The Scrambled Egg - a blog every sales professional should wake up to.

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“When’s the deal coming in?” We’ve all had the manager who has asked the question. This question is ok, not great, and dangerous when this is the only inquiry a manager is asking. A sales manager’s job is to keep the reps accountable for their pipeline, but the other role responsibilities are to be a coach for the players on the team. 

A sales manager should be on the frontlines, meaning they should be on the phone or on face to face meetings with their reps 50% of the time. Working in tandem with your reps gives a sales manager more bang for the buck, essentially 1+1=3. 

1) Freshness – being on the phone or going to face to face meetings with my reps keeps me, as the manager, up-to-date as to what’s current in the market place.

2) Scalability – understanding what’s current in the market helps me guide the rest of the reps with the most up-to-date techniques and sound bites.

3) Trust – if my suggestions and coaching are fresh and can help my reps with current challenges, they trust me and my guidance. If I were to give them advice on outdated information they wouldn’t trust me to steer them away from obstacles. Working in tandem and seeing my direction first hand they will trust I’m working for their best interest.

4) More Is Better – two sets of ears are better than one. Having a rep paired with a manager tends to pick up more details that might have otherwise been missed.

5) Accountability – when I’m participating with my reps they are accountable to implement my suggestions. As their manager, I’m accountable for helping them avoid obstacles and closing deals.

6) Real time coaching – there are many techniques for coaching reps, including call recordings or pipeline reviews, however nothing is more impactful than immediate feedback. If a rep is given feedback or advice a week or even several days after the incident, the momentum can be lost.

7) Pipeline – by participating with my reps on the frontline, I have a better sense of the teams’ pipeline. I’m in the deals with them and know the intricate details of each one. This is much more effective than asking “when is the deal coming in?”

8) Close More Deals – working with my reps on their deals, simply closes more business. I have more experience than most of my reps and can teach them how to bring a deal across the finish line.

9) Share Best Practices– I’ve hired smart reps and they come up with savvy things on a daily basis. Anytime I hear a new technique or sound bite (which happens frequently), I can be assured it’s shared amongst the team as I’ll be the one sharing.

10) Recognition – many reps enjoy the spot light hence using charts and metrics to motivate them. They also enjoy being recognized amongst their team for coming up with new ideas. In addition, this fosters others to want to be recognized for their new ideas as well.

11) Multitasking – read the list above. As a manager, I don’t have a lot of time, but look at all the things I can do while on the frontlines. If I tried to do all these things separately it would take way too long. Why not kill two birds with one stone?

Being on the phones or in face to face meetings with my reps foster many positives, let me warn 50% is a well calculated percentage. If you spend too much time with your reps, you can inadvertently squash their independence and make them paralyzed. Any more than 50% of my time on the frontlines and there wouldn’t be time for the other parts of the job role. Remember it can be intimidating for a rep to get their boss on a call. Be very cognoscente of this and ask the rep to guide you as to what role they want you to play. A sales manager should perceive themself as “the coach” and not “the boss”. Happy coaching….

Liking these tips? Follow @KADScrambledEgg on Twitter for wisdom on #sales and #salesmanagement.

I began my sales career cold calling as many of us do. Cold calling is a difficult job that requires one to be resilient to rejection and builds a thick skin. We’ve all dealt with the gatekeeper and we all have techniques for getting around them. Even with inbound leads the gatekeeper can still be difficult to maneuver past.

I was young in my sales career when I learned one of my first lessons about gatekeepers from my mother. She runs a successful business and is well known in her industry. I was listening to her trying to call one of her clients and the gatekeeper was questioning my mother’s intentions.  My mother didn’t have time for the delays. When the receptionist asked my mother a question, her reaction set off a light bulb. She was short and curt with the woman on the other end of the line. My mom is extremely busy running the company and was inconvenienced by the receptionist’s inquisition and it showed. The gatekeeper wants to keep unexpected calls away from their boss, however they will be reproved for delaying important calls. My mother's tone was aparent she was not a sales person and she was put through immediately. 

What if I applied this same technique to my cold calls? I did and it worked. Here are the lessons learned to get passed gatekeepers:

1) You perception of yourself can be felt on the phone. Reps who think of themselves as inconveniencing the people they’re calling will be a dead giveaway to the gatekeeper. Instead, think of yourself as busy and important as this will be sensed.  

2) Tone is extremely important. When you’re cold calling your tone should demonstrate you’re authoritative. Remember you’re busy and you should be inconvenienced by questioning. This does not mean to be rude, it means be strong in your delivery. Being too friendly or meek is a dead giveaway the person you’re asking for is not expecting your call. For example, don't use the word "just" as it seems apologetic and pathetic. "I'm just calling to......." Throw it out of your vocabulary as someone who is taking time out of their busy day doesn't need to "just" check in. There is an important reason for your call. Make it sound that way. 

3) Brevity in conjunction with an authoritative tone is a winning combination. You should not ask the reception how they’re doing today. A busy person doesn’t have time to find out how the person who answered the phone is. The gatekeeper will also feel you’re trying to “build rapport” or buttering up to them to hopefully get past them. Many sales reps do this and this is annoying to them so don’t try it. It reeks of you being in sales. You should also not offer your last name or company name unless you're prompted to do so. If you offer this you're letting them know you're giving the additional information because you're not on a first name basis with your prospect. 

Just as you are in sales and your job is to get to the right people, the gatekeeper is just as skilled at sensing a sales call and deflecting it. Do something different and unexpected as the gatekeepers are just that – gatekeepers. Do something that is off their radar and hard for them to detect.  

Thanks Mike Pici for the Post-it idea!

Liking these tips? Follow @KADScrambledEgg on Twitter for wisdom on #sales and #salesmanagement.

It was early this past Friday morning when my friend and I pulled into the back parking lot of the Harvard Club. We’d been eagerly waiting for the day to come as we were excited to hear Sheryl Sandberg speak.  We entered into the back of the club and as we approached the lobby we could hear the hum of the crowd.

We checked in and headed for the breakfast buffet. The hall was packed and we had about 15 minutes before Sheryl was to speak. I nudged my way in front of the continental breakfast (I’m never one to pass up food) and was somewhat annoyed by the others around me. I typically don’t like crowds as I get anxious however I’m not shy to elbow my way around.

I was doing my usual ruses to move the others out of the way to insure I got my grapes, cantaloupe and pineapple before Sheryl went on stage. My bag of tricks includes wedging myself between people or standing a little to close behind someone taking too long. You really know you’re in my way when I turn just a little too fast and my purse knocks you over. I need a purse big enough for my lap top, but that thing comes in handy for many other uses. I realized this time was different, my antics weren’t working. The ladies around me weren’t having it. Instead of moving and being pushed out of the way, they were nudging back. At first my instinct was to be annoyed and then it dawned on me. What else did I expected? If there were ever to be a self-selected group of strong and driven women, this was it! Instead of being annoyed I felt proud (and a bit hungry). I took a deep breath, appreciated the moment and grinned. I was amongst my peers. 

I already had an important take-away before Sheryl even appeared. She’s igniting a movement. Talking about a subject that has been resting dormant for years and she’s capitalizing on it. She’s become the face of the next women’s movement and she owns it. As she entered the room she took the stage with a swagger. She was funny, confident and eloquent. She’s also authentic as one can sense she really cares about women in the work place. She’s reaping the rewards because she’s passionate about the topic.

While her speach was passionate and inspiring, my other take-away was not something she really touched upon. Leaning in is not going to be easy. Women can make it to the top positions and have career advancement but it’s going to be harder for us than men. Set the expectation with yourself that we’re going to have to work harder. The road will be bumping and there will be more obstacles for you than your male colleagues. Just get out there and do it, nudge your way to the top. Take your seat at the table and keep raising your hand. You can only depend on yourself to make it happen, no one is going to do it for you.

Thanks @pistachio for putting the group together!

Liking these tips? Follow @KADScrambledEgg on Twitter for wisdom on #sales and #salesmanagement.

After interviewing countless numbers of sales people I’ve heard some answers and seen behaviors I now consider pet peeves. I call them this because I’ve heard and seen them so many times they’ve become generic and annoying. Repetition can make anyone cringe; I believe this is the entire premise of Chinese water torture.

If you want to stand out in an interview please avoid these bland answers and basic mistakes below. If you’re currently doing any of the below realize you are fading into the crowd or actually standing out only because you’ve been the 10^th person that day to do or say the same thing.

1) Claiming You’re Number 1. Every rep talks about how they are the top rep at their current company. Please don’t tell me this, show me. I want to see awards, achievers trips etc. Only if you are the actually the Number 1 rep. If you are not the top rep, it’s ok to be 2^nd, 3^rd, 4^th, etc. I prefer honesty (see number 6). It will also help to clarify if your rank in relation to how many other reps.  If you’re 3^rd among 100 reps this is just as impressive as the Number 1 rep of 10 people.

2) “Building Relationships”. Please don’t say this in an interview as every rep feels as though this is part of their special sauce. You should have good people skills; this is a perquisite for the career. That’s like saying you have typing skills. Instead, tell me what you’ve done differently than all the other people interviewing for the job.  Think of examples when you did something really creative to get into an account or close a deal. “Developing Relationships” will also make my eyes roll.

3) No Notebook. If a rep shows up without a note book, it’s a clear indication of how detail orientated they are. It also shows me you fly by the seat of your pants. While this might work at your current position, any new job will require training and a learning curve. The interview is the first part of that process. If you’re not taking notes now, you probably won’t take training seriously and you’ll be a heavy tax to ramp up and train.

4) Generic Questions. Candidates who ask basic questions and aren’t really inquisitive indicates you’re looking for any old position. It could also indicate you’re desperate because if you had a lot of job options you’d really be trying to figure out which of them is best for you. Instead of the generic questions, get really curious about the job and ask those questions. Not in regards to compensation or culture, but more so about who is their top rep, what are they doing differently, etc.

5) Close-ended Questions: I’m paying attention to the content of your questions but I’m also paying attention to the format. If you ask close ended questions in your interview, this is a habit and you’ll do this during the sale. Open ended questions are Sales 101. The interview is no different.

6) BS. I purposely question a rep relentlessly until I get to the raw unscripted answers, the area where there is no way you could prepare for. I want to make sure you don’t feed me BS. I like if you’re quick on your feet and I also like a rep that will answer “I don’t know”. If I sense BS, then it’s not a fit. As a manager I won’t have time to clean up the messes you make in a sale.

7) Motor Mouth. If you talk the entire interview and you’re so long winded I can’t get my questions in, your prospects will feel the same way. Stop talking.

An interview can be nerve racking, but remember this is also your opportunity to find out if the company is a good fit for you as well. Think of you interviewing the company. This will help take the nerves away and allow you to be quick on your feet and get curious. 

Liking these tips? Follow @KADScrambledEgg on Twitter for wisdom on #sales and #salesmanagement.

As a manager of one of the fastest growing companies in Boston, I’ve hired and trained many new employees. Hyper growth can create unique challenges and one of them is ramping new sale reps to quick independence. This is extremely important as I have new hires coming in faster than I can train the ones hired the month previous. While this technique is efficient for a fast growing company, it's also helpful for managers at any company.

One of the techniques I’ve found effective is giving new reps a quota of mistakes. Yes, they actually get a quota of mistakes they need to make and I keep track on a white board close to their desk.  The first month they start the quota is high and each subsequent month the quota gets lower and lower. 

Here is why:

Faster Independence: We all make mistakes when we’re new; this is part of the learning curve. If mistakes are not encouraged to be made a new hire can feel they should hide them or cover them up. Embrace mistakes as they are great learning opportunity. By giving a new rep a quota of mistakes which starts higher, it encourages them to make blunders and to make them soon. This is important as most companies have a ramp up revenue quota that starts low. If a rep can make a lot of mistakes early, it’s more efficient as they learn it while their actual dollar quota is lower. The sooner they learn from these, the faster they’ll be independent.

Trust: Acknowledging the rep is new and allowing them to make mistakes builds trust between the new rep and their manager. The new rep will not feel the need to hide mistakes or cover them up. 

Shameless Transparency: The quota of mistakes is not shameful, it’s a given. Keeping track on a whiteboard and making it an expectation allows the new hire to feel a burden and stress lifted and they can embrace the learning curve.

Team Effort: Each rep hired and trained have all had a quota of mistakes. The existing reps want to help the new hire make their quota. They will point out where the new hire made a hiccup and add it to the white board. The existing hires will also tell the new hire how to avoid the pot hole next time.  

Scale: There is only one of me and more new hires than I can train on my own. Making errors public, encouraged and expected enables my team to coach the new hire. 

Coach: The new hire is now trusts the manager and is more likely to disclose the mistakes they’ve made. Now you’ll be aware of the error and this is the opportunity to coach them on how to better handle a situation going forward.

Perpetuity: A quota of mistakes is the gift that keeps on giving. It allows a coaching relationship to grow from the very beginning between a manager and rep. This information allows the manager to know how the rep learns, how they react and how they want to be coached. A manager can now utilize this information for the entire relationship and to continue fostering the reps success even when they have tenure.

Embrace failure in your professional career as it’s one of your greatest assets. Knowledge is power and it can only be gained by learning from your past. Then use it to continue to growing. So go out there and make a hell of a lot of mistakes. Write them down, ask your colleagues and manager how they’ve handled the situation and don’t make them again. Improve just a little bit each day. 

Liking these tips? Follow @KADScrambledEgg on Twitter for wisdom on #sales and #salesmanagement.

Some may think it’s best to ask a prospect, "What's your decision making process?" I’d argue this is opening a can of worms. I’ve found it is not a best practice to ask questions about their process when evaluating your products and services. When asking for such details you can inadvertently cause more problems and delay in deals closing. There are more effective ways to find what you need. 

Here are some of the problems you’ll face:

1) Asking the prospect what the decision making process for your product and services allows them to dodge the question. In other words, they know you’re asking because you want to know what it takes to get your product or service purchased. If they’re not 100% sold on buying what you’re selling, then they have the opportunity to add steps to buy time and/or be deceptive.

2) Sometimes the prospect doesn’t know, however they won’t disclose their lack of knowledge. Instead they will make up the process they think will happen and then they will carry this out. Since they don’t really know, they might unintentionally add more steps and more people in the sale who are not necessary.

I’m not suggesting you shouldn’t find out the decision making process. I’m saying by asking the particular question, “what’s the decision making process” is actually putting you at a disadvantaged.  Here are some alternatives:

1) Instead of asking about the process for getting your product or service approved, instead ask about something they’ve already purchased. Here are the questions you can ask in sequential order.

“What was the last product/service you were a part of bringing on board?”

“How quickly did you know you wanted it?”

“How much did you spend on ______ (insert name of product/service)?”

“Who else was part of purchasing _______?”

The prospect has now told you if they’ve been a part of a purchase before, how quickly they make decisions, how much money they’ve spent in previous purchases and who else makes decision with them.

By asking about something else other than your product and service will yield a more transparent answer. In doing so you’ll get the facts regardless of their decision or lack of decision to purchase your product and service. The prospect might not be aware they’re revealing information about the process in which will be needed for you. 

2) Another best practice is to tell the prospect the process, don’t ask. If you tell them the process, they will either have to agree to it or correct you. If they correct you, it means they know the process. If they don’t know the process, telling them leaves no room for them to add unnecessary steps and/or people.

Before you tell prospects what their process is, you should know it yourself. In order to do so, go through all your closed deals and look for similarities. For example, what job titles are always involved in the decision? If you find the CEO is always in some way involved in the DM process, then that’s who tell them you need. Tell the prospect you’ve been doing this a long time and you know every time a customer has purchased, the CEO has been involved. Only ask for 20-30 minutes of the CEOs time initially as it’s less intimidating for an influencer and more likely to get from a busy CEO. You may get some push back; remind them this is not how it’s usually done. This makes them feel like the exception to the rule and usually makes them rethink.

While you still need to know the decision making process, there are more strategic and methodical was of getting the information you need. The suggestions above can also be the shortest point from A to B. Asking the decision making process has good intentions however it doesn’t mean it’s efficient or effective.

Liking these tips? Follow @KADScrambledEgg on Twitter for wisdom on #sales and #salesmanagement.

Ever lose a sale even when you were working with an internal champion? While the term “champion” is used regularly in sales, it’s all too frequently used carelessly. Most commonly a champion is known as someone who will “tear through walls” to get a deal approved. Many deals can be closed by working with an internal champion, however you should know which level of champion as they are not all created equal.

Let’s use superheroes as an analogy to explain the difference in champions. Say you’re in a situation where you need help. If you could only pick one superhero, who would you pick between Batman and Robin? While Robin can still save the day, you know he’s second best. If Robin showed up you might wonder “where the heck is Batman?” You want the guy with the Batmobile and super weapons to come to your rescue, not the one superhero who sits in the sidecar of the motorcycle.

Here is how to identify which superhero you’re working with: 

Batman: This is the top of the line champion and has the best chance of aiding in closing the deal. There are two important distinctions with this champion. First, Batman will have you present to The Decision Maker(s). Second, Batman will coach you on your presentation. Allow him to coach you and write everything down, however don’t assume he knows the information you need. Facilitate his coaching by asking some of the following questions:

What does the _____ (decision makers) talks about most often in meetings?

What are ________ trying to do with the company?

Why is this a priority now?

Why would _____  say no?

What questions or objections are you anticipating?

What else have I missed or what less should I look out for?

Tell me a bit about ________ personalities.

Robin: As we’ve established he is second best to Batman. The difference between Batman and Robin is Robin will be presenting to the Decision Makers, not you, however he will let you coach him on his presentation. It’s best to try and upgrade Robin to Batman first before you offer to coach him. 

How to turn Robin into Batman:

1) Ask Robin why The Decision Maker(s) might say no. When he answers, ask him how he’d handle the objection. In most cases, Robin will not know how to answer. This is the opportunity to tell him (not ask) that it’s really best if he allows you to present. Tell him you handle questions like these daily and you wouldn’t want him to be put on the spot with something you’ve answered 100 times.  

2) An alternative is to ask Robin an objection you, the sales person, hears most frequently. Be silent and let him struggle to answer. This again opens the door for Robin to realize it’s best to let you do your job by letting you sell.

3) One of my sales reps, Alison Bridgman, asked her Robin, “What’s your elevator pitch?” When he didn’t have an answer, he understood he wasn’t equipped to present and upgraded himself to Batman by allowing her to present. Shazam!!

If Robin won’t or can’t upgrade (sometimes there are legitimate reasons), the next best thing is to coach him on his presentation. At least you, as the rep, will still have some control over what is being presented to The Decision Maker(s). Pow!! You should ask Robin when the presentation is, who will be in the room (job titles and names), ask him to send you his presentation and ask how long the meeting is. Most Robins are more willing to send their PowerPoint if you explain you have materials you can send for their deck and save them time.

Most presentations, prior to your coaching, will include information about why Robin wants your product or service. The presentation is not typically catered to The Decision Maker(s) interests. Do not assume Robin knows how to position your product. Ask Robin the same questions you would ask Batman (listed above) and coach him on how to cater his presentation to The Decision Makers’ interests. 

If Robin won’t share his deck or worse, he doesn’t have a deck or a scheduled time to actually present, you may in fact be working with The Joker.

The Joker. This is a person who may say a lot of the right things, however they don’t do the right things. They may even say they are your champion or tell you they are going to fight for the deal. Don’t be fooled. If your contact won’t either coach you or be coached by you, you in fact don’t have a champion at all. Your contact is not bought in. You can either go back to handling objections or stop spending time with this contact and move on.

A champion serves two purposes, either to be a coach or to be coached. The more control a rep can have with a sale, the more likely the deal is to close. If you have no control over the decision maker presentation, it’s best to walk away and work other deals. Your chances of winning a deal you don’t governor are as good as Charlie Sheen staying sober. 

Liking these tips? Follow @KADScrambledEgg on Twitter for wisdom on #sales and #salesmanagement.

First things first, this is not an objection handling exercise. This is not a technique to bring a deal back from the dead. Nor is this a suggestion to ask a lost deal for referrals. If a sales person has lost a deal they should accept the news and handle it with grace and dignity by thanking the prospect for their consideration.

While the deal might be dead in terms of revenue there is a massive value a lost prospect can bring to the table. A sales person should ask every lost deal for feedback. By the time a deal is lost a sales rep has put a considerable amount of time into the prospect. Why not at least get something in return? A lost prospect is a wealth of knowledge which can be the secret to success. One can learn why the prospect didn’t go with the product or service and now the rep can learn how to avoid those obstacles going forward. Statistically, one losses more deals than they win. There is actually more feedback and knowledge in lost deals simply because there are more them.

Dead deals can push up daisies. Here are some examples:

1) Over Sold: A sales person may learn from the prospect they were too pushy and aggressive which made the prospect uncomfortable.  

2) Out Sold: A sales person may learn the rep at the competitor out sold them. Ask the prospect what the other rep did and ask for specifics.

3) No Desire: One may learn the prospect doesn’t want the product or service. It’s key to find out why the product or service didn’t make the prospect’s priority list. The rep can use the information going forward to help build desire and urgency.  

4) Competition: If the prospect decided to go with a competitor, this is a fabulous opportunity for a rep to learn what the competitor is saying about their product or service. Going forward a rep can use this to their advantage. If the rep finds out their next deal is looking at the same competitor, tell the prospect what that competition is going to say before they can. This discredits the competition and allows one to give accurate info.

5) Reputation: The prospect might have heard not-so-great reviews about the product or service. The prospect might have found the product or service had no reputation which can also be scary. Street cred is important to prospects. The rep can start incorporating more case studies and offer references going forward.

So how is it done? While a lost prospect has the keys to a reps future success, it can be difficult to access the information. First the conversation should never happen over email. There are too many reasons to list why this shouldn’t be done over email, however mainly because one is not likely to get a reply. Once the a rep has the contact on the phone, the contact is likely to feel this will be an attempt to handle objections. The rep should disarm the prospect by acknowledging they understand the deal is dead. It’s also important to be transparent with the prospect and set proper expectations. This is a phone call a rep should chase just as hard as the rest of their pipeline as it holds the secret to their impending attainment.  Here is a script that can be used:

“Bob, thank you for considering _______ (insert company name). I appreciate you’ve decided to go in a different direction. Since I’ve spent a great deal of time with you I’d like to learn from the experience. I’m going to ask for feedback as I find this is a great opportunity for me to improve. I will not be using this as an excuse to talk you out of your decision or handle objections. Would you be open to giving me feedback?”

Once the prospect has agreed, the rep’s questions can start from there. Do not punish the prospect for being honest. In other words, keep emotions out of it. Do not become defensive, combative or angry. One should also remember this is not a time to handle objections. The prospect agreed to provide feedback because they were told the rep would not try to handle their objections. The rep should not go back on their word.

If you don’t look for feedback, you’ll never improve. Keep doing the same thing you’ve been doing over and over. Maybe someday you’ll get a different result. In the meantime, the reps who embrace failure and seek feedback will send postcards from the achievers trip. 

Liking these tips? Follow @KADScrambledEgg on Twitter for wisdom on #sales and #salesmanagement.

Ever had a deal go down in flames at the final hour? It can happen to anyone in sales. Pricing negotiations can be a field of unmarked land mines that are easy to trigger for those who are unfamiliar with the territory. Here are some basic rules to help you trip every possible wire, make every price negotiation an explosive ground, and allow for any deal to go up in smoke. 

Without further ado, your step-by-step guide to bombing any price/contracts negotiation:

Land Mine 1 – “No Commander-in-Chief”: In order to trip the first wire, one should definitely negotiate with the person who can only say no, maybe or play operator. Negotiating with an influencer or champion instead of a decision maker (not the recommender - big difference) is a fabulous way to negotiate at a disadvantage.

How to Avoid Tripping This Wire: If a rep would prefer not to have the negotiations go up in smoke, work only with the person who can say yes. If the influencer wants to enter into negotiations the rep should avoid the conversation. While you don’t want to ignore their request, this is actually a great opportunity to get the Decision Maker involved. Here’s how a rep can avoid tripping this wire and use the situation to their advantage:

“I’d be glad to come up with customized packaging. However, I’m worried we’d be playing operator as I’m not authorized to offer anything exciting. It also sounds like you’d need to check with ______ (insert decision makers name here). Here’s an idea, I’ll grab my manager/director and you grab _________ and we can all schedule a time to talk further. This seems like the fastest way to get a customized package. What time works best with your schedules?”

The above technique allows a sales person to turn a potentially dangerous situation into an opportunity to engage and/or re-engage with power. First, disarm the prospect by acknowledging a willingness to do customized pricing however commit to nothing specific. When a sales rep offers to bring in their boss it serves as collateral for getting the prospect's decision maker. The influencer will feel as though the rep is being accommodating, which the rep is by offering someone of greater power on their end. The influencer is also given a compelling reason to take time out of their boss’ calendar.

Land Mine 2 – “The Cart Before The Horse”: It is best to negotiate prior to knowing if they have decided to go with the rep’s solution or if the prospect is still evaluating other vendors. Even better, negotiate prior to knowing if the prospect has already picked another vendor and are using the sales person as leverage to lower the other vendor’s price. Can you smell the smoke yet?

Elude Tripping This Wire: Only negotiate once there is confirmation the prospect has selected the rep’s product or service. Even if the rep is working with the decision maker do not move forward until they have made a decision. In order to do so, make the assumption the prospect has made decision when they ask for a discount or option. The prospect will have to correct the rep’s assumption. The prospect is lead to their own conclusion they are ahead of themselves.

“Great! We’re looking forward to having you on board. It sounds like you’ve made the decision to go with _______ (insert company name here)?”

The prospect will either say yes or they will have to correct the rep. The rep can then disarm the prospect by acknowledging they will negotiate but put them back in to an accurate timeline.  Here’s how:

“I’d be glad to discuss a customized package, however I don’t want to put the cart before the horse. Let’s first make sure _________(insert company name) is the solution that will take care of your issues/meet your goals”.

Land Mine 3 – “O’Dark Hundred”: Enter into a negotiation without knowing the timeline of the prospect. It’s best to work a deal and have no idea when the prospect is looking to sign up. It's safe for the rep to assume they can do their next pipeline review with smoke signals.

Smokey The Bear’s PSA: The rep should know when the prospect intends to become a customer. A prospect might be asking for options because they’re budgeting for their next fiscal year, which could be months away. In order to clarify timeline, the rep should first disarm the prospect by acknowledging they will address their request while offering no details and then ask for a timeframe. 

“I’d be glad to work on a customized package. It sounds like you’ve decided to go with _______ (insert company name).  When are you planning to finalize a contract?”

Land Mine 4 - “The Mail Carrier”: The best way to bomb a negotiation is to do so via email. It’s best to avoid doing important and time sensitive conversations over the phone or face to face. In order to blow a deal it’s best to lose control of the process, allow the prospect to disappear, let the prospect forward the email to a competitor, and/or let them try to sell the customized package internally. 

Alert! Detour! Bypass! Do not have important conversations via email. Let me repeat, DO NOT EMAIL. DO NOT EMAIL! If you haven’t already read the article why things should not be emailed, do so now. If the prospect disappears the rep will be left with heart palpitations desperately calling the prospect as if it were a bad breakup. Don’t be that rep. Here is the voicemail and email script a rep can use to eliminate negotiating via email:

Bob, per my message –

Thanks for the note. I’d be glad to discuss some customized options. We should discuss on the phone to make sure we cover all details.

Would 10:30EST or 3:00EST work with your schedule?

Best,
ME

I’d recommend avoiding negotiations over email 99.9% of the time. It is VERY rare a rep should resort to email. An example of the .01% of the time would be if the decision maker is on the wing of Captain Sully’s plane floating on The Hudson River with only access to email. If the prospect won’t get on the phone or meet to discuss options, this is an indication of the seriousness of the buyer. Seller beware.

Land Mine 5 – “Vegas Loves You”: It’s best to start offering whatever options one has available without knowing what the prospect might need. It’s best to let the prospect know all the options they can pick from or better yet pick ‘em all! Why not show the prospect all the cards in your hand? If this were a game of poker, the rep would be broke. Vegas baby.

Don’t Be the Oldest Hotel On the Strip Waiting for Implosion: He who says a number or option first loses. Always disarm the prospect by acknowledging you’ll work with them, but offer no details and instead turn the spotlight on them.

“I’d be glad to work on some options. What do you have in mind?”

Land Mine 6 – “The Freddie Krueger”: We’ve all watched the scary movie where the bad guy dies at the end. But we've also seen enough of these movies to know the bad guy always comes magically back to life when it's time for the sequel to come out. How frustrating is it to watch the movie, knowing the bad guy isn’t dead yet and noticing that, once again, blondie doesn’t check to make sure?! He’s behind you!! If you want to bomb your negotiations, proceed without caution and without confirming the first 5 land mines are in the clear. In other words, proceed without checking that the bad guy is actually dead.

Escape the Sequel: Don’t assume you’re on safe ground, yet. Confirm all 5 of the first land mines are cleared before continuing pursuit. Here are some options to confirm you’ve made it safely across the mine field and confirm the bad guy is dead:

“If I’m able to offer ______ (insert what they’ve asked for), what else stands in the way of finalizing the contract?”

“If I’m able to offer ______ (insert what they’ve asked for), when will you be signing the contract?”

“If I’m able to offer ______ (insert what they’ve asked for), would you be able to sign up today?”

By starting the sentence with “if”, the rep is not definitively committing to anything. However the rep has still disarmed the prospect by addressing what the prospect has asked for. The prospect should confirm there is nothing in the way and should willingly give a verbal commitment - a conclusive yes.

If the prospect won’t give a verbal commitment, the rep then needs to handle objections. The rep has earned the right to ask why as they are only offering what the prospect wanted and asked for. If the prospect won’t offer verbal commitment or clarification as to why, there are serious red flags with this buyer. Seller beware.

Bombs away! 

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There are several rules to negotiating but the first one is the most important, the easiest to abide by and the one most frequently broken.  

Years ago I had a manager who could never be found in his office. He was always outside smoking. For the two years I reported to him my biggest take alway was to quit smoking and to do it right then and there. Good lord he smoked a lot. I’m happy to report I’ve been smoke free ever since.

While The Marlboro Manager offered a good lesson in health, he also taught me the first lesson in negotiating. One day as I was walking in from lunch, I passed him as he was walking out for yet another cigarette. He asked if one of my deals was coming in (this was his form of a pipeline review). I explained I’d given my contact two options and waiting to hear back from them. Smokey The Bear replied in a very husky voice “he who says a number first loses” and he walked away. 

The 1^st rule of negotiating: He who says a number first loses.

With that one piece of advice I’d learned the most important rule of negotiation – never say a number (discount) or option (billing terms, shorter contract, etc.) first. Smokey was referring to leverage. If you’ve ever walked into a car dealership, the first thing you’ll be ask is “how much do you want for the trade in?”. The sales person is trained to get the buyer to say a number first. Don’t answer; instead tell them you aren’t sure. The most fun part is the sales person is not trained on what to do if you don’t give a number first.

Think of it as if it were a poker game. One doesn’t want the other player to know what cards are in your hand. As soon as you tell the other person a number, you’re essentially telling them one of your cards. You have now given them leverage. Instead you should find out what’s in their hand first. Here’s how:

When a prospect asks about options, promotions, discounts etc. there are two paths to choose from. The rep can either tell the prospect there are no options, discounts or promotions. The other option is to play ball. Here’s how:

1) Do Not Answer - The are asking you to break the first rule and show your hand and say a number or options firsyt. Hence giving them the leverage.

2) Acknowledge Without Committing - Don’t ignore the question but offer no details. Disarm them, reassure and seem accommodating by saying something generic “I’d be glad to come up with some customized packaging”. You’ve committed to nothing specific at this point.

3) Tipping the Other Hand First - Now get them to show their card and have them say a number or option first “What do you have in mind?”

This is a great way to have a more balanced negotiation. The last thing a rep would want to do is offer a discount when the prospect needed billing installments. Now the rep is stuck having to honor both! Knowledge is leverage and as a sales person you have the tables in your favor. 

Stay tuned! Tomorrow's Article:

5 Step Guide to Bombing Pricing Negotiations