Salesmanship

It's OK to say NO !
In fact, it's about time you did.

The problem with a lot of sales people is that they just don't know how to say no, and even worse, they don't know when to say no.

It's OK to say NO!

When the customer asks for more discounts, the sales rep says "yes."

When the customer asks if you can beat the deal down the street, the sales rep says "yes."

When the customer asks if you can throw in a free awning or air conditioner, the sales rep says "yes."

When the customer asks for something, most sales reps simply cave in and say "yes."

Why not simply say "no" once in awhile?

Down deep, most sales reps will admit that they really want to say "no" when they actually say "yes."

Wonderful things happen when you say "no" to a customer, and you actually feel pretty good when you do it.

It's all right to be selective about the customers you choose to do business with; in fact, there are certain types of customers that you don't want to do business with.

The customer who is only interested in the best deal, or something for nothing, is going to come back to haunt you and your dealership because you never earned their respect and they know they can get something for nothing from your company.

Saying no delivers more profit to the bottom line . . . period. More profit equates to a stronger company.

Let me tell you a story to illustrate what I'm talking about.

We had a major healthcare client that had purchased over 50 microfilm reader-printers from our company in five years. Each unit sold for approximately $20,000 and we made an excellent profit on them because I refused to let the sales rep cut the price. Instead, we taught him how to sell the value of our dealership, our products, and our after-sale technical support from our field engineers.

Like the RV industry, the sales rep left and went to work for a competitor across town selling the same product line. This competitor had tried unsuccessfully to get the business we enjoyed with the healthcare client . . . often quoting substantial discounts.

The reason the company could not get the business was because we provided quality service at a fair price and maintained a profitable company.

How would the situation change now that our sales rep switched companies?

The first day on the job he visited the client and informed them that he had changed companies. Knowing that the client was getting ready to purchase five more units, he immediately offered them a $4,000 discount, below what we were quoting them, on each unit if they would buy them from him. That type of discount, added to our fair discount, would be real close to our cost on the product. They were desperate to gain this client's business.

The manager of the department buying the equipment immediately called me up to inform me of the new quotation from our competitor, and insisted that we do something about our price. I informed her that we are charging them a fair price and that we would not lower it.

I then told her that if she only wanted a lower price, then she should buy from the other company.

She said she really appreciated our technical service team and noted the response and quality of our people. I then told her that's why we are more expensive, and therefore, she should buy from us.

She pleaded for an additional discount because her boss was just going to look at price.

I then told her that if all her boss was going to look at was the price, then they should buy from the other company.

She wondered if the other company would keep $10,000 in spare parts in her department so that they would be immediately available when the technician needed them.

I told her that was why we were more expensive; because we did the little things that other companies are unwilling, unable, or incapable of doing. Therefore, she should buy from us.

She again insisted that I reduce her price because they were a good customer, and they can now have the same sales rep and a reduced price if they purchased from the other company.

I agreed with her, and told her that if price was all that matters, and if she thinks the sales rep was 100% responsible for the excellent business relationship and after-sale support that she had enjoyed from our company, then she should give them her business.

She said that our company was different, and that she could reach us at any hour of the day or night and her problem would be resolved.

She admitted that it was the company that she was doing business with, not just the sales rep. Hearing that, I urged her to buy the new equipment from us . . . at our stated price.

This discussion went on for about a half hour. I won't bore you with more details and examples . . . I think you can see our position. We were a better company and we were going to get paid for the services rendered to the client.

She made one final plea for us to match the discount being offered by our competitor . . . saying: "Bob, you just have to do something, or my boss is going to give them the business."

I said, "You're right, I do have to do something." A sigh of relief came over her, and she anticipated that I was going to finally see it her way.

I then said that if we did not get the purchase order for the five new machines within the  next hour, then we would raise our price another $1,000. She gasped: "But I thought you were going to match their price."

I never said that, nor did I ever imply that we would discount to a competitor's level. I then reminded her about all the reasons that she did business with us in the first place . . . a fair price, quality service, excellent after-sale support, accessibility to our employees and all of our management  team, including home phone numbers and much more.

We delivered an excellent product at a fair price and made the profit required to run a successful business.

She thanked me for my time and said she would deliver my message to her boss, but that he was only interested in price and would probably give the order to our competitor.

I thanked her for her time, and once again asked for her business and assured her that we would continue to provide the service and support she had come to expect from our company, despite the fact that her sales rep had switched companies.

If you are still reading, you are probably wondering where the customer purchased the new machines. She called back thirty minutes later and gave us the purchase order for all five machines. They recognized the value of the service we were providing to their company and were not willing to take a chance with an unproven company for such a mission-critical business operation.

In the long run, it would cost them less money to do business with us. Yes, they could have purchased the units for less money, but the poor service and downtime from a less-than-qualified company, would cost them tens of thousands of dollars in lost business opportunity and poor service to their customers. This was something they were not willing to risk, given the high profile exposure they had in the healthcare industry. They were willing to pay for the services we were providing . . . and did.

We said "no", and stuck by it.

Why not say "no" when you have something to offer that your competitors don't.

Why not say no when a customer is trying to nickel-and-dime you for discount after discount and never seems to be satisfied. Guess what, that type of customer will never be satisfied. Say no and let them go someplace else to do business . . . let them drive your competitor crazy while you sell to people who appreciate what you have to offer.

A funny thing happens when you say "no" to a customer. It's a lesson I was taught very early in my sales career.

While working for a Boston blueprinter, I was trained to ask the architect or engineer how much they were paying for print services from our competitors. Once told, I was instructed to tell the prospect that we would double that price. Real simple for a brand new salesman . . . I wasn't about to challenge the boss . . . I needed the job.

So off I went to cold call on my prospects. When they told me they were paying $0.06 per square foot, I told them our price would be $0.12 per square foot. They would either throw me out or ask why we were so high. We were high because we were good. It worked and we got a lot of business. If any prospect said that we would have to match their current provider, we would simply say "no" and explain the difference in services offered.

We didn't sell everyone, but the ones we did sell were all profitable accounts and we had an extremely profitable business.

Isn't that what we are supposed to be doing in business to begin with?

Start saying "no" and reaping the benefits of more profitable sales.

Give up the bad sales. Give up the problem customers. Be selective, you will sell more and you will sell more profitably.

Believe me, it works. You will never believe me until you try it.

Good luck and good selling.

RVN