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their profits. The focus is on THE BUSINESS PROFITS not how great your
product is.
Because the pressure is off and clients tend to be so much more receptive,
consultative selling is fun and easy to do. It s like selling dollars for dimes!
One way of looking at the difference between typical sales and consultative sales
is that with regular sales you are charging a price for a product or service, and
with consultative, you are talking about return on investment paying you is an
investment that will pay off for the business big time. You are selling the results
to the business. Because their overhead is fixed, the profit is highly leveraged.
You can double their business and it will significantly increase profits.
Action Step: What is your current relationship like with your client? Are
you in a more adversarial role, trying to push products and services? How
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can you use consultative selling in the immediate future to change the tone
of your client relationship?
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You will want to point out to clients that your service is an investment, so they are
able to understand although they spend X amount, they will be making multiples
of that amount in time.
As Dan Swanson progressed in his IM business, an analysis of his top ten clients
revealed that for every half-hour he spent on a project, his clients made well over
$20,000. No one ever paid more than $200 an hour, so the ROI was huge for
these businesses. This is the concept you need to pitch to customers, focusing
on their potential profits.
Action Step: Does your client have a list of local competitors? How is the
business keeping up with the competition? Write a list of the top three
competitors in the local area for your niche.
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Part of your job is to help clients compete against competitors. Business owners
care about being competitive it s a primary goal to beat out the competition.
You can position yourself as a partner with your client to go out and beat that
other guy in order to put your business in the top spot. The client goes from being
overwhelmed an alone in the competition to having a partner to help him
succeed. This teamwork approach helps to establish trust and loyalty with your
client.
Business Manager vs. Purchasing Manager
Consultative selling gives you the audience of the business owners and
managers rather than the purchasing managers. It is a different type of
relationship. When you are dealing with a business owner, you can offer them
much-needed hope during poor economic times. They want to see the bright side
and the potential, and you can offer them that by focusing on the increased
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profits they can experience. Most often, business owners will be closing the sale,
asking, When can you start? This approach differs greatly from the typical
selling where the salesperson has to push and pull to close the sale.
As for business managers, when you can help them to look good by increasing
profit, they are going to be sold on your services. Any opportunity to impress their
employer is going to be a win-win.
Consultative Selling Advantages
Other advantages to consultative selling include:
·ð You go from being a competitor in the local IM industry to the only person
doing it, because it is likely you are the only one taking this approach.
·ð Your offering is appealing to clients because you aren t asking them to
take more time to do something; you will handle it all for them.
·ð You go from being an unwelcome and annoying salesperson to a
welcome guest advisor.
·ð You can make much more handsome profits, because your clients are
making more.
·ð Help your clients go from being a cost center to a profit center.
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