Interviewing sales people…… always a special situation.

1.         An interview with a sales person is a sales call (for them). They are there to sell you on hiring them if they are good, they should be using most of the same techniques as they would use representing your business.

2.         Sales people are hunters, not farmers. Look for a higher ego (a high ‘I’  on the DISC scale)  than you would seek in other employees, one that will be fuelled by recognition.   

3.         An experienced sales person will know how to qualify a prospect…in this case, YOU are the prospect. Is he/she asking you qualifying questions? Is he attempting to identify your needs in the position?

4.         Prepare yourself for less control in a sales interview. It is better to let the prospect take over the interview than struggle over the agenda.

5.         Know what type of sales person you are seeking. Poodles and pit bulls are both dogs! A friendly type may be good at institutional selling, but less so for extensive cold calling.

6.         If you are looking for a closer---then make them close on you! Observe how they wind up the interview.  Do they move towards a decision point? Do they ask closing questions?

7.         Check if the sales candidate is able to analyse their own selling technique. Ask: “With what you NOW know about the company, how would you change the responses you gave during the first 5 minutes of this interview”.

 Working with you…..        

Chris Wilkinson.                                                                                                                         

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga-Canada).

E-mail: buspilot@bell.net

Value price for greater profit….

Value-based pricing is a pricing structure based on the ideas of value held by the consumer instead of any other factors. With this strategy, a business attempts to price its products according to what the customer believes a proper value is. Other strategies are based on the cost of the goods or on specific profit margins, but this strategy uses none of these metrics. The advantages of this approach are increased profitability, simplicity, and the ability to understand customers better.

Value-based pricing is a style of pricing utilized by many businesses in the market today. Instead of basing pricing on a specific profit margin on top of the cost of the product, the company attempts to determine how much an individual would pay for the product. This creates a situation where companies have to be very in tune with their customers.

In order to determine how much customers are willing to pay for a product, the company has to do a fair amount of research. Many times, this research will come in the form of surveys or customer panels. The company will try to see what customers think the inherent value of the product is with this research.

Companies that do not use this method of pricing could potentially be leaving profit on the table. Customers usually have an idea in their heads about how much a product should cost. When the company prices its products at this level, it will be able to optimize sales and profit margins. In some cases, companies that do not use value-based pricing will decide on a price that is different than the perceived value. When this happens, it could reduce sales volume or not capture as much profit as would have been possible with the right pricing.

One of the advantages of this pricing strategy is that it is simple to implement. The hardest part about it is the customer research. Once that is completed, the company can simply price its products. It does not have to use complicated formulas to arrive at the price of every product. This makes it easier on the company and saves time overall.

Another advantage of using value-based pricing is that the company will be able to understand its customers better. The company has to put a lot of resources into researching its customers and this often leads to profitable ideas. Value-based pricing can make a company more in sync with its customers and lead to more sales in the future.

Sincerely,  

Chris Wilkinson.

Certified Business Behaviour & Attitudes Analyst.

Business Coach.

Tel: (905) 275-2907 (Mississauga).

                  E-mail: buspilot@bell.net

The problem with low prices…. 
When you price yourself considerably lower than your competitors, your services/products are viewed as being “cheap,” regardless of their true value. This leads to three significant problems:

1. Customers often equate a discounted service with low quality.
2. You’re unable to invest money in your business (i.e., administrative staff, equipment, new services) that would provide new services and more value to your customers.
3. You may miss out on highly profitable clients.

How can low prices drive clients away? If you need a dentist, would you look for the cheapest dentist? Probably not. But, to get the best level of service, you pay the high-end of the range. In a professional service business or in fact, in any business, you’re sought after because of your knowledge or talent in a certain area. Your prices should, and must, reflect that talent at the outset of every relationship with each client.

 

Here are some things to consider when setting your prices, be it now or from the beginning.

1. Do your research. Check out your competition, especially those who are most successful. What do they charge and why are you different? Be prepared to answer that question for your customers and potential customers.
2. Know your costs. You need to set prices in such a way that you make the profit you want and need. Proper pricing can help you ensure the long-term health of your business.
3. Don’t discount. If the value of your services is $5,000, why would you offer it for $4,000? Is it less valuable to this client than it is to others? If so, let’s find more of those clients who find it more valuable. After all, you’re a professional, not a discount shop. 

4. Don’t bill by the hour or by the individual unit. There are few professions or manufacturing sectors in which hours provide a good measure of value. Additionally, with hourly billing the more experienced you become within your  niche, the more efficient you are, the less money you make! The client doesn’t care if it took you 50 hours or 50 minutes to design their marketing piece or produce their widget. As long as they receive a terrific design/product, it holds the same value to them. 

      Working with you.            

Chris Wilkinson

Certified Business Behaviour & Attitudes Analyst.  

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

Sell more: Convert your features into benefits and into customer needs….

Most customers make their purchase on the basis of benefits as opposed to features….

(Surviving & prospering in the “jungle”)

Your product/service undoubtedly has great features that enable you to survive in the market place. Here is a list of 40 possible features expressed as benefits that may apply to your product/service:

·        Performance….time saved.

·        Reputation

·        Time saved

·        Components prestige

·        Colours

·        Bigger savings

·        Sizes

·        Greater profits

·        Exclusive

·        Greater convenience

·        Uses uniform processes

·        Uniform accuracy

·        Ruggedness 

·        Continuous output

·        Delivery leadership

·        Service, increased sales

·        Price, economy of use

·        Design, ease of use

·        Reduced inventory

·        Availability

·        Lower space rental costs

·        Installation low operating costs

·        Lab test support product story

·        Terms

·        Reduced waste

·        Workmanship , long life

·        Economy of purchase

·        Pride of appearance

·        Economy of use

·        Pride of ownership

·        Recognition

·        Durability

·        Desire to imitate

·        Desire for variety

·        Labour saving

·        Time saving

·        Simple construction

·        Simple operation

·        Security

·        Ease of repair

·        Ease of installation

·        Space saving

Sincerely,  

Chris Wilkinson.

Certified Business Behaviour & Attitudes Analyst.

Business Coach.

Tel: (905) 275-2907 (Mississauga).

                  E-mail: buspilot@bell.net