Why Infomercials Work Infomercials are surprisingly hypnotic. They have this unusual ability to draw people in and keep their attention that rivals that of an attractive woman who hasn't had breast implants, but still has an...

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Customer Tactics Knowing the opposition – their tactics, their goals, their perspective – is the first rule of any competition, from sports to war. It also has its place in sales, where it can be a difference maker....

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Cutting Quota Anxieties I'm sure most of my readers will agree: one of the most high-pressure jobs in the world is that of being a sales person. Astronauts and deep-sea divers face risks in their profession, that's for sure....

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Fashionable Homes It seems a little strange to be thinking about what is currently "fashionable" in housing design. That is because we know that things that are "fashionable" today have a good possibility of being unfashionable...

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Don't Value a House Too High It is an uncomfortable truth that in every attempt to sell a house, people will make mistakes. Maybe they didn't promote it enough, so nobody even knew it was up for sale. Maybe they decided to skip on...

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Why Infomercials Work

Category : Effective Salesman

shamwowInfomercials are surprisingly hypnotic. They have this unusual ability to draw people in and keep their attention that rivals that of an attractive woman who hasn’t had breast implants, but still has an impressive chest. This isn’t necessarily the result of any one detail about them, but more of a culmination of all the little things that goes into the making of any infomercial. Their power is in the sum of their parts – incidentally, these are all very good sales tools on their own. So just what parts does an infomercial stick together to create something special?

The obvious thing they do differently from other salesmen would be the use of live demonstrations. A lot of salesmen, due to the nature of their restrictions, can only deliver sales pitches. They can’t do product demonstrations or let the customer have a sample and take it for a test run. Infomercials – and, in a way, car salesmen – do have the leeway needed to show the customer exactly how the product works and how to work it, giving them a huge advantage. The customer can see for themselves that the product works and that it can fulfill at least part of what it promises.

Another thing that infomercials do that make them so effective is the use of dialogue. A conversation is better at keeping people engaged and interested than a long block of text or sales pitch is. They’re also excellent tools for framing the presentation in a narrative form, going by a logical sequence that the customer can intuitively follow. There is a need and the conversation leads to the revelation of the nature of the need, along with how it is fulfilled thanks to the product and its features. It allows people to see something they can relate to and associate with, even if they don’t necessarily have the same experiences.

Finally, infomercials are very good because they do something that all salesmen should do: instill a sense of urgency. They always carefully word the closing parts in a manner that makes it seem like the product is severely limited in offer and must be purchased right away. This is something that a lot of salesmen forget in the midst of their tasks, because if the customer thinks they can walk away and purchase it later, they will. If the object is something that they want, but don’t need immediately, the only thing that’ll close the deal is a sense of urgency, making them believe that it isn’t going to be available for much longer.

Customer Tactics

Category : Practical Tips

Knowing the opposition – their tactics, their goals, their perspective – is the first rule of any competition, from sports to war. It also has its place in sales, where it can be a difference maker. Salesmen are required to know all sorts of things, including all the little details about the feather duvets they sell. Haggling, for example, is one of the most popular things for customers to do when they’re trying to get a better deal on a product they want. So it can sometimes help the salesmen to recognize tactics like that being employed, so they can figure out how to counter or mitigate them.

Pressure, for example, is something that customers can use just as well as salesmen do. The difference lies in what sort of pressure gets applied. The most common form of pressure hagglers apply is one of preference. They mention that they are interested in a product that’s available, but the specific form or quality of what they want isn’t available. For example, they want a pink dress but the only ones available in the same design are purple. They can get a cheaper price by making it clear that the pink one will do as a concession, because the one they really want isn’t available but they still need the dress. Salesmen usually respond by giving discounts to keep them from going to a competitor who may have exactly what they want on hand.

Another strategy that people use when trying to get a better price out of salesmen would be to walk out. Just like how some salesmen walk out of a prospective deal to risk the chance that the customer might change their mind, buyers do this too. Try hard to get a good deal on an item and use various negotiation tactics. If the salesmen relent, then they got a good deal. If the salesman decides not to fall for it, they walk away – banking on the possibility that someone higher up and with more authority to “flex” the pricing will try and stop them. This works best for regular customers or people buying really, really expensive items. The effort a business expends on regular customer relationships is a huge investment well worth a little price cut.

Sometimes, the sympathy plea works too. The idea is to give the potential buyer a really good story to buy, to play on the salesman’s emotions – they’re human too, after all. This blatant emotional appeal works best in industries where the customer talks directly to the person that’s doing the pricing, such as at an auto shop.

Cutting Quota Anxieties

Category : Sales

I’m sure most of my readers will agree: one of the most high-pressure jobs in the world is that of being a sales person.

Astronauts and deep-sea divers face risks in their profession, that’s for sure. And call center agents have to deal with irate customers and angry complaints every single. But in all of these professions, they at least enjoy the knowledge that at the end of the month, they will receive a paycheck for their efforts. Not so for the sales rep.

Most of the pressure we have comes from the fact that our salary is entirely dependent upon the sales that we make for the month. And we can’t just sit back and make the minimum number of clients, either; for every successful milestone we pass, the quota gets higher and higher. Indeed, sales is one of the few professions where you really have to earn your pay. You can’t rest easy replacing Dell ink cartridges in the office printer and writing leisurely reports knowing the paycheck will come regardless of what you do.

Which is why a lot of salesmen suffer from intense anxiety.

According to K. Sri Dhammananda, the famous Buddhist monk, there are subtle ways to overcome your worries. He recommends controlling anger to avoid confrontations, avoiding selfishness and jealousy, dealing property and positively with enemies and criticism, gaining control over your mood and taking every day as it comes.

And the best of all, to overcome fear and worry is to understand that they are of our own making. They arise because of the inability to understand ourselves fully and to see things in the right perspective. So why worry for the future, if we deal for today? Why worry for the past if we have the present to open? See, for no life is a waste. The only time wasted is the time we spend thinking we are never going to make the quota, the time we are worrying. If fear and worry are of our own making, then it must be within our powers to overcome them.

Start making the most out of your life today. Leave yesterday behind and be glad that there is always a future to anticipate. Deal with the present and do your best to make it perfect and meet what you have to meet. Since it is your present, not of others. So why not to worry?

It is much better to have a happy heart than burden it heavy with fear and unlimited anxiety, which don’t really contribute anything to meet those sales targets. Eat chocolates, watch a just-for-a-laugh movie, enjoy the sunset. There’s no need to shorten our lives that are already very hectic because of our chosen profession. After all, life is short.

As Bugs Bunny said, we should not take life too seriously, for so far, no one, not even insects, have come out of it alive.

Fashionable Homes

Category : Business

It seems a little strange to be thinking about what is currently “fashionable” in housing design. That is because we know that things that are “fashionable” today have a good possibility of being unfashionable in the near future.

With an investment as big as a home, we don’t even want to think that our decisions will go out of style. But the fact is certain things will fall out of fashion, and in a few years our kids will be wondering what we were thinking when we made our decorating decisions. How many of us have walked into an orange and green bathroom lately and wondered just what was going on?

Architects and builders are in the business of selling homes of course, so they have to walk a fine line between what is fashionable and the classic elements that will never go out of style. These are some of the considerations that went into “the New American Home 2012″ which was recently unveiled in Orlando by the National Association of Home Builders. The model home is an evolution of the classic “White Box” that was popular in mid-Twentieth century design, with updates to make it more more Eco-sensitive with a spa-like feel. The structure has a very modern appearance with clear glass balustrades, free-flowing entertaining spaces, floor to ceiling glass doors, and clean geometric lines.

Real estate experts are telling us that this is a good time to consider having a new home built. Although the housing market is beginning to rebound, work is still relatively slow for the building trade, so there are potential bargains in new construction. Admittedly, “the New American Home 2012″ isn’t going to be a seamless fit into every neighborhood, but even in this time of down-sizing homes there are designs and styles that harken back to classic periods but surrender nothing to modern convenience or style.

The Craftsman style of architecture that was popular before WWII is finding new favor. Design details like tapered columns, oversized eaves, gables, and front porches are being combined with smaller and more efficient floorplans. Family friendly features like breakfast bars with swivel bar stools and versatile dining rooms are becoming common.

Spacious McMansions and “Brady-Bunch” split levels have definitely fallen from favor. The pretentious oversized homes are being recognized as energy and money guzzling monsters, while split levels have shown that the need to constantly climb or descend stairs has little bearing on domestic bliss.

Don’t Value a House Too High

Category : Business

It is an uncomfortable truth that in every attempt to sell a house, people will make mistakes. Maybe they didn’t promote it enough, so nobody even knew it was up for sale. Maybe they decided to skip on the Edinburgh bathroom design because they thought it was too expensive, not realizing that a good, clean bathroom helps sell the whole place overall. Then there are the ones that make the most important, the most devastating mistake in all of real estate selling. They sell the house at too high a price. This tendency is actually incredibly prevalent, leading to the common joke in the industry that says success relies on being one of the following: the first child, the second spouse, or the third realtor.

When people who sell their homes talk to realtors – or skip this step and try selling on their own – they get very excited about the price. The more they can sell it for, the better their financial opportunities after the sale. This emotional response lead to some mistakes, such as thinking that the place is worth more than it actually is or that the condition it’s in is good enough to sell as-is. It can sometimes make them blind to the problem of certain areas needing repairs or renovations to sell better, as they think the cost of it would just cut into their potential profits. Sometimes, they just go with the realtor or agent that quotes the highest price – a mistake, as it can be very misleading.

Here’s a fact that most home sellers miss: that house is nowhere near worth the kind of money they think its worth. It also doesn’t really mean a thing if the realtor thinks that it’ll sell for this or that value. The only opinion on the house’s value that matters is that of the potential buyer who is making an offer.

Consider two houses in the same strategic neighborhood. They both have the same access to a number of amenities, such as schools and public transportation. They’re both within driving distance of places like grocery stores or entertainment centers. They both have similar measurements, in terms of square feet. The interiors are largely similar as well – maybe one has a walk-in closet and the other a bigger bedroom. One of these houses is valued at X and the other at X+2. In the mindset of a buyer, is that walk-in closet really worth the +2? In all likelihood, it isn’t.

The opposite of this is if the house is valued too low. Then again, the market tends to fix this too. If a house is priced too low, it’ll get a lot of offers that will, in time, drive things up to market value. Once the number of offers stabilizes, then that may be a good indication that the right price point has been reached.

Selling Quality

Category : Business

When justifying a high price, one of the first things that salesmen are told to do is to emphasize the quality of the product. The idea is to admit that yes, the Microsoft Dynamics CRM price tag is ridiculous, but it has so many features and is so good at what it does that it is worth that much money. Change out the product and it becomes a somewhat standardized way for salesmen to start with emphasizing something’s quality. However, this isn’t enough. It isn’t good enough that they point out that the product is superior and thus commands a higher price; the customer would very much like to know what makes it better. At that point, a lot of sales training falters.

So here are some of the angles that can be taken for proving that something has better quality.

Superior performance is, of course, a good tool. The gap between the product’s capabilities and those of its competitors is wide, so the vast superiority in terms of functionality helps justify the higher price. This is easiest to do in items or products that have tangible, objective standards of performance. Appliances, electronics, cars – all of these are items that have measurable metrics in their performance, which makes it easier to say one is better than another. Like the “tale of the tape” in boxing. The salesman merely needs to point out the numbers to back up his claims. While this may lead into over-simplification, there are a lot of products where bigger numbers do mean better performance.

On the other hand, one of the most common ways for the quality of something to be emphasized when selling to the rich is its durability. Rich people (especially the Old Money) generally don’t get their by being stupid; they spend their money on things they know will last. This explains why some of them have leather shoes that have been handed down from father to son – they’re just that good. In the modern culture of disposability, having something that is built to last is well worth the cost. Products “pay for themselves” when they’re used regularly, so if something lasts for longer than normal, then it is of higher quality.

Finally, there is also the possible angle of emphasizing what features and functions the product has that set it apart from competitors. This is highly similar to the angle taken by marketing and branding materials. This requires extensive knowledge not only of the product itself, but of the competition, as well as what they can do. If a product has more useful features related to its core function, then it can arguably be of better quality.

Don’t Keep Customers At Arm’s Length

Category : Business

Sales is personal. Salespeople, or whatever else name they go with, marketing representatives, account executives, sales consultants, etc, have to get in close and personal with the consumer to really understand what they are looking for. It’s not as easy as asking “What do you want?” though there are sometimes transactions that are as easy as asking for a signature.

Salespeople like the door-to-door vacuum cleaner salesman have to really work to convince the individual that they want and need a better, newer, faster, way of cleaning their floors. They inform the potential buyer that they have a problem or help them reach that conclusion themselves, enumerate the ways of solving that problem, and then make sure the potential buyer understands why a purchase of a particular product is the best way to solve the problem. A good salesman is the consumer’s very own problem solver, consultant, perhaps even therapist, all in one go.

Many salespeople who make a living off quick sales, like the aforementioned door-to-door salesmen and those who sell long-term products and services like insurance and auto loans as well as cars and home appliances, are naturals at reading between the lines and interpreting body language. There are also salesmen who cultivate long-lasting relationships with their customers, like the saleslady in the mall shoe store who is on a first-name basis with regular customers or the clerk in the furniture store who supplies all the chairs for an interior decorator client.

People are unpredictable most of the time so if you want to be able to close a sale you’ll have to make sure that the people you’re selling to are actually interested in your product. In this stage, research is important. Every company has a specific target market for the products that they release to the public. Of course, even this is a broad spectrum of potential customers. The salesperson has to narrow down that target market even more.

Knowing the people you are about to approach with a sales pitch lessens chances of them declining the sale after you have made the presentation. If you’re trying to pitch a project or a proposal to a client or your bosses, make sure that you have done thorough research on each and every aspect of the project so you’ll be able to handle the criticisms, objections, and other forms of rejection. If you have done your homework and have a rebuttal for every worst case scenario they throw at you, then you’ve probably got your proposal or your sale in the bag.

Center of a Sale: Rapport, Silence and Simplicity

Category : Business, Practical Tips

When it comes to improving your sales technique, it’s important to return to the basics every now and then. Particularly when you’ve been going through a bit of a rough patch, you often stand to benefit from reviewing the simplest little parts of your pitch and making sure that you aren’t making any simple mistakes. Whether you’ve been in sales for two months or twenty years, we’re all the same. We’re all human, and we can all improve upon our techniques. The next time that you check your database to find your next appointment, keep a few of these tidbits in mind.

Of course, your ability to build rapport is at the very center of your ability to sell a product–any product, really. You’re not going to convince anyone to part with their money if they can’t trust you. If they suffer even the tiniest bit of doubt as to whether or not you have their interests at heart, they are not going to bite. As you’re talking to them, be sure that you’re listening actively. Acknowledge their concerns, and cater your presentation to their specific needs. Avoid pitchy dialogue. Keep it natural, and keep it personal.

Many salespeople also forget that it’s important to STOP talking at a certain point. Remember, you cannot think for your customer. Sure, you can guide their thoughts during your presentation, but that doesn’t mean that you should try to replace them entirely. When you’ve finished with your pitch, give them a few minutes to think about what you’ve said. If you’re giving an in-home presentation, find an excuse to make a quick phone call and step outside. As they say, the first person who talks, loses! Keep your mouth shut and let them think!

Finally, it’s important to remember that you have to ask for the sale. You can lay out all of your information and hope that they’ll bite, but they might not. If you lead them into an assumptive close, gathering as much information as you can, then they’re much more likely to buy your product. Instead of asking them a yes or no question (i.e. “Do you want to sign up today?”), ask an assumptive question (i.e. “Which program would you like to sign up for today?”).

To be a great salesperson, you have to keep the basics at the very center of your pitch. It doesn’t matter how large your sales database is; if you’re not good at the simple stuff, then you’re never going to close a sale.

Convert More Sales with Improved Negotiation Methods

Category : Effective Salesman

If you have been a salesman for more than a month you know the importance of sales conversion. I am talking about the critical point in a sale when you are laying out the offer. You have detailed your product and done your best to convince your customer why they cannot live without your product. Now is the time when you learn if all of your efforts leading up that point have been in vain. The customer says no. You walk away without a sale and having wasted valuable time. After all, your boss does not pay you unless you make a sale. Go back with me if you will to that critical point in the salesman’s pitch where he presents the offer. What if during that pitch a small change was made. A powerful negotiation tactic implemented that would drastically increase the salesman’s chance of converting a sale. That would be powerful right? That would change the way this salesman did business and would certainly affect the salesman’s income.

The negotiation tactic that is so effective it is almost guaranteed to increase your sales is in fact not a negotiation tactic at all but rather a state of mind. A personality trait. You have to be confident. Confidence is key in sales. Why? Because a potential customer can see right through your bogus sales pitch if they do not feel that you believe 110% in the product you are selling. They will not give you a minute more of their time if they cannot instantly detect that you are confidant in your product and confidant in your abilities to sell that product.

A confidant salesman is an organized salesman. You can ensure that you have the necessary information to maximize your sales by having all of your product information and customer information organized in an easily accesible program. You can set-up a simple crm to ensure that you have all of your client data in one location. This will allow you to refer back to your crm while you are on the road and ensure that you are working in the most efficient manner possible and that you have all of your details lined up so you can be confident as you approach your next sale. It is crucial for a salesman to believe in himself and his product. If you remain organized you can ensure that you will have the maximum respect for your product and be able to focus all of your energies on making your next sale count. Your sales quota will thank you!

Staying Enthusiastic about Sales

Category : Business, Effective Salesman

Most salesmen can recall walking into their first sales calls. They were nervous, probably sweating and there was a feeling in the pit of their stomachs as if they were going to throw up. Yet despite the stage fright they survived, and lived to sell again and again. Eventually they became accustomed to that feeling, and somehow those butterflies went away, but often along with the butterflies, they lost their passion.

Burnout is a common problem with most professions but sales has some peculiar pitfalls that all salesmen must galvanize themselves against. Here are a couple of wrong attitudes which lead to burnout.

They are going to say no anyway
Salesmen, even great salesmen hear the words “no thank-you” far more often than most other professions. Most other professionals hire salespeople to hear the word “no,” for them. Since it is a salesman’s job to try to persuade people who are deciding on products, it is just part of the job to hear the word “no” more often than most people. “No” however is a powerful word which works on the psyche eventually.

The past ten years have been especially difficult and it is easy for a salesman to become convinced that “no” is the only word in their customer’s vocabulary. This can become a self fulfilling prophecy that leads only to more failure to sell, as well as depressing apathy.

I’m a looser
This one is very powerful after loosing a customer or being called into the boss’s office for a negative review of sales. It is especially powerful if the salesman feels he is underpaid for his services, and is experiencing financial difficulties due to loss of commission income. It’s hard to stay upbeat when things aren’t going well.

Beating Burnout
To avoid rejection oriented burnout one has to stay pumped. That’s why those marketing schemes, which convince non professionals to sell, hold meetings that look like pep rallies. Most of those types of companies hire motivational speaker types to whip up the crowd. Unfortunately many companies that rely on a more professional sales staff do not offer this perk. Some companies do hire motivational speakers occasionally but not frequently enough.

Professional sales people use motivational tapes, not so much because they include material they don’t know, but because emotionally they need the reminders and the encouragement. Motivational seminar tapes are a tremendous boost to most sales staff, but a real seminar can make an even bigger difference.

It is also very important for salesmen to stay physically active, engage in sports, home improvement projects and other interests outside of work. Salesmen should do volunteer work and go to club meetings not only for social networking purposes, but also to interact with people other than customers. It’s important to have a strong self image and build good relationships outside of work in order to beat burn out.