2. Important Questions Answered
How much emphasis should he placed on closing
the sale?
Why is obtaining commitment important?
When is the best time to obtain commitment?
Which methods of securing commitment are
appropriate for developing partnerships?
2
3. Important Questions Answered
► How should pricing be presented?
► What should a salesperson do when the prospect
says yes?
► When the prospect says no?
► What causes difficulties in obtaining commitment,
and how can these issues be overcome?
3
4. Be A Winner
Winners Losers
Part of the Solution Part of the problem
"It may be difficult but it's
"It may be possible but its too difficult"
possible"
Finds an answer for every
Finds a problem with every answer
problem
"Let me do it for you" "That's not my job"
"There's a green near every sand "There are two or three sand traps near every
trap" green
Always has a plan Always has an excuse
"I'll get it right next time." "It wasn't my fault."
"If it is to be, it's up to me." "I can't help it."
Translate dreams into reality. Losers translate reality into dreams.
Empower. Losers control
"Let's find out." "Nobody knows."
4
5. What is a Close?
•The process of helping people make a
decision that will benefit them.
Closing •You help them make that decision by asking
them to buy.
•A question or action designed to elicit a
buying decision
Attempt to
Close •The Prospect is Ready.
the Sale •The prospect is in the "conviction stage" of
When the mental buying process.
5
6. Perspectives on Closing
Closing should be natural and easy
It should be planned like the rest of the process
Closing is integrated throughout the presentation.
It is not a separate event
Each point of agreement is a minor close.
Failure to close comes from an inadequate
performance in other areas
6
7. Obtaining Commitment
Obtaining commitment occurs throughout the sales
process, beginning With actions such as asking for
an appointment and concluding with asking for
the sale. In a partnership sales result only when the
buyer is convinced that the decision to purchase is
wise. Once needs are identified and satisfied,
attempting to gain commitment is a logical part of
the selling process.
7
8. OBTAINING COMMITMENT
TODAY
Without a buyer's commitment, no sale takes place.
Also, buyers will rarely volunteer to make the
purchase, even when that decision is obviously the
right thing to do. One company looks at a sale as
"just another way of reaffirming the relationship,"
meaning that commitment to the relationship is
more important than any single sale.
8
9. Part of The Process
The process of obtaining commitment occurs
throughout the natural, logical progression of any
sales call. Creeping commitment occurs when a
customer becomes committed to a particular course
of action throughout the buying process.
Salespeople actually gain commitment repeatedly:
when asking for an appointment, when checking to
see whether all of the customer's needs have been
identified, and when asking whether the prospect
would like to see a demonstration or receive a
proposal. Commitment, of course, is more than just
securing an order.
9
10. THE IMPORTANCE OF
SECURING COMMITMENT
Overall, gaining commitment tells the salesperson what
to do next and defines the status of the client.
Salespeople need to become proficient in obtaining
commitment for several reasons.
If they fail to obtain commitment, it will take longer to
obtain a sale.
Assuming the product truly satisfies the prospect's
needs, the sooner the prospect buys, the sooner she or he
can realize the benefits of the product or service.
The company's future success depends on goodwill and
earning a profit.
securing commitment results in financial rewards for the
salesperson.
10
11. FINANCIAL TERMS AND
CONDITIONS
Price is often the last element of the deal to be
presented and discussed. Yet it is often one of the
most important factors when the buyer makes the
decision. The final price is really a function of the
terms and conditions of the sale Factors that affect
price are the use of quantity and other discounts, as
well as credit and shipping terms. Figuring out the
final actual price can be difficult, especially in
situations with many options and packages rather
than standardized products.
11
12. DISCOUNTS
Discounts are given for many reasons and may be
based on the type of customer, quantity purchased,
or some other factor. The most common type of
discount is the quantity discount. Quantity discounts
encourage large purchases by passing along savings
resulting from reduced processing costs. Businesses
offer two types of quantity discounts:
► Single-order discount
► Cumulative discount.
12
13. CREDIT TERMS
Most sales are made on a credit basis, with cash
discounts allowed for early payment. These cash
discounts are the last discount taken, meaning that if
a quantity discount is also offered, the cash discount
is calculated after the quantity discount is taken off.
A common discount is 2/10, n/30, which means that
the buyer can deduct 2 percent from the bill if it is
paid in 10 days from the date of invoice. Otherwise,
the full amount must be paid in 30 days. Another
common discount is 2/10, EOM, which means that
the 10-day period begins at the end of the month.
13
14. SHIPPING COSTS
The terms and conditions of sale include shipping
costs. The seller who quotes a free on board (FOB)
price agrees to load the goods on board a truck,
freight car, or other means of transportation. A great
many variations exist in the use of FOB, but the term
is used to specify the point at which the buyer
assumes responsibility for both the goods and the
costs of shipping them. Thus FOB destination
means that the buyer will take responsibility for the
goods once they reach the buyer's location, and the
seller will pay the freight.
14
15. PRESENTING PRICE
Price is often discussed at the end of the presentation
simply because the salesperson may not know what that
price will be until the final solution is agreed oil. Because
price is so important to the buyer, it is worth considering
how price should be presented. Most firms set prices
after careful study of the competitors' offerings, the value
delivered by the product or service, and the cost of
providing the product or service. For these reasons the
price should represent a reasonable and fair picture of
the product's or service's value. Therefore, never
apologize for a price or present the price apologetically;
rather, present it with confidence.
15
16. WHEN TO ATTEMPTTO
OBTAIN COMMITMENT
The right time to attempt to gain commitment is
when the buyer appears ready, as evidenced by
buying signals. Some salespeople say that one
psychological moment in each sales presentation
affords the best opportunity to obtain commitment,
and if this opportunity is bypassed, securing
commitment will be difficult or impossible. This
belief is not true, however. Seldom does one
psychological moment govern the complete success
or failure of a sales presentation.
16
17. Buying Signals
Buying signals, or indications that the buyer is
ready to buy, can be evidenced both in the buyer's
comments and nonverbally. A buying signal is
anything that a prospect says or does to indicate
that he is ready to buy.
17
22. BUYER QUESTIONS
► If I do agree to go with this cooperative advertising
program, do you have any ads already developed that
I could use?
► Do you have any facilities for training our employees
in the use of the product?
► How soon would you be able to deliver the
equipment?
► What do we do next?
Not all questions signal a readiness to buy. But if the
question concerns implementing the purchase and
points toward when, not if, the purchase is
implemented, the prospect is getting ready to buy
22
23. REQUIREMENTS
Requirements are conditions that have to be satisfied
before a purchase can take place.
► We need a cash discount for a supply order like this.
► We need to get this in weekly shipments.
Requirements that are stated near the end of the
presentation are need statements that reflect a
readiness to buy when they relate to how the
purchase will be consummated.
23
24. BENEFIT STATEMENTS
Sometimes prospects offer their own benefit
statements
► Oh, I like the way this equipment is serviced-it will
make it much easier on my staff.
► Good, that color will match our office decor.
Such positive statements reflect strong feelings in
support of the purchase, a sign that the buyer is
ready.
24
25. RESPONSES TO TRIAL CLOSES
Salespeople can solicit such comments by
continually taking the pulse of the situation with trial
closes, or questions regarding the prospect's
readiness to buy. Throughout the presentation.
► How does this sound to you so far?
► Is there anything else you would like to know at this
point?
► How does this compare with what you have seen of
competing products?
buyer's responses to such questions provide good
guidance regarding when the salesperson should
attempt to obtain commitment
25
26. NONVERBAL CUES
Nonverbal cues serve as important indicators of the
customer's state of mind. While attempting to gain
commitment, the salesperson should the use buyer's
nonverbal signals to better identify areas or concern
and see whether the buyer is ready to commit. Facial
expressions most often indicate how ready the buyer
is to make a commitment. Positive signals include
eyes that are open and relaxed, face and mouth not
covered with hands, a natural smile, and a relaxed
forehead. The reverses of these signals indicate that
the buyer is not yet ready to commit to the proposal.
26
27. Recognizing Buying Signals
The CHEF Technique
C Cheek or Chin •Stroking cheek or chin means satisfaction
•Leaning forward and nodding
•Open and Relaxed.
H Hands
•Plams Upward
•Rubbing Hands means assumed ownership
•Constant contact is good
E Eye Contact
•Dilated eyes mean relaxation
•Rolling or squinting means confusion or ire
•Smiling
F Friendliness
•Relaxed
•Casual conversation
27
28. Some verbal and non verbal buying signals
Resistance •objections mean interest
•How much is it?
Verbal
•How soon can I get it?
Signals •Sounds good.
•What's the next step?
•Nodding head
•Leaning forward
Gestures •Rubbing chin
•Tugging ear
•Reexamines product, sample or paperwork
•Relaxes and become friendly.
•Stopping just short of buying
Other •Asking about price means they are sold on benefits
•Reinforcing or agreeing with your ideas
•Asks another person's opinion.
28
29. HOW TO SUCCESSFULLY
OBTAIN COMMITMENT
► To obtain commitment in a non manipulative manner,
salespeople need to follow several principles.
► Maintaining a positive attitude.
► Letting the customer set the pace.
► Being assertive instead of aggressive
► Selling the right product in the right amounts.
29
30. MAINTAIN A POSITIVE
ATTITUDE
Customers like to deal with salespeople who have con
fidence in themselves, their products, and their
companies. On the other hand unnecessary fear can
be a self fulfilling prophecy. The typist who fears
making errors will make many; the student who fears
essay exams usually does poorly; golfers who believe
they will miss short putts usually do. So it is with
salespeople: If they fear the customer will not accept
their proposal, the chances are good they will be
right.
30
31. LET THE CUSTOMER SET THE
PACE
Attempts to gain commitment must be geared to fit
the varying reactions, needs, and personalities of
each buyer. Thus the sales representative needs to
practice adaptive selling. Some buyers who react very
slowly may need plenty of time to assimilate the
material presented. They may ask the same question
several times or show they do not understand the
importance of certain product features. In these
circumstances the salesperson must deliver the
presentation more slowly and may have to repeat
certain parts. Trying to rush buyers is unwise when
they show they are not yet ready to commit.
31
32. BE ASSERTIVE, NOT
AGGRESSIVE
The salesperson should be assertive.
There are three types of salespeople
► Aggressive
► Submissive
► Assertive
32
33. Aggressive
Aggressive salespeople control the sales interaction
but often fail to gain commitment because they
prejudge the customer's needs and fail to probe for
information. Too busy talking to do much
listening, they tend to push the buyer too soon, too
often, and too vigorously. They might say, I can't
understand why you are hesitant, but they do not
probe for reasons for the hesitancy.
33
34. Submissive
Submissive salespeople often excel as socializers.
With customers they spend a lot of time talking
about families, restaurants, and movies. They
establish rapport quite effectively. They accept the
customers' statements of needs and problems but
do not probe to uncover any latent needs or
opportunities. Submissive salespeople rarely try to
obtain commitment.
34
35. Assertive
Assertive salespeople are self-confident and
positive. They maintain the proper perspective by
being responsive to customer needs. Rather than
aggressively creating new "needs" in customers
through persuasion, they look for buyers who truly
need their products and then use questions to
acquire information. Their presentations
emphasize an exchange of information rather than
a one way presentation.
35
37. SELL THE RIGHT ITEM IN THE
RIGHT AMOUNTS
The chance of obtaining commitment improves
when the right product is sold in the right amount.
Although this principle sounds obvious, it often is
not followed. Customers have long memories; they
will refuse to do business with someone who
oversells, and they may also lack confidence in
someone who undersells. The chances to obtain
commitment diminish rapidly when the salesperson
tries to sell too many or too few units or the wrong
grade or style of product.
37
41. EFFECTIVE METHODS
► DIRECT REQUEST
► BENEFIT SUMMARY
► BALANCE SHEET METHOD
► PROBING METHOD
► ALTERNATIVE CHOICE
41
42. DIRECT REQUEST
The most straight forward, effective method of
obtaining commitment is simply to ask for it, called
the direct request method. It works best with
decisive customers, such as drivers who appreciate
getting down to business and not wasting time.
► Can I put you down for 100 pairs of model63?
► Can we meet with your engineer next Thursday to
further discuss this?
► Will you come to the home office for a hands-on
demonstration?
► Can you call the meeting next week?
► Is it a deal?
42
43. Direct Request
ask for the business
•We can have it delivered by the end of the
month if we can get a signed contract into
the implementation department by
Thursday.
•Should I forward a contract so you can
get started?
•Would you like to try it for a quarter?
•Has the advantage of clarity and •It’ll take a few weeks to process and ship
simplicity. the order so if you’re interested in moving
•Ask for the order in a forward, we should start the paperwork
Direct straightforward manner. now.
Appeal •Most direct closing approach and •Let’s get this off your plate and start the
Close appeals to many buyers, especially paperwork.
decisive people. •What do you think?
•Should not come too early. •Let’s start the process so you can get
•Highly effective when salesperson onto your other priorities. Sound good?
has earned the customer's respect. •Would you like to move forward?
•Are you ready to get started?
•Can we go ahead?
•We can start the process today with a
credit card if you’d like.
•We can deliver it to you by the close of
business tomorrow if you’d like
43
44. BENEFIT SUMMARY
Early in the interview salespeople discover or reiterate the
Early in the interview salespeople discover or reiterate the
needs and problems of the prospect. Then, throughout
the presentation, they show how their product can meet
those needs. They do this by turning product or service
features into benefits specifically for that buyer. As they
present each benefit, they ask if that benefit meets the
need. When using this approach, called the benefit
summary method, the salesperson simply reminds the
prospect of the agreed on benefits of the proposal. This
method simply helps the buyer to synthesize points
covered in the presentation to make a wise decision. One
advantage of the benefit summary method over the direct
request method is that the seller can help the buyer
remember all the points discussed in the presentation.
44
45. BENEFIT SUMMARY
Summarize the product's benefits in a positive
manner so that the prospect agrees with what you
are saying
Then ask for the order.
You can easily adapt Feature / benefit statements
for your "summary" close.
45
46. BALANCE SHEET METHOD
Balance sheet method aids prospects who cannot
make a decision, even though no reason for their
behavior is apparent. Such a prospect may be asked
to join the salesperson in listing the pros and cons of
buying now or buying later, of buying the
salesperson's product or that of a competitor, or of
buying the product or not buying it at all. However,
this method can insult a buyer's intelligence if used
inappropriately. . A more effective start may be to
simply draw a T on a plain piece of paper, place
captions on each side of the crossbar, and leave
space below for the insertion of specific benefits or
sales points. Then just ask the buyer to list pros and
cons of making the purchase.
46
47. BALANCE SHEET METHOD
► Often called the Ben Franklin close
► Based on the process people go through when they
make a decision
► Weigh the cons against the pros.
► The same as debits and credits, act or not act, etc..
► Modified T-Account or Balance Sheet Close -- only
list the reasons to buy. Some salespeople do not
remind the prospect of any of the reasons not to
buy as they attempt to close the sale
47
48. PROBING METHOD
In the probing method salesperson initially attempt to
obtain commitment by another method. If
unsuccessful, the sales person uses a series of
probing questions designed to discover the reason
for the hesitation. Once the reason becomes apparent
the sales people ask a what-if question.
48
49. ALTERNATIVE CHOICE
In many situations a salesperson may have
multiple options to present to a buyer. more time is
spend on probing about budget and desires and
then only two options are shown at a time,
explaining the key characteristics of each. This
allows the customer to express a preference.
49
50. ALTERNATIVE CHOICE
► Provides prospects with choice as a way of
qualifying.
► Allow customer to examine several different models
and try to assess degree of interest in each one.
► Cease showing new products when it appears that
the prospect has been given ample selection.
► Remove products that the prospect does not seem
genuinely interested in.
► Place unwanted products aside and concentrate on
products the prospect seems to be definitely
interested in.
50
52. IF COMMITMENT IS OBTAINED
► NO SURPRISES
► CONFIRM THE CUSTOMER'S CHOICE
► GET THE SIGNATURE
► SHOW APPRECIATION
► CULTIVATE FOR FUTU RE CALLS
► REVIEW THE ACTIONS TO BE TAKEN
52
53. NO SURPRISES
Customers do not like surprises, so this is the time to
go over any important information they will need to
fully enjoy the benefits of the product or service. Give
the customer as much detail as possible to prepare
him or her for that experience. No customer wants to
be kept waiting in the dark, not knowing whether he
or she will ever get the new product.
53
54. CONFIRM THE CUSTOMER'S
CHOICE
Customers like to believe they have chosen
intelligently when they make a decision. After
important decisions, they may feel a little insecure
about whether the sacrifice is worth it. Such
feelings are called buyer's remorse or post
purchase dissonance. Successful salespeople
reassure customers that their choice was judicious
One way to help customers feel good about their
decision is to assure them that they have made an
intelligent choice
54
55. GET THE SIGNATURE
The buyer's signature often formalizes a
commitment. Signing the order is a natural part of a
well planned procedure. The signing should be
treated as a routine matter. Ordinarily, the customer
has decided to buy before being asked to sign the
order. The salesperson needs to remember several
important points.
► Make the actual signing an easy, routine procedure.
► Fill out the order accurately and promptly.
► Be careful not to exhibit any excess eagerness or
excitement when the prospect is about to sign.
55
56. SHOW APPRECIATION
All buyers like to think that their business is
appreciated even if they purchase only small
quantities. Customers like to do business with
salespeople who show that they want the business.
Salespeople may show appreciation by writing the
purchaser a letter. This practice especially develops
goodwill after large purchases and with new
customers. In some situations a small gift, such as a
pen with the selling company's name on it, may also
be an effective thank you. Salespeople should always
thank the purchaser personally; the thanks should be
genuine but not effusive.
56
57. CULTIVATE FOR FUTU RE CALLS
In most fields of selling, obtaining commitment is not
the end of a business transaction; rather, it is only one
part of a mutually profitable business relationship.
Obtaining commitment is successful only if it results in
goodwill and future commitment. Customers like to
do business with salespeople who do not lose interest
immediately after securing commitment. What a
salesperson does after achieving commitment is called
follow up. The point here is that the sale does not end
with the customer's signature on the order form.
Effective selling means building relationships with
customers, nor just going for the single sale.
57
58. REVIEW THE ACTIONS TO BE
TAKEN
An important step, particularly when commitment is
to take the next step in the buying process, is to
review what each party has agreed to do. To be
welcomed on repeat calls, salespeople must be
considerate of all of the parties involved in buying or
using the product. They must explain and review the
terms of the purchase so no misunderstandings will
occur, and be sociable and cordial to subordinates as
well as those in key positions. In addition, the buyer
or user must get the service promised.
58
60. After the Close
•Confirm the sale when the buyer says yes:
•Be sure all details related to the purchase agreement are completed
•Check everything with buyer
•Ask for signature if necessary.
•Reassure customer and confirm
•Pointing out that s/he has made the correct decision
•Describe the satisfaction that will come with ownership of product or
service
•Thank customer for the order.
•A follow-up thank-you letter is often appropriate.
•Ask for referrals.
•Provide after-sale service.
•Leave Gracefully
•Don't talk past the close
60
61. IF COMMITMENT IS NOT
OBTAINED
Naturally, the salesperson does not always obtain
the desired commitment. The salesperson should
never take this situation personally (which is easier
said than done). Doing everything right does not
guarantee a sale. Situations change, and customers
who may have really needed the product when
everything started may find that other priorities
make a purchase impossible.
61
62. SOME REASONS FOR LOST
OPPORTUNITIES
► WRONG ATTITUDES
► POOR PRESENTATION
► POOR HABITS AND SKILLS
62
63. WRONG ATTITUDES
A fear that obtaining commitment will be difficult
may be impossible to hide. Some salespeople even
fail to ask for the sale because if they never ask, they
will never hear no. As a result, they always have more
prospects but fewer customers than everyone else.
But all salespeople know they need to focus on
obtaining commitment to keep their jobs. Some
salespeople display unwarranted excitement when
they see that prospects are ready to commit. A
salesperson who appears excited or overly eager may
display nonverbal cues that suggest dishonesty or a
lack of empathy
63
64. POOR PRESENTATION
Prospects or customers who do not understand the
presentation or see the benefits of the purchase
cannot be expected to buy. The salesperson must use
trial closes and continually take the pulse of the
interview. A poor presentation can also be caused by
haste. The salesperson who tries to deliver a 60-
minute presentation in 20 minutes may skim over or
omit important sales points. Further, a sales
presentation given at the wrong time or under
unfavorable conditions is likely to be ineffective.
64
65. POOR HABITS AND SKILLS
Obtaining commitment requires proper habits and
some measure of skill. The habit of talking too
much rather than listening often causes otherwise
good presentations to fail. Knowing when to quit
talking is just as important as knowing what to say.
Some salespeople become so fascinated by the
sound of their own voice that they talk themselves
out of sales they have already made. A presentation
that turns into a monologue is not likely to retain
the buyer's interest.
65
66. Research shows six common closing
mistakes
1.Talks too much. Doesn't ask enough questions.
2.Over-controls the call; asks too many closed-end questions.
3.Doesn't respond to customer needs with benefits.
4.Doesn't recognize needs, gives benefits prematurely.
5.Doesn't recognize or handle negative attitudes effectively.
6.Makes weak closing statements, doesn't recognize when or how to close.
66
69. DISCOVERING THE CAUSE
The real reasons for not obtaining commitment
must be uncovered. Only then can salespeople
proceed intelligently to eliminate the barriers.
69
70. SUGGESTIONS FOR DEALING
WITH REJECTION
► MAINTAIN THE PROPER PERSPECTIVE
► RECOMMEND OTHER SOURCES
► GOOD MANNERS ARE IMPORTANT
70
71. MAINTAIN THE PROPER
PERSPECTIVE
Probably the inexperienced salesperson's most
important lesson is that when a buyer says no, the
sales process has not necessarily ended. A no may
mean
► "Not now,"
► "I need more information,"
► "Don't hurry me,"
► "I don't understand."
An answer of no should be a challenge to seek the
reason behind the buyer's negative response. When
an earlier visit has not resulted in commitment,
careful preparation for succeeding calls becomes
more crucial
71
72. RECOMMEND OTHER SOURCES
A sales representative who uses the consultative selling
philosophy may recommend a competitor's product to
solve the prospect's needs. When recommending other
sources, the sales rep should explain why his or her
product does not meet the prospect's needs and then
provide the name of the competitive product. One
salesperson for a welding supply company keeps a
current list of competitive products. After recommending
other sources, the salesperson usually should ask the
prospect for names of people who might be able to buy
the seller's product. Also, the salesperson should
emphasize the desire to maintain contact with the
prospect in the event the seller's firm develops a
competitive offering.
72
73. GOOD MANNERS ARE
IMPORTANT
If obtaining commitment fails for any reason, the
salesperson should react good naturedly. Salespeople
have to learn to accept no if they expect to call on
prospects again. Even if salespeople do not obtain
commitment, they should thank prospects for their
time. Arguing or showing disappointment gains
nothing. The salesperson may plan to keep in
contact with these prospects through an occasional
phone call, a follow-up letter, or product literature
mailings.
73
76. When You Dont Make The Sale
•Recognize hopeless selling situations
•Avoid doing or saying anything that will jeopardize the relationship established
•Do not take the buyer's denial personally
•It was a business decision that the buyer made given the
circumstances.
Act Professional •The proper handling of a no-sale situation actually helps
Act Adult build a sound business relationship with your customers.
•Ask why you lost out - learn from your successes and
no-sales.
•In some situations, it is proper to reopen the
presentation.
•Do everything possible to help customer make an
Prepare prospect for shopping intelligent comparison.
the competition •Review strong points of product, giving special emphasis
to areas in which product has superior advantage over
competition.
•Never treat the lost sale as a defeat.
•Do not use selling methods that are unethical and/or illegal.
76
77. Analyze Lost Sales
•A lost sale can be a learning experience.
•Take a good, objective look at presentation and try to identify weaknesses
•Consider how to avoid this problem in the future.
•Salvage as much as possible from the experience
•Don't give up too soon.
•Callbacks are very common, especially in the field of industrial selling.
•Your sales manager
Discuss the
•Your fellow salespeople
lost sale with
•Other people who understand the selling
and buying process.
•Personal information - family, hobbies, and
Prepare for a so forth.
possible return •Company information - if selling to an
call by individual buyer, company information is
recording information. quite valuable.
•Purchase priorities - every prospect has
unique purchase priorities.
77
78. BRINGING THE INTERVIEW
TO A CLOSE
Few buyers are interested in a prolonged visit after
they commit. Obviously, the departure cannot be
abrupt; the salesperson should complete the
interview smoothly. Goodwill is never built by
wasting the buyer's time after the business is
concluded. Remember that most sales take several
calls to complete. it is important that you follow up
promptly with a thank-you and reminder note after
the sales call.
78
