Sales is an art as much as it is a science. It is not just about knowing your products inside and out but also understanding the customer’s mindset. Striking the right balance between listening, speaking, and knowing when to stay silent can make or break a deal.
No products can be delivered or work started until you make a sale. However, you are not just selling products or services; you are building trust, fostering understanding, and providing solutions. My journey to mastering this balance involved many hard lessons, including a memorable one that involved losing a sale during a golf outing—an experience that profoundly changed my sales approach.
A Golf Lesson in Sales
On a sunny day, perfect for golf, I was at the North Carolina Mason Contractors Annual Convention. As the CEO of EZ Grout (later EZG Manufacturing), I was excited to showcase my latest inventions. I had set up a display with my Grout Hogs, Mud Hogs, and mud tubs on the back of my flatbed truck. The practice green was buzzing with activity, and I was eager to connect with the contractors to demonstrate how my equipment could make their jobs easier.
As I stood by my truck, chatting with attendees, two potential customers approached in a golf cart. I recognized them as top targets from the attendee list. My heart raced as they inspected my display. The driver pointed to the mud tubs and asked, “How much for these?”
“They’re $400 each,” I replied confidently, ready to make my pitch.
To my delight, the customer nodded, raised two fingers, and pointed at his chest, indicating he wanted to purchase two tubs. I was thrilled, but instead of simply taking the order and thanking him, I made a classic mistake. I let my excitement take over and I kept talking.
“These are our heavy-duty line of mud tubs,” I began, eager to highlight their features. “They’re built with ¼-inch steel and are practically indestructible. They’re the most expensive tubs on the market, but they’re worth every penny because of their quality.”
As I continued my pitch, I noticed a shift in the customer’s demeanor. His enthusiasm waned, and he lowered his hand. Moments later, he reconsidered his decision and drove away to start his round of golf. I stood there, stunned and disappointed. I had just lost a sale I already had in the bag.
Reflecting on the incident, it became clear where I went wrong. First, I talked past the sale. The customer had already decided to buy, but instead of sealing the deal, I kept talking, which gave him time to second-guess his decision. Second, I focused on the wrong aspect of the product. By emphasizing that they were the most expensive on the market, I inadvertently planted doubt about whether they were worth the price.
From that day on, I adopted two key rules for my sales approach:
1. When a customer is ready to order, shut up and take the order.
2. Avoid framing the product’s price as a potential drawback. Instead, highlight its unique benefits and quality.
Shaping My Sales Approach
This lesson influenced my approach to sales. While consulting with contractors around the country, I observed that many made similar mistakes. They often mentioned their sales strategies by stating, “I let my customers know I am higher priced than my competitors,” as if it were a badge of honor.
While it is important to be proud of your services, this approach can backfire. Customers who might not have considered price as a factor might suddenly start seeking cheaper alternatives.
Strategies for Success
To boost sales of your products or services:
- Identify Objections: Ask questions to pinpoint the top five objections your customers may have.
- Address Objections: Develop solutions to tackle these objections, beginning with the most important one.
- Avoid Discussing Price Right Away: Only discuss price if you are the lowest-priced option. Instead, focus on what sets your products apart from your competition.
Finding Your Unique Edge
To achieve success, aim to be:
- First to Market: Be first but be sure to keep innovating to stay ahead of the competition.
- Cheapest: This model works well if you sell large volumes, like Walmart, which has a net profit average of around 2%! That would put most contractors out of business.
- The Best: When you offer the best product/service on the market, you can command higher prices.
- Different: Identify your unique niche and emphasize the benefits, like improved productivity, seamless collaboration, and efficient cleanup.
Most importantly, avoid leading with the fact that your price is high. If your potential customer is concerned that your price is too high, explain that if you could offer a product of this quality at a lower price, you would pass those savings along.
I prefer to focus on selling the unique benefits of our product, only discussing price once the customer fully understands the value they are receiving for the cost.
Conclusion
Successful sales depend on understanding customer needs and addressing their concerns. Highlight the benefits of your products or services, avoiding negatives, to build strong customer relationships and drive sales. By creating value for your customers, you can stand out from the competition and achieve long-term success, even at higher prices.
