uccessful selling in a comatose economy

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Successful Selling in a Comatose Economy19th April 2012

Welcome

price at the moment of truth

Achieving the Optimum Price

Selling by Value Based Pricing

Copyright Margin2 2012


Why is Pricing so important?

Those companies that ‘achieved true excellence in their price execution capabilities . . . earned operating profits 24% higher than their industry peers’

Hogan 2011



The moment of truth


PriceValue

The price you offer is therefore

fundamental to your customers

value calculation, it’s a moment of

truth where theory becomes practice

Every purchase is therefore a balance between the price offered and the value

delivered, there is the constant risk of losing the sale or missing out on vital profit.

In every sale, the buyer makes a

mental or physical calculation of the

value they will gain from making a

purchase


So, if its about ‘Value’, what does that mean?

• Its judged in unquantifiable terms

• It is judged from a range of perspectives

• It is always placed in the context of today’s sale



Equation for Customer Value


PriceValue

Benefit

Risk

Effort

=

-

-


Types of Customer Benefit

Price Sensitivity

Service Level

Functional Uniqueness &ability to meet

consumer needs

Economic Commodities

with pricebased appeal

Intangible Image, brand,

unique experience

+

+


‘They are 10% cheaper’

‘They always deliver on time’

‘I like doing business with them’


Market Mapping – Price per Feature


10 15 20 25 30 350

50

100

150

200

250

300

Number of Features

£ pe

r Yea

r

= Supplier A

= Supplier B = Supplier D

= Supplier C = Supplier E

= Supplier F


How to Sell at the Right Price


Volume Turnover

ProfitCosts

Price =

=

x

-

Turnover is Vanity, Profit is Sanity


Turnover growth does not automatically mean Profit growth

Copyright Margin2 2012 Source: Companies House


2 Rules for Value based selling

• Facts are far more useful than opinions

• What gets measured gets controlled



‘Experience’ and ‘Judgement’ is always subjective and never as impactful as performance reviews and

customer research

Resp. A Resp. B Resp. C Resp. D Resp. E Resp. F4.50

4.60

4.70

4.80

4.90

5.00

5.10

5.20

5.30

5.40

5.50

What Interest Rate would you offer on this Deal?

%

10% difference in price and a 70% difference in profit between the highest and lowest



Gross Profit Tooling Sales Tooling Costs Rebates Other Discounts

Late Payment Stockholding Carriage Cost True Profit0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

Profit Waterfall – Industrial Component Distributor


Decisions made by Sales often impact profitability, Profit Waterfalls identify the hidden discounts that undermine profitability

23.94%27.86%


Measure and create sales targets to measure efficiency and effectiveness

‘Lead’ Measures

Indicators of sales effort or efficiency

For Example:• CRM data• Number of customer meetings• Number of proposals made

‘Lag’ Measures

Indicators of results or effectiveness

For Example:• Sales turnover• True profit by customer• Price secured



In Summary,

• Pricing about understanding what your Customers are willing to pay

• Facts are far more useful than opinions, ultimately its always about profit

• Measurement makes results more visible and decisions more informed



Thank you


The Chamber of Commercefor Sussex

www.sussexenterprise.co.uk

Membership

10 min Networking Break

David Foster Associates Ltd

3 ways to help you RECRUIT, DEVELOP and RETAIN the right sales people who can MAXIMISE UPON PROFITABLE SALES opportunities

for your business !

Recruit, Develop and Retain

Please stand up if you are a sales rep ?

Please stand up if you are a salesman/ lady ?

Please stand up if you are responsible for bringing in new accounts to your business and/ or managing existing customers?

Sales is not a dirty word !

The Moment of Truth!

YES or NO?

Are Sales People Born or Made?

The Surgeon?

The Pilot?

Without sales / incoming revenue, do you have a business ?

Selling is a Highly Skilled Profession!

Is it important that the whole sales process is ethical, non pressurised , not aggressive ?

What is it that makes a good Sales Person?What is it that makes a good Sales Person?

What is it that makes a good Sales Person?Personality?

Appearance?

Characteristics?

Persistent Goal setter and achiever Excellent communication skills A good listener Passionate and enthusiastic Knowledgeable Take responsibility Work hard

How About …. ?

Courageous Rapport builders Modest Curious Resilient Persuasive High self esteem and belief Confident

How About …. ?

Dependable Trust worthy Intelligent Likeable Sense of urgencyLike people Sell value The list goes on and on and ....................

How About …. ?

Identify the right type of sales person for your business !?

Consider the sales process within your industry, eg time line, frequency, decision making process and unit, average order value, retention, the competition, sale targets and expectations ( KPIs)

Way Number 2

Hunter

What type of Sales Person do you want?

Hunter Farmer


Hunter Farmer Order takerProblem solver Relationship builder CloserConsultative Expert Account manager


Have a specific and detailed job description PLUS a fully completed “Person Specification”

Make sure you don’t take on a “square peg and try to push it into a round hole”!

The Recruitment Stage

You now have the right sales person in position Now its time to make sure they are successful and stay !

Way Number 3

Give a man a fish and you feed him for a day, teach a man to fish and you can feed him for a life time !

Train and coach for success and retention

Gone Fishing

The way and method to make the PROSPECTS / CUSTOMERS buying and purchasing journey and experience a pleasant one :

One where the final destination is to become a customer of yours

One which they will want to make again

A journey they would recommend to others

The Consultative Sales Approach

Consultative selling is a move towards more collaboration with, and involvement from, the prospect/ customer in the selling process. Strongly based on questioning aimed at gaining useful information, whereby issues/ challenges (objections) raised can be solved and a solution found and agreed by the customer. Consultants help people achieve their wants and needs. It is a non pressure selling style

The Consultative Sales Approach

Prospecting/lead identification & qualification Telemarketing / appointment makingRapport building Listening skills Need analysis Benefit selling Closing To name but a few !

Consultative Selling Includes

3 ways to help you RECRUIT, DEVELOP and RETAIN the right sales people who can MAXIMISE UPON PROFITABLE SALES opportunities for your business !

Recruit, Develop and Retain

Have a more in-depth understanding of what makes a good sale person

Look at the personal attributes and skills needed

Way Number 1

Identify the right type of sales person for your business !?

Consider the sales process within your industry, eg time line, frequency, decision making process and unit, average order value, retention, the competition, sale targets and expectations ( KPIs)

Way Number 2

You now have the right sales person in position Now its time to make sure they are successful and stay !

Train, coach and motivate them towards success

Way Number 3

David Foster Associates Ltd

Hot off the press !

The details

The promotion

The booking

A New Training Course Available

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