Chapter 12

Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Some questions answered in Chapter 12

How much emphasis should be placed on closing the sale? Why is obtaining commitment important? When is the best time to obtain commitment? What methods of securing commitment are appropriate for developing partnerships? How should pricing be presented? What should a salesperson do when the prospect says yes? When the prospect says no? What causes difficulties in obtaining commitment, and how can these issues be overcome?

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Obtaining commitment

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Closing!
Whats the first thing that comes to your mind when you hear the word closing? Can you think of a manipulative, tacky, or devious attempt a salesperson used on you?

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Why Obtaining Commitment is Important?

The buyer
Realize the benefit of the product or service that satisfy his needs

The company
Earn a profit and future success

The salesperson
Financial (extrinsic) rewards and intrinsic rewards
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Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Always Be Closing!
The ABCs of closing are Always Be Closing. This makes good sense when selling in a business-tobusiness context. True False

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Examples of commitments salespeople may attempt to obtain

From Exhibit 12.1

To have the prospect agree to come to the local branch sometime during the next two weeks for a hands-on demonstration of the copier. To have the buyer agree to pass my information along to the buying committee with her/his endorsement of my proposal. To set up another appointment for one week from now, at which time the buyer will allow me to do a complete survey of his/her printing needs. To have the prospect sign an order for 100 pair of Levis jeans. To schedule a co-op newspaper advertising program to be implemented in the next month.

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Solving real problems

Name some goods or services that you really needed to purchase. Buyers do have real needs. Thus, the goal should be to help buyers solve real problems, rather than just to get the business.

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Is the customer ready to buy?

Which of the following customer responses would be the best indication the customer is ready to purchase? 1. Is this available in red? 2. Wouldnt this take a long time to get delivered? 3. The customer picks up a product brochure and places it in her purse. 4. Could I have the floor model? 5. The customer begins to reexamine the product.

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

When is the right time to obtain commitment?

There is one psychological moment in which you have the best opportunity for obtaining commitment, if you bypass it or miss it you cant easily secure that commitment Agree / Disagree - - - Comment !!!!

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

When is the right time to seek commitment?

There is no one right time, but Watch for verbal indicators
Prospect agrees to value of benefit Prospect accepts response to objection Prolonged silence Positive verbal indication (e.g., Sounds good, How should I pay?, etc.)

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

When is the right time to seek commitment?

There is no one right time, but Watch for nonverbal indicators
Reexamining product Starting to figure with pencil or calculator Nodding the head, leaning forward, etc Open and relaxed hands Relaxed eyes, dilated pupil.

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

When is the right time to seek commitment?

There is no one right time, but Buyers response to probing Trial closes:
Asking for the customers opinion How does this sound to you? What do you think about that? Is there any thing else would you like to know at this point? How does this compare with the product you are using now? If trial closes dont close the sale, it will provide you with acceptance of the stated benefit.

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

If After You Close You Receive a Negative, What Would You Do?
Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

How to Successfully Obtain Commitment?

4 principles
1. Maintain a positive attitude
Confidence is contagious

2. Let the customer set the pace

Practice adaptive selling

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

How to Successfully Obtain Commitment?

4 principles
3. Be assertive not aggressive nor submissive Self-confidence 4. Sell the right item in the right amount Customers have long memories

Are you looking for repeated sales and goodwill?

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Effective closing
What would you say to a friend to get them to agree to go on a Spring Break trip using each method:

Direct request
The most straightforward and effective method Works best for drivers Decisive customers want to get down to business quickly. Try not to appear overly aggressive Can I put you down for 100 boxes of ? Will you start using our

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Effective closing
Benefit summary
Focus on the perceived benefits by the customer Do not use any benefit Benefit helps the customer make wise decision Benefit summary is helpful in long presentation or several meetings Benefit summary helps the customer remember all agreed-on benefits You wanted . Weve seen that

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Effective closing
Balance sheet method
Lets see if we can summarize the reasons for and against doing this Helpful for analytical Helpful for prospects cant make decision Purchasing now or later Purchasing the product or the competitor Purchasing or not purchasing at all Draw a T or balance and put the pros and cons Then ask the prospect which one do you think is the wisest choice? Take care that your benefits could be less than the competitor

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Effective closing
Probing method
If direct request method is unsuccessful, then use series of questions probing to discover the reason for hesitation What if I can successfully resolve this concern, would you be willing to commit? Probing method is called magic eraser because it makes imaginary temporary eraser if I can resolve this concern for you would you purchase our product You should not use eraser phrases more than once or twice otherwise it begins to sound canned May I ask what is holding you back?

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Effective closing
Alternative choice method
If you as a salesperson has multiple forms or options to present to the customer Do not overwhelm the customer by too many forms of your product at the same time Focus Limit the choices between your product one or two forms maximum Spend more time probing about the wants and desires Allow the prospect to express his preference This will help the prospect to make his final decision

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Effective closing

Did any of those methods appear devious or manipulative? What method(s) do you prefer salespeople use with you?
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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Traditional closing methods

The real estate agent told the prospective home buyers, You seem to really like that last house we looked at. She takes out a contract and says, Lets go ahead and fill out the paperwork. How much do want to offer on the house? The real estate agent is using which closing method?
Emotional Minor point Direct action Standing-room only Assumptive

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Traditional closing methods: minor point close

From Exhibit 12.3

The seller assumes that it is easier to get the prospect to decide on a very trivial point than on the whole proposition: What color do you like, blue or red? If the prospect makes the minor decision, the seller assumes the sale is made and begins writing up the order. This can upset a prospect who feels that s/he is being manipulated. No one wants to feel that they have been tricked into making a commitment. Even unsophisticated buyers easily spot this technique.

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Traditional closing methods: continuous yes close

From Exhibit 12.3

The seller, throughout the presentation, constantly asks questions for which the prospect most logically would answer yes. By the end of the discussion, the buyer is so accustomed to saying yes that when the order is requested, the natural response is yes. This method is based on self-perception theory. As the presentation progresses, the buyer begins to perceive him/herself as being agreeable. At the close, the buyer wants to maintain this self-image and almost unthinkingly says yes. Use of this method can destroy long-term relationships if the buyer later feels manipulated.

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Traditional closing methods: assumptive close

From Exhibit 12.3

The seller, without asking for the order, simply begins to write it up. A variation is to fill out the order form as the prospect answers questions.

This does not even give the buyer the courtesy of agreeing. It can be perceived as being very pushy and manipulative.

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Traditional closing methods: standing room only close

From Exhibit 12.3

The seller attempts to obtain commitment by describing the negative consequences of waiting. For example, the seller may state, If you cant decide now, Ill have to offer it to another customer. This method can be effective if the statement is true. However, if the prospect really does need to act quickly, this should probably be discussed earlier in the presentation. An earlier discussion would tend to reduce possible mistrust and feelings of being pushed without apparent necessity.

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Traditional closing methods: benefit-in-reserve close

From Exhibit 12.3

First the seller attempts to obtain commitment by another method. If unsuccessful, the seller says, Oh, I forgot to tell you that if you order today I can offer you an additional 5 percent for your trade-in. Although this method can be effective, it can also backfire easily. The buyer tends to think, If I had agreed to your first attempt to obtain commitment, I would not have learned about this new enticement. What else do you have up your sleeves? If I wait longer, how much better will your offer be? Use of this technique can also cause the buyer to seek additional concessions in every future sales attempt.

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Traditional closing methods: emotional close

From Exhibit 12.3

In this technique, the seller appeals to the buyers emotions to close the sale. For example, the seller may say, This really is a good deal. To be honest with you, I desperately need to secure an order today. As you know, I work on a straight commission basis. My wife is going to have surgery next week, and our insurance just wont cover Many obvious problems arise with this method. It is an attempt to move away from focusing on the prospects needs to focusing entirely on your own personal needs. It does not develop trust or respect.

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Closing the natural next step

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

How selling style relates to closing

Aggressive selling style
Overwhelms the customer Responds to objections without attempting to understand them.

Submissive selling style

Assume customers will buy when ready.

Assertive selling style

Respond to objections, leading to a somewhat automatic close.
Adapted from Exhibit 12.2
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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

I want time to think it over

You are selling barcoding equipment to a company. After completing your presentation, the buyer says to you, What you say sounds interesting, but I want some time to think it over. Write a good response that you could use with this buyer.

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Effective closing
What do you do if the buyer says yes?
Go over information the customer will need to fully enjoy the benefits of the product. Get the endorsement on the agreement. Show appreciation. If it was the first order, or a large one, send a thank you letter. Follow up. Make sure the order was delivered, and that the customer understands how to use the product.

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Closing terms

A customer orders 20 cases listed at $100 per case. Customers who order more than 16 cases receive a 15% quantity discount. Terms are 2/10, n30. The customer pays five days after getting the invoice. How much did the customer pay? $1700 $1666 $1660 $1530 Impossible to tell

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Effective closing
Have you ever told a salesperson no?
Were you trying to be mean? Did you do it because you didnt like the salesperson? Did you do it because you didnt trust the salesperson?

So what do you do if the buyer says no?

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

If commitment is not obtained

Some reasons for failure:
Wrong attitude. Poor presentation Poor habits and skills

Discovering the cause /causes

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Six Common Mistakes

1. Tells instead of sells; doesnt ask enough questions 2. Over-controls the call; asks too many closed-end questions 3. Doesnt respond to needs with benefits 4. Doesnt recognize needs ; gives benefits prematurely 5. Doesnt handle negative attitudes 6. Makes weak closing statements; doesnt recognize when or how to close

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Keys to Improve Selling

Ask questions Recognize real needs and how benefits satisfy it Establish a two-way dialogue Recognize and handle negative attitudes Use a benefit summary when closing

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Suggestions for dealing with rejection

Maintain the proper perspective. Recommend other sources. Good manners are important.

Obtaining commitment the natural next step

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Successful Salespeople Should Learn to Accept NOs Naturally

Thanks the prospect for his time. Keep in contact with him/her by phone calls or mailings. Leaving something with the prospect to help him contacting you in the future. Keep in touch, leave the door open. Act as a professional.

Showing disappointment gain nothing!!!!!

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Bringing The Interview to a Close

Departure can't be abrupt. Complete the interview smoothly. Goodwill will never be built by wasting the customers time after commitment.

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

Any questions about the terminology?

Aggressive Assertive Balance sheet method Benefit summary method Buyers remorse Buying signals Cash discount Closing Closing cues Cumulative discount Direct request method Follow-up Free on board (FOB) Post-purchase dissonance Probing method Requirements Submissive Trial close Trial order

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

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Chapter 12
Questions answered What is closing? When to close Closing methods When the buyer says yes When the buyer says no Terminology

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