Life'll Kill You - And Then You'll Be Dead

The late, great, singer-songwriter Warren Zevon sang a lot of about death during his amazing 25+ year career.  Ironically enough, he died in 2003 from a rare form of lung cancer that coal miners get (even though he never worked a day in a coal mine).  In one of his famous tunes, he sang, "Life'll Kill You...And Then You'll Be Dead..."

Zevon sang about the fact that we're here and we've got about 650 hours of life in our entire life-span.  Use it wisely.  He also said, "Enjoy Every Sandwich."  I think what Mr. Zevon wanted us to know is that we must seize every moment and nobody escapes the inevitable.  "Some get to die in their sleep, some get the knife, some get the gun..."

In our sales life as salespeople, we must seize every moment and live our professional life to the fullest.  We must make every sales moment count and we must enjoy every moment.  Don't squander the important life moments.  During the hustle-bustle of blocking and tackling sales situation, just remember that, sooner or later, we'll all face a time when we're not here anymore.  Enjoy Every Sandwich.  Have fun.

Enjoy your life.  Live it to the fullest.  Life is a mysterious, exciting time and 650 hours goes by in a blink-of-an-eye.

The Etiquette of Employment Negotiation

Some of you have been there.  You apply for a new sales position at a sales organization.  They like you.  You like them.  Then begins the negotiation phase of getting hired.  I've got some advice that should make this experience achieve your goal:  getting hired for what you really want:

1. One of the most important things to consider in negotiating a new job is to focus on the big things first.  I've seen inexperienced salespeople demanding a shiny new Macbook Pro instead of the company standard of a PC.  Really, guys, is this in your best interest?  Negotiation items that really matter in the bigger scheme of things.  Discuss benefits, discuss car allowances, vacation, the commission plan, etc.  Save your low-dollar demands for either the end of the negotiation.  Better yet, leave them out altogether.  If you want a freakin' Macbook, fork out the $1,600 yourself.  How does this small amount fit in the priority of negotiating a 6-figure compensation program.  Doing these kinds of things demonstrates a lack of understanding that big things must be considered last, if it all.  
2. As part of your due diligence, ask to speak to your future peers, your engineering support people and as many other folks that will give you a well-rounded vision into company culture.  You'll pick up skills that will help you negotiate when you're ready.
3. In a soft and casual way, find out what points are really negotiable and which are not.  Spend your intellectual capital in smart ways.  Align with the company culture and figure out if you're willing to take an offer than may not have everything you want, but overall puts you into a better environment with better growth potential.
4. When it comes to serious negotiation, take advice from the pros.  Trade off things you want with concessions you're willing to make.  For deal killers, state your requirements clearly and shut up.  The one who talks first, is likely the one who will win.  Be careful here, though.  Some items simply cannot be negotiated.  Find out what these sticky points are and be prepared to concede on these points if you really want the job.
5. Don't consider making a move unless your new prospective company really values what you have to bring to the organization.  Don't worry, they'll probably tell you, and if they want you bad enough, they'll likely go to the ends of the earth to get you.  What they WON'T do, is to challenge company culture or set unusual precedent.   

Be smart.  don't fight over the little things and soon enough you'll be part of a new team, with an new business card.  Happy negotiation.

The Science of the RFP

Seems like every sales organization is down on the RFP, otherwise known as a formal Request For Proposal.  These are usually solicited by government/educational institutions, but are not uncommon in the large enterprise space.  The "frown" on RFP's is usually due to the fact that when the rules are formally established before they accept bids, some sales organizations feel as if their power (and therefore, their likelihood to win) are diminished.  Some companies feel that there is too much competition and regulation surrounding RFP's that it's "not worth the effort."  Probably the biggest reason that many companies pass on the RFP process is that history has indicated that they don't usually win.

Let's look at RFP's from another perspective.  While there are more stipulations and regulations for most RFP's, this can also present an advantage to those willing to do some research.  Given the fact that most RFP's are public, an enormous amount of data is just sitting out there, ready to be captured and analyzed.  I've seen several salespeople that have an analytical streak, review the science behind the RFP or solicitation.  Information abounds when it comes to statistical analysis.  Items like:  who usually bids, what did these winning RFP's look like, how does the buyer evaluate and score RFP responses, what are the common positive and negative trends, which buyers adhere to the rules strictly versus a more casual approach, etc.  The list goes on and on.  There's a good argument for bidding on an RFP, even if you know you'll lose.  What if you found a trend that companies that bid on an RFP twice and lost, usually win the second or third time.  Might be good long-term strategy.

Another key factor here is that with today's online environment, much of this information can be found online, making your job easier when it comes to collecting data.  When you think about it, you'd probably do this type of due diligence even if you weren't in an RFP situation.  Great salespeople gather as much information as they can about an opportunity, to appropriately qualify an opportunity.  Why not take the same effort in a competitive bidding environment?

Remember, organizations buy for a variety of reasons and it's not always the lowest price.  This statement has been shown over and over again in the public buying environment.  RFP's are still a sale and there are potential relationships and strategies that can be applied here.  Even quick chats with purchasing agents, buyers and influencers can make that small bit of difference to position your formal response documents.  Just as a note, I'm not suggesting that you can always influence RFP's, nor am I stating that price isn't the primary factor (many times, it is).  I'm simply presenting the fact that RFP's must be more carefully analyzed than the average proposal.

Lastly, while it is generally common knowledge, it's important that all salespeople try to get IN FRONT of any public solicitation.  RFP's are created out of whole cloth.  If you look back in time, there are many months (and sometimes, years) of hard work that goes into writing and budgeting for a solicitation.  It is your job to engage early and often, create a relationship and carefully position yourself for the best outcome.  Good luck!

Unpaid Endorsement: Salesforce.com

Wouldn't I love to actually be paid to endorse the leading hosted CRM application in the world.  Yeah, that's not going to happen, believe me.  To their credit, Salesforce.com (affectionately known to users as SFDC) doesn't need to pay me for me to sing their praises.

In 2010, SFDC released their latest software edition of their Enterprise CRM.  Overall, it's about the best damn customer management and sales efficiency booster out there.  In 2004, the SFDC stock was selling at $8/share and closed the other day at over $125/share.  Would have loved to have seen that one coming.  Why the success?  Why have so many organizations decided to move to a cloud-based, hosted solution?  SIMPLE:  It works the way salespeople think and reports on that effort like a pro.

In my sales career, I've used just about every CRM-style application out there:  ACT, GoldMine, MicrosoftCRM, Siebel, NetSuite and more.  I actually utilized SFDC heavily around 2001-2003 and was impressed by the tool even then.  I had a few gripes and moved away to another tool for the past 8 years.  I can't tell you how impressed I was with SFDC's latest web-based model.  As a salesperson and a sales manager, the power of this tool means one thing:  more efficiency, more productivity and more sales.

One of the coolest things about SFDC is their social networking application sandbox, which pretty much has every type of bolt-on, integration tool and output management plug-in that you could image.  These SFDC applications are pre-made, customizable and nobody else has anything like it.  I liken it to the Apple iPhone of CRM's.  Yes, you're restricted as to content, but there thousands of them, and they work seamlessly.

Whether you work for a small business or a Fortune 100 company, every salesperson can realize huge benefits with SFDC.  Don't believe me?  SFDC will let you try it for free for 30 days.

OK Salesforce.com, where's my shameless plug bonus?

Negotiating Price

"I love the solution you guys came up with, it's just too expensive."  There's probably 20 different ways you're going to get a price objection when you're in almost any phase of the sales cycle.  If you could digest all of the situations you've been in, in regards to negotiating price, there's some key take-aways to remember.  Hope this blog helps to navigate this dicey area, WITHOUT LOWERING YOUR PRICE.

• Uncovering budget (or the way in which the customer will evaluate price) is not the same thing as negotiating a price objection.  Budget discussions should happen EARLY in the sales cycle.  Discussing how the customer will look at value is like uncovering any other piece of information that is critical in the early phase of qualifying the opportunity.  You should be talking about how they make and spend money, whether they typically pay more to get a better solution and setting expectations as to what things really cost.  A good salesperson never experiences "sticker-shock."
• Make sure you get granular as to what a price objection really means.  Many times, customers throw out a pricing problem because there are underlying product or service objections.  Maybe they don't really understand the VALUE that your solutions can bring to their organization (maybe not).  Your job is to flush this all out.  If there are hidden objections beyond price, take those on first.  No reason to discuss price if the solution isn't really valued by the customer.
• If you're confident that your solution is REALLY what they want to buy, then lowering your price should be off the table right away.  To test your confidence, ask this question, "If we can't lower the price, does that mean you're not going to buy it?"  I'm simplifying this for the purpose of this blog, but you get my meaning.  If the answer isn't a straight-out "no," it's all over.  If the answer is really "no," don't you want to know this?
• If you have to negotiate price, ask the customer FIRST what the breaking point is.  Don't offer up any discounts without knowing what they'll consider.  You may give away profit just because you spoke first.  Any good negotiating class will teach you to listen and stop talking.  The party that speaks first will likely give away more than the other.
• There are only 3 things you can do with a real price objection if you take lowering the price off the table:  1) Reconfigure the solution;  2) Show more value;  3) A combination of the two.  If you set these expectations with the customer after flushing out the objection, it's much more likely that they'll work with you to pick one of the three.  Remember, you need to do your job BEFORE you get to this point and assure that what you're selling is what they really want to buy.  If you haven't, you have bigger problems than a discount.

Lowering your price is a lose-lose for all parties.  The customer loses because it forces them into a frame-of-mind in which they have to battle to get what they want.  Nobody likes to do that.  Your industry loses because lowering pricing erodes the profit margin for everyone up and down the manufacturing/service chain.  You and your company lose because you did two things:  1) You reinforced the concept that your company doesn't already come to the table with a fair price;  2) You make less profit.

See you next time.
 

Politics and Salespeople

I just finished listening to Sarah Palin's nationally televised, seven-minute response to the recent politically-charged murders in Tucson, Arizona.  I'll go on record to note that I'm relatively a-political.  I believe in our Constitution, and ability of our country to self-govern (and self-correct).  However, I feel somewhat compelled to use this blog as a sounding board for what I believe to be an unbelievable challenge for the U.S.  What does this have to do with salespeople?  Well, I'll admit, not much; however, there are few careers that represent the sheer numbers and ability to communicate with people like salespeople.  We're out and about, talking with other people, and our influence should not be trifled with.  As a profession, let's not sit back and ignore the events that have transpired.  Here's a perfect storm:

• We're at war.  Not with one country, but many.  Our soldiers are dying.
• We're in an economic depression.  Some people call it a "recession," but that's only because we're actually printing money and giving it to the same companies and banks who got us into this mess.
• Our two primary political parties are at such odds, that a new political faction has arisen (Tea Party) seeming to indicate that there's enough Americans unhappy with the Dems/Reps to break-off into a new organization.

An isolated gunman goes on a shooting spree in Tucson, killing people at a grocery store, and we're faced with a puzzle.  Why is Sarah Palin calling a press conference to combat a frenzy of accusations that she's somehow involved?  Do you really need an answer?  Have you watched her nationally syndicated television show?  Have you been asleep since the last presidential election?  

We've got a problem.  Lots of them.  Let's turn the ship around.  Let's get the country back on-track.  Talk to people about this.  That's what you do for a living.

Salespeople can change the world.

I Know Why You Lost That Deal!

You know the deal I'm talking about, right?  That big one.  That one that you thought you had figured out. The one where you spent hours, weeks, strategizing about what you THOUGHT the customer would probably do.

We've all been there.  We cultivate a customer relationship.  We develop the opportunity.  We get to a spot where we really believed that big deal was ours.  Then we lose.  We try to figure it out.

I sat in my office the other night strategizing with four other team members trying to figure out a really complex strategy for an account.  I mean this deal had more spin on it than Kobe Bryant's layup.  The pricing scheme was a nightmare.  The customer options were staggering.  We thought we had a good lay of the competitive landscape.  This was one of dozens of hours that we had invested trying to create the perfect scenario where we'd land on top.

One of the most fascinating topics squeezed in-between the complex strategizing was one of the big reasons we were sweating it, was that they "didn't like the way the technology looked."  Are you kidding me?  Here we are looking at this thing 100 different ways and there's this funny little cosmetic issue that rears its ugly head.  It made me stop and take a look at all of our efforts.  Did we really understand all of the simple things about the customer and opportunity?  Had we taken the time to be in a position to be working long hours?  Maybe so, but it allowed me a brief glimpse of reality.

Here's why you lost that big deal:  You didn't know something really important to the customer.  Maybe it was something you couldn't know, but here's the kicker:  it's the same reason that your competitor won.

Happy Selling and Happy New Year

Best Urchil's Take-Aways: Relationship Selling

In Urchil's Relationship Selling, published in 2008, he spins a masterpiece of success.  Here's the biggest take-aways that need no elaboration from me.

"...a trusted advisor relationship is not the same as a "buddy" relationship."
"...it is most important for the client to perceive you more as the person who they can trust to provide the appropriate solution and less as the person who is their friend or buddy."
"You need to evolve from a person who recommended and sold systems or devices to a person who collaborates with the client and helps resolve business problems affecting the organization as a whole, or a specific problem that affects that client in person."
"You should be genuinely interested in people."
"You should be genuinely interested in helping others without expectations."
"You should have a genuine desire to make friends."
"You should have a genuine belief in yourself and in the goodness of others."
"You should have a genuinely positive outlook on life."
"I suggest that you consciously cultivate the ability to see the positive in everything."
"I have experienced, time and time again, that it is these small, simple, seemingly insignificant things that matter the most."
"If you forget somebody's name...do not try to cover up the fact that you forgot someone's name.  Apologize once and do not make a big deal of the situation."
"My employees are all aware that if I ever catch them or hear of them responding to a cell phone call or typing away at a blackberry while in a meeting with a client or during a formal meeting with their peers, I will terminate their services."
"The following four skills define the LUST technique:  Listening.  Understanding, Soliciting Input, Trusted Advice."
"Let me assure you that if you truly listen to someone and really hear what he or she is saying, ninety-nine percent of the time you will find that you have something in common with him or her.  Don't force the interaction.  Don't pretend to like something."
"Things that successful people share:  They are ethical.  Successful people exhibit a core set of personal and professional ethics and honesty that they are not willing to compromise.  They exhibit perseverance.  They are willing to work through the hard times and strive towards the desired goal.  They do not give up at the first sign of trouble or hardship.  Tought times do not last, tough people do.  They have good work life balance.  They are multi-dimensional.  They practice.  Persevere.  Adapt.  Learn.  Practice."
"...There is no such thing as natural talent and if there is, it plays an insignificant part in consistent long-term sucess."

Out-Thinking The Relationship? Think Again.

I'm the first one to admit that while I'm a relatively social person, I differ from some of my peers and fellow salespeople in that I'm likely to focus more on sales strategy than anything else.  The big question (that will likely never be answered) is:  How important is relationship-based selling over sales strategy and tactics?

Here's the argument for focusing on sales strategy and tactics:
If people can be described in a simple way, its probably that they are unpredictable.  All the sales psychology in the world can never predict the complex world of human behavior.  Scientists spend their whole lives, generation after generation, trying to predict how different types of people behave in different situations.  It's a no-win project.  Even after careful study and hours of interaction, no salesperson can really pin down the predictability of a customer.  All too often, I hear people in our industry tell me that "this customer's key is talking about football," or "take this guy to the BBQ place once a month and you're golden."  Sure, I'm simplifying this a bit, but here's my point:  If we draw the conclusion that there are many things we can't predict about a customer, why not focus on the things that we CAN predict.  That's where the science of selling rules supreme.  Use math:  more activity, better qualified prospects, frequent contact, be reliable, follow-up closely, propose solutions that impact their business (and them), keep good metrics of sales ratios (like closing ratio), and use common sense.  If salespeople focus on these scientifically proven methods (along with being a friendly, social person), doesn't that make more sense than "focusing on the relationship?"

Here's the argument for Relationship Selling:
It's going to sound silly, so brace yourself:  relationship selling works.  I can't produce the scientific studies, nor can I describe a methodology that salespeople can follow in regards to selling primarily on creating relationships.  There is a best-selling book on relationship selling by Jim Cathcart (it's interested and recommended).  Maybe one of the reasons for this, is simply because the core of relationship based selling is difficult to teach (and for that matter, even learned).  Go back to the argument that we really haven't figured out how to predict social behavior.  One thing is certain:  Salespeople who have miserable sales strategy and tactics, but who are phenomenal at building relationships, are very successful.  I've even seen extreme examples of this where the salesperson is down-right irresponsible in terms of basic sales blocking and tackling (even those who know next to nothing about the products/services they sell).  The proof is in the numbers.  Relationship creation and sustainability is almost legendary.  What's their secret?  How do they do it?  There's not a good answer, but there are similarities between great relationship-based salespeople.  They're often poor at looking at situations analytically, their attention to detail is hit or miss, and they prefer not to get bogged down in planning.  OK, these might be perceived as negative traits, but to the relationship-focused salesperson, these things actually get in the way of maintaining that magic formula with their customers.

I guess there will always be a bit of a debate regarding which way to lean.  I wish I could tell you that I see a bunch of salespeople with a nice blend of these two traits, but I wouldn't be telling the truth.  In fact, I've worked with and trained over 1,000 salespeople and very few could blend the two traits.  In reality, a good plan would be to team-up a strategist and a relationship-builder.  This is a team that cannot be stopped.

Holiday Selling - November & December Could Be Your Best Months!

Happy Holidays 2010-style!

When I think about the impending holidays upon us, the Sales Manager in me always thinks about the short work weeks and the customers that will be out of town on vacation.  To make things worse, my company specializes in K-12 Education and many of our school districts are closed for weeks at a time.  Is the glass half-empty?  Maybe.  Let's talk about the other part of the Egg Nogg.

Other things that happen during the holidays for salespeople include:

• Time to review the year's performance, activity metrics, bookings and analyze information about your sales year.  Looking at metrics like Closing Ratio, Average Deal Size, Time frames in the Sales Cycle and others make fantastic fodder for keeping busy.
• Time to plan for next year.  I keep saying this over and over, "if you don't plan for your success, you significantly decrease the changes you'll get what you want."  Plan the activity required to achieve your financial goals.  Want to make more money?  Find out what you did last year and plan out your year.
• Time to give thanks.  Thank your customers.  Send holiday gifts.  Thank your fellow employees (the people that made your job easier throughout the year).  Thank your boss and company.  Thank your family and friends.
• Time to train on those items that you just couldn't do throughout the year.  Read the latest literature, take required tests, learn more about your industry, read a business book or two. 
• Time to strategize your attack plan for new customers.  While everyone loves a good existing customer who places orders all the time, what would happen if that account went away.  Don't think it can't happen to you.  People change.  Circumstances change.  Relationships change.  Not everything is in your control.  What new customers will you develop to replace a possible loss.

On a personal note, please accept my thanks to all of you out there who have spent time reading these blogs.  With your readership, your comments and your participation - we make this a better place to sell.

Happy Selling and Happy Holidays.