Problem: Phil is a salesperson I coach and he told me about a quote he had done on a 5-axis CNC machine for a potential new customer. He swore during our coaching sessions it was a “sure deal.” I just got off the phone with Phil who informed me the deal went to a competitor. He had called to review what went wrong. “I don’t understand,” he stated, “I quoted exactly what they wanted.”
Problem: Cal was a machine tool sales engineer. One day in sales training class he lamented about his inability to get a prospect to make a decision on the proposal he had given for their new parts project. He had provided some relatively attractive incentives to encourage his prospect to accept the proposal now, but couldn’t get the prospect to move. I told him, “Go back and dig a little deeper as to when they would need the new machines for this new parts project.” Upon further questioning, it came out that yes; it was true that they needed new machines to manufacture the parts. However, the order from their customer had not been finalized yet and even if they did get the order today the first production run would not be due for five months!
Problem: Salespeople spend far too much time preparing proposals and close far too few. Of course, closing rates vary but closing only 15-20% of the proposals is not uncommon. This is obviously very inefficient and causes time management problems as well as feelings of rejection, futility and despondence. Furthermore, it results in reduced sales and lower commissions.
Problem: Jeremy had been selling for 15 years and was feeling a little frustrated lately. He honestly evaluated his job in sales and figured out that there were some things about selling that he really hated. Top on the list were: chasing prospects who don’t return calls, wasting time doing proposals and presentations for prospects who shop around, always having to work hard to convince prospects, dealing with resistance, and handling constant rejection.
Problem: Since closing rates are in the 15-20% range nationally, one of the biggest concerns that management and salespeople alike have is a desire to increase closing rates. Although there are several reasons for this problem, one of the most overlooked is the tendency for salespeople to make proposals without knowing what will happen when the prospect gets the proposal. This is like rolling the dice and hoping for the best.
Problem: Many distributers are frustrated because they have to participate in a competitive bidding process to obtain business. Winning is often based on having the lowest bid. More than in any other type of sale, the buyer is in total control of the process. All information is disseminated to the bidders at a common bid conference and individual meetings are rare. The seller has no advantage over his competitors and frequently is reduced to guessing what his company will need to win the bid. If there are six qualified distributers bidding, your chances are less than 20% of winning the bid. And if you’re the “lucky” one that is awarded the bid, chances are your margins won’t be as healthy as you’d like.