Sales and Distribution Management

Sales cold calling/ Lead building/ qualifying/effective calls/ sales Incentives Compilation : Prof.B.Asokumar/ VITBS

COLD CALLING:
1) Focus on the goal when cold calling. Beginners tend to think that cold calling is about making the sale. It's not. It's about getting the chance to make the sale. Specifically, the purpose of a cold call is to set an appointment to make the pitch. 2) Research your markets and prospects. You need to target your cold calling to the right audience. Use market research to focus on your target market. (See How To Find And Sell To Your Target Market.) Then find out as much as you possibly can about the company or individual you're going to cold call in advance. This gives you the huge advantage of being able to talk about their business and their needs when you call them. 3) Prepare an opening statement for your cold call. This lets you organize your thoughts before cold calling, and helps you avoid common mistakes in the cold call opening that would give the person you're calling the chance to terminate the conversation. For instance, you should never ask, "Is this a good time to talk?" or "How are you today?" Don't read your opening statement into the phone, but use it as a framework to get the conversation off to a good start. 4) What should be in the opening statement of your cold call? This organizational scheme (from AllBusiness.com) works well: "Include a greeting and an introduction, a reference point (something about the prospect), the benefits of your product or service, and a transition to a question or dialogue. For example, 'Good afternoon, Ms. Marshall. This is Ken Brown with Green Works. I read in the local paper that you recently broke ground for a new office complex. We specialize in commercial landscape services that allow you to reduce in-house maintenance costs and comply with the city's new environmental regulations. I'd like to ask a few questions to determine whether one of our programs might meet your needs.'"

5) Prepare a script for the rest of your cold call. Lay out the benefits of your product or service and the reasons your prospect should buy. Write out possible objections and your answer to them. Without a script, it's too easy to leave something out or meander. Once again, it's not that you'll be reading your script word for word when you call, but that you've prepared the framework of the cold call in advance. 6) Ask for an appointment at a specific time when cold calling. Say, "Would Wednesday at 11 a.m. be a good time to meet?" instead of saying, "Can I meet with you to discuss this next week?" 7) Remember that gatekeepers are your allies not your foes.Be pleasant to whoever picks up the phone or is guarding the inner sanctum when cold calling. Develop strategies to get the gatekeeper on your side. Sometimes asking, "I wonder if you could help me?" will help you get the information you need, such as the name of the right person to talk to or when the best time to contact the prospect is. Learning the names of gatekeepers and being friendly when cold calling helps, too. 8) Smooth the way for your cold call by sending prospects a small, unique promotional item. This helps break the ice and makes your business stand out from the crowd. Pat Cavanaugh, sales guru of Inc.com), says, "It's amazing. A $2.15 crazy little item we've sent out has helped us get Fortune 500 accounts. When we call, they say, "Oh yeah....you were the one that sent me that..." 9) Do your cold calling early in the morning, if possible. That's the best time to reach the decision maker directly, and for most people, the time that they're most energized. 10) Be persistent when cold calling. "Eighty percent of new sales are made after the fifth contact, yet the majority of sales people give up after the second call" (AllBusiness.com). And above all, practice, practice, practice. While cold calling may never be much fun for you, you can get better at it, and the more you practice cold calling, the more effective a sales tactic it will be. So get your script and your call list together and reach for the phone. The people who want to do business with you are out there - but you have to let them know about you first.

QUALIFYING SALES LEADS

Selling is not a favourite task for many entrepreneurs and small business owners. We picture sales people as greedy, unethical, unscrupulous individuals who are determined to close a sale at any cost. Yet we cannot survive without generating sales so selling skills are a critical competency we need to acquire. Selling is an honourable profession and everyone who operates a business should learn some fundamentals. From my perspective as a small business owner, sales trainer and consumer, the most important selling skill to learn is how to effectively qualify your prospect. The most common mistake sales people make is to immediately launch into a product presentation or pitch when they first meet their prospect. They extol the virtues of what they sell and tell the prospective buyer how good, fast, reliable, inexpensive or easy to use their product is. They talk, talk and talk hoping theyll convince the buyer that their product is of value. The problem with this approach is that the pitch seldom addresses the issues or concerns of the buyer. Because their needs have not been addressed, there is no compelling reason for them to consider using your machines or to change vendors. If you really want to give prospects a reason to buy from you, you need to give them a reason. One of the most effective ways to do this is to ask a few well thought-out questions to uncover what is important to the prospect. Here are a few examples: I notice you currently use XYZ Vending. How long have they been your supplier? What do you like most about them? If you could change one aspect about your current arrangement, what would it be? What are the most important issues for you? What have your experiences been with ABC Vending? How manydo you sell in an average week/month? Who is your primary customer? Where have you had the most success with your machine(s)?

Notice that each of these is an open-ended question which means it begins with who, what, where, why, when or how. These types of questions encourage the prospect to open up and share information of what their needs and wants are. An important note here is to be cautious you dont inadvertently turn these open questions in to closed ones by saying something like; What are the most important issues for you? Timeliness of service? Income? This is a very common mistake that now gives the prospect an answer. I dont know about you, but selling is hard enough without making it even more difficult. Never assume you know how they are going to answer. Ask your question and wait patiently for the answer. Even if you have been in the industry for ten years or longer and think youve heard it all, dont make the mistake of assuming you know what the prospects needs are. Let them tell you, rather than you telling them. One of the most important lessons Ive learned about selling is that people will tell you ANYTHING you want to know. All you have to do is ask. Most people love to talk about themselves and want to share information about their current situation, their challenges or problems, likes and dislikes. But, in most cases, they need prompting. This prompting comes from you in the form of asking the right questions in the proper tone and manner. It amazes me how few sales people actually take the time to learn about their customer before they launch into their presentation. In fact, not long ago I was interviewing several companies for a training initiative I working on. The first two salespeople I met rambled on at great length about how good their companies were, how long they had been in business, how they could help me, and so on. Not once during these discussions did the sales people ask me what I was looking for. Not once during these monologues did they address any of the issues that were floating through my mind. Finally, after thirty minutes, I called the interviews to a close. From my perspective, they had just wasted half an hour of my time and, like most people in todays business climate, my time is valuable and I simply dont have enough of it. If you really want to begin differentiating yourself from your competitors take the time to learn about your prospects situation. By doing so, youll begin to give them a reason to do business with you instead of someone else

SALES PRESENTATION:
1. Make the presentation relevant. One of the most common mistakes people make is to use a generic presentation. They say the same thing in every presentation and hope that something in their presentation will appeal to the prospective customer. I have been victim to this approach more times than I care to remember having been subjected to many canned PowerPoint presentations. The discussion of your product or service must be adapted to each person; modify it to include specific points that are unique to that particular customer. If you use PowerPoint, place the companys logo on your slides and describe how the key slides relate to their situation. Show exactly how your product or service solves their specific problem. This means that it's critical to ask your prospect probing questions before you start talking about your company. 2. Create a connection between your product/service and the prospect. In a presentation to a prospective client, I prepared a sample of the product they would eventually use in their program. After a preliminary discussion, I handed my prospect the item his team would be using instead of telling him about the item, I placed it in his hands. He could then see exactly what the finished product would look like and examine it in detail. He was able to ask questions and see how his team would use it in their environment. Also, remember to discuss the benefits of your products, not the features. Tell your customer what they will get by using your product versus your competitors. 3. Get to the point. Todays business people are far too busy to listen to long-winded discussions. Know what your key points are and learn how to make them quickly. I remember talking to a sales person who rambled at great length about his product. After viewing his product and learning how much it would cost I was prepared to move ahead with my purchase. Unfortunately, he continued talking and he almost talked himself out of the sale. Make sure you know what key points you want to discuss and practice verbalizing them before you meet with your prospect.

4. Be animated. The majority of sales presentations I have heard have been boring and unimaginative. If you really want to stand out from the crowd make sure you demonstrate enthusiasm and energy. Use voice effectively and vary your modulation. A common mistake made when people talk about a product they are very familiar with is to speak in a monotone causing the other person to quickly lose interest in your presentation. I recommend using a voice recorder to tape your presentation. This will allow you to hear exactly what you sound like as you discuss your product. I must profess to being completely humiliated when I first used this tactic. As a professional speaker, I thought all my presentations were interesting and dynamic I soon learned that my stand-up delivery skills were much better than my telephone presentation skills. 5. Use showmanship. In The Sales Advantage, an example is given of a vending sales person laying a heavy sheet of paper on the floor, saying, If I could show you how that space could make you some money, would you be interested? Consider the impact of this approach compared to the typical approach of saying something like, We can help you make more money. What can you do to incorporate some form of showmanship into your presentation? 6. Use a physical demonstration. A friend of mine sells sales training; he often uses the whiteboard or flipchart in the prospects boardroom during his presentation. Instead of telling his client what he will do, he stands up and delivers a short presentation. He writes down facts and figures, draws pictures, and records certain comments and statements from the discussion. This approach never fails to help his prospect make a decision. 7. Lastly, believe in your product/service. Without doubt, this is the most critical component of any presentation. When you discuss solutions, do you become more animated and energetic? Does your voice display excitement? Does your body language exhibit your enthusiasm? If not, you need to change your approach. After all, if you cant get excited about your product, how can you expect your customer to become motivated enough to buy?

SELLING SUCCESS STORIES

They are an unseasoned sales force moving 200 million units a year . Their products are not available in stores and are sold only during the spring yet sales revenue exceeds $700 million. Who is this incredible sales organization? Its the Girl Scouts, of course. Before you dismiss this pint-sized sales force as irrelevant, it pays to know this is not the Girl Scouts of yesteryear. Kathy Cloninger has revitalized the organization since her appointment to CEO in 2003. The organization has morphed from door-to-door direct sales to a savvy sales team being modernized for the 21st century. Behind this small and mighty sales force are several successful sales lessons: Create Gap Teams: In 2004, Cloninger gathered the organization to develop five strategic priorities. This resulted in the creation of gap teamsa variety of members from all levels of the organization focused on finding gaps between how things are done now to what needs to be done to reach future goals. Gap teams are divided into six groups. Five groups focus on the five strategic priorities and one is dedicated to the culture of the organization. Each gap team holds Strategy Cafes to foster open communication among the large and diverse organization. Sweet Sales Tip: Any business today would benefit from taking this play from the Girl Scout playbook. Identifying performance gaps is essential for success. Teach Them Well: The Girl Scouts organization isnt all about fund raising but building life skills of leadership, team work and communication. The Girl Scouts provide entrepreneurial programs at Cookie College for scouts to develop business acumen including presentation, marketing and money management skills. Sweet Sales Tip: The eat-them-up and spit-them-out mentality of high turnover sales teams does nothing to build the self-worth of a sales person. Taking a personal stake in advancing the lives of your sales force has a direct effect on the bottom line.

Go From Box to Bulk: One of the selling tools of the organizationfor much of its existencehas been the door-to-door sales approach along with standing outside of grocery stores. With the majority of members living the busy life, the old one-box-at-atime approach has been tossed for the bulk sales strategy. Older girls are bulk selling to large organizations and local businesses. Boxes of cookies are offered as sales incentives or corporate gift baskets. Sweet Sales Tip: Boost your sales by looking for large order opportunities. Look for areas where great numbers of prospects gather to maximize your sales time. Modernize to Change: For an organization with such a long and rich history, its difficult to change. But Cloninger knows change is necessary to appeal to the current generation of girls distracted by the popularity of instant messaging, computer games and FaceBook. To make the Scouts more in tune with todays fickle youth, the organization has added more compelling activities such as web design, white water rafting and survival camps. The company has employed social marketing using tools such as YouTube to highlight vintage cookie ads and maintains a blog. Sweet Sales Tip: Take the pulse of your sales organization to find out what motivates them as well as discovering what new sales channels customers are using. The late father of modern management, Peter Drucker, once suggested businesses can learn from the non-profit sector. Taking a few lessoning from this cookie juggernaut could spell sweet success for your business.

SALES INCENTIVE SYSTEM

There is an old adage in sales: Ability x Motivation = Performance. When recruiting and training salespeople, businesses often pay closer attention to the ability factor. As a toplevel manager or business owner, you must ensure that your salespeople are properly motivated and sales incentives are a great motivator. Motivation is a tricky concept. Management science and psychology have begun rigorously investigating it only in the past half-century, and our overall picture of motivation is just beginning to take form. While science has not yet nailed down the precise nature of motivation, there are two things we do know for sure: It is a quality that exists in every human being, and it can be managed. In sales, one of the most common ways to manage motivation is to use incentives. Here are some examples of popular sales incentive systems that can help you effectively boost your sales team's motivation: Method: Cash bonus Pro: Naturally enough, money is the best reward for most salespeople. Con: Salespeople may see a cash bonus as part of an overall compensation package, not as a special sales incentive. Also, small businesses may lack the financial resources to make this system feasible. Method: Merchandise Pro: Sometimes people are more excited by a hot item than by the equivalent amount of money; consider the iPod or Wii. Con: Finding the right item with which to crown a sales incentive campaign is tricky. You have to acquire an intimate knowledge of your sales force or else be flexible enough to offer a wide range of merchandise from which they can choose. Method: Experience Pro: Offering someone an experience - for example, an all-expenses paid vacation, a day at the spa, a plane trip, or a hot sports ticket - can create memories that last forever. Con: As with merchandise, choosing the right experience demands a thorough knowledge of your salespeople. This type of incentive can also be expensive for you to underwrite.

Method: Recognition Pro: Taking the time to recognize a leading performer with a plaque, cake or special lunch doesn't require much in terms of expense. Con: Although everyone appreciates recognition, salespeople may expect more than this kind of gesture, no matter how thoughtful it is. Method: Workplace perks Pro: It's free. Giving top performers the right to work from home one day a week, their own office, the ability to take a class, regular time off for child care or any other kind of workplace flexibility costs nothing - but can be very valuable to employees. It can also motivate salespeople to look up to you for trusting them. Con: None. Salespeople, like all employees, like to negotiate workplace privileges. These motivational methods are not mutually exclusive; in fact, many successful organizations employ a mix of sales incentives. A few basics, however, do apply across the board when it comes to sales incentives systems: Simplicity: Do not make incentives cumbersome for the individual salesperson to understand or track. It is demotivating to have to puzzle over incentive systems, and salespeople will simply not bother to decipher complex rules. Publicity: Psychologically, a reward becomes more enticing when it is within reach. Publicize sales incentives in printed matter and conversations so that salespeople know not only that the incentives exist but also that they are attainable. Knowledge: If you want to get the best out of your employees, you have to know what makes them tick. This can be a con for sales incentive systems, particularly since small business owners may not have the time to dedicate to this aspect of human resources. If you have the time and inclination, however, learn as much as you can about personality-based theories of motivation, and figure out where your salespeople fit in. Professionalism: The existence of an incentive system isn't meant to replace dayto-day efforts to equip, support, and respect your sales force. Even flashy incentives won't make up for a poorly run business. The Big Picture: Remember that incentives programs aren't the end-all of sales management. Sales motivation is holistic, encompassing proper recruitment, training and direction as well as incentives. Motivation comes not simply from the lure of tangible rewards but from being treated well. Paying attention to the whole process is the best thing you can do for salespeople.

Have your past incentive programs been a disappointment to both you and your salespeople? The dangling of the proverbial carrot is an ancient art that is commonly understood to be at the heart of human behavior, psychology, motivation, and, in particular, business. Manufacturers and distributors commonly use this technique with their channel partners in an effort to add unique motivational value to move specific products or services. The reason this technique has stood the test of time is because, for the most part, it works! At times, however, elements of the technique are executed improperly. Sales incentive programs under perform or fail as a result. The monetary values of incentives are often not the critical factor in motivating salespeople to succeed. Take my own example. I was fortunate to work in an industry that provided an unending supply of incentives and awards for overachievement. I knew that, if I won every trip, every TV, every incentive offered, the money would come with it! For me, the money and the goodies were not my primary motivation. My philosophy was simple; "If you win all the incentives there are to win, you couldn't help but be at or near the top every time." Corporations use incentive programs to drive behavior and I agreed to play the game and conform to their wishes; what gets rewarded, gets done. The problem, from the vendors' point of view, is that not all salespeople are motivated the same way. Consequently, not all incentive programs work. Why is that? From my experience, I'll make the following observations: 1) The 80-20 Rule: Twenty percent of the salespeople make eighty percent of the sales and profits. Too often, sales incentives - perhaps in an effort to be fair - are geared to the entire sales force or VAR channel. The risk in a program like this is that the glove that fits everyone, in the end, fits no one. Enlightened marketing strategists know that the top twenty percent are already motivated. Simply put, a strategy that's geared to light a fire under the next twenty percent - the next logical group - doubles the business in a more cost efficient manner. 2) The KISS Theory: Salespeople by nature are like electricity. They naturally take the path of least resistance. That's not to say they are lazy or untoward. In fact, it's just the opposite. Good salespeople look to simplicity to make things happen.

Often, incentive programs fail miserably because of innate complexities either in their recording and reporting systems or in how rewards are won. If you put the salesperson in a position where he or she is forced to assess "To get this, I first have to sell this, plus these and not these and they must include these," you are creating a recipe for confusion, sales frustration and failure. In the end, the incentive program becomes a disincentive! The remedy? Manufacturers must keep the incentive program sweet and simple and attainable. There can be no ambiguity. Anything less will result in a lack of interest, as well as a waste of time and money that can sometimes spill over into other departments whose task it is to administer and account. What does a good incentive program need to be successful? 3) Education: Edison may have invented the light bulb, but it never went anywhere until a salesperson understood its benefits and made the first sale and probably sold a lamp to go with it! Incentive programs don't just sell themselves. Too often, expensive motivational programs are overlooked in the field because reps. either don't understand their value and/or are unsure how to sell them. Many times, good incentive programs are written off as having missed the target, when in reality, they just weren't rolled out and managed properly. 4) Competition: Everyone's heard the expression, "Timing is Everything!" This is particularly important sage advice for the successful incentive program planner. Marketing execs. can't know when every competitive incentive program will rear its aggressive head, but they can take strides to ensure their program is given first look. Any successful salesperson will tell you, "Most sales are made as a result of due diligence on the front end." Simply put, the better the preparation, the more likely the sale. The same can be said for incentive initiatives. Real incentive programs, like new movie releases, are something to be anticipated. The right amount of promotion ensures greater acceptance and interest that often usurps focus on competing programs. 5) Reward: Any reward-value can become an unmotivated, anticlimactic activity if the time span between winning and getting is too long. Successful incentive programs reward immediately! As a rule, the faster the reward is delivered, the greater the enthusiasm for the incentive program. Although on some levels, salespeople are a complex breed, when it comes to incentives, they are - for the most part - quite predictable. Their nature is to react to excitement or challenge faster then most, and then move on. One way to maximize their natural bent and ensure greater program success is simply to cater to their natural motivators. "Get them their stuff QUICKLY!"

6) Recognition: At the risk of making salespeople appear shallow or monolithic (they are not), recognition amongst their peers is still the quintessential motivator, whether there's an incentive program or not. The rule again, is, there is no such thing as TOO much recognition! Salespeople by nature gravitate to the limelight much like other performers, and so there should be no shortage of achievement and overachievement recognitions that find their way - in a timely manner - to the public's eye. Psychological studies have shown that the pursuit of recognition, in and of itself, can make the difference in targeting that critical second twenty percent on the sales achievement ladder. Experts agree that successful sales teams find motivation in their own champions. Beatifying the sales leaders instills excitement and a definable hierarchy that beckons all players to become a part. Another fact that is frequently overlooked is that recognition, whether part of an incentive or not, is the least expensive means of motivation. In many cases, it's free! Often, shaking the hand of the president in front of the company is all it takes to galvanize the need to overachieve. The Bottom Line: Manufacturers and Distributors must take greater care when designing motivational incentive programs. Take a page out of the "Sales 101" book that says, "Find out what they want, then, give it to them!" But make sure to keep it simple, keep it clear, promote it properly, reward immediately, don't try to target everybody, and, recognize, recognize RECOGNIZE!

6 Sure Ways to Increase Sales

Shift Your Sales Focus for Increased Sales Want to increase sales dramatically? Then shift your sales focus from attracting new customers to enticing your proven customers to buy again. The best sales prospect is a prospect thats already converted in other words, one of your current customers. Think of it this way; if your business is located in a small town with a population of 1000 people and you sell a sprocket to everyone in that town, man, woman, and child, youve sold 1000 sprockets and saturated your market. Your sprocket selling days are over. Is it time to pack up and move on? No! If you start focusing your sales efforts on your proven customers, youll be able to increase your sprocket sales dramatically. And these sure ways to increase sales will help build customer loyalty, too. Try some or all of these ideas to increase your sales: 1. Set up a sales incentive program. Give your sales staff a reason to get out there and sell, sell, sell. Why do so many businesses that rely on their sales staff to drive sales have incentive programs in place? Because offering their sales staff the trips and/or TVs for x amount of sales works. See Paul Shearstones Creating Sales Incentive Programs That Work for how to make your sales incentive program sweet and simple and attainable. 2. Encourage your sales staff to upsell. Essentially, upselling involves adding related products and/or services to your line and making it convenient and necessary for customer to buy them. Just placing more products near your usual products isnt going to increase your sales much. To upsell successfully, the customer has to be persuaded of the benefit. For instance, when I last had my carpets cleaned, the cleaner noticed a pet stain. Instead of just cleaning it up, he drew my attention to it, and showed me how easily and effectively the spot cleaning solution removed all trace of the stain. Did I buy the spot cleaning solution? You bet. He persuaded me that buying it was beneficial to me and made it convenient to purchase it. Result: increased sales for the carpet cleaning company. 3. Give your customers the inside scoop. Recently I was shopping at a retail housewares store. I had picked out an item and was mulling over whether to buy it or not when a salesperson came up to me and said, I see youre interested in that blender. Were having a sale next week and all our blenders will

be 20 percent off. You might want to come back then. Guess what? I did and bought two other items as well. Lesson: if you have a promotion or sale coming up, tell your customers about it. Theyll come back and probably bring some friends with them too. (And don't forget - you can give your customers the inside scoop by emailing or calling them, too.) 4. Tier your customers. There should be a clear and obvious difference between regular customers and other customers a difference that your regular customers perceive as showing that you value them. How can you expect customer loyalty if all customers are treated as someone off the street? There are all kinds of ways that you can show your regular customers that you value them, from small things such as greeting them by name through larger benefits such as giving regulars extended credit or discounts. 5. Set up a customer rewards program. Were all familiar with the customer rewards programs that so many large businesses have in place. But theres no reason that a small business cant have a customer rewards program, too. It can be as simple as a discount on a customers birthday or as complex as a points system that earns various rewards such as discounts on merchandise. Done right, rewards programs can really help build customer loyalty and increase sales. 6. Distribute free samples to customers. Why do so many businesses include free samples of other products when you buy something from them? Because it can increase sales in so many ways. As the customer who bought the original product, I might try and like the sample of the new product and buy some of it, too. Or I might pass on the sample to someone else, who might try the product, like it, and buy that and other products from the company. At the very least, the original customer will be thinking warm thoughts about your company, and hopefully telling other people about your products. Attracting new customers is a good thing. But attracting new customers is not the only way to increase your sales, and is, in fact, the hard way of going about it. Shifting your sales focus to enticing your current customers can make increasing your sales easier and best of all, build the customer loyalty that results in repeat sales.

The Top 7 Sales Blunders by Mc Pherson.

Increase Your Sales By Avoiding These Mistakes

We all make mistakes when selling our product or service. Here are the most common sales mistakes people make. I have to admit I have made many of these mistakes, even though I have been teaching this stuff for almost a decade. Sales Mistake # 1: Allowing a prospect to lead the sales process. The best way to control the sales interaction is to ask questions. This is also the best way to learn whether or not your product or service meets the needs of your prospect. Quality questions that uncover specific issues, problems, or corporate objectives are essential in helping you establish yourself as an expert. Sales Mistake # 2: Not completing pre-meeting research. After several weeks of voice mail I finally connected with my prospect and scheduled a meeting. Unfortunately, I entered the meeting without first researching the company. Instead of presenting a solution to an existing problem, I spent the entire meeting learning fundamental information, which to senior executives, is a complete waste of their time. This approach is one of most common sales mistakes. Invest the time learning about your prospect before you call them and before you try to schedule a meeting. Sales Mistake # 3: Talking too much. Too many sales people talk too much during the sales interaction. They espouse about their product, its features, their service and so on. When I first bought carpet for my home I recall speaking to a sales person who told me how long he had been in the business, how smart he was, how good his carpets were, etc. But this dialogue did nothing to convince me that I should buy from him. Instead, I left the store thinking that he did not care about my specific needs. A friend of mine is in the advertising business and often talks to prospects who initially request a quote. Instead of talking at great length about the ad agencys experience and qualifications, he gets the potential client talking about her business. By doing this he is able to determine the most effective strategy for that prospect. Sales Mistake # 4: Giving the prospect information that is irrelevant. When I worked in the corporate world I was subjected to countless presentations where the sales person shared information that was completely meaningless to me. I dont care about your financial backing or who your clients are. Make the most of your presentation by telling me how I will benefit from your product or service until I know how your product or service relates to my specific situation.

Sales Mistake # 5: Not being prepared. I remember calling a prospect expecting to receive his voice mail. That meant I was completely unprepared when he answered the call himself. Instead of asking him a series of qualifying questions I simply responded to his questions, allowing him to control the sale. Unfortunately, I didnt progress any further than that initial call. When you make a cold call or attend a meeting with a prospect it is critical that you are prepared. This means having all relevant information at your fingertips including; pricing, testimonials, samples, and a list of questions you need to ask. I suggest creating a checklist of the vital information you will need and reviewing this list before you make your call. You have exactly one opportunity to make a great first impression and you will not make it if you are not prepared. Sales Mistake # 6: Neglecting to ask for the sale. I recall a participant in one of my workshops expressing interest in my book. I told him to look through it but at no time did I ask for the sale. Later, I heard him express this observation to other participants in the program. If you sell a product or service, you have the obligation to ask the customer for a commitment, particularly if you have invested time assessing their needs and know that your product or service will solve a problem. Many people are concerned with coming across as pushy but as long as you ask for the sale in a non-threatening, confident manner, people will usually respond favorably. Sales Mistake # 7: Failing to prospect. This is one of the most common mistakes independent business make. When business is good many people stop prospecting, thinking that the flow of business will continue. However, the most successful sales people prospect all the time. They schedule prospecting time in their agenda every week. Even the most seasoned sales professional makes mistakes from time to time. Avoid these blunders and increase the likelihood of closing the sale.

Sales in Turbulent Times

Small Business Sales Strategies for a Tough Economy

The current economic climate, corporate distrust and sagging consumer confidence has put excessive pressure on the sales function of all companies. Small business owners and their sales teams are facing intense competition for accounts, eroding margins and longer sales cycles. What's a small business owner to do? To prosper in the face of adversity your About.com Small Business Guide has assembled FIVE key sales strategies for small business in tough economic conditions. 1) Focus on Fundamentals: As any sports team knows during a slump, the best approach is to go back to basics. Look at each stage of your sales process: Do your lead generating activities bring quality, interested clients or mere "tire-kickers"? Does your team really understand your customers with in-depth needs assessments? Are features and benefits tied to specific problems facing customers today? Can you & your team close sales effectively in a smooth well-timed manner? 2) Fire your Customers: Closely examine all of your accounts. There may be clients who are high maintenance using up your time & resources with little or zero profit. Focus on your customers that appreciate your business and are profitable. 3) Trim the Dead Wood: In flourishing times, sales come easy so your top performer may have really been an order taker. The current market requires professional sales personnel. Evaluate your under performers, support & coach them. If they can't learn the necessary skills or are unmotivated, it's time to part ways. 4) Have Huddles: Hold regular monthly meetings for your staff. Spend this time to role-play skills, share best practices, have fun and give a motivational boost. 5) Re-Examine Pricing Models: Blindly cutting prices to increasing competitive pressure is a sure way to shorten your businesses lifespan. Carefully, look where to change prices and find ways to tie pricing to a long-term relationship. For example, a 3-year $599.00 contract is better for you and your client than a yearly $249.00 contract. Build a long-term relationship with your market. During turbulent times, the small business that prospers and survives is the one who adjusts their sales approach to meet the current market conditions. Don't wait for a turn around...the time is now for a close look at your sales tactics.

5 Ways To Negotiate More Effectively What's your best price?"

"That's too expensive." "Your competitor is selling the same thing for." Most salespeople and business owners hear statements like this every day. That means it is important to learn how to negotiate more effectively. Here are five strategies that will help you improve your negotiation skills and drive more dollars to your bottom line: 1) Learn to flinch. The flinch is one of the oldest negotiation tactics but one of the least used. A flinch is a visible reaction to an offer or price. The objective of this negotiation tactic is to make the other people feel uncomfortable about the offer they presented. Here is an example of how it works. A supplier quotes a price for a specific service. Flinching means you respond by exclaiming, "You want how much?!?!" You must appear shocked and surprised that they could be bold enough to request that figure. Unless the other person is a well seasoned negotiator, they will respond in one of two ways; a) they will become very uncomfortable and begin to try to rationalize their price, b) they will offer an immediate concession. 2) Recognize that people often ask for more than they expect to get. This means you need to resist the temptation to automatically reduce your price or offer a discount. I once asked for a hefty discount on a pair of shoes hoping to get half of what I asked for. I was pleasantly surprised when the shop owner agreed to my request.

3) The person with the most information usually does better. You need to learn as much about the other person's situation. This is a particularly important negotiation tactic for sales people. Ask your prospect more questions about their purchase. Learn what is important to them as well as their needs and wants. Develop the habit of asking questions such as;

"What prompted you to consider a purchase of this nature?" "Who else have you been speaking to?" "What was your experience with?" "What time frames are you working with?" "What is most important to you about this?"

It is also important to learn as much about your competitors as possible. This will help you defeat possible price objections and prevent someone from using your competitor as leverage. 4) Practice at every opportunity. Most people hesitate to negotiate because they lack the confidence. Develop this confidence by negotiating more frequently. Ask for discounts from your suppliers. As a consumer, develop the habit of asking for a price break when you buy from a retail store. Here are a few questions or statements you can use to practice your negotiation skills:

"You'll have to do better than that." "What kind of discount are you offering today?" "That's too expensive." Wait for their response afterwards. Learn to flinch.

Be pleasant and persistent but not demanding. Condition yourself to negotiate at every opportunity will help you become more comfortable, confident and successful. 5) Maintain your walk away power. It is better to walk away from a sale rather than make too large a concession or give a deep discount your product or service. After attending my workshops, salespeople often tell that this negotiation strategy gives them the most leverage when dealing with customers. However, it is particularly challenging to do when you are in the midst of a sales slump or slow sales period. But, remember that there will always be someone to sell to. Negotiating is a way of life in some cultures. And most people negotiate in some way almost every day. Apply these negotiation strategies and you will notice a difference in your negotiation skills almost immediately.

Goods and Services Tax Goods and Services Tax (GST) is a part of the proposed tax reforms that center round evolving an efficient and harmonized consumption tax system in the country. Presently, there are parallel systems of indirect taxation at the central and state levels. Each of the systems needs to be reformed to eventually harmonize them. In the Union Budget for the year 2006-2007, Finance Minister proposed that India should move towards national level Goods and Services Tax that should be shared between the Centre and the States. He proposed to set April 1, 2010 as the date for introducing GST. World over, goods and services attract the same rate of tax. That is the foundation of a GST. The first step towards introducing GST is to progressively converge the service tax rate and the CENVAT rate. The goods and service tax (GST) is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at a national level. Integration of goods and services taxation would give India a world class tax system and improve tax collections. It would end the long standing distortions of differential treatments of manufacturing and service sector. The introduction of goods and services tax will lead to the abolition of taxes such as octroi, Central sales tax, State level sales tax, entry tax, stamp duty, telecom licence fees, turnover tax, tax on consumption or sale of electricity, taxes on transportation of goods and services, and eliminate the cascading effects of multiple layers of taxation. GST will facilitate seamless credit across the entire supply chain and across all states under a common tax base. Roadmap to GST As we have parallel systems of indirect taxation at the central and state levels, each of the systems needs to be reformed to eventually harmonise them. The central excise duty should be converted into a full fledged manufacturing stage VAT on goods and services and the states sales tax systems should be transformed into a retail stage destination based VAT, before the two are integrated. At the central level, beginning has been made by converging widely varying tax rates and extending input tax credit to convert excise duties into a CENVAT

The Sales Process: Stages of Selling and How to Develop Your Process Intelligently
All sales are actually completed in stages, and these stages must be cautiously approached so that you are sure to make that final sale. If you understand these stages then an agreement is virtually guaranteed; the important thing is to see all of the closes that may happen just to get to the final sale stage. In this article, well break down what in common opinion are the nine different stages of selling so you can earn more leads and close more small business sales.

Lead stage.

You think a person or a company may need your services through some source. You take the initiative and approach the person to see if there really is something that you can do for them; this approach includes advertising and direct communication.

Prospect stage.

This happens after you confirm the lead. After assessing the interest of the lead and finding that yes, they do have need for the service or product that your small company provides, they become a prospect. You agree to have a good discussion on what the prospects needs are, and that moves you into stage three.

Specifics stage.

This is your first meeting with the prospect, during which you find out what their specific needs are and they find out the specifics on how you provide it. This is normally done on a one on one level; if the individual or company you are pitching to has the final word then it is on to stage five; if not, then its stage four.

The more specifics stage.

Larger companies will have several individuals you will need to pitch to before a sale is confirmed. Again, you will want to listen carefully to what it is these individuals want and how they want it brought about. The close of this stage involves creating a very specific proposal that demonstrates how your small business meets the prospects needs.

Proposal stage.

At this stage, you present your solution to the prospects query. If you are selling a product, you propose the price. If you are negotiating on a service, it is time to lay out that written proposal document.

Trial close stage.

This is the bargaining stage of the sales process, and no, it doesnt mean "no sale" here. It just means it is time for a refinement of your proposal.

The budget stage.

This is where you find out whether or not the prospect has the funds to cover your proposal. Depending on what you are selling and the sale amount, it could take minutes or months! There is really nothing you can do at this stage but hope the sale goes through.

The close.

Every small business owners happiest stage, if it works anyway. You make the sale or dont. If you dont, then go back to stage three and see if you missed anything and try to refine your approach.

Retention stage.

Just because you have the cash in hand or have heard no doesnt mean the sale is over. If you were successful, you need to follow up in order to ensure customer satisfaction. If you werent, then you want to assess what went wrong and try to fix it. You may even start over again once you determine why the deal did not go through. Dividing the sale into different stages can really help you refine your approach and up your chances for success. No matter how small or large, retail or service, most sales processes will follow these steps.