JULY 2000 ISSUE
Incorrect Assumptions Can Reduce Profits
By Ann Barr
ICustomers stop buying from suppliers for any one of a number of
different reasons. It could be that they found a new supplier on the
Internet or were contacted by a competitor at a time when products
were needed. You won’t know why they stopped buying until you ask.
It can be dangerous to assume you know why.
According to U.S. News and World Report from a survey by the
Rockefeller Corporation, customers stop buying because:
1% Die
3% Move away
5% Formed other relationships
9% For competitive reasons
14% Due to product dissatisfaction
68% stop buying because of an attitude
of indifference by one or more persons representing the
supplier!
Don’t Assume It’s Because of Price
Recently I heard a sales person ask a customer on the telephone:
"Did you stop buying from us because of our prices?" Wow!
What an opportunity this gave the customer! Price immediately became
the FOCUS of the conversation, whether or not that was the real
reason the customer stopped buying. And DOWN went the price – DOWN
went the profit margin.
Use Positive Questions
Here is an upbeat, positive question you can ask the customer who
has stopped buying from you:
"First, I want to thank you for your past business with us.
We had the opportunity to provide you with your [fill in with the
product they purchased from you, for example,
"Sharp copier toner"] last year. The reason for my call
today is, depending on your current needs and requirements for
copier and printer supplies, I have a few options for you that could
make your ordering process easier." (Fill in with other
specific benefits you offer.) Then ask questions and LISTEN to the customer’s answer.
This approach focuses the customer’s attention on something
positive: what you can do for them now. If this doesn’t
work and you feel you have really lost the customer, follow this call up with a letter to the customer.
Express your disappointment that they are no longer doing business
with you and repeat the benefits you offer. You can print out a good example (free) of a "lost
customer" letter at www.profitbyphone.com/lostcustomer.htm
Ann Barr is a consultant and sales trainer with 19
years’ experience in Sales and marketing.
ENX readers can get a complimentary e-mailed copy of
her report: "64 Ways to Increase Your Sales" by
subscribing to Ann’s free e-mailed
newsletter "Weekly Sales Tips."E-mail your request to: annbarr@sellingsupplies.com
with "Sales Tips" in the subject
line, or visit Ann’s web site: www.sellingsupplies.com
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AUGUST
2000 ISSUE
Four Ways to Answer
Discount Warehouse Objections
By Ann Barr
There is a perception
among consumers that the price for toner and other products is lower
(than anywhere else) at discount warehouses. In some cases, this is
a reality. Price objections can be very difficult to handle. But the
fact that your prospect gives you a real, specific
objection, is a good sign. This means they are willing to talk
about their concerns. You now have the opportunity to tell them
about the benefits of buying your products from you.
Remember that prospects are not as knowledgeable as you are about
your company and products and they will be more likely to want
to buy from you when they find out about the value you can provide.
Think of objections as requests for information instead of
roadblocks.
It helps to use a "cushion" statement before
answering the objection. A cushion statement is a friendly or
agreeable statement. Reason: This immediately lets the
prospect know you don’t intend to argue. Some examples of cushion
statements: "I understand," or "I can understand why
you feel that way."
If you are the authorized Canon (or Minolta, Ricoh, etc.) dealer and
you hear this:
OBJECTION:
"Your Canon copier toner is too expensive. I can get the same
Canon branded toner for a lower price at Office Max."
RESPONSE:
"I’m glad you mentioned Office Max. Toner is a chemical, as
you know, and chemicals are very sensitive to the environment. We
are the authorized Canon dealer and are obligated by
the terms of our contract to store toner in approved warehouse
conditions. Non-authorized distributors are not under the same
obligation. If toner is stored in very warm temperatures, it can
become defective and could actually damage your
copier. I would hate to see you take that risk with
your copier. Most of our customers feel more comfortable using our
genuine Canon toner because we are the authorized
Canon dealer. Shall I send you a case of Canon toner today?"
IMPORTANT: Always end your answer/benefit response
with a trial close question or a direct close question to get an
answer from the prospect.
ANOTHER RESPONSE:
"I understand how you feel. Since you did buy your Canon copier
from us, there may be a way you can save money on your copier
toner as well as your fax and printer supplies. If you qualify for
an Annual Supplies Agreement, we can offer you a discount
on all of your supplies and your prices would be protected
for a full year, even if the manufacturer raises our price. Would
you like me to find out if your company qualifies for an Annual
Supplies Agreement?"
GENERIC vs. OEM
When a customer is buying generic
products and compares the generic price to the branded or OEM price,
you can tactfully educate the customer about the benefits of
buying original, OEM products. Whenever possible, use examples of
other customers who had similar concerns in the past. Example:
OBJECTION: "Your branded copier toner is too
expensive. I can get the generic product for a much
lower price."
RESPONSE: "I understand how you feel. Some of my other
customers felt the same way you do. They bought generic copier toner
but then had problems with their copier, so they needed more
frequent service calls. After using our OEM supplies their copiers
had fewer problems and they found that OEM toner lasts 20% longer
than generic copier toner, so their cost per copy is actually lower
when using our branded toner. Shall I send you a case of genuine OEM
toner today?"
ANOTHER RESPONSE:
"I can understand why you say that. Our OEM toner may seem
more expensive, but because branded toner is manufactured to work in
exact precision with the sophisticated technology of your equipment,
the copier will have fewer problems and make cleaner
copies when you use genuine OEM toner. And if you order a year’s
supply today, or put your copier, printer and fax supplies on an
Annual Supplies Agreement, your savings could be substantial. I’d
like to ask a few questions about your situation to see if this is
something that you’d like more information on. Okay?" If
you hear a "yes," ask questions like: "How
are your fax and printer supplies currently purchased?"
Find out more about how to market Annual Supplies Agreements and get
a free Annual Supply Agreement letter at: http://www.sellingsupplies.com/ASA.htm
Ann Barr is a consultant and sales trainer with 19
years’ experience in Sales and marketing.
ENX readers can get a complimentary e-mailed copy of
her report: "64 Ways to Increase Your Sales" by
subscribing to Ann’s free e-mailed
newsletter "Weekly Sales Tips."E-mail your request to: annbarr@sellingsupplies.com
with "Sales Tips" in the subject
line, or visit Ann’s web site: www.sellingsupplies.com
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