Here is the powerpoint presentation from the event on the 19th April - Successfull Selling in a Comatose Economy

1. The Chamber
of Commerce
for Sussex
Successful Selling in a Comatose Economy
19th April 2012
Welcome
Membership
Membership
Events
Training
HR Services
Export Documentation
Quality Management
www.sussexenterprise.co.
uk

2. Achieving the Optimum Price
Selling by Value
Based Pricing
Copyright Margin2 2012
price at the moment of truth

3. Why is Pricing so important?
Those companies that ‘achieved true excellence in their price execution
capabilities . . . earned operating profits 24% higher than their industry peers’
Hogan 2011
Copyright Margin2 2012
price at the moment of truth

4. The moment of truth
In every sale, the The price you offer
buyer makes a is therefore
mental or physical fundamental to
calculation of the
Value Price your customers
value they will gain value calculation,
from making a it’s a moment of
purchase truth where theory
becomes practice
Every purchase is therefore a balance
between the price offered and the value
delivered, there is the constant risk of losing
the sale or missing out on vital profit.
Copyright Margin2 2012
price at the moment of truth

5. So, if its about ‘Value’, what does that mean?
• Its judged in unquantifiable terms
• It is judged from a range of perspectives
• It is always placed in the context of today’s sale
Copyright Margin2 2012
price at the moment of truth

6. Equation for Customer Value
Benefit
- Effort
- Risk = Value Price
Copyright Margin2 2012
price at the moment of truth

7. Types of Customer Benefit
Service Level +
Economic Functional Intangible
Commodities Uniqueness & Image, brand,
with price ability to meet unique
based appeal consumer experience
needs
+ Price Sensitivity
‘They are 10% ‘They always ‘I like doing business
cheaper’ deliver on time’ with them’
Copyright Margin2 2012
price at the moment of truth

8. Market Mapping – Price per Feature
300
250
200
£ per Year
150
100
50
0
10 15 20 25 30 35
Number of Features
= Supplier A = Supplier C = Supplier E
Copyright Margin2 2012
= Supplier B = Supplier D = Supplier F
price at the moment of truth

9. How to Sell at the Right Price
Volume x Price = Turnover
- Costs = Profit
Turnover is Vanity, Profit is Sanity
Copyright Margin2 2012
price at the moment of truth

10. Turnover growth does not automatically
mean Profit growth
Copyright Margin2 2012 Source: Companies House
price at the moment of truth

11. 2 Rules for Value based selling
• Facts are far more useful than opinions
• What gets measured gets controlled
Copyright Margin2 2012
price at the moment of truth

12. ‘Experience’ and ‘Judgement’ is always subjective
and never as impactful as performance reviews and
customer research
What Interest Rate would you offer on this Deal?
5.50
5.40
5.30
5.20
5.10
% 5.00
4.90
4.80
4.70
4.60
4.50
Resp. A Resp. B Resp. C Resp. D Resp. E Resp. F
10% difference in price and a 70% difference
in profit between the highest and lowest
Copyright Margin2 2012
price at the moment of truth

13. Decisions made by Sales often impact profitability, Profit Waterfalls
identify the hidden discounts that undermine profitability
Profit Waterfall – Industrial Component Distributor
1600000
1400000
1200000
1000000
800000
600000 27.86% 23.94%
400000
200000
0
Gross Profit Tooling Sales Tooling Costs Rebates Other Late Payment Stockholding Carriage Cost True Profit
Discounts
Copyright Margin2 2012
price at the moment of truth

14. Measure and create sales targets to measure
efficiency and effectiveness
‘Lead’ Measures ‘Lag’ Measures
Indicators of sales effort Indicators of results or
or efficiency effectiveness
For Example: For Example:
• CRM data • Sales turnover
• Number of customer meetings • True profit by customer
• Number of proposals made • Price secured
Copyright Margin2 2012
price at the moment of truth

15. In Summary,
• Pricing about understanding what your Customers
are willing to pay
• Facts are far more useful than opinions, ultimately
its always about profit
• Measurement makes results more visible and
decisions more informed
Copyright Margin2 2012
price at the moment of truth

16. Thank you
Copyright Margin2 2012
price at the moment of truth

17. The Chamber
of Commerce
for Sussex
10 min Networking Break
Membership
www.sussexenterprise.
co.uk

18. David Foster
Associates Ltd

19. Recruit, Develop and Retain
3 ways to help you
RECRUIT, DEVELOP and RETAIN the
right sales people who can
MAXIMISE UPON PROFITABLE
SALES opportunities for your
business !

20. The Moment of Truth!
Please stand up if you are a sales rep ?
Please stand up if you are a salesman/ lady ?
Please stand up if you are responsible for bringing
in new accounts to your business and/ or
managing existing customers?
Sales is not a dirty word !

21. Are Sales People Born or Made?
YES or NO?

23. The Surgeon?

24. The Pilot?

25. Selling is a Highly Skilled Profession!
Without sales / incoming revenue, do you
have a business ?
Is it important that the whole sales process is
ethical, non pressurised , not aggressive ?

26. What is it that makes a good Sales Person?
What is it that makes a good

27. What is it that makes a good Sales Person?
Personality?

28. Appearance?

29. Characteristics?

30. How About …. ?
Persistent
Goal setter and achiever
Excellent communication skills
A good listener
Passionate and enthusiastic
Knowledgeable
Take responsibility
Work hard

31. How About …. ?
Courageous
Rapport builders
Modest
Curious
Resilient
Persuasive
High self esteem and belief
Confident

32. How About …. ?
Dependable
Trust worthy
Intelligent
Likeable
Sense of urgency
Like people
Sell value
The list goes on and on and ....................

33. Way Number 2
Identify the right type of sales person for your
business !?
Consider the sales process within your
industry, eg time line, frequency, decision
making process and unit, average order
value, retention, the competition, sale targets
and expectations ( KPIs)

34. What type of Sales Person do you want?
Hunter

36. What type of Sales Person do you want?
Hunter
Farmer

38. What type of Sales Person do you want?
Hunter
Farmer
Order taker
Problem solver
Relationship builder
Closer
Consultative
Expert
Account manager

39. The Recruitment Stage
Have a specific and detailed job description
PLUS a fully completed “Person Specification”
Make sure you don’t take on a “square peg
and try to push it into a round hole”!

40. Way Number 3
You now have the right sales person in
position
Now its time to make sure they are successful
and stay !

41. Gone Fishing
Give a man a fish and you feed him for a
day, teach a man to fish and you can feed him
for a
life time !

42. The Consultative Sales Approach
The way and method to make the
PROSPECTS / CUSTOMERS buying and purchasing
journey and experience a pleasant one :
One where the final destination is to become a
customer of yours
One which they will want to make again
A journey they would recommend to others

43. The Consultative Sales Approach
Consultative selling is a move towards more
collaboration with, and involvement from, the
prospect/ customer in the selling process.
Strongly based on questioning aimed at gaining
useful information, whereby issues/ challenges
(objections) raised can be solved and a solution
found and agreed by the customer. Consultants
help people achieve their wants and needs. It is
a non pressure selling style

44. Consultative Selling Includes
Prospecting/lead identification & qualification
Telemarketing / appointment making
Rapport building
Listening skills
Need analysis
Benefit selling
Closing
To name but a few !

45. Recruit, Develop and Retain
3 ways to help you
RECRUIT, DEVELOP and RETAIN the
right sales people who can
MAXIMISE UPON PROFITABLE
SALES opportunities for your
business !

46. Way Number 1
Have a more in-depth understanding of what
makes a good sale person
Look at the personal attributes and skills
needed

47. Way Number 2
Identify the right type of sales person for your
business !?
Consider the sales process within your
industry, eg time line, frequency, decision
making process and unit, average order
value, retention, the competition, sale targets
and expectations ( KPIs)

48. Way Number 3
You now have the right sales person in
position
Now its time to make sure they are successful
and stay !
Train, coach and motivate them towards
success

49. David Foster
Associates Ltd

50. A New Training Course Available
Hot off the press !
The details
The promotion
The booking