particular associates.
Have you made sales in the past without doing this? Absolutely.
However, you were lucky. Someone else delivered your message
or the executive figured out by her/himself that the win/fear
ratio was the best with you.
To
get to the leaders clubhouse use the subordinates. If you sell
the subordinates, they will help you. If you don’t they
will block you. Once in the “members only” area,
learn the results, expectations, benefits and fears of the members
you meet. Without this first hand knowledge of each executive
you will never really know what’s important and what’s
holding up the decision going your way.
After
getting there and interviewing each executive, you can now do
what you know how to do best. Present your solutions. However,
now you’ll know how to fit your solution to each executive
so s/he will personally gain or avoid loss without risk. Remember
each member has his/her own agenda. This is why individual meeting
are far better than group presentations. These people do not
want to sound self-serving in front of their associates. But
you will never get their vote unless each sees the win for him/herself.
Fear
of the Subordinates
If
you’re still hung up, on the subordinate, purchasing agents,
brokers, and administrators being the decision-maker, consider
this. These people can maintain a sale – meaning they
can continue to approve buying the same product. They cannot
approve new initiatives or system changes. They can not spend
money without a budget. Matter of fact they usually have to
get approval to spend their budget money. These people can only
solicit bids, beat you silly for price and finally recommend.
Call me crazy, but this is the way it is. You can not ignore
the techie or circumvent them or they’ll hurt you. If
they keep you from moving up, they have not yet bought into
you.
If
you’re the incumbent, keep these people happy. However,
make sure you get introduced to the executives and develop a
positive relationship. Your competition is hammering away trying
to find an in. The one that appeals to the executives, wins.
The one that stays low, eventually loses.
About
The Author:
Sam Manfer is an expert salesperson and consults for Emerson,
CNA Insurance, Marriott and many Fortune 100 and smaller companies.
He is the author of TAKE ME TO YOUR LEADER$ - A Step by Step
System to Substantially Increase Sales by Establishing Executive
Relationships. Sam delivers keynote speeches, conducts seminars
and runs interactive workshops focused on effective sales calls,
account management and sales strategies.
Contact
Information:
Samuel G. Manfer, Sales Consultant
28052 Camino Capistrano, Suite 213
Laguna Niguel, CA 92677
Phone: 949-364-6263
sam@sammanfer.com
www.sammanfer.com
© Copyright 2003 by SalesVault.com
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