Security Sales & Sales Management Tips

Call Reluctance - A potential career ending disease

2012-03-03T05:59:00.000-08:00

Did you know that you or your salespeople could have a career ending or career limiting Psychological disorder?

Call Reluctance: When Salespeople Need a Checkup from the Neck Up

Throughout my years as a salesperson, trainer, and manager, I have witnessed the “death of a salesman” played out all too often in real life. I have seen successful salespeople wither and die on the vine, careers washed up on a psychological reef, never again to close the sales they were once capable of.

Like other sales managers and trainers, I attempted to find the ailment. Most often, however, the patient was too busy wallowing in a quicksand-like denial to seek or accept help. When I extended a branch, offering to pull the salesperson out of the quagmire that engulfed him, he denied needing help. “Nothing is wrong. What’s the fuss? I’m doing okay,” he exclaimed. All the while the problem grew worse, finally ending what had been a promising career.

The problem, the malady, the disease that scuttles so many sales careers often has its roots in the fear of self-promotion. Also know as contact hesitation and call reluctance, the fear of self-promotion prevents salespeople from doing the very things they know are necessary to succeed.

Sales Call Reluctance is a career-threatening condition that limits the number of calls a salesperson makes. Some have trouble using the phone to prospect, while others find it difficult to call on friends, or relatives, or important people. Until just a few years ago, most sales managers and trainers thought of contact hesitation as the simple fear of rejection. “Your problem is you’re just afraid of the word no! Don’t you know the prospect can’t hurt you?” the old-time sales manager would exclaim.

The age-old fear of rejection materializes around puberty, preventing many young people from talking to someone they find attractive. While this can contribute to call reluctance, behavioral psychologists digging into the affliction have uncovered more than the simple fear of rejection, the fear of being told no.

Depending on who you ask, there are anywhere between six and twelve distinct types of call reluctance—six to twelve very different psychological afflictions that, if allowed to, will ruin the most promising sales career.

Furthermore, studies have revealed that contact hesitation does not only affect new entrants into the sales field. “While it is true that up to 80 percent of all salespeople fail within the first year due to insufficient prospecting activity, 40 percent of experienced, successful salespeople will experience one or more bouts of call reluctance, hampering their prospecting activity seriously enough to threaten their continuation in sales. If they learn to cope with and overcome these bouts, their careers will suffer no permanent damage. If not, their names will be added to the ever-growing list of once-successful salespeople.” George W. Dudley and Shannon L. Goodson – Earning What You’re Worth.

Over the next few blog entries we will explore a few of the more common varieties of call reluctance and attempt to clearly identify each. We’ll study examples, attempting to paint a picture we all can recognize as we gaze into our own life’s mirror. We’ll attempt to understand the debilitating nature of each kind of call reluctance.

Your job is to study each of these with an open mind. Lock yourself in a room as you read and then ask yourself honestly, “Could this be me? Could this be someone working for me?” Ask yourself if you could use a checkup from the neck up.

Remember, there is nothing shameful in needing help. There is nothing shameful or career-busting about suffering from contact hesitation. The only way contact hesitation in any form can harm your career is if you shroud it in denial, allowed it to grow and fester unchecked.

In Earning What You’re Worth?: The Psychology of Sales Call Reluctance by George W. Dudley and Shannon L. Goodson[SW1] , the authors identify twelve forms of call reluctance or contact hesitation. The following outlines some of what they found[SW2] .

Type of Call Reluctance	Behavioral Markers
Doomsayer	Worries, will not take social risks
Over-preparation	Overanalyzes, under-acts
Hyper-pro	Obsessed with image
Stage fright	Fears group presentations
Role rejection	Ashamed of sales career
Yielder	Fear of intruding on others
Socially self-conscious	Intimidated by up-market prospects
Separationist	Fears loss of friends
Emotionally un-emancipated	Fears loss of family approval
Referral aversion	Fears disturbing existing business or client relationships
Telephobia	Fears using the telephone for self-promotional purposes
Oppositional reflex	Rebuffs attempts to be coached

To Learn more about Lou Sepulveda C.P.P. and what he has to offer to help Security Professionals succeed go to Lou's web site - www.lousepulveda.com

Lou Sepulveda Consulting & Training

985-778-1571

Lou@lousepulveda.com

www.lousepulveda.com

Book Titles by Lou

Selling Security Systems Like A Pro – (Paperback & EBook)

How to Manage a Security Sales Organization – (Paperback & EBook)

Managing to Sell

Gerencia de Ventas Efectiva – (Paperback & EBook)

The Formula for Selling Alarm Systems

Surviving in the Security Alarm Business

Order Lou’s CD – Handling Objections & Closing the Sale

Note: If you would like to read previous Blogs go to http://lousepulveda.blogspot.com

[SW1]

[SW2]

Answering the Objection – Step 6

2012-02-02T05:30:00.000-08:00

Answering the Objection – Step 6

In November, if you have been following my posts, you learned how to accomplish the fifth step of the eight step closing pattern, “isolating the objection.” You have successfully navigated the first five steps of the eight step closing pattern. You Listened carefully (step 1) and completely to the prospect’s objection. Then you Paused, (step 2) giving the prospect time to restate the objection, change it, or in some cases decide the objection didn’t even make sense to them.

Once sure they didn’t have more to say, you Empathized (step 3) by saying you could understand how they might feel as they do.

Next you “Repeated the Objection changing” it ever so slightly which is (step 4).

And then you made sure there weren’t any other objections they had prior to answering the objection, which is to Isolate, step 5.

So then now you are at the step you’ve been building up to. You are now ready to “Answer The Objection” the prospect raised.

Answering objections requires you learn answers to, at the very least, the top 3 to 5 common objections salespeople hear when selling alarm systems. To determine what those objections are simply get together with other salespeople in your company and ask them to list the objections they routinely hear. When you do that exercise you will no doubt learn that the common objections are just that, common.

The objections salespeople all over the US tell me they hear are as follows:

1. We need to think about it. (Or any iteration of that same statement)

2. We plan to shop around.

3. Your price is too high.

4. We’ve never had a problem. (Safe neighborhood etc.)

5. We have a good watch dog.

The above objections are likely the ones you hear regularly, but of course there are others you hear infrequently. However, I can assure you, if you learn to answer the above five objections professionally, you will make more money and protect more homes, families and businesses in the bargain.

I believe answers to objections come in three forms.

1. A Verbal Answer – This is an answer to an objection you have memorized.

2. A Written Answer – This answer style is accomplished by writing or referencing a written document which supports your argument.

3. A Third Party Answer – Often the strongest tool, because this answer comes from a satisfied customer, or a customer that wished they had purchased a system before they were burglarized.

Not to make this article too long, we’ll deal with one objection in this article utilizing one type answer. I will cover them all, including all styles in future posts.

The number one objection heard in any form of belly-to-belly sales is the first listed above. “The Think About It” objection.

Sales professionals all over the world will attest that the “Think About It” objection is often a smoke screen at best, meaning the objection isn’t they want to think about it, the real objection is hidden. They have another reason for not saying yes, they just don’t want to tell you what it is. However, on occasions the prospect does truly want to think about your offer, which then begs the question, for how long?

In my humble opinion the best way to deal with the “think about it” objection is for you to assume they do want to think about it, talk it over. Assume they need only a few minutes without you staring at them to ask each other, so what do you think? To handle the objection with the above assumption in mind I would use the five minute close. The five minute close assumes they only needed a few minutes to mull over the decision. So here is what I would say.

1. I would “Listen” completely and intently to the words they are saying to me when they say they want to think about it.

2. When they finish talking I would “Pause”, looking directly at them, saying nothing for a few seconds. If they don’t start talking again………

3. I would “Empathize” with them. You know Mr. & Mrs. Jones, I certainly understand how you feel. After all, a decision as important as protecting your family is surely worth thinking about.

4. Next I would “Repeat but Change the Objection.” So what you are saying is you like the system and would have me install it just as soon as possible, but you feel you need some time to mull it over, to talk it over between you two, is that right?

5. When they agree to the repeat step, I would “Isolate the Objection” by saying: Other than thinking it over, is there anything else that would prevent you from saying let’s protect my family right away, anything else?

6. Hearing no other objections I would “Answer the Objection” by saying; I have another appointment after this one, and I’m not completely sure how to get there, so if you don’t mind I’ll just step into the next room and make a call to my office to get directions. That will give you two time and privacy to talk it over.

If they don’t stop me, they only needed a few moments to decide. When you return to the room, don’t ask if they have decided to buy. Ask a minor point, alternate choice question, assuming they are going to buy. The question could be as follows: So would a morning or afternoon installation work best for you?

Do this and you will find a high percentage of the think about objections vanish, replaced by their signature on your sales agreement.

Lou Sepulveda C.P.P. is a 35+ year veteran in sales and sales management. He has managed very large and small sales teams selling in 30 countries around the world. Lou is a published author. His most recent books are “Selling Security Systems Like A Pro”, “How To Manage A Security Sales Organization,” and “Gerencia de Ventas Efectiva,”all of which are available as an E-Book or in paperback. His previous books are “The Formula for Selling Alarm Systems,” “Surviving in the Security Alarm Business,” and “Managing To Sell”. Lou’s company, Lou Sepulveda Consulting, provides consulting services, sales and sales management training, and motivation seminars designed to help companies grow. Lou’s web page is www.lousepulveda.com. Or email him at lou@lousepulveda.com.

Sales Management Part Six

2012-02-02T05:27:00.000-08:00

Sales Management Part Six

Answering Objections & Closing the Sale

Using the 8 step Closing Pattern
(Continuing from last post)

Step 4: Repeat the Objection, Changing It Slightly

Salesperson: “Just so I’m clear, what you are saying is that while you agree that you like the system and you would give my company the go-ahead to start work as soon as possible, you feel you need a bit of time to talk it over between you two, without me staring at you. Does that about cover it?”

Prospect: “Yes.”

What the salesperson changed was the first part of the original statement. He repeated the objection, but added that the prospects agreed that they liked the system and would buy it as soon as possible once having a “bit” of time to talk it over without the salesperson being present. That statement also assumed that the prospects only needed a few minutes versus hours, days, or weeks, to think it over.

When you hear prospects say they want time—the classic “think it over” objection—how much time do you assume they want? I’ve asked that question all over the country at seminars I’ve conducted, and the answers I get are mixed. Mostly I get the impression that in general; salespeople haven’t thought to ask themselves that question.

Years ago my wife met with a man who said he would help us find government grant money for our son’s college education. I suspected the man was selling something but my wife was convinced he wasn’t selling only helping us with a government grant. But given he insisted we both be present I was convinced he was in fact selling something; probably insurance. I wasn’t happy to see what I knew was a salesperson, probably selling insurance. I felt I had more than enough insurance and didn’t need more. However, my wife had made the appointment, and I was bound to suffer through it.

When he arrived for the scheduled appointment he did a great job warming us up. He spotted our sailing pictures, and from those photos and some well-asked questions, he learned of our love for sailing. After that crucial step I liked him and was more open to hearing what he had to say. When he launched into his presentation, and it became clear that indeed he was selling insurance, I wasn’t concerned. My wife, however, now realized that I had been right—he was selling insurance—and she thought she knew my feelings about that since we had discussed it earlier that day.

From that point forward my wife assumed I wanted no part of what this guy had to sell, so she dutifully listened to his presentation. She knew that at the end, she would simply tell the man we wanted to think it over, he would leave, and that would be the end of it. However, as I listened to what he said, I was sold. While it was true that a large component of his plan was to sell me more insurance, the whole package kind of made sense for our youngest son’s college education, which all of this was aimed at.

So picture the situation. My wife was half listening, knowing I had made it clear before he arrived that I was against buying more insurance. In fact, we made a pact before the salesperson arrived: if it turned out I was right, that he was selling insurance, we would get rid of the salesperson by saying we wanted to think it over. So while my mind was changing, my wife didn’t know that, and she had resigned herself to telling the salesperson the lie we agreed to.

However, as the presentation came to an end, the salesperson asked the most unbelievable closing question I’ve ever heard. In fact, because it was so unbelievable, I was stunned into silence. The closing question was, “Do you folks want to take a couple of weeks to think about all of this?”

He said a couple of weeks? Being married to someone who is an author of sales books, a sales management executive, and a sales trainer, my wife knows all the sales steps and all the closes. She’s heard me talk about them in seminars, and since she had helped me with my audio closing CD, she heard me talk about what to say so many times she could recite it in her sleep. So when the salesperson said what he did, she was also shocked. And she knew me well enough to understand that even if he was selling gold bars for the price of chewing gum, I wouldn’t buy anything from him after he committed such an incredible sales crime.

Obviously, this salesperson had come to the conclusion that everyone needed time to think about a decision, and in fact, needed at least two weeks. The fact is, had he asked the most basic closing question like, “So what do you think?” My wife would have jumped in, and said we needed time to think about it. And if the salesperson had been smart enough to perhaps assume we needed only a few minutes, and suggested as much, I would have told my wife I had changed my mind, and we would have bought the insurance policy. But he didn’t and we didn’t either. The sale never happened.

Take my advice, and first assume your prospect only needs a few minutes.

This then leads you to the next step which we will cover in the next months posting.

Would you like to hear Lou Answer the common salespeople in the security industry face every day in a role playing environment?

Here is how you can.

Order Lou’s New CD – Handling Objections & Closing the Sale

Also a Great tool for Salespeople is Lou’s new E-Book entitled:

Selling Security Systems Like a Pro

In this NEW E-Book Lou teaches salespeople how to prospect, present themselves, your company, the problem, the survey, the investment, and how to answer commonly heard objections. Lou share’s 12 Powerful Closes sure to help salespeople close more sales. The E-Book is available NOW! And the best part is the investment; only $29.99. Wow! How can you beat that? To order go to www.lousepulveda.com.

Lou Sepulveda Consulting & Training

985-778-1571

Lou@lousepulveda.com

www.lousepulveda.com

Book Titles by Lou

· How to Manage a Security Sales Organization – NEW (E-book only)

· Selling Security Systems Like a Pro – NEW (E-book only)

· Gerencia de Ventas Efectiva - NEW (E-book only)

· The Formula for Selling Alarm Systems

· Surviving in the Security Alarm Business

· Managing to Sell

· Gerencia de Ventas Efectia

Note: If you would like to read previous Blogs go to http://lousepulveda.blogspot.com

Income Caps - Why? Do they make sense?

2012-02-01T06:15:00.000-08:00

A Ceiling on Income – Income Cap

Does it make sense?

In the late 1960’s, after completing my college education and after working my way through college selling door-to-door, it was time to begin looking for a career. My goal was to work for a National company that provided benefits, a career path and, of course, given the sales experience I had gained while in college, I hoped to earn good money.

My first interview was with the Burroughs Corporation. I was given a test to complete which was followed up by an interview with the Sales Manager. At the conclusion of the interview I was offered a position in sales. The position paid a salary, benefits, a potential annual bonus based on achieving corporate sales goals, a car and business expenses. At the time, I considered this offer an attractive offer. However, since I had already scheduled other interviews I told the Sales Manager I’d get back to him with an answer.

My next interview was with IBM. At the time IBM wasn’t nearly as big as it is today, but IBM had already earned quite a nice reputation and was an appealing company to work for. The interview with IBM went much as did the Burroughs interview. IBM explained the offer which included salary, benefits, a potential annual bonus, a car and expenses. The salary was about the same as the salary offered by Burroughs.

My next interview was with Xerox. That interview concluded about the same as the previous two. So after a couple of days of interviewing I had a pretty good picture of what my potential earnings could be.

My last interview was with NCR, National Cash Register. At the time, NCR was the run-away market leader in cash register sales. No one was close. NCR was also competing with IBM in the then new computer business. Before discussing the pay plan I ranked NCR right with the three previous interviews with the exception that the explanation of the training program NCR offered its salespeople added extra appeal to me. NCR’s training in my judgment appeared to be second to none.

The final portion of the interview was, like the others, a discussion of income. When I asked how much the salary was, the NCR manager informed me that they didn’t pay a salary. I was told NCR salespeople were paid commission and in the beginning were given a very small draw. I then asked if they provided a car. The reply was not only no, but worse, all NCR salespeople were required to purchase a station wagon to work out of. It was necessary, I was informed, so salespeople could carry cash registers to demonstrate to potential buyers. Wow, I thought, I am so not going to take this job.

Anticipating that I wasn’t exactly thrilled with what I heard, the Sales Manager asked me to take a walk through the building with him. I agreed purely out of courtesy. The manager led me into a Sales Room and once there pointed to one of the fifteen or so salespeople busy working at their desk. “Lou,” he said, “you see that man right there in front?” He pointed at a man apparently in his late forties. “Where do you think he is going once the sales meeting is over?” The man he pointed to was in casual, going to play golf today, clothes. “Based on how he is dressed,” I said, “I think he’s going to play golf.” The manager smiled and said “you’re probably correct.” “And you know what” he asked? “I don’t care. He is one of our top salespeople and he is on the very same compensation plan I’ve offered to you. And Lou, with that plan he will earn five times or so more than the other companies have offered you including the potential bonus. You see with us,” he explained, “we don’t limit income by paying salespeople a salary and bonus. Because that is exactly what a plan like that does; the strong pay for the weak. We also don’t set a cap on income. We give strong salespeople an opportunity to earn as much as their sales skills allow them to make.”

I accepted the NCR offer and position and quickly became one of the top producers. My first year, and every year after I earned far more than the salary the other companies offered. I earned every dollar, and I was proud of what I accomplished.

Three years after joining NCR the President retired and a new President was brought in. Soon after he announced he was changing the compensation plan. He announced that the new plan would include a salary and bonus plan. He didn’t say as much, but reading the plan and how it paid, an automatic cap on income would be in place. The commission plan as I knew it was out. I did the calculation. Based on the new plan, assuming I achieved what I achieved the year before, plus a predictable increase, I would earn approximately one third of what I earned the previous year. Within a few months I resigned and so did many of the top performers. Not surprising, the weak salespeople stayed.

Today, most people reading this article have never heard of National Cash Register, NCR. I believe changing the compensation plan contributed greatly to the company losing market share.

Next I am led to ask, why limit a salesperson’s income? Am I the only one that knows and believes that it is human nature to slow down or even stop once realizing additional sales and effort no longer contributes to income? Think about it. Your salesperson is enjoying a great year. He has worked hard, made lots of calls, worked long hours, often well into personal time, and is literally kicking sales butt. However, as he approaches month eight of the sales year he realizes that he is already at or very close to the “capped income” the company set. He can’t earn any more money. Will he continue to work hard? Will he continue to forego personal time to close more sales? Or will he begin to coast, play a lot of golf or whatever activities he has been putting off in favor of work?

Not long ago I worked for a fortune fifty national company that understood that problem. So they announced to all employees that there was absolutely no limit on income. They instituted a tiered (they called Plateaus) commission structure designed to reward production, to cause salespeople and the managers that managed them to work hard up to the very last day of the year. They made a big deal out of their “NO Caps on Income” policy. The “No Caps Plateau” plan produced phenomenal, record breaking results.

How did the “plateau” commission plan work, you ask? Let’s look at an example. Let’s assume a territory salesperson sold $3 million dollars of product this past year. (The amount doesn’t matter as much as how you arrive at the Plateau plan.) Let’s further assume that the projected production achieved quota or plan. Corporate would budget for next year’s sales prior to the past year end. Looking at “run-rate” we could determine quite accurately what the next twelve months production should be for the company and each salesperson. So let’s assume the goal is to grow 10% over run-rate.

The salesperson that produced $3 million in sales last year would be expected to produce 10% more in the New Year, $3.3 million in sales. That goal would be Plateau One production. Plateau two production may be set at 20% growth and Plateau three may be 40% growth. Commission/bonus calculations changed by plateau. Every dollar of production over Plateau one earned a percentage increase in income, thereby motivating the employee to continue to push even after achieving Plateau One. Even more important was the fact that once achieving Plateau Two, the employee received a higher, per dollar, income bump. The same applied to Plateau Three. The goal is to drive the salesperson/manager to continuously push to the last day of the company year.

Managers were charged with the responsibility of staying on top of every salesperson’s year-to-date production. If we saw that a salesperson was on track to achieve the highest commission plateau (Plateau 3) a month or more before the end of the year, the manager would meet with the achieving salesperson to give him yet a higher Plateau commission plan, Plateau Four or even Plateau Five. We hoped the salesperson would make record breaking income by producing record breaking sales. If he did, the word spread throughout the company causing other salespeople to work hard in an effort to earn top dollars. One year, at a corporate management meeting, our CEO, Dennis Kozlowski, spoke about the great results we achieved as a company the previous year. He attributed a lot of the success to the no-caps Plateau compensation plan. We had empirical evidence that the plan worked. He challenged us all to look for ways to motivate every employee in the company with a similar plan. He suggested everyone would contribute more, work harder, and produce greater results if they were rewarded when they did.

Now the bad news; The CEO of the fortune 50 company resigned and the newly appointed CEO decided the existing compensation plan was too rich. He decided a Cap on income was appropriate. As the new policy was instituted I couldn’t help but think about NCR and what happened to them after they did the same. Are the company salespeople and managers working as hard, producing as much as they did under the No Caps plan? Will they continue to push for more sales after reaching the company “Cap” in income? I would bet they will not. Only time will tell.

Limiting income leads to limited effort.

I often compare the sales profession to professional sports. In both cases professionals are involved. Suppose the PGA announced that a ceiling will be placed on income and so no golfer will be allowed to earn more than one million dollars. Would the top golfers continue to play tournament after tournament once reaching the income cap? Suppose a similar cap was placed on football, basketball and baseball. Do you think a policy like that would result in players working as hard? No? Then why would anyone expect a salesperson or a manager to continue to work hard when he knows, because of the company No Cap plan, additional effort won’t result in commensurate pay.

If you want to drive your employees to produce, keep dangling a carrot of additional income in front of them and you will see production grow, I promise.

Am I wrong? Do you have an opinion? Email me if you want to weigh in.

Answering Objections Like A Sales Pro

2011-09-04T07:11:00.000-07:00

Step 4: Repeat the Objection, Changing It Slightly

Salesperson: “Just so I’m clear, what you are saying is that while you agree that you like the system and you would give my company the go-ahead to start work as soon as possible, but you feel you need a bit of time to talk it over between you two, without me staring at you. Does that about cover it?”

Prospect: “Yes.”

The repeat but change step is powerful because it allows the prospect to hear his objection repeated but with a carefully worded twist. The twist says he likes the system and would have it installed as soon as possible but ….. (the actual objection repeated). I have used that step for years and have never had a prospect tell me he didn’t say he liked the system and would have it installed. The prospect always agreed. The change plants the subliminal thought I needed.

Once completing step 4 you are ready to move on to step 5, Isolate the objection. We will discuss that step next time.

Would you like to hear Lou Handle the common Objections in a role playing environment?

Here is how you can.

Order Lou’s New CD – Handling Objections & Closing the Sale

Also a Great tool for Salespeople is Lou’s new E-Book entitled:

Selling Security Systems Like a Pro

In this NEW E-Book Lou teaches salespeople how to prospect, present themselves, your company, the problem, the survey, the investment, and how to answer commonly heard objections. Lou share’s 12 Powerful Closes sure to help salespeople close more sales. The E-Book is available NOW! And the best part is the investment; only$29.99. Wow! How can you beat that? To order go to www.lousepulveda.com.

Lou Sepulveda Consulting & Training

985-778-1571

Lou@lousepulveda.com

www.lousepulveda.com

Book Titles by Lou

How to Manage a Security Sales Organization–NEW (E-book only)

Selling Security Systems Like a Pro– NEW (E-book only)

The Formula for selling Alarm Systems

Surviving in the Security Alarm Business

Managing to Sell

Gerencia de Ventas Efectiva

Note: If you would like to read previous Blogs go to http://lousepulveda.blogspot.com

Answering Objections and closing the Sale

2011-07-23T14:13:00.000-07:00

Sales Management Part Five

Answering Objections & Closing the Sale

Using the 8 step Closing Pattern
(Continuing from last post)

Step Two - Pause

The next step after listening is to pause. In other words, say nothing at all. Just look at the prospect, and think. Watch their mouths the whole time, and while doing that just think. Think about what they said, and how they said it. Think of the best answer to fit the objection you just heard. You can even do a quick role play in your head, practicing how you will answer. If you do this step correctly it will seem like an eternity. You are thinking, and looking directly into your prospect’s eyes, and watching her mouth—because if she begins to talk again, and prospects often do, you’ll need to stop thinking and begin listening again.

The pause step will often cause prospects to rationalize their objection, to justify it. Sometimes the pause causes them to tell the truth, to tell you what is really on their minds; however, if they don’t begin talking again, after you’ve thought (paused) long enough, move on to the next step, empathizing.

Step 3: Empathize

Webster’s Dictionary defines “empathize” to mean “to be understanding of.” To empathize does not mean you agree; it simply means you can understand why the person feels the way he feels.

In the context of a closing sequence, to empathize means you can understand how the prospect might feel the way he does. To empathize with the prospect at this point says you understand. You are implying that it’s not stupid to feel that way; it’s even normal. Empathy relaxes the prospect, because it shows you do understand his feelings.

So let’s do a role play on how the step should go.

Salesperson: “So would Tuesday or Thursday be better for the work to start?”

Prospect: “I’m not sure we’re ready to commit. After all, we usually think over decisions like this before agreeing.”

The salesperson pauses, thinking about the prospect’s answer.

Salesperson: “Mr. and Mrs. Jones, I can understand that you’d want to think about a decision as important as this—how you’d want to mull it over, weigh the pros and cons.”

At this point the prospects usually feel better. They sense that you understand, and that relaxes them. The Joneses were somewhat prepared for an argument, but not for agreement. Empathizing helps turn the closing sequence into a conversational, helpful situation instead of an argumentative confrontation. This then leads you to the next step which we will cover in the next months posting.

Would you like to hear Lou Handle the common Objections in a role playing environment?

Here is how you can.

Order Lou’s New CD – Handling Objections & Closing the Sale

Also a Great tool for Salespeople is Lou’s new E-Book entitled:

Selling Security Systems Like a Pro

In this NEW E-Book Lou teaches salespeople how to prospect, present themselves, your company, the problem, the survey, the investment, and how to answer commonly heard objections. Lou share’s 12 Powerful Closes sure to help salespeople close more sales. The E-Book is available NOW! And the best part is the investment; only $29.99. Wow! How can you beat that? To order go to www.lousepulveda.com.

Lou Sepulveda Consulting & Training

985-778-1571

Lou@lousepulveda.com

www.lousepulveda.com

Book Titles by Lou

How to Manage a Security Sales Organization – NEW (E-book only)

Selling Security Systems Like a Pro – NEW (E-book only)

The Formula for selling Alarm Systems

Surviving in the Security Alarm Business

Managing to Sell

Gerencia de Ventas Efectiva

Note: If you would like to read previous Blogs go to http://lousepulveda.blogspot.com

Security Sales & Sales Management Tips

2011-05-30T07:50:00.000-07:00

Sales Management Part Four

Answering Objections & Closing the Sale

Using the 8 step Closing Pattern

Obviously to be successful in any sales career a salesperson must learn how to combat and answer the common objections he or she will encounter selling. In previous Blogs I outlined the most common objections encountered in the security alarm business, so professional security salespeople must learn how to successfully answer the common objections if salespeople are going to have a sustainable career in security sales.

So you ask, what is the correct way to answer objections. The answer to that question is to do so in a way that feels to the prospect as “Conversational,” “we’re just talking here,” versus feeling like the whole experience is “Confrontational.”

If a close appears to the prospect to be “Confrontational,” you may win the battle, but likely, all too often, you will lose the sale.

I have learned how to insure that when you answer an objection, the prospect will feel comfortable with your “Conversational Manner and approach.”

To turn answering objections into a friendly, yet effective, conversation, utilize the 8 step closing pattern. Here it is:

The Eight Step Closing Pattern

Step One – Listen

Listen completely and intently to every word the prospect is saying as he or she objects. Resist the urge to conclude you know what the prospect is saying before they finish talking. Learn to clear your mind of thought until you hear every single word.

Here’s why. Suppose you asked the prospect to buy by saying something like this:

“Mr. & Mrs. Johnson, the system we’ve just designed to protect you home and family can be installed for only $____________ installation and only $_________ per month. Now, when I left my office I noticed we could install a system of this size next week on Tuesday or we could install it on Thursday, which day is best for you?”

Of course the absolute rule in sales is, once asking a closing question, shut-up! The next on that speaks loses! Or Buys!

So, suppose you asked that question and in response Mrs. Johnson says this:

“You know, (your name), as a rule we never make decisions on the spur of the moment. We have learned to wait awhile before deciding; sleeping on the decision. And our experience has proven that waiting and thinking is the right thing to do.”

All too many salespeople wouldn’t have listened all through the above statement. As soon as they heard “we never make decisions on the spur of the moment,” they would have decided they knew what the prospect was objecting to, and wouldn’t have even heard the last part of the above which was “And our experience has proven that waiting and thinking is the right thing to do.” Instead the salesperson hears only a faint noise coming from the prospect because he is already thinking of his answer.

What the salesperson also didn’t hear is what the prospect said after the final statement above. Here is what the salesperson missed.

“However, (salesperson’s name) your system looks so good and everything you said makes so much sense, we will go against what we normally do and just say yes.”

But because the salesperson didn’t here that last part or maybe even the sentence before that one, once the prospect finishes talking the salesperson launches into his or her “Think About It” answer.

Now the prospect is really confused! And all too often the sale is lost.

Effective listening is a skill that will put money in your bank account. You owe it to yourself, as well as to the prospect, to listen completely and intently to what the prospect says. They will give you clues as to what they like, don’t like, and what will cause them to make a positive buying decision.

Would you like to hear Lou Handle the common Objections in a role playing environment? Here is how you can.

Order Lou’s New CD – Handling Objections & Closing the Sale

Also a Great tool for Salespeople is Lou’s new E-Book entitled:

Selling Security Systems Like a Pro

In this NEW E-Book Lou teaches salespeople how to prospect, present themselves, your company, the problem, the survey, the investment, and how to answer commonly heard objections. Lou share’s 12 Powerful Closes sure to help salespeople close more sales. The E-Book is coming real soon to online bookstores everywhere. And the best part is the investment; only $29.99. Wow! How can you beat that?

To Learn more about Lou Sepulveda C.P.P. and what he has to offer to help Security Professionals succeed go to Lou's web site - www.lousepulveda.com

Lou Sepulveda Consulting & Training

985-778-1571

Lou@lousepulveda.com

www.lousepulveda.com

Book Titles by Lou

How to Manage a Security Sales Organization – NEW (E-book only)

Selling Security Systems Like a Pro – NEW (E-book only)

The Formula for selling Alarm Systems

Surviving in the Security Alarm Business

Managing to Sell

Gerencia de Ventas Efectiva

Note: If you would like to read previous Blogs go to http://lousepulveda.blogspot.com

Follow-up On Alarm Ordinances going too far

2011-04-15T15:09:00.001-07:00

I firmly believe that credit should be given when credit is due.

A bit over a month ago I wrote a Blog about Alarm Ordinances and when they go to far, which addressed some of the requirements in place and/or being proposed by the Louisiana Fire Marshall's Office, the AHJ regulating the Fire & Burglar Alarm Industry in Louisiana.

I am following up on that Blog because Louisiana has amended most of what was wrong about the requirements. If you hadn't read the first Blog you can go to http://lousepulveda.blogspot.com to read all of the details.

The changes made are as follows:

1. Instead of the proposed change to require salespeople to take the UAS (Understanding Alarm Systems) course and pass the test imediately before being able to work, they now give the salesperson six months to take the course. Given the course at this time is only offered 3 or 4 times each year, six months sounds like a reasonable time frame in which to have taken the course.

So once again I applaud and thank the Louisiana Fire Marshall for making this important change. Growing companies operating in Louisiana will appreciate the change.

That said, one major problem still exists and I can only hope the Fire Marshall's Office will consider following the lead of many other states.

The problem is that once a salesperson is hired, the company/salesperson must submit an application to the Fire Marshall's Office for a background check and issuance of a license. However, I'm told that the time frame between submitting an application and receiving the actual license can take as much a two months, meanwhile, based on Louisiana's rule, the salesperson cannot sell untill he or she receives the official license. Obviously, the salesperson cannot afford to wait up to two months without pay, and asking the company to support an unproductive salesperson for two months isn't reasonable either.

First of all, it doesn't take even one, much less two months to conduct a background check. I can understand a govenment agency claiming to be understaffed and overworked and therefore processing take longer. However, Louisiana could take a lesson from their neighbor Texas as well as lots of other states that allow the salesperson to start working after submitting an application. Like a license applied for with a car, the salesperson must only carry a copy of the application with him to prove it has been filed. That is a more reasonable solution.

If it's the criminal background check the state is worried about, two solutions come to mind. First, the applying company could have the background check done, which usually takes 48 hours or so, and then submit the report they receive along with the application. A second reasonable option is the state could do the background check, again within 48 hours or so, and then simply inform the applying company by email or mail that the applicant has passed or failed. Utilizing either of the above methods would satisfy the main intent of the license requirement and allow the salesperson to begin earning a living.

I can only hope that the AHJ in Louisiana amends the license requirement once again to make it possible for companies that wish to grow business a chance to do so. And of course increasing employment; creating jobs is good for the state and stimulates our lagging economy.

What do you think? Am I asking for too much?

Sales Management Part 3

2011-03-27T13:18:00.000-07:00

Sales Manager Part Three

Common Objections continued

a.) I want to think about it. Or, we never make a decision without sleeping on it.

b.) We plan to shop around and get other prices

c.) The price is higher than I expected.

d.) We can’t afford it.

e.) We’ve never had a problem. This is a safe neighborhood.

f.) We have great insurance. So if something is stolen we’ll get a new one.

g.) We have a great watch dog.

h.) We have a gun, we’ll shoot the burglar.

i.) We have a nosey neighbor next door who watches everything.

j.) We have nothing to steal

If we know what objections we salespeople in the security business hear on a daily basis as we sell our products, shouldn’t we be prepared to answer those common objections?

Let’s put it another way. Let’s assume we are professional baseball players. Upon doing the research on the team we’re getting ready to face, we learn that the oppositions pitcher throws curve balls, sliders, change-ups, and fast balls. Should our team practice hitting curve balls, sliders, change-ups and fast balls? Of course, we surely don’t want to go into the game unprepared.

If we were professional golfers, wouldn’t we want to practice hitting balls out of the sand, on up hills slopes and down hill slopes if the course we were getting ready to play had plenty of those challenges? Of course we would.

A sales manager’s job is to focus his or her salespeople on the challenges they will likely face making sure they are prepared to face those challenges. And handling common objections and closing skills is an important part of selling success.

Here is a question you sales managers need to be asking yourself. Do all of your salespeople know how to properly answer the objections listed above? Are you sure? Just asking your salesperson isn’t going to get you the answer.

My experience tells me that when I ask salespeople if they know how to deal with the objection “I want to think it over,” which is, in my opinion, the most common objection heard, they will most often say yes they do. However, if I ask them to show me, to answer the objection after I say I want to think about it, they fumble the challenge. If I accompany them in the field on a sales call and the prospect voices an objection I’ll find out how they really handle an objection in a real life situation.

Don’t let pride get in the way of success. Sales managers must make sure their salespeople are truly equipped to sell, and that means being prepared to generate leads, make polished presentation, answer commonly heard objections and close the sale.

When salespeople are faced with one of the above common objections or even one that isn't mentioned above, it is critical to their long term success they know how to answer the objection in a way that increases their odds of making the sale. I believe one of the best ways to accomplish that goal is to learn and practice the 8 step closing pattern.

The 8 step closing pattern turn the handling of the objection into a friendly and caring conversation. You won't appear to be arguing with the prospect, on the contrary, you will appear to understand and even sympathize with the prospect.

In a future Blog I will share the 8 step closing pattern with you. Or you can hear me handle the common objections using the 8 steps on my CD, "Handling Objections & Closing the Sale."

Every salesperson should have their own CD to listen to in their car as they drive to a sales appointment. I guarantee if they do so they will close more sales.

To Learn more about Lou Sepulveda C.P.P. and what he has to offer to help Security Professionals succeed go to Lou's web site - www.lousepulveda.com

Lou Sepulveda Consulting & Training

985-778-1571

Lou@lousepulveda.com

www.lousepulveda.com

Book Title by Lou

The Formula for selling Alarm Systems

Surviving in the Security Alarm Business

Managing to Sell

Gerencia de Ventas Efectiva

Order Lou’s New CD – Handling Objections & Closing the Sale

Note: If you would like to read previous Blogs go to http://lousepulveda.blogspot.com

When do Alarm Ordinances go to far?

2011-03-09T16:31:00.000-08:00

Some would answer all alarm ordinances go too far and they restrict trade. However, I personally wouldn’t go that far.

I can remember serving on the board and then as president of a state alarm association as the subject of alarm ordinances first came up. At first it was the City Council that proposed what we believed to be an onerous ordinance that would have fined alarm companies for each and every false alarm. The original proposal was $150 each. Of course that got our attention and we sprang into action.

We quickly formed a committee and hired an attorney to fight the outrageous proposed legislation. Of course the City Council didn’t believe for a minute their proposal would pass, they just wanted to get our attention, and they did.

From that beginning entered the protectionism actions. Our membership saw what they believed to be an opportunity to keep “Fly-by-nights,” “Trunk Slammers,” out of the business. So a proposal was added to check the background of each applicant, making sure they didn’t have a criminal record. That, I believe was a good requirement, but what came next, proof of so many years of experience, was designed to keep competition out. The members insisting on the rule obviously forgot that when they started their business they didn’t have the same experience they were requiring of new entrants. And like so many other actions enacted by organizations then managed by State or City Government, the rules got out of control.

If you checked around the United States you’ll find ordinances in more than half of the States, and they are all different. Some just require a criminal background check and the registration of the Alarm Company, while others require all employees be registered. Some States make it near impossible for companies to start a business or expand to their state. Others make it more and more difficult to hire and train new employees.

My State, in my opinion, is among the worst. Louisiana’s Alarm Ordinances are managed by the State Fire Marshalls office. Today in Louisiana every employee has to be licensed, $120 fee each. Every Technician, besides the employee license, has to be an ESA/NBFAA level 1 technician to work alone. In order to qualify as a Level 1 Tech, one must take the Level 1 class, $550 for non-alarm association members or $300 for members, and then pass the test. So before you hire and train a new technician you have to consider the cost in total $420 to as high as $670. Next you have to time the hiring of a new technician based on when the next training class is offered near you, or pay the cost to ship the new hire out of town, put him or her up in a hotel, pay expenses etc., and then hope the background check, which hasn’t been completed fully yet doesn’t reveal a no-hire problem. So, the way around all of that is to hire someone working for another company. Maybe even offer a signing bonus to steal the technician away. Not good!

However, the State wasn’t finished imposing rules. Last year the State decided that all salespeople had to take an Understanding Alarm Systems course. Once again the cost is $120 for the license and then $350 for the course. And once again the UAS course is only offered a few times each year and in different cities around the state. Last year alarm companies were given a twelve month time frame in which to have the new salesperson complete and pass the course. Costly still, but a reasonable time frame to wait for the course to be offered nearby.

But then new change! That’s right, effective November of 2010 the State decided 12 months was too long and changed the requirement to 90 days. Ugh!

Not to leave bad enough alone, the State now says that effective March 1, 2011 alarm salespeople must take the $350 Understanding Alarm Systems course before they ever step foot in a home or business as a security sales rep. Immediately! No 90 day grace period.

Wow! So now if you think you wanted to grow your company in Louisiana you have to spend $470 on every salesperson you hire before they step foot in a home or business. And you have to time hiring that salesperson around the sparse training schedule offered, approximately 3 – 4 times per year somewhere in Louisiana.

So going back to what I witnessed firsthand, members trying to limit and/or make it impossible for competition, has grown into a monster. The problem is, like what always happens, the monster is now in control and is biting everyone in sight. Well established, long term, companies in Louisiana will be punished by the ruling. Anyone trying to grow a company that has to hire salespeople to do so will be punished by this rule.

In this tough economy, when people are trying to get work, the legislation in Louisiana makes it difficult at best to enter the security alarm business. And that my friend is a shame.

In case you think this rant is a case of “sour grapes,” please be aware that I don’t have a dog in this race. I no longer own an alarm company. I don’t manage a company in Louisiana. I’m not affected by this ordinance at all. I’m just sad that something like this has happened in an industry I love. Had the present rule been in place the day I answered an Ad in Louisiana for employment 36 years ago, I may not have had the opportunity to be part of an industry that has fed and housed my family, educated my children, and made me proud of who and what I became.

Am I wrong?

Would you like to weigh in?

Send me your comments, pro or con, and I’ll post them.

Sales & Sales Management Tips Part Two

2011-02-27T08:22:00.000-08:00

Sales Manager Part Two

Hiring salespeople is only the first step. As a sales manager I have to determine what tools and skills each salesperson in my charge needs to be better equipped to sell and close sales than he or she is now. When you analyze the sales process you’ll find that the following qualities are essential to be successful.

Prospecting skills – There is an old saying, “Things come to he who waits.” However, in sales I believe the balance of the saying should be, “Only those things left behind by those who hustle.” A salesperson that can develop his or her own leads will almost always be more successful than one who depends on the company to furnish leads. We know this salesperson as a “Lead Junkie.” Like any junkie, the more we feed him leads, the more dependent he becomes on the leads. So we create lead junkies.

There is another saying that is also applicable, “Give a man a fish and he has food for a day. Teach a man to fish and he has food for a lifetime.” Teaching salespeople to develop their own leads does a number of things for the company and the salesperson. First, it makes the salesperson more successful if for no other reason than giving him more swings at bat. When salespeople sell more it improves salesperson retention. No doubt self generated leads reduce creation cost, improving overall profitability. And it enables the company to grow.

Does that mean you shouldn’t provide leads to your salespeople? No, that is not what I’m saying. What I’m saying is you shouldn’t provide all of the leads to the salespeople. Once they are trained to develop their own leads I would reward the self-generating salespeople with the leads the company generates. You pick the ratio, but one company furnished lead for every two self generated leads seems like a good place to start.

Presentation skills – Once the salesperson gets in front of a prospect, regardless how the lead is generated, how well they present themselves, your company, your product, the problem the prospect is facing, the solution to the problem, and conduct a professional selling survey will impact how successful they are. So obviously, as a sales manager, I need to focus on how each individual salesperson presents all of the above.

I could go to any sales office anywhere in the US, or the world for that matter, and there will be one salesperson whose presentation skills are better than all the rest. Therefore, my goal as a sales manager should be to help each and every salesperson develop their presentation skills so that they too can be as good as the top salesperson which will help them be more successful selling. The effort I put into that task will produce dividends.

Closing skills – Here is an absolute fact. The best closers will make the most sales. Are you shocked? I didn’t think so. However, few companies I’ve worked with invested time training their salespeople on how to become better closers.

Over the years I have conducted hundreds of seminars and workshops on the subject of closing. Early on in the seminar/workshop I always ask the same question of the attendees, “What are the common objections you hear when selling?” And, not surprisingly, the answers I get are, with minor exception, always the same. Here are the top ten objections heard.

1.) I want to think about it. Or, we never make a decision without sleeping on it.

2.) We plan to shop around and get other prices

3.) The price is higher than I expected.

4.) We can’t afford it.

5.) We’ve never had a problem. This is a safe neighborhood.

6.) We have great insurance. So if something is stolen we’ll get a new one.

7.) We have a great watch dog.

8.) We have a gun, we’ll shoot the burglar.

9.) We have a nosey neighbor next door who watches everything.

10) We have nothing to steal

The above objections are the top ten I’ve heard and the top ten I’ve faced when I sold security systems.

The next time you have a sales meeting, without showing this list to your salespeople, ask them to tell you the objections they encounter on a regular basis. Write their answers on a white board or a flip chart where all can see. My guess is you will hear 7 or 8 if not 10 out of the top ten I just listed as the objections they routinely hear.

To Learn more about Lou Sepulveda C.P.P. and what he has to offer to help Security Professionals succeed go to Lou's web site - www.lousepulveda.com

Lou Sepulveda Consulting & Training

985-778-1571

Lou@lousepulveda.com

http://www.lousepulveda.com/

Book Titles by Lou

The Formula for selling Alarm Systems

Surviving in the Security Alarm Business

Managing to Sell

Gerencia de Ventas Efectiva

Order Lou’s New CD – Handling Objections & Closing the Sale

Sales Management Tips by Lou Sepulveda C.P.P. Part One

2011-02-19T14:53:00.000-08:00

What is a Sales Manager’s Job?

A Sales Manager’s job is to deliver results, which means to deliver sales production. Obviously the way he or she does that is most often through the efforts of talented salespeople.

When you see a sales organization selling large numbers of systems, far more than the averages, why do you think they are able to do so well? How come one office in a city selling basically the same security system to the same type prospect sells 100 monitored systems or more per month while other companies in the same city selling the same product to the same type prospect can’t manage to sell, try as they might, more than 10 or 15 on average per month?

What is the secret? How do they do it? One of the secrets is that the top dealers quit waiting for the phone to ring. They quit spending big dollars on Yellow Page advertizing in hopes of driving “qualified leads” in the door. They quit spending big dollars on direct mail campaigns that produce ½ of 1% response on average and less of that number results in a closed sale. Instead they employed aggressive self generating lead programs of all types run by their salespeople, not advertizing agencies.

They hire Sales Managers and develop team leaders who recruit salespeople. Instead of having 2 or 3 salespeople waiting for their advertizing to work, they employ 20 or 30 salespeople who are taught how to prospect and sell. They make things happen instead of waiting for something to happen.

A Sales manager’s job is to grow sales. However, sales managers should know that in order to accomplish that task they have to be able to develop salespeople. What does that mean?

I believe that most salespeople, regardless where they sold before, can be better than they are when I hire them. I believe we all can be better at what we do if we have a manager who is focused on us and truly wants us to be more successful. We all need to have our skills sharpened from time-to-time. Salespeople of all skill levels need training.

To Learn more about Lou Sepulveda C.P.P. and what he has to offer to help Security Professionals succeed go to Lou's web site - www.lousepulveda.com

Lou Sepulveda Consulting & Training

985-778-1571

Lou@lousepulveda.com

http://www.lousepulveda.com/

Book Title by Lou

The Formula for selling Alarm Systems

Surviving in the Security Alarm Business

Managing to Sell

Gerencia de Ventas Efectiva

CD – Handling Objections & Closing the Sale