Transcending the transactional sale

ByDennis GonnellY

f, rren ALL THE advice you've been ll,getting from sales professionals. managers, trainers and sales columnists over all these years, why is the transactional sale still so common? Why don't we swim against the tide and find a better way?

Perhaps it's because the transactional sale is easy. Someone calls, you quote a price, you get the order... or not. Move on to the next call. What's wrong with that? In some cases, there's nothing wrong with it. In other cases, there's a lot. Let's break it down.

Transactional sales are easY and uncomplicated. That's the irony. We love them. And that's why your salespeople gravitate to selling transactionally even when they know there's a better way, and even when theY know that applying a sales process and better selling methodologies might give them better results.

In an ideal world, we have the best product in a category, with the best value that no one else has, and everyone in the market knows we have it. Just sit back and let the phones ring, right? Imagine being an iPhone salesperson. I mean no disresPect to the helpful folks at the Apple store, but if there were ever a quintessential example of an order-taker, that would be it. And if your products were like that, you wouldn't need salesPeoPle at your company either. Imagine if your people drove around with a hand-held order machine like those guys have. "And would you like your receiPt emailed to you, Mr. CamPbell?"

But your products are not like that. There is always an alternative-to your product, to Your company, to your category, or even to your people (more on that in a minute). And, thankfully, this is so. It's what makes the game fun. It gives your PeoPle a chance to shine, to build value, to solve business problems, and to differentiate not only their products but themselves.

You sell a broad mix of Products. Some are special. They might have a longer sales cycle as you try to get the product sold as a stock item, or al least regularly purchased as a tried and true product. Perhaps you're hoping a builder always uses a particular type of decking or that a dealer stocks a certain set ofrailings or trim boards. We've talked a lot in other articles about how to sell those items.

But what about the products that sell more like a commodity? What about the products for which customers call and say, "I need another 300 pieces." What about the products that seem like price is the only thing that matters? That's our domain today.

Let's first divide the transactional sale into three categories so we can understand what to do in each case. First we have the customer callins who always buys this product frori you. Then we have the customer who sometimes buys it from you. And, finally, we have the customer who calls and never buys from you.

Case L: In this first case, where they always buy from you, that's as close as you're going to get to selling iPhones. Be happy, but don't be complacent. The key to it working long term is maintaining a great relationship with that customer. They're not shopping you, therefore they like you. All of the other qualifications are there, by definition. So the only thing you can mess up is the relationship. Put your best account managers on it and cherish them.

Case 2: In the second case, where they sometimes buy from you, you're locked in purchasing department purgatory. When I talk to companies about this group, I'm almost always told the same thing, "They only care about price." I remember one such dealer many years ago who was purchasing primed wooden trimboards and everyone in distribution "knew" that price was all that mattered to him. Then one day, someone sold him

PVC trim boards at three times the price. What happened? Different value proposition? Really? Are all primed wooden trimboards the same? This was a missed opportunity.

The key, in this case, is not accepting that the sale is transactional at all. They sometimes buy from you and sometimes someone else. Why? Is price all that matters? What is the product being used for? Are there alternatives? Have they ever had a problem? And what other problems did that problem cause? Does timing matter? Does having it in stock matter? What if it costs more to keep

Kimal Lumber wanted to build a state-of-the-art 25,000-squarefoot retail facility. Their challenge: how to fit their large inventory of premium lumber in the space, and provide customers drivethrough access with speedy order picking. Our simple solution: Sunbelt Rack and an automated power Bin svstem.

For the rest of the story go to enough in stock to never run out? Who else is affected by this purchase? How often do they need it? How many more times this month? How else could we structure this to get more of their business? WhY is this important? Who else cares? Should they be in the conversation?

Find out who's wearing the decision and get to that person. The best salespeople can do this. Then, have a business conversation. If all you do is quote the price, then you're the same as the other guy but with a different phone voice. When the product seems the same, and the service seems the same, and the only thing that changes is the day of the week, then You need to be the difference. Slow down the call, find out what other factors are on the table, and talk about their business. Be the only one who really gets it. When your people can do that, they are the difference.

Case 3: In the third case, where the prospect frequentlY asks for a quote, but never (or rarely) gives you the business, we must take a different approach. It might sound something like this:

Salesperson: "You call a lot asking for a quote, and you're real nice.

You say we're competitive, and You say good things about us, but we never get the business, why is that?"

Prospect: "It's just business."

Salesperson: "Is it fair to saY you're in business to make moneY?"

Prospect: "Aren't we all?"

Salesperson: "And if You never get the business, how can You make money, and how can You be in business?"

Prospect: "Look, I get a lot of quotes from people who don't get the business, and I give a lot of quotes for my company and don't get the business. That's what it means to be in business."

Salesperson: "That doesn't work for me. With all this price quoting, I'm spending a lot of time and not getting paid. Tell me what it's going to take to do business with you. If it makes sense, I'll give You another quote."

Often, what's haPPening in this third case is that you are being used to keep someone else's Prices low. The prospect is behaving as if business is devoid of relationshiP, both with respect to you and to the incumbent. And they will keep behaving that way until someone shows them a reason to change their thinking. Why not be the first one to do that? You have nothing to lose. They're not Your customer, but they called You. Seize the moment.

In summary, we tend to like transactional sales because they are easy. But we are leaving much on the table. We're either vulnerable to the competition, we're stuck in a price war and a race to the bottom that no one can win, or we're getting walked on while letting good potential business slip away.

Can your salesPeoPle coPe with these issues and reverse the transactional tendency? Can they change the nature of the conversation and reverse the downward pressure on margins? Can they sell more consultatively and become the primary differentiator? Getting the answers to these questions could be the beginning of transcending the transactional sale and having your best year ever.

- Dennis Connelly is a sales development consultant at Kurlan & Associates, author of the blog series livingsalesexcellence.com, and a frequent industry speak' er. Reach him at dconnelly@kurlanassociates.com.