uccessful Selling In a Comatose Economy

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Here is the powerpoint presentation from the event on the 19th April - Successfull Selling in a Comatose Economy

Here is the powerpoint presentation from the event on the 19th April - Successfull Selling in a Comatose Economy

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  • 1. The Chamberof Commercefor Sussex Successful Selling in a Comatose Economy 19th April 2012 Welcome Membership Membership Events Training HR Services Export Documentation Quality Management www.sussexenterprise.co. uk
  • 2. Achieving the Optimum Price Selling by Value Based PricingCopyright Margin2 2012 price at the moment of truth
  • 3. Why is Pricing so important? Those companies that ‘achieved true excellence in their price execution capabilities . . . earned operating profits 24% higher than their industry peers’ Hogan 2011Copyright Margin2 2012 price at the moment of truth
  • 4. The moment of truth In every sale, the The price you offer buyer makes a is thereforemental or physical fundamental to calculation of the Value Price your customersvalue they will gain value calculation, from making a it’s a moment of purchase truth where theory becomes practice Every purchase is therefore a balance between the price offered and the value delivered, there is the constant risk of losing the sale or missing out on vital profit. Copyright Margin2 2012 price at the moment of truth
  • 5. So, if its about ‘Value’, what does that mean? • Its judged in unquantifiable terms • It is judged from a range of perspectives • It is always placed in the context of today’s saleCopyright Margin2 2012 price at the moment of truth
  • 6. Equation for Customer Value Benefit - Effort - Risk = Value PriceCopyright Margin2 2012 price at the moment of truth
  • 7. Types of Customer Benefit Service Level + Economic Functional Intangible Commodities Uniqueness & Image, brand, with price ability to meet unique based appeal consumer experience needs + Price Sensitivity ‘They are 10% ‘They always ‘I like doing business cheaper’ deliver on time’ with them’Copyright Margin2 2012 price at the moment of truth
  • 8. Market Mapping – Price per Feature 300 250 200£ per Year 150 100 50 0 10 15 20 25 30 35 Number of Features = Supplier A = Supplier C = Supplier E Copyright Margin2 2012 = Supplier B = Supplier D = Supplier F price at the moment of truth
  • 9. How to Sell at the Right Price Volume x Price = Turnover - Costs = Profit Turnover is Vanity, Profit is SanityCopyright Margin2 2012 price at the moment of truth
  • 10. Turnover growth does not automatically mean Profit growthCopyright Margin2 2012 Source: Companies House price at the moment of truth
  • 11. 2 Rules for Value based selling • Facts are far more useful than opinions • What gets measured gets controlledCopyright Margin2 2012 price at the moment of truth
  • 12. ‘Experience’ and ‘Judgement’ is always subjective and never as impactful as performance reviews and customer research What Interest Rate would you offer on this Deal? 5.50 5.40 5.30 5.20 5.10% 5.00 4.90 4.80 4.70 4.60 4.50 Resp. A Resp. B Resp. C Resp. D Resp. E Resp. F 10% difference in price and a 70% difference in profit between the highest and lowest Copyright Margin2 2012 price at the moment of truth
  • 13. Decisions made by Sales often impact profitability, Profit Waterfalls identify the hidden discounts that undermine profitability Profit Waterfall – Industrial Component Distributor1600000140000012000001000000 800000 600000 27.86% 23.94% 400000 200000 0 Gross Profit Tooling Sales Tooling Costs Rebates Other Late Payment Stockholding Carriage Cost True Profit Discounts Copyright Margin2 2012 price at the moment of truth
  • 14. Measure and create sales targets to measure efficiency and effectiveness ‘Lead’ Measures ‘Lag’ Measures Indicators of sales effort Indicators of results or or efficiency effectiveness For Example: For Example: • CRM data • Sales turnover • Number of customer meetings • True profit by customer • Number of proposals made • Price securedCopyright Margin2 2012 price at the moment of truth
  • 15. In Summary, • Pricing about understanding what your Customers are willing to pay • Facts are far more useful than opinions, ultimately its always about profit • Measurement makes results more visible and decisions more informedCopyright Margin2 2012 price at the moment of truth
  • 16. Thank youCopyright Margin2 2012 price at the moment of truth
  • 17. The Chamberof Commercefor Sussex 10 min Networking Break Membership www.sussexenterprise. co.uk
  • 18. David FosterAssociates Ltd
  • 19. Recruit, Develop and Retain 3 ways to help youRECRUIT, DEVELOP and RETAIN the right sales people who can MAXIMISE UPON PROFITABLE SALES opportunities for your business !
  • 20. The Moment of Truth!Please stand up if you are a sales rep ?Please stand up if you are a salesman/ lady ?Please stand up if you are responsible for bringingin new accounts to your business and/ ormanaging existing customers?Sales is not a dirty word !
  • 21. Are Sales People Born or Made? YES or NO?
  • 22. The Surgeon?
  • 23. The Pilot?
  • 24. Selling is a Highly Skilled Profession!Without sales / incoming revenue, do youhave a business ?Is it important that the whole sales process isethical, non pressurised , not aggressive ?
  • 25. What is it that makes a good Sales Person?What is it that makes a good
  • 26. What is it that makes a good Sales Person?Personality?
  • 27. Appearance?
  • 28. Characteristics?
  • 29. How About …. ? Persistent Goal setter and achiever Excellent communication skills A good listener Passionate and enthusiastic Knowledgeable Take responsibility Work hard
  • 30. How About …. ? Courageous Rapport builders Modest Curious Resilient Persuasive High self esteem and belief Confident
  • 31. How About …. ? Dependable Trust worthy Intelligent Likeable Sense of urgency Like people Sell value The list goes on and on and ....................
  • 32. Way Number 2Identify the right type of sales person for yourbusiness !?Consider the sales process within yourindustry, eg time line, frequency, decisionmaking process and unit, average ordervalue, retention, the competition, sale targetsand expectations ( KPIs)
  • 33. What type of Sales Person do you want?Hunter
  • 34. What type of Sales Person do you want?HunterFarmer
  • 35. What type of Sales Person do you want?HunterFarmerOrder takerProblem solverRelationship builderCloserConsultativeExpertAccount manager
  • 36. The Recruitment StageHave a specific and detailed job descriptionPLUS a fully completed “Person Specification”Make sure you don’t take on a “square pegand try to push it into a round hole”!
  • 37. Way Number 3You now have the right sales person inpositionNow its time to make sure they are successfuland stay !
  • 38. Gone FishingGive a man a fish and you feed him for aday, teach a man to fish and you can feed himfor a life time !
  • 39. The Consultative Sales ApproachThe way and method to make thePROSPECTS / CUSTOMERS buying and purchasingjourney and experience a pleasant one :One where the final destination is to become acustomer of yoursOne which they will want to make againA journey they would recommend to others
  • 40. The Consultative Sales ApproachConsultative selling is a move towards morecollaboration with, and involvement from, theprospect/ customer in the selling process.Strongly based on questioning aimed at gaininguseful information, whereby issues/ challenges(objections) raised can be solved and a solutionfound and agreed by the customer. Consultantshelp people achieve their wants and needs. It isa non pressure selling style
  • 41. Consultative Selling IncludesProspecting/lead identification & qualificationTelemarketing / appointment makingRapport buildingListening skillsNeed analysisBenefit sellingClosingTo name but a few !
  • 42. Recruit, Develop and Retain 3 ways to help youRECRUIT, DEVELOP and RETAIN the right sales people who can MAXIMISE UPON PROFITABLE SALES opportunities for your business !
  • 43. Way Number 1Have a more in-depth understanding of whatmakes a good sale personLook at the personal attributes and skillsneeded
  • 44. Way Number 2Identify the right type of sales person for yourbusiness !?Consider the sales process within yourindustry, eg time line, frequency, decisionmaking process and unit, average ordervalue, retention, the competition, sale targetsand expectations ( KPIs)
  • 45. Way Number 3You now have the right sales person inpositionNow its time to make sure they are successfuland stay !Train, coach and motivate them towardssuccess
  • 46. David FosterAssociates Ltd
  • 47. A New Training Course AvailableHot off the press !The detailsThe promotionThe booking