Samurai Business Group Sales Training – The Quiz and The Test

A highly, product trained sales representative arrives at a new prospect’s office, ready to demonstrate her new found knowledge. The prospect has a problem. The rep has the cure. She is hurriedly ushered into a conference room. Excitement grows.

The prospect begins reiterating his problem, only to be interrupted by the representative who begins a 30 minute monologue about how she has THE solution. She pontificates not only on how her product can solve all of his problems, but how it also “slices, dices” and solves any problem the prospect may encounter.

Finally, the rep takes a breath that allows the prospect to thank her for her time. He says she has a great product and promises to get back to her. She leaves elated, he runs for the bottle of scotch in his office exhausted. Let the Stall begin.

Sensei Dan Kreutzer, of the Samurai Business Group, tells a story how he was looking for a solution to one, simple problem. Sales representative #1 spent (not shared) 2+ hours showing all the wonderful things his product offered. Sales representative #2 shared (not spent) 10 minutes demonstrating the solution. Guess who got Dan’s business.

“Show up and throw up!” It’s a common “illness” with many sales representatives. The cure? The Quiz and The Test.

The Quiz – ask questions. Ask a lot of questions. Uncover not only the Apparent Reasons for the meeting (intellectual), but also the Compelling Reasons for the meeting (emotional).

“Our problem is that a simple process is taking more time to perform than planned (apparent reason). I am having staff work overtime, its screwing up my budget and the owner is on my back about the unbudgeted expense (compelling reason).”

Only by asking question after question after question can you discover the compelling reasons. Recall your last doctor’s appointment. The conversation begins with “why are you here today?” You answer, “My chest hurts.” His response, “I’ve got these great pills. You’ll feel better in just a few days.” Do you take the pills or start calling friends as you walk out the door looking for a new doctor?”

The Test – you’ve passed the “quiz.” You’ve asked a lot of questions, and gained a lot of information and insight into the prospect’s apparent and compelling reasons for buying your offering. BUT is the prospect really on board, waiting for your solution. Time for the “Test.”

Sensei Bob Lambert, of the Samurai Business Group, is emphatic that whenever possible you assign “Homework” to “Test” the seriousness of the prospect to solve the problem.

“Bob thank you for sharing a lot of great information. You mentioned three documents that provide additional insight into your situation. If you would, please email the documents. I want to be as specific as possible with my solution.”

If you receive the documents, the “Test” is passed. If not…

To further discuss how to best handle gathering information from prospects, contact either Dan Kreutzer or Robert Lambert or visit the Samurai Business Group website.

Spencer Maus, of SpencerConnect, is a senior-level, public relations executive. Samurai Business Group is a client and providing compensation to SpencerConnect.

Samurai Sales Training – The Stall

The Stall. The prospect doesn’t want to say no, and definitely doesn’t want to say yes. “Sara” may see great value in your knowledge. Ideas are sound, pragmatic and logical. She has experienced value in your ideas. She wants you to remain engaged – but not contractually. Or she may not be in a position to say yes. At least not now.

You are seeking an answer on a proposal. The company has been on your prospect list, with a high ranking to become a client. Your company’s Vice President of Sales is impressed with your list of quality prospects, but remarks about the staleness of some. You reassure the VP that it’s just a matter of time before she becomes a client. The perception is the “reality,” but the reality may be painful.

The Stall. You won’t admit the truth to yourself. She won’t sign the check.

Anyone in sales or part of the business development process has experienced The Stall. You place a phone call to “Sara” and leave a message. No return call. Five days later you call again. Voice mail and no return call. Weeks pass then months. Calls, voice mail, no return call. You might have even got lucky. An email. “Sorry I keep missing your calls. I’ve been busy. I have one quick question, what would you do in this (insert situation)?”

You respond via email. Or worse, call and leave your answer on voice mail. Nothing. So ask yourself one question, is this prospect dead?

We’ve identified the first Stall. Missing in Action. You’re newest, closest friend up to the point of presenting a formal proposal. The second? Tomorrow, tomorrow, I’ll sign it tomorrow… “I can’t execute on your proposal today. It’s in the budget and on target to move forward in Q3. Definitely call me mid July.”

Finally, something else. “We didn’t hit our numbers this quarter. But our sales team has assured me we have a number of prospects that will close by the end of next quarter. I’m confident since many have been in negotiations for over six months…”

So what should you do? First put an expiration date in your proposal. Almost nothing is worse than having a client accept a proposal with dated information, last year’s pricing, services no longer offered. “Bob, I have great and bad news. Samurai Tool & Die finally accepted our proposal. Unfortunately, it is for product we no longer carry and the pricing is at 60% of current market.”

Second understand that a Stall is a no. In the future the suspect may again become a prospect then a client, but an elongated Stall is a no.

Third, preempt the Stall. When giving the prospect the opportunity to buy now, emphasize the need to take action immediately. Ask if there is anything the prospect can foresee to prevent her from moving forward. Raise a number of possible situations and determine if these will cause delays.

Emphasize the absolute need to maintain an active conversation. And as you remain hopeful that the check will be signed tomorrow, send an occasional email with non-proposal information that you believe would be of interest to the prospect

Next, get real about who is and isn’t a prospect. Go through your CRM and eliminate the false hope of a lengthy and inactive prospect list. Finally, to share Sensei Robert Lambert’s favorite Samurai adage, “Empty your head trash!” Politely let the prospect know it’s over.

“I’ve left a number of messages and obviously internal, corporate dynamics are preventing you from moving forward (its not your fault). My experience tells me that when communication wanes, a prospect either can’t or won’t for other reasons move forward (I understand, we can still be friends). So, I will go ahead and close your file (you’re off the hook). If you want to reactivate our proposal, please do not hesitate to call me (I’m still here for you if you need me).”

In my second “Black Belt” session, Sensei Dan Kreutzer, of the Samurai Business Group, led the group discussion on handling The Stall. The “Black Belt” program is a forum for Samurai Sales Mastery graduates to discuss problems and discover solutions to everyday business development issues. Together we share ideas and experiences with other graduates; and seek guidance from the Sensei.

To further discuss how to best manage The Stall,” contact either Dan Kreutzer or Robert Lambert or visit the Samurai Business Group website.

Spencer Maus, of SpencerConnect, is a senior-level, public relations executive. Samurai Business Group is a client and providing compensation to SpencerConnect.

Samurai Sales Training – Pricing of Services – the Bane of the Freelancer

“The reason we wouldn’t make a seven-inch tablet isn’t because we don’t want to hit a price point, it’s because we don’t think you can make a great tablet with a seven-inch screen,” Steve Jobs

During the first and second quarters of 2002, corporations cut budgets for advertising, public relations, design, etc. Senior-level creatives were RIF’ed. They were scrambling for income. The “hunt” now was for clients. The question became, “how do I price my services? Retainer? Per hour? At what rate?”

Pricing

To determine a price, an hourly fee was selected. The fee was based on how many hours one was willing to work and the amount of money needed to cover personal and business expenses (and have a little fun). Armed with an hourly rate, hours for a successful project were estimated; proposals written and submitted. But what if the estimate was wrong?

In my first “Black Belt” session, Sensei Dan Kreutzer, of the Samurai Business Group, raised the issue of pricing and increasing price. The “Black Belt” program is a forum for Samurai Sales Mastery graduates to discuss problems and discover solutions to everyday business development issues. Together we share ideas and experiences with other graduates; and sought guidance from the Sensei.

The two main pricing models are Retainer and Hourly. Though the hourly rate seems to be fairest, there are problems. First, the “Hourly” model is that it makes price a main issue. By simply stating what you charge per hour, you have given your prospect a weapon of negotiation.

“I have reviewed many proposals, and yours is one of the best. However, Bob Lambert has equal experience. His proposal asks for the same hours to successfully complete the project. But his hourly fees are 80% of your quote. I am willing to sign your proposal if you can match Bob’s hourly rate.” OOPS.

Second, it can create budget problems for you or the prospect. A price for a certain project is almost always predetermined. If you have completed and learned the Blue Belt and Brown Belt teachings of the Samurai Sales Mastery series, you probably know the number. But if this was undiscovered, it could place the buyer in an uncomfortable position (or cause for celebration). And for you? You could be working at a much lower, hourly rate.

Third, it provides no incentive to finish the project quickly, since the more hours you work on the project, the more money you make.  But being a true professional, you would never drag out a project!  On the contrary, because of your knowledge and experience, you can complete the project faster than the competition.  OK, so now you’re getting punished (making less money) for your expertise instead of being rewarded!

Retainers (or productizing services) provide both sides with a fixed, budgeted amount. In your proposal, which asks for a retainer, be exact. Let the client know specifically, in writing, what is and is not included in your pricing. If the project is completed ahead of schedule, good for both sides. You’ve earned more per hour and the client is happy with the speed you completed the project.

Increasing Prices

As (if?) the economy recovers, you may want to increase prices. I have been criticized by a trusted friend that my pricing is too low. So the question is “how can I increase prices without upsetting current clients or client referrals?

During our discussion, the following solutions were offered:

1. First, be up front and direct. Let the client know that you have instituted a price increase.
2. Grandfather current clients for a fixed period of time; with the caveat that prices will increase once that period of time has lapsed.
3. Offer the client the right to pre-purchase a block of time at the old rate.
4. Provide a minor increase less than the new rate, but more than the old rate.

To further discuss how to price or increase the price of your services,” contact either Dan Kreutzer or Robert Lambert or visit the Samurai Business Group website.

Spencer Maus, of SpencerConnect, is a senior-level, public relations executive. Samurai Business Group is a client and providing compensation to SpencerConnect.

Samurai Sales Training – Handling Difficult Situations in the Sales Process

There you are. In the midst of what seems to be a positive sales presentation. Then out of the proverbial blue, comes a totally unexpected, off point question or statement. You fumble for the right words to answer the question and return to a positive presentation. What do you do? WHAT DO YOU DO?

The Samurai, when in an inferior or defensive position, turned a positive into a negative. In a sales situation, it is conversational Jujitsu.

Under the guidance of Sensei Robert Lambert, of the Samurai Business Group, we learned and practiced conversational Jujitsu. The techniques taught should be used when a question is asked and you don’t know why. Or the timing of a question may be off topic, or your answer would hurt your presentation.

For example, you’re talking about how your product / services will help the prospect when they interrupt with: “I heard you had problems at XYZ Corp.”  Your response, using jujitsu techniques, could be: “There were a couple of issues that have been resolved. Would you mind helping me understand what specifically concerns you and why?”

Perhaps the prospect starts a negative comparison of your product or service to a competitor. “Harmont Services are much less expensive, and their contract is only for six months. If I’m not happy, I have more flexibility and a smaller commitment..”

“It sounds like you’ve decided to go with Harmont.  But now I’m confused; if you’ve already made your decision, what were you hoping to accomplish at our meeting?”

Or maybe they ask a question about something that hasn’t been discussed before and / or seems irrelevant: “Does your system have a throckmorton feature?”  Your response could be: “It’s interesting that you should bring that up.  Obviously, you have an application in mind for that feature?”

The secret to Jujitsu on the field of battle, or in the conference room, is to take the prospect’s advantage and turn it against them. How? There are three basic moves. The reversal is used 90% of the time. “That’s an interesting question. What do you believe are the advantages if we don’t sync our teams during implementation?”

Or perhaps a take away move would make sense. The enemy thrusts a spear at you. You side step, grab the spear, add energy to the forward motion and take the spear away.

In conversational Jujitsu, you might answer, “Interesting comment. For us to professionally implement this program, we will need to work with your staff. If that is not possible, perhaps we shouldn’t move forward. What is your alternative?”

This will either get the project back on track, or stop wasting your time in an impossible situation. In the 1980’s, there was a stockbroker (now known as Wealth Management executives), who was a master of the take away. His reputation for helping clients was national. His process was methodical. But if the prospect or client refused to cooperate, he stopped wasting his time and would immediately close the prospect’s file.

Finally, there is the pre-emptive move. In battle this was best shown in “Raiders of the Lost Arc.” An obvious masterful swordsman challenges Indians Jones to a duel. Jones calmly pulls out a gun and kills the swordsman.

In conversational Jujitsu, the actions are not as bloody. A few days after learning and practicing in our class, I was faced with the situation of telling a prospective client t

“Dan, I carefully reviewed your website. Please don’t shoot the messenger. The platform that was used is not suitable for a website. In addition, there are typos, dead links and one section that could get you in legal trouble.” The now client appreciated my candor and the fact I kept the conversation about helping him move toward success and didn’t make it personal.

Like all of the Samurai Business Group’s teachings, this needs to be practiced under the guidance of an expert. If not, you might experience being run through by a “spear.”

For further details on “Handling Difficult Situations in the Sales Process,” contact either Dan Kreutzer or Robert Lambert or visit the Samurai Business Group website.

Spencer Maus, of SpencerConnect, is a senior-level, public relations executive. Samurai Business Group is a client and providing compensation to SpencerConnect

Samurai Sales Training – Prospecting: Do You Have a Plan?

Let’s be honest. No one really enjoys prospecting. But to build a successful business or practice, you need clients. You need a continuous flow of clients. And to have this flow, you need to build the prospect pipeline and a disciplined tracking system.

Out of college you were a trained an attorney, creative, engineer, accountant, etc. Trained to create, engineer, account or do law stuff. Not trained to sell. You joined a firm, agency or company. They had business development team (sales people). All you had to do was show up and do that thing you were trained to do.

Then, without warning, the economy went south. Sales people were laid off. You were laid off. And now you need clients. You start networking. You’re meeting new people, collecting cards. In fact you’re hitting a lot of networking events; meeting a lot of people, collecting a lot of cards. You follow up; meet for coffee, exchange emails. They really like you. So what?

You contact friends, colleagues, golf buddies, etc asking for quality introductions in your quest for new clients You even contact former clients (assuming you didn’t sign a non-compete and have a good attorney, “Where is that attorney’s card I picked up at some networking event three weeks ago?”).

So what is working for you? What efforts are building your business? What is your tracking system?

In the last session of the Samurai Business Group “Brown Belt Program,” Sensei Bob Lambert  led us on a journey of organizing and tracking our prospects and prospecting efforts. It requires discipline (there’s that word again from the last blog post).

We were given a system. In fact, it is a very good system for tracking and monitoring a new business pipeline. If you are honest and disciplined, it will show you what business development efforts are working, and not working. It evaluates your list of prospects, who’s hot, who’s not, who’s really interested in hiring you and who just wants free, professional advice

First, look at where you found your current clients and prospects. Track all of the variety of efforts you are making and see if they are important to building your business – or just leading you into a false sense of accomplishment. If the latter, it’s time to adjust.

So what is the Samurai method of building a pipeline tracking system? Easy if you have discipline (no, not that word again!). Forms were provided to execute the system.

1. The Top Five Prospects – You’ve met face-to-face. The prospect has shared information. She has completed her “homework.” You talk or send an email once a week and get a positive reaction or response.
2. The Farm Club – Fifteen, prioritized prospects. There is synergy between his business and what you offer. You contact him once a month, share pertinent information and get a positive response. If a top five prospect falters, you promote someone from the Farm Team to the Top Five.
3. Suspects – Twenty who have shown promise. They have said they don’t see an immediate need for your service. You touch base once a month and respond to their emails and phone calls, as long as they are not seeking pro bono work, with the promise of “one day, when business picks up…

So when you review your prospecting efforts are you saying “SO!” or “So what?”

For further details on “Discipline,” contact either Dan Kreutzer or Robert Lambert or visit the Samurai Business Group website.

Spencer Maus, of SpencerConnect, is a senior-level, public relations executive. Samurai Business Group is a client and providing compensation to SpencerConnect