Black Sales Journal

Sounds like a dumb advertisement doesn’t it?  Anyone who believes that a sales professional should work for free has a touch of a fever, but the actual situation plays out everyday.

Yet in reality, many sales professionals, and especially Black sales professionals find themselves in that situation, unintended of course.

It happens when you invest time and effort in making presentations to buyers who based on reasons beyond your control, take your presentation’s price, and your constructive ideas, and give them to your competition.  When that happens, they are actually saying you should work for free!

How It Happens

This can happen to anyone, any color, and any creed.  It is what happens when someone makes a decision to be courted and accepts the benefits of a relationship, yet not get married.  The problem arises when the fruit of your labor is used to better the position of the customer, even though they had no intention of making the move to you or your organization.

You come in with a ‘killer’ price, and a product offering that is exceptional.  You realize that based on the customer’s needs your organization can use a combination of products that are currently available on the market and couple it with some creative financing to make it palatable.   In the whole, your price and product offering is enhanced by your terms (financing, payment deferral, and other benefits) and you feel success is in the making.

As you know the customer can benefit financially and product-wise from the activities of the sales professional without ever making a real commitment to you, and certainly without putting any food on your table.  You may have felt this ‘sting’ several times before, and you do not have to be a ‘repeat’ victim.

You do all of the work, and the customer gets the benefit and any reward goes to the sales professional who followed your lead.  You have to ‘wait until next time or next year’.  Can’t buy much bacon with that! Objectively, this is part of the sales process, and a part of the process that you cannot avoid; yet you can manage.

Take Smart Precautions

To avoid this being your anthem, you have to develop your principles and rules and stick to them.  You also must work on gaining commitment before showing your complete arsenal of products and services during the process.  That commitment is based on the answers to the questions below.

When presenting, seek to get agreement on what you need to solve, and what level of price and program will “land the business”.  Logic would show that you could still be manipulated; yet this starts to get at some of the problem.  You will want to cover these bases:

Ask the all-important questions before the solicitation process.  These are the requisite questions that will define what it will take to separate them from the incumbent:

• Why are you looking for competitive quotes/bids?
• How will the quote/bid process be conducted?
• What pricing difference must be made? What will it take for you to change?
• How long have you been with the incumbent? Does the incumbent get the last shot?
• Is the playing field level with the others that are quoting (other than the incumbent)?

The purpose of these questions is clarity about the buying process and what definable difference that you must make.  Knowing the answers, if the buyer is honest, allows you to do what is necessary to be successful, whether with this customer, or another one.

An important point is that you cannot be hesitant to ask these questions.  They are part of what a true sales professional asks, and gets clarification of before the sales process.  What you learn about how the process is defined in the eyes of the customer will speak volumes.

I am sure that you sales veterans out there do this already, yet it bears mention for the new sales professionals

Don’t hesitate, ask!  Yes, the customer can still violate his/her own rules, but does so at the peril of alienating you and other sales professionals.

How Does this Affect The Black Sales Professional?

This affects all sales professionals, and it is part of the sales ‘game’.  It is what happens when customers must get competitive quotations of products and services because they want to check how they stand, or to satisfy a procedure that does the same.

Here is where it gets vexing.  Black sales professionals can easily be subject to working ‘without pay’ because of the complexities ofpreference and even prejudice (See Black Sales Journal 5/19 A Deep Dive into Preference, Perceptions, and Prejudice).  If a buyer has no intent on doing business with you as sales professional, or your organization, and is planning on taking your work and giving it to the incumbent, they are wasting your precious time and effort.   Issues regarding preference manifest themselves that way. The buyer strengthens his or her relationship with their current vendor, while at the same time improving their price and terms, thanks to your efforts.  Prolonged activities like this could obviously cost you your job.

In this way, being used is bad for your current employment health.  The above questions, if answered truthfully could save you some time, or at least help tip you off as to who the prospects are and who the ‘suspects’ are.

The Reality

You will always run the possibility of wasting time on good accounts that have no intention of moving their business because of their relationship with the incumbent.  They just want to use you for leverage to make sure they get a good price or program.  You have to make the decision of whether you want to be a willing participant, or should we call it a ‘not-for-profit sales professional’.

You have many choices that include not working with a prospect to contacting every few years to maintain the customer pending a personnel change of buyers.  The most important thing is that to increase your effectiveness, you don’t want to waste your time while you better someone else’s program.

You owe it to yourself, and it will make you more effective.

Always be effective!

Your comments are welcome. You can reach me at michael.parker@blacksalesjournal.com.

None of us want to admit that we have  been out-negotiated!  But it happens often.  We know that you need the sale, but this very important post will discuss an important tactic, and reduce the chances that you get the wrong end of the deal.  You are your company’s negotiator, and your reputation is at stake.  Be prepared!

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Your prospective customer calls you to meet in order to discuss your product and whether your organizations can do business.  She sounds excited and you sense that this might be the precursor to a good sale.

After you arrive, after some warm-up, you get to the gist of the negotiations.  She wants better payment terms and this is a big issue.  You have been instructed that your organization is ‘losing’ on payment terms, obviously not collecting soon enough, and you know your bounds.

The negotiations go like this:

Customer: “This could be a deal breaker.”

You: “We can offer four (6) equal monthly payments with a 25% deposit.”

Customer: “We would like twelve (8) equal monthly payments with a 10% deposit.” She continues, “If we don’t get that, we may have to consider remaining with our current vendor.”

You: “I think we can get some movement here.  I spoke to my people, and we can reduce our deposit to 15%, but our installments will remain at 6 equal.”

Customer: (Twists her face and does not respond)

You: “We are a good fit for you.  I will see if there is any way that we can move to the longer term.”  After a moment on the cell phone, you respond, “We have a deal! 15% deposit and 8 equal payments.”

You shake hands and head off into the sunset.  You should not be smiling, as you were thoroughly out-negotiated!

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One of the roles of a sales professional is that of negotiator.  It is not a role that you occupy all of the time, but one of tasks that must be done is to finalize, which includes pricing and terms.

Negotiating is a good thing as normally if there are negotiations, there is some acceptance of the product and the relationship.  The problem is most often when a customer goes silent, many in sales give up their bargaining range to get them to talk!  That is what happened in this situation.

Silence is Golden – For the Silent One!

We can learn something from this customer that is priceless:

Most sales professionals are uncomfortable with silence.

Those who are anxious to please, and needing a sale, often give up their negotiating room without ever getting a “no”.   They move to the customer’s position, or very close to it based on silence, or in this situation, silence and the customer’s expressions.

Now, as sales professionals like to talk, I stress that we need to pay respect to those who have learned that silence, by itself, crushes many sales negotiation strategies, and you don’t want it to happen to you.

The facial expression is an example of a ‘flinch’.  The flinch with, or without silence causes many sales professionals to begin to surrender their negotiation room.  A flinch can be a facial expression, upper body movement combined with a drastic facial expression, or even reaching for one’s chest or head ‘in amazement’.

Seemingly indicating that one is aghast (shocked and amazed) that the offer is so bad or lacking, has impact.  What it does is to move someone closer to giving up his or her margin.  Don’t be out negotiated.

I know what you are thinking, “It’s not my money!”  Well it is your money!  Closing the deal with the best terms is what you were hired for.  Be ethical and effective in doing it and there will always be a job for you.  Also, think of what happens when you, the sales professional, give up everything that you have to offer, then have to deal with the client next year.  They will be expecting your ‘cave-in’ again, and you may not have any room to ‘cave’.

Silence by Any Other Name…

It goes without saying in this electronic age that silence has many faces:

• Not responding to a voice mail
• Not responding to emails or written correspondence

Here is a real life example:

I once had a position that required that I purchase personal computers for a training operation.  We needed 12 computers and I negotiated for them and was not excited with the price.  It was not that the price was high; it was that the resources were short, so I went to “beg” my funding sources for more resources to get the products.

I indicated that we needed to consummate the deal by Friday, and because of an illness in the family I had not responded by the proceeding Thursday.  On Thursday afternoon, my assistant handed me a message from the rep cutting the price significantly.   About the same time, I received a call indicating that we had the additional funds to make the purchase.

The sales representative reduced the price without me ever saying ‘No’!  I wonder if his boss knows?

A Good Suggestion

I think the best suggestion that I could give you is to take a good negotiation course.  All sales professionals should take a good negotiation course that also focuses on the ethical nature of negotiating.  There are many out there, and they are worth their weight in gold.  No different than the customer, you should be prepared to use silence as one of the tools in your tool box as well.

Your non-work life will benefit as well as there are few tasks that have as much value making sure you get the right deal.

We will cover some more negotiation techniques here in this journal, yet a course is the way to go.  You will thank me for the suggestion, as there is nothing that will make you more effective and efficient after you have done the heavy lifting like cleanly and clearly negotiating the terms.

Be effective and efficient.

Your comments are appreciated.