Frank Coker and CompTIA deliver the Art of the Deal presentation at VMWare Conference

1. Quick Start - The Art of the Deal
Presented by: Frank Coker
CompTIA Faculty
CEO, CoreConnex
frank@corelytics.com
425-454-5006

2. Why is Deal Making Important?
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Good deals lead to profit
Bad deals lead to loss
The difference is subtle
It’s part science, part art
Doing it well takes practice
Each person has their own style
Good deals are win-win
(nobody looses)
• Getting it right will change your
future!

3. What is a “Deal?”
• All sales are deals – large and small
• All that is required is a price and a deliverable
• Deals can be formal or informal
– Informal: you give a customer a piece of equipment, they give
you a check.
– Formal: you negotiate an agreement with multiple phases of
delivery and have a payment due at the beginning of the project
and at the end of each phase.
• A deal requires 2 parties to agree to an obligation to
each other – pay for product, pay for service, etc.
[Deals with more than 2 parties are really multiple related 2-party deals]
• Both parties give something and receive something

4. Deal Life Cycle (example)
Phases
1. Initiation
1.
2.
3.
4.
5.
Business Need
Solution Concept
Preliminary
Analysis
Project Proposal
Approval
2. Investigation
1.
2.
3.
4.
5.
Project Team Initiation
Research and Analysis
Alternatives Evaluation
Recommendation
Approval
3.Implementation
1.Implementation
1.
Team Initiation
2.
2.Detailed task plan
3.Pilot Implementation
4.Rollout
5.Post Implementation
Review
4. Operation
Sustain
Performance
Review
(SWOT)
[Phase 1 is a billable project to investigate and analyze alternatives]

5. Selling Approaches
Passive
Active
Order takers
Proactive Dealmakers
Sell what the customer asks for
Sell what the customer needs
now and in the near future
Solve today’s problem
Solve problems with the future in
mind
“Tactical sales”
“Strategic sales”
Compete on
price and features
Compete on
quality and benefits

6. Where Should Sales Come From?
• 65% from existing customers
• 20% from referrals
(ask existing customer for referrals)
• 15% new leads
Source: IBS Sales School

7. Features Drive Interest
Benefits Drive Decisions
Features
• Capacity
• Speed
• How it works
• Specific functions
• Specifications
• New capabilities
Benefits
• Results
• Effect on business
• Impact on customer
• Confidence
• Risk reduction
• Reliability / scalability
• Perceptions / feelings
• Alignment w/ goals

8. What is Margin?
Warning: most people get this wrong and don’t
understand why they are losing money!
Formula:
(total price – all direct costs) / total price
Example:
• Total price = $100,000
• Total cost = $60,000 (product + service labor)
• Gross profit = $40,000 (a.k.a., “gross margin dollars”)
• Margin = 40% (most people think 67% markup = margin)

9. 10 Tips for Successful Deals
1. Understand customer requirements
2. Present 3 alternatives that solve the problem
3. Separate features from benefits
4. Organize your proposal for an executive
5. Discuss alternatives and pricing before the proposal
6. Follow-up on proposal to verify fit
7. Understand customer’s approval process
8. Ask about potential objections
9. Focus on reliable, low risk, and solid solutions
10. Ask for the order

10. 1. Understand Customer Requirements
• Ask about pain points
• Ask about goals, priorities, timing, volumes, etc.
• Determine “non-requirements” - rule out potential
requirements by describing options that are outside of their stated
requirements, and confirm that they are not requirements
• Write down what you learn – taking notes builds trust and
shows that you think this is important
• Confirm what you think you heard
• Determine “underlying requirements” – don’t confuse
solutions or desired results with requirements

11. 2. Present 3 Alternative Solutions
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One solution = yes/no
Multiple solutions = choice (much stronger path)
Always look for high/medium/low price options
Be sure that all choices are viable
even if they don’t meet all requirements
• Expect customer to choose the middle option
encourage them to consider all 3
• Evaluation of alternatives should be billable
especially for implementation and service projects
• Understand budgeting and availability of funds
don’t do projects where recommendations can’t be funded

12. 3. Separate Features from Benefits
• Each alternative should have a separate list of
features and a list of benefits
• Features and benefits should be compared for the 3
alternatives as part of the summary
• Features are good for comparisons
• Benefits are the “reason to buy”

13. 4. Organize Proposal for an Executive
• Put the “bottom line” up front
• Tell the whole story on the first page
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Short proposal summary
Cost and benefits
Key milestones
Signatures
• Everything is an exhibit after page 1
• Legal provisions are an exhibit
See CompTIA Guide for further detail

14. 5. Discuss Alternatives Before Proposal
• Before proposal, prepare detailed summaries of
alternatives and discuss these with customer; find
out their preference and their reasons
if you can’t get confirmation on the customers preferences, writing a
proposal will be a waste of time
• The final proposal should include a brief summary of
the alternatives and a recommendation that aligns
with prior discussions
the final proposal has already been sold, the document simply
becomes the formality

15. 6. Follow-up on Proposal to Verify Fit
• Create a follow-up process for all proposals that is
followed by your team
• In approximately 3 days, call to verify that the
proposal fits their criteria and fully addresses their
needs
• Get confirmation on timing of approval (assume
agreement)
• Get permission to continue follow-up

16. 7. Understand Customer Approval Process
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Is funding already budgeted?
Who makes the decision if funds are not budgeted?
Who makes the decision if funds are budgeted?
What are the steps involved in the process?
– Legal / contractual
– Financial
– Operational
• What does the customer require for acceptance of
delivery?
• What you don’t know can harm you!

17. 8. Ask about potential objections
• Don’t wait for the customer to raise objections – ask!
• The more you learn about objections, the easier it is
to make a sale
• Don’t confront objections; be on the customer’s side
when you discuss objections
• Key question: “How do we get alignment with all the
key players in this decision?”
• Don’t submit a proposal if there are unresolved
objections

18. 9. Focus on Key Benefits
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Reliability
Low risk
Solid solution
Proven solution
Your commitment to the customer
* Trust ties back to benefits (not features)

19. 10. Ask for the Order
• Many sales don’t happen simply because nobody
asked for the order
• This is not asking for a “yes” to the proposal; it is
asking for the signed document or the approved
purchase order
• Preferred approach: ask “how do we get the needed
signature or approval so we can proceed with the
order?”
*Nothing happens until the order is placed!

20. Bonus Tip: Know the Key Players
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Decision maker
Internal advocate
Likely objector
Gate keepers
Key influencers
Potential blockers
Read: The New Strategic Selling by Heiman, Tuleia, and Miller

21. How Do Your Sales Compare To You Peers?
• Benchmarks
– to industry peers
• Monitor industry
trends
• Share data with
your team

22. What Benchmarks Exist?
• Corelytics© by CoreConnex, Inc.
(www.corelytics.com)
• CompTIA sponsorship of Corelytics Financial Dashboard
• S-L Index™ Included in Corelytics
• S-L Index™ by Service Leadership, Inc.
(www.service-leadership.com)
• S-L Index™ Comprehensive Diagnostic Report©
• S-L Index™ Quarterly Comprehensive Report©

23. What is Corelytics ?
TM
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Financial Dashboard
Benchmarks
Business model calculator
Analyzes data from Your Accounting System
– QuickBooks (automated)
– MYOB (Australia, New Zealand - automated)
– Other Accounting Systems (file import)
• Goal tracking
• Solution for showing financial progress to your team
Special Edition for CompTIA
Members

24. Your Sales Trends in Graphics

25. Where am I headed?
Use the “big picture” to understand your trends
By line of
business
Basic trend
lines
Peer
benchmarks
Your goals

26. How do I compare with my peers?
Your business model has unique industry benchmarks
Your revenue
mix
Using the PBM®
Calculator
Your model

27. VMware and CompTIA Offer:
Free Financial Forecast
See your trends, financial
strength and future forecast
How?
• Email: support@corelytics.com
• Subject: VMWare Report
• Text: Your contact information

28. References and Additional Materials
• CompTIA website (www.comptia.org) – Member
Resource Center – under Business Management 
Finance
• Corelytics – www.coreconnex.com for overview
• Sign-up – CompTIA.Corelytics.com
• Questions – frank@corelytics.com

29. Questions?
Thanks!