How To Sell More At Higher Prices Keynote 2012

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Orvel Ray Wilson speaks for The Sales Association National Sales Conference, in Chicago, November 8, 2011

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  • How To Sell More At Higher Prices Keynote 2012

    1. 1. Guerrilla Selling -How to Sell More at Higher PricesOrvel Ray Wilson, CSPSr. PartnerTHE GUERRILLA GROUP THE
    2. 2. This version is for The SalesAssociation Chicago keynote.
    3. 3. It’s a Jungle Out There! THE
    4. 4. It’s a Jungle Out There! ! Economic Uncertainty THE
    5. 5. THE
    6. 6. THE
    7. 7. It’s a Jungle Out There! !Economic Uncertainty THE
    8. 8. It’s a Jungle Out There! !Economic Uncertainty !Ruthless Competition THE
    9. 9. It’s a Jungle Out There! !Economic Uncertainty !Ruthless Competition THE
    10. 10. It’s a Jungle Out There! !Economic Uncertainty !Ruthless Competition !Customer Expectations THE
    11. 11. It’s a Jungle Out There! !Economic Uncertainty !Ruthless Competition !Customer Expectations THE
    12. 12. It’s a Jungle Out There! !Economic Uncertainty !Ruthless Competition !Customer Expectations !Pressure on Prices and Margins THE
    13. 13. Slowly but Surely
    14. 14. Slowly but Surely
    15. 15. If you’re going to text. . . THE
    16. 16. If you’re going to text. . . !“I’m at The #SalesAssn listening to @OrvelRay speaking about Guerrilla Selling and it’s fantastic.” THE
    17. 17. Why Sellers Always ThinkPrice is More Important than itReally Is THE
    18. 18. Why Sellers Always ThinkPrice is More Important than itReally Is !They ALWAYS ask you to cut price, because . . . THE
    19. 19. Why Sellers Always ThinkPrice is More Important than itReally Is !They ALWAYS ask you to cut price, because . . . !It seems like a LOT of money to the salesperson. THE
    20. 20. Why Sellers Always ThinkPrice is More Important than itReally Is THE
    21. 21. Why Sellers Always ThinkPrice is More Important than itReally Is !They often really CAN get it cheaper THE
    22. 22. Why Sellers Always ThinkPrice is More Important than itReally Is !They often really CAN get it cheaper !So why are they talking to you? THE
    23. 23. What That Customer REALLYwants is: THE
    24. 24. What That Customer REALLYwants is: ! YOUR product ! YOUR technical expertise ! YOUR availability ! YOUR service ! and THEIR price. THE
    25. 25. What to do when they reallyCAN get it cheaper THE
    26. 26. What to do when they reallyCAN get it cheaper !Ask about their “Contract” THE
    27. 27. What to do when they reallyCAN get it cheaper !Ask about their “Contract” !The Spare Tire THE
    28. 28. What to do when they reallyCAN get it cheaper !Ask about their “Contract” !The Spare Tire !How do you Know? THE
    29. 29. Do the Math: THE
    30. 30. Do the Math: !Ifyou cut your price by 10% on a 35 point margin, you have to nearly DOUBLE your unit sales, just to break even.* * How to Sell at Prices Higher than your Competitors Lawrence Steinmetz, PhD THE
    31. 31. Do the Math: THE
    32. 32. Do the Math:Total Sales $1,000,000 100% THE
    33. 33. Do the Math:Total Sales $1,000,000 100%- COGS 650,000 65% THE
    34. 34. Do the Math:Total Sales $1,000,000 100%- COGS 650,000 65%Gross Margin 350,000 35% THE
    35. 35. Do the Math:Total Sales $1,000,000 100%- COGS 650,000 65%Gross Margin 350,000 35%- Variable COS 150,000 15% THE
    36. 36. Do the Math:Total Sales $1,000,000 100%- COGS 650,000 65%Gross Margin 350,000 35%- Variable COS 150,000 15%- Fixed G&A 200,000 20% THE
    37. 37. Do the Math:Total Sales $1,000,000 100%- COGS 650,000 65%Gross Margin 350,000 35%- Variable COS 150,000 15%- Fixed G&A 200,000 20% Potential Profit: 20¢ THE
    38. 38. Do the Math:Total Sales- COGSGross Margin- Variable COS- Fixed G&A THE
    39. 39. Do the Math:Total Sales $900,000 100%- COGSGross Margin- Variable COS- Fixed G&A THE
    40. 40. Do the Math:Total Sales $900,000 100%- COGS 650,000 72%Gross Margin- Variable COS- Fixed G&A THE
    41. 41. Do the Math:Total Sales $900,000 100%- COGS 650,000 72%Gross Margin 250,000 28%- Variable COS- Fixed G&A THE
    42. 42. Do the Math:Total Sales $900,000 100%- COGS 650,000 72%Gross Margin 250,000 28% 27%- Variable COS- Fixed G&A THE
    43. 43. Do the Math:Total Sales $900,000 100%- COGS 650,000 72%Gross Margin 250,000 28% 27%- Variable COS 135,000 15%- Fixed G&A THE
    44. 44. Do the Math:Total Sales $900,000 100%- COGS 650,000 72%Gross Margin 250,000 28% 27%- Variable COS 135,000 15%- Fixed G&A 200,000 22% THE
    45. 45. Do the Math:Total Sales $900,000 100%- COGS 650,000 72%Gross Margin 250,000 28% 27%- Variable COS 135,000 15%- Fixed G&A 200,000 22% Potential Profit: 11¢ THE
    46. 46. You Have to Boost Sales THE
    47. 47. You Have to Boost Sales $1,801,801.80 THE
    48. 48. You Have to Boost Sales $1,801,801.80 !80% increase in Dollar Sales just to break even. THE
    49. 49. You Have to Boost Sales $1,801,801.80 !80% increase in Dollar Sales just to break even. !But DOUBLE the unit sales THE
    50. 50. Low Bidder“How did I go broke? I was the low bid!”
    51. 51. Low Bidder“How did I go broke? I was the low bid!”
    52. 52. On the Other Hand: THE
    53. 53. On the Other Hand: !Ifyou RAISE your price by 10% you can give up 34% of your gross sales and STILL make the same net profit. THE
    54. 54. What’s a Reasonable Margin? THE
    55. 55. What’s a Reasonable Margin? ! Who controls your price? THE
    56. 56. What’s a Reasonable Margin? ! Who controls your price? ! You better have a very good reason to justify cutting it THE
    57. 57. What’s a Reasonable Margin? ! Who controls your price? ! You better have a very good reason to justify cutting it ! You’re always training the customer how to buy from you. THE
    58. 58. Sell The Total Product THE
    59. 59. Sell The Total Product Generic THE
    60. 60. “This DVD player sells for less than DVD players costing twice as much.”
    61. 61. “This DVD player sells for less than DVD players costing twice as much.”
    62. 62. What to Say when they AskYou to Cut Your Price: THE
    63. 63. What to Say when they AskYou to Cut Your Price: !“Hummm . . . That’s expensive!” THE
    64. 64. What to Say when they AskYou to Cut Your Price: !“Hummm . . . That’s expensive!” !“We have no argument with those who sell for less. They know best what their product is worth.” THE
    65. 65. What to Say when they AskYou to Cut Your Price: THE
    66. 66. What to Say when they AskYou to Cut Your Price: !“If you give me 20% off I’ll sign right now!” THE
    67. 67. What to Say when they AskYou to Cut Your Price: !“If you give me 20% off I’ll sign right now!” !“Do you make that offer to your customers?” THE
    68. 68. What to Say when they AskYou to Cut Your Price: THE
    69. 69. What to Say when they AskYou to Cut Your Price: !“Why are you so much more expensive than the competition?” THE
    70. 70. What to Say when they AskYou to Cut Your Price: !“Why are you so much more expensive than the competition?” !“I REALLY wish I could, but. . . THE
    71. 71. What to Say when they AskYou to Cut Your Price: !“Why are you so much more expensive than the competition?” !“I REALLY wish I could, but. . . !“What do I tell my next customer? THE
    72. 72. What to Say when they AskYou to Cut Your Price: THE
    73. 73. What to Say when they AskYou to Cut Your Price: !“I’drather justify my price now, than have to apologize for poor quality later.” THE
    74. 74. What to Say when they AskYou to Cut Your Price: !“I’drather justify my price now, than have to apologize for poor quality later.” !“What makes you think I wouldn’t give you the best possible price right up front?” THE
    75. 75. What to Say when they AskYou to Cut Your Price: !“I’d rather justify my price now, than have to apologize for poor quality later.” !“What makes you think I wouldn’t give you the best possible price right up front?” !“It’s a lot like buying oats.” THE
    76. 76. Why you dont want priceshoppers as customers: THE
    77. 77. Why you dont want priceshoppers as customers: !They gobble up your capacity THE
    78. 78. Why you dont want priceshoppers as customers: !They gobble up your capacity !They do all the complaining THE
    79. 79. Why you dont want priceshoppers as customers: !They gobble up your capacity !They do all the complaining !They require you to stock up, then blackmail you on price THE
    80. 80. Why you dont want priceshoppers as customers: !They gobble up your capacity !They do all the complaining !They require you to stock up, then blackmail you on price !They forget to pay THE
    81. 81. Why you dont want priceshoppers as customers: THE
    82. 82. Why you dont want priceshoppers as customers: !They brag about the deal THE
    83. 83. Why you dont want priceshoppers as customers: !They brag about the deal !They steal your ideas, information and knowledge THE
    84. 84. Why you dont want priceshoppers as customers: !They brag about the deal !They steal your ideas, information and knowledge !You establish a precedent THE
    85. 85. Why you dont want priceshoppers as customers: !They brag about the deal !They steal your ideas, information and knowledge !You establish a precedent !They’renot going to buy again anyway! THE
    86. 86. Sell The Total Product Generic THE
    87. 87. Sell The Total Product Generic Expected THE
    88. 88. Technical support“I know it’s technical support, but for $3.50 a minute I expect you to talk dirty.”
    89. 89. What They Really Need: THE
    90. 90. What They Really Need: !Two or more vendors THE
    91. 91. What They Really Need: !Two or more vendors !Technical and design help THE
    92. 92. What They Really Need: !Two or more vendors !Technical and design help !On-time delivery THE
    93. 93. What They Really Need: !Two or more vendors !Technical and design help !On-time delivery !Minimize downtime THE
    94. 94. What They Really Need: !Two or more vendors !Technical and design help !On-time delivery !Minimize downtime !To buy what they’re told to buy THE
    95. 95. What They Really Need: THE
    96. 96. What They Really Need: !Feel like they’re doing something THE
    97. 97. What They Really Need: !Feel like they’re doing something !Minimize inventory and carrying costs THE
    98. 98. What They Really Need: !Feel like they’re doing something !Minimize inventory and carrying costs !Certainty on mission-critical items THE
    99. 99. What They Really Need: !Feel like they’re doing something !Minimize inventory and carrying costs !Certainty on mission-critical items !Avoid over-engineering THE
    100. 100. What They Really Need: THE
    101. 101. What They Really Need: !Timely and accurate billing THE
    102. 102. What They Really Need: !Timely and accurate billing !Predictability and consistency THE
    103. 103. What They Really Need: !Timely and accurate billing !Predictability and consistency !Responsive, courteous and timely action by vendors when they have questions or problems THE
    104. 104. What They Really Need: !Timely and accurate billing !Predictability and consistency !Responsive, courteous and timely action by vendors when they have questions or problems !Look good to their scorekeepers. THE
    105. 105. Sell The Total Product Generic Expected THE
    106. 106. Sell The Total Product Generic Expected Augmented THE
    107. 107. Customers Will Pay More THE
    108. 108. Customers Will Pay More !Quality THE
    109. 109. Customers Will Pay More !Quality !Authenticity THE
    110. 110. Customers Will Pay More !Quality !Authenticity !Stability THE
    111. 111. Customers Will Pay More !Quality !Authenticity !Stability !Reliability THE
    112. 112. Customers Will Pay More !Quality !Authenticity !Stability !Reliability !Social or Ecological Values THE
    113. 113. Customers Will Pay More THE
    114. 114. Customers Will Pay More !Knowledgeable salespeople THE
    115. 115. “Mr. Colton, do we stand behind our products?”Customers Will Pay More !Knowledgeable salespeople THE
    116. 116. Customers Will Pay More !Knowledgeable salespeople THE
    117. 117. Customers Will Pay More !Knowledgeable salespeople !Reputation THE
    118. 118. Customers Will Pay More !Knowledgeable salespeople !Reputation !Partnership THE
    119. 119. Customers Will Pay More !Knowledgeable salespeople !Reputation !Partnership !Consistency THE
    120. 120. Customers Will Pay More !Knowledgeable salespeople !Reputation !Partnership !Consistency !Customization THE
    121. 121. Customers Will Pay More THE
    122. 122. Customers Will Pay More ! Authority THE
    123. 123. Customers Will Pay More ! Authority ! Popularity THE
    124. 124. Customers Will Pay More ! Authority ! Popularity ! Exclusivity THE
    125. 125. Customers Will Pay More ! Authority ! Popularity ! Exclusivity ! Scarcity THE
    126. 126. Customers Will Pay More ! Authority ! Popularity ! Exclusivity ! Scarcity ! Disposal THE
    127. 127. Customers Will Pay More THE
    128. 128. Customers Will Pay More !Innovation THE
    129. 129. Customers Will Pay More !Innovation !Miniaturization THE
    130. 130. Customers Will Pay More !Innovation !Miniaturization !Ruggedization THE
    131. 131. Customers Will Pay More !Innovation !Miniaturization !Ruggedization !Availability THE
    132. 132. Customers Will Pay More !Innovation !Miniaturization !Ruggedization !Availability !Delivery THE
    133. 133. Customers Will Pay More THE
    134. 134. Customers Will Pay More !Expediting THE
    135. 135. Customers Will Pay More !Expediting !Flexibility THE
    136. 136. Customers Will Pay More !Expediting !Flexibility !Financing THE
    137. 137. Customers Will Pay More !Expediting !Flexibility !Financing !Advanced technology THE
    138. 138. Customers Will Pay More !Expediting !Flexibility !Financing !Advanced technology !Arrives in perfect condition THE
    139. 139. Customers Will Pay More THE
    140. 140. Customers Will Pay More !Problems fixed quickly THE
    141. 141. “You really should have called me sooner.”
    142. 142. Customers Will Pay More !Problems fixed quickly THE
    143. 143. Customers Will Pay More !Problems fixed quickly !Environmentally friendly THE
    144. 144. Customers Will Pay More !Problems fixed quickly !Environmentally friendly –Steve Loudin, Tricell Corporation THE
    145. 145. Stella Color Lynn Krisky Seattle, WA
    146. 146. Customers Will Pay More THE
    147. 147. Customers Will Pay More !Benefit a third party THE
    148. 148. Customers Will Pay More !Benefit a third party !Local Sourcing THE
    149. 149. Customers Will Pay More !Benefit a third party !Local Sourcing –82% have consciously supported local or neighborhood businesses THE
    150. 150. Customers Will Pay More !Benefit a third party !Local Sourcing –82% have consciously supported local or neighborhood businesses !Prestige Brands THE
    151. 151. Customers Will Pay More !Benefit a third party !Local Sourcing –82% have consciously supported local or neighborhood businesses !Prestige Brands !Referral THE
    152. 152. Customers Will Pay More THE
    153. 153. Customers Will Pay More !Reduced liability THE
    154. 154. Customers Will Pay More !Reduced liability THE
    155. 155. Customers Will Pay More !Reduced liability !More fun. THE
    156. 156. The Gradient THE
    157. 157. The GradientPrice THE
    158. 158. The GradientPrice Overhead THE
    159. 159. The GradientPrice Overhead THE
    160. 160. The GradientPrice If all you want is . . . Overhead THE
    161. 161. The Gradient If money were no object . . .Price If all you want is . . . Overhead THE
    162. 162. The Gradient What we do is . . . If money were no object . . .Price If all you want is . . . Overhead THE
    163. 163. Sell The Total Product Generic Expected Augmented THE
    164. 164. Sell The Total Product Generic Expected Augmented Potential THE
    165. 165. Ann Brown, New Vista ImageGlass RoomEnvironmental Capital Bill Markovich
    166. 166. Ann shows glass and paperproofs to the client.
    167. 167. 4’ x 8’ glass panels weigh 200lbs each
    168. 168. Realize Your Profit Potential THE
    169. 169. Realize Your Profit Potential !Shop your competition THE
    170. 170. Realize Your Profit Potential !Shop your competition !Stop telegraphing that it’s negotiable THE
    171. 171. Realize Your Profit Potential !Shop your competition !Stop telegraphing that it’s negotiable !Show the Best First THE
    172. 172. Realize Your Profit Potential !Shop your competition !Stop telegraphing that it’s negotiable !Show the Best First !Manage damaging information THE
    173. 173. “Discouraging data on that new antidepressant.”
    174. 174. Realize Your Profit Potential THE
    175. 175. Realize Your Profit Potential !The Preemptive Strike THE
    176. 176. Realize Your Profit Potential !The Preemptive Strike !Expect the Sale THE
    177. 177. Realize Your Profit Potential !The Preemptive Strike !Expect the Sale !Avoid Scope Seep THE
    178. 178. Realize Your Profit Potential !The Preemptive Strike !Expect the Sale !Avoid Scope Seep !Invoice $0 items THE
    179. 179. Realize Your Profit Potential THE
    180. 180. Realize Your Profit Potential !Negotiate terms, not price –Federal Acquisition Regulation THE
    181. 181. Realize Your Profit Potential !Negotiate terms, not price –Federal Acquisition Regulation !Offer bonus goods or services instead THE
    182. 182. Realize Your Profit Potential !Negotiate terms, not price –Federal Acquisition Regulation !Offer bonus goods or services instead !Guarantee Everything !DOUBLE it THE
    183. 183. BrusselsSprouts
    184. 184. Thank You! THE
    185. 185. Thank You!• Follow me on LinkedIn THE
    186. 186. Thank You!•Follow me on LinkedIn• Friend me on Facebook THE
    187. 187. Thank You!•Follow me on LinkedIn• Friend me on Facebook• Tweet me on Twitter: orvelray THE
    188. 188. Thank You!•Follow me on LinkedIn• Friend me on Facebook• Tweet me on Twitter: orvelray•OrvelRay@GuerrillaGroup.com E-mail me at: THE
    189. 189. Blank Slide

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