How To Grow Your Business 50%, Make More Money and Have Fewer Headaches!

Stick With Me Through The Next Several Blog Posts & I Will Show You How!

A few years ago I was delivering a sales training program to an awesome group of fairly well seasoned sales pros. As is my custom I first shared with them what our agenda was for the day and then I asked them what they wanted to get out of the day. One guy said that he needed to be able to grow his territory by 60% in the next 6 months! He said it in jest, at least everyone else was laughing, but I took it as being serious. I asked him what he would think if, during the next 8 hours together, I could show him exactly how to do that? He looked at me like I was crazy while the VP of sales spoke up from the back of the room and said … “I would think you were a miracle worker”!

By the end of the day he agreed, as did his peers and that VP of Sales that what I shared with them would indeed make that possible. What I want to share with you in the next few blog posts will make that possible for you … even more. I encourage you to let me know, at the end, if you found it to be as promised!

Creating Level 5 – Trusted Adviser Relationships!

As I shared with you in an earlier post … I am a people guy! My natural skill sets as a sales professional lend themselves to me easily establishing excellent business and personal relationships with my clients. That said, there is a difference in doing so as a natural part of who I am versus very intentionally creating what we call Level 5 relationships. We are going to explore what it takes to make this happen with intention and with “extreme prejudice”! Here are the levels …

Level 1 – they don’t even know our name! Even in established sales organizations with customer databases, CRM’s and all there will be customers who don’t even know the sales reps name as well as the countless potential customers who exist that don’t know who we are.

Level 2 – they do know our name but don’t really have any idea what it is we do nor do we know enough about them to be able to determine if we can be of service to them.

Level 3 – they like us, they are openly friendly with us, they may or may not do some business with us but we are not their “go to” supplier. margins may be a little, or a lot, lower in this account because we have tried to buy their business with discount pricing strategies that we haven’t been able to raise over time.

Level 4 – they value us and this is a good account, we do well here, may even be their “go to” supplier but we are always battling other competitors, having to respond to RFQ’s, defend our pricing positions and lose battles to all of the above from time to time!

Level 5 – we are their “Trusted Adviser” when it comes to matters concerning the part of their business that connects with our products or services. They look to us to be a part of the solution creating process in their business and they appreciate us in a way that reflects itself in our volumes our margins and how hard we have to work to retain their business loyalty.

Based on the above … here are a few questions;

Q: What levels do the majority of our profits come from?

A: About 80% from Levels 4 & 5!

Q: Where do most sales people spend most of their time?

A: Levels 1 through 3!

Q: Why is that?

A: A lot of reasons including but not limited to … it is easier, requires less knowledge (easier), there is less rejection (easier), requires fewer and lower level skills (easier), lack of vision for what they want in life and from their career, lack of drive, lack of initiative, lack of commitment and a number of other “order taker” maladies!

In the next couple of posts we will tackle what to do to Grow Your Business 50%, Make More Money and Have Fewer Headaches! For now a little homework for those of you who are our Gladiators and would be Gladiators. Order Takers — be warned — this isn’t easy!

Here’s the homework …

Take your top 25 to 50 accounts and categorize them, being brutally honest with yourself, by the levels above. Let me know in the comments section below what you learn from this exercise!

Great selling!

Jim Jacobus, CSP

That’s A Wrap! 3 Critical Insights Into Making Higher Sales Margins …

Through the years I have heard every cliche you can imagine regarding what to sell. Sell the features of the product was what I was taught first. Then it was sell the benefits of those features. Sell the “sizzle”, not the steak! Seriously? So what cliche will we add to the pile? I vote that we learn so sell value, sell ROI, sell whatever it is that satisfies the customers needs.

What we have been talking about the last few days learning to master selling multiple “Value Propositions”! There are 3 critical insight we need to master to raise our margins and grow our business. Remember?

#1 – Own the solution! That means we have to really grasp the three concepts that go into every “Value Proposition”. What’s the problem? What is it we (our product or service) do about those problems? and, the most important concept of all … why should they care? As a Gladiator we have to master the use of countless product and service “VP’s” that are a part of what we offer to our clients. Order takers have one or two favorite moves, a lot like a checkers player, a Gladiator has several moves, like a chess player, at their discretion.

#2 – Learn To Swing the “Hammer”! We have “me too” VP’s where we do the same things that our competitors do and offer the same products and services that our competitors offer. Our Order Takers just give in to these “me too’s” and resort to getting into price wars as a way of gaining market share. Our top sales reps learn to tell the story of the “me too” VP’s in such a powerful and compelling way that they appear to have a competitive advantage where there is none. Then there are the “Hammers” … those products and services where we have a clear advantage over our competitors. We learn to leverage these opportunities to add customers, grow margins and improve our market share. Be sure and re-read the blog post on “Hammers”!

#3 – Master All 3 Levels of Value Propositions! We have three buckets to drop our VP’s in. We have Company or Corporate VP’s that come from those things that our organization has to offer. This is often an overlooked tool in our bag! Then we have to set of VP’s we are typically most familiar with … our products and services. Let’s not get too comfortable with these and feel like there isn’t anything left to learn. There is always, or should be in a good company, and new twist, application or tweak to products we need to stay on top of to better serve our clients. The last level is something I don’t think a lot of sales people think about. That is, what is our personal VP? What is unique about us in the marketplace that should provide us a “Hammer” of our own making! This VP becomes our personal brand and we need to leverage it in every way we can!

That’s a wrap on our discussion about Value Proposition selling! Tomorrow we will begin our discussion about intentionally building Level 5, Trusted Adviser, relationships. You won’t want to miss these blog entries!

Great selling!

Jim Jacobus, CSP

Learn To Distinguish Your Value Or?

Go Get A Job Selling Retail!

No disrespect meant for the fine folks who labor selling goods every day through the retail channel! That is a fine and admirable sales job as well and beats the heck out of pushing paper behind some desk. And, you will find a few Gladiators in these situations but they are few and far between! The vast majority of Gladiators are out there every day pounding the pavement and making it happen. They know how to to differentiate value and distinguish themselves in the marketplace.

Continuing our discussion on Value Propositions we are going to talk about the three different levels of VP’s …

Corporate Value Propositions – could also be looked at as company or even organizational VP’s. Every company has a number of Value Props that have kept them in business and made them successful through the years. As an example my son works for a company called Buckley Oil in the North Texas area. Their company has a number of outstanding VP’s that distinguish them from their competitors. For instance …

• They have been in business for almost 80 years – few can say that! They must be doing something right …
• They have three guys in their corporate office that have over 100 years of experience between them, that means tons of longstanding relationships and outstanding sourcing advantages.
• Three north Texas blending and distribution facilities – quicker, more efficient service and less expensive delivery.

See where we are going with this? When going through qualifying if we ask what matters to our potential new client and they talk about stability then we have a match. Distribution? Match? Sourcing? Match! Then in the presentation phase we would highlight those VP’s!

Product Or Service Value Propositions – this goes back to our discussion in two posts ago about “me too’s” and “hammers”. Our products and services have differing VP’s we have to be able to effectively share with our clients. We always lead with our hammers, when our qualifying results dictate, and then follow up with our “me too’s”. Some suggest the opposite … that we finish with our strongest stuff. I can understand that point of view. My concern with that approach is that we might lose their attention, and their business, if we don’t get them engaged with something interesting right off the bat.

Our Personal Value Propositions – These VP’s are the answer to the question “why do I want to do business with YOU”? With the emphasis on the word YOU. What is it about you that brings value to the sales transaction. Is it knowledge, experience, work ethic, industry connections or perhaps a combination of all of the above. For me it is a number of the above but what I try to highlight is the experience to know that character and integrity matter more to me than any potential financial gain. I am someone they can trust … completely! That is my “personal brand” as well and what I begin to communicate to them from the very first “moment of truth”. So, what are your personal VP’s? What is your personal sales brand in the marketplace. My goal, at the end of the day, is to answer the question why should I pay you more for your product than your competitor’s product with … “because you get me in the deal” and know that I am well worth the difference to them!

There you have it! Three different levels with three different amounts of leverage growing progressively from Corporate to product/service and then to personal value propositions. To consistently win and win big we have to master all three!

Great selling!

Jim Jacobus, CSP

You Want the Truth? Here It Is!

 

Here’s the truth!

I am lazy? I am headed to Vegas today for a fantasy football draft! I don’t have the time to put into creating a blog entry today! That doesn’t mean you wont get some good stuff!

My good buddy and extraordinary sales guru Curt Tueffert wrote and excellent blog post yesterday titled “Stop, Drop and Roll”! I would have shared it with you anyway so it is convenient for me to just go ahead and do it today. And, if your not subscribed to his blog then you should be. He is a down to earth sales guy with a lot of insight that works. Check it out and see if you don’t agree?

Thanks Curt for a great article! VEGAS BABY!

 

Stop, Drop, and Roll – A Fresh Approach To Selling

August 25, 2011

Growing up, I remember firemen coming into our classrooms to let us know what to do when you catch on fire.  As a small child I was not really paying a whole lot of attention to the three words; Stop, Drop, and Roll.  The best news is that I can still remember them as an adult, in the unlikely event of self combustion.

On a sales note, I was reflecting on all the good and bad sales calls I have made and what would have happened if I remembers and engaged in Stop, Drop, and Roll.

Click Here to read the rest of his article!

Do You Have A Sales Hammer?

The Difference Between “Me Too’s” and “Hammers”!

Yesterday we began our discussion about “Value Propositions” and value based selling. Remember? What’s the problem? What do we do about it? And, most importantly, why should they care? Learning to “own the solution” can give us tremendous leverage in the marketplace and can deliver a higher ROI for our time and our territory.

When we look at “VP’s” they fall into two categories … “me too’s” and “Hammers”!

A “me too” value proposition is exactly what it appears to be. It is a value proposition that our competitors can easily claim to be able to provide as well. All Chevrolet dealers have Chevy products. All insurance agents have the same kind of life, auto and fire products. Financial services professionals all have some of the same offerings for their clients. These, and many others, are examples of what we call “me too” products and they have very little advantage in the marketplace. The sales rep that has the ability to tell the story (what’s the problem, what do we do about it and why should you care) based upon the clients needs will appear to have an advantage in the marketplace over the competitor, order taker, when competing for business!

A “Hammer” value proposition is a product or service or marketplace advantage that few or none of our competitors can claim to have. Let me give you an example of what we call the “two knot Hammer”. A few years ago I was working with a company that had as a part of its product line a protective coating for marine application on large tankers, boats and cruise ships. The product was biocide free (other competitors had to use biocides) and when applied to the hull of a ship the vessel would pick up 2 knots per hour in speed! Seriously? Yep! Every competitor in the marketplace was 4 to 5 years behind them in developing a product similar in performance.

How do you not know the answer to that question? When I questioned the sales team about the product I asked what was the economic impact of the product to the customer. The answer, from their top people, was … we’re not sure. Seriously? How do you not know the answer to that question? It is also interesting to note that the sales force was allowed to discount this product up to 40% without managers approval and they did so on a regular basis. That is absurd!

When we have Hammers we use them and leverage them to create advantages in the marketplace, open up new client opportunities and drive wedges between customers and their “regular suppliers”. These tools become a part of our company branding and we learn to lead with them early and often! We also learn to effectively communicate the story on our “me too’s” so that we appear to have leverage there as well.

To own the solution, as sales Gladiators, we have to understand the difference between “me too’s” and “Hammers” and use them accordingly! Tomorrow, we will discuss three different levels of “VP’s” and where the highest traction is!

Great selling!

Jim Jacobus, CSP

Clear Value + Great Relationship = No Negotiating! Want Some of That Action?

It’s true! If we can clearly communicate value and learn to build Level 5 relationships then there is little or no negotiating with clients!

And that means higher margins and higher ROI for our time and territory as a Gladiator. In the next few days we are going to talk about the first part of that equation … learning to sell from a “value based” point of view. After we wrap up this critical piece to becoming a Gladiator then we will cove the second part of the equation or how to develop Level 5, or “Trusted Adviser”, relationships with our clients.

So what does it mean to “sell value”? It means a couple of things;

1. It means we have to be able to answer, at a number of levels, the following 3 questions. What is the problem? What is it we do about it? And, the most important question of all – Why should they care? That is what is known as a “value proposition”!
2. Understanding all of the product and service value propositions, at 3 levels, is what we call “owning the solution”! To be a Gladiator we have to know our value propositions inside and out, backwards and forwards and they have to roll off of our tongues as if we were answering where were we born! We also need to have the mental capacity to hear what our client is telling us their needs are in the Qualifying step of the sales process and be able to put together new and creative “value propositions” on the fly!
3. In particular we have to be able to articulate the answer to the question “why should they care” so effectively that they have to buy!

The challenge we see with most sales people is this … they generally understand what the client’s problems are (at least at a surface level) and they know what it is their product and service does to satisfy those challenges but they fail miserably at knowing and communicating the most compelling reasons why the customer should care!

In the next couple of days we are going to cover;

• The three different levels of “value propositions”
• Which level creates the highest traction towards a sale
• How to effectively use the sales process and “value propositions” to grow your business
• How “value propositions” help with branding … especially our own personal branding!

So, do this exercise for me and post it to the comments section below: Write down 1 problem your clients have, 1 thing your product or service does about it and 1 reason why they should care about it! I want to learn more about you and your business so we can write these next few blogs more effectively!

Great Selling!

 

 

 
Jim Jacobus, CSP

Want To Be An Order Taker the Rest of Your Life? Or A Gladiator!

Leveraging the Power of the Process!

Sorry gang! Back from the 10 day motorcycle trip I was on and glad to rejoin this blog. It was an amazing time and I am feeling both tired as well as big time energized! So, let’s pick up where we left off!

We spent the last week or so before the vacation talking about the 8 steps to the sale and how important it was to master each. You remember? The steps to the process were … planning, prospecting, first impressions, qualifying, demonstrating, influencing (handling objections), closing and follow-up! Of course you remember … right?

So here are the questions of the day! How important is each step? Which one would you leave out? What happens if we fail to master each of these steps? Here is just a quick flyby …

What happens if we fail to master …

Planning – we spend our time wasting it on clients who won’t provide us with the ROI for our time we deserve as Gladiators. We have no vision for our own future and we settle for the “plan” our company decides we should be on and not our own!

Prospecting - fail to master prospecting and our “haybaler” dries up, we end up with a book of business that isn’t broad enough, deep enough or both and our volume and our margins suffer!

First Impressions – we only have one chance to make a first impression and that is critical to establishing our credibility as a professional instead of looking like just another “sales hack” that doesn’t pay attention tot he details!

Qualifying – fail to qualify and we won’t know the answers to key questions that tell us if this client is right for our book of business. Can they buy? Can they pay? And, most importantly, can we absolutely delight them by becoming a “trusted adviser” (coming up later in the blog) to them and their business meaning long term relationship and larger margins!

Demonstrating - do we own the value proposition in a way that will allow us to take the information gathered so far and put together a presentation or product demo that makes it look like our solution is absolutely perfect for them and their business. Can we do so in a way that is compelling?

Influencing - or, handling objections. We have nothing going on until they object so we need to embrace and encourage objections as a part of the deal! I pray that they say “your price is too high”!!! Do you?

Closing - put away the “227 Ways To Close Every Sale” book! That is for “sales hacks”! Closing is simply moving to the next logical step, at the customer’s pace. Notour agenda and our speed. Theirs!

Follow-up – the professional thing to do is to say thank you! Do it quickly and appropriately and we close the “did I make a good decision” loop for the client! And … we open the door to the next sale!

So, do you want to be an “order taker” the rest of your life and sit in the back of the success bus? If not, master the steps to the sales process and join the Gladiators that have all of the fun and success in the front of the bus!

Great selling!

Jim Jacobus, CSP