Sales 101 – The Basic Sales Model

Sales 101 is a simple introduction to sales and some basic closing techniques. Understanding these can be extremely useful to anyone who is selling their service to the public and has little or no sales experience or sales training. Knowing the basic sales model and how to ask for the sale is essential to all business people. 

Before we begin I should provide you with the standard definition of selling. Professional selling is providing a solution to a well defined problem. The act of professional selling is convincing or persuading someone to do what you want when money and time are involved. Seems simple enough, but some people are better than others at this and one reason is, they understand and use the sales model.

The basic sales model is in effect for all sales; from simple retail sales to the most complex technical sales. It may take only a few minutes to be completed or it can take a year or more depending on how many people are involved and how technical the sale.

Basic Sales Model:

• Get information
  
  
• Give information
  
  
• Close

In its simplest form it can look like this. Can I help you? I’m looking for jeans in size 36-32. Here are a few in your size. Which one would you like?

I don’t cover introductions here, but they are extremely important. The transition from introductions to starting the get information phase requires setting the agenda. This transition, setting the agenda, is also something I will not spend too much time on here, because there are many approaches to this. You need to establish something you can use that is compatible with how you operate. One transition example might look like this: “Thanks for contacting me. The way I like to work is to find out a little about you and what it is you are tying to accomplish. This allows me to see if I am the right person to address your needs and it gives me some useful information. I have a few questions I’d like to ask. This usually takes about 5 to 10 minutes and then I can better address your requirements. Does that approach work for you?”

Keep in mind you need to adjust this to your business and your personal style. The above sets the client expectations, puts them at ease by stating your might not be the right person to help them and also lets them know this will not go on forever. 

The get information stage can very with personal styles. Some people like to ask questions and complete a profile, list of requirements or needs analysis. Others like to try to use a more conversational style while getting the same information. The essential factor is getting the right information and enough to be able to give information and close. I recommend taking notes. This has two major benefits; one you have a record of the requirements you can refer to later and second, it shows the potential client you care enough to about their requirements write them down.

There are always two sets of these requirements for every potential client. One is the factual set (what is delivered) and the other is the personal set (how you work together). You need to try and find both during this get information stage. Once you have all the requirements nailed down you can give information about you and your solution. 

The give information stage should follow and match up with the get information stage and answer the basic requirements you have discovered, both the factual and the personal requirements. Many times the personal requirements are as important to the client as getting the factual solution.

Your presentation should be benefit based not merely a set of functions or a replay of the requirements. Each provider has a unique set of benefits that set them apart from the competition. They can include unique deliverables, technical expertise, time to market, custom built, a high level of personal service, better price, etc. You need to know these and to present these benefit statements when you give information. Always try to put a benefit with a function. An example could be; “I always deliver a preliminary design before we commit t the final design. This provides you with the ability to see how the project looks and make changes that insure you commit to exactly what you want.”  

This stage usually includes questions. Questions are a good thing, they indicate interest. If there are no questions you are most likely in big trouble. You missed something important or there was no personal connection during the get information stage. One of the most important parts of the get information stage is establishing credibility. Intelligent questions establish credibility and show that you know what questions need to be asked. They also show you are interested in providing the correct solution and the solution the client wants, not just in getting the business. Most times asking the correct questions will lead you to the sale.

A few types of closes:

• Trial close – example; “Well it looks like we are in agreement – if you will just approve the paperwork, we can get started on the project.” Or “I think we have covered everything you requested, I can start on Monday or Tuesday, which is best for you?”
  
  
• Hard close (sometimes called take it or leave it close) example; “That’s my best offer, I can’t do any better for you based on your requirements.”
  
  
• Compromise close (sometimes called negotiated close) example; “I’ll tell you what, I’ll cut my price by 10% as you requested and you write me a check for 50% of the total price so we can get started.
  
  
• Postponed close – the fall back close. It might look like; “Okay I understand you can’t make a decision until you speak with your husband. That is perfectly reasonable. Can we meet tomorrow with your husband and go through the proposal so I can answer any question he might have?” You are closing for another meeting to close.

The trail close is somewhat different than the assumptive close, but I have combined them here in the interest of brevity. This should be used first before going to another type of close. It can do a number of things including letting you know what you have to do to close. It is considered a soft close. If it is timed correctly it can win the deal. If not it will give you feed back and the opportunity to begin to ask closing questions. 

Most professional sales people don’t like to use the “hard” close because it tends to turn people off and it sounds uncaring. If you tell most people take it or leave it – they often leave it. However, sometimes this close can’t be ignored and is the only close available. If the requirements can’t be modified and your price and the deliverables require what you have proposed for a complete solution, you may have to use this close.

The compromise close is useful for any number of situations. Sometimes clients want to work with you, but are reluctant to sign up for a long project or a lot of money up-front. The compromise could be to break the project into phases and do one at a time. This allows the client to make a commitment and hedge their bet. The compromise could also include trading an option for a lower price.

The postponed close is the fall back close when you can’t close now for a good reason. The client has something they need to do before they can commit and they can’t do it now. In the example above where the client needs to talk to her husband you need to close for another appointment with both the husband and wife.  

The above is a short review of the basic sales model and some closing techniques. Everyone in business sells and should understand the above. I recommend those with little or no sales experience or sales training consider getting some guidance in this area. 

Good luck and good hunting…