NZ Sales Manager Issue 26

JULY 15th 2009 / Issue 26

Negotiation vs Haggling Increasing sales through negotiation

Zero Tolerance For Poor Performance Sales Management tips from Singapore

Sales Forecasting

Part 3: Turning your sales reports into a Sales Action Plan NZ’s e-mag for sales leaders

JULY 15 th / Issue 26

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THIS WEEKS MUST READ NEGOTIATION VS HAGGLING Adam Sands on the difference between negotiation and haggling and increasing sales through negotiation.

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ZERO TOLERANCE FOR POOR PERFORMANCE Sales management lessons from Singapore.

10 NZSM CALENDAR

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11 SALES FORECASTING PART 3 The final part in Michael Taplin’s three part series on how to create a simple and accurate forecast for your business.

14 SALES TRAINING DIRECTORY

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15 RESOURCE CORNER FIRST, BREAK ALL THE RULES This amazing book explains why great managers break all the rules of conventional wisdom.

15 THE CLOSE

ABOUT /

EDITOR / Richard Liew

Auckland 1151, New Zealand

Short and sharp, New Zealand Sales

ART DIRECTOR / Jodi Olsson

WEBSITE / www.nzsalesmanager.co.nz

Manager is a free e-magazine delivering

GROUP EDITOR / Trudi Caffell

thought provoking and enlightening

ADVERTISING/CONTENT ENQUIRIES /

articles, and industry news and

Phone Richard on 09 523 4112 or email

information to forward-thinking sales

richardl@nzsalesmanager.co.nz

managers, business owners and sales

ADDRESS / NZ Sales Manager, C/- Espire

professionals.

Media, PO Box 137162, Parnell,

NZSM / JULY 14th 2009 / 2

A

fter 26 enjoyable issues of NZ Sales Manager, this is my last issue as editor and I’m happy to be able to pass the editorial reigns over to the even more capable, knowledgeable and professional Mr Paul Newsom, from the next issue on. Paul’s understanding of selling in the modern world is second to none, and with his passion for helping New Zealand develop a world beating sales culture, will ensure NZ Sales Manager continues to go from strength to strength.

In Issue Number 1, I wrote, “It has always struck me as odd that the sales profession does not have its own magazine.” I’m glad to say that since then, I have heard from hundreds of passionate sales and business people throughout New Zealand (and the world) who have said the same thing and who have responded so positively to NZ Sales Manager.

A big thanks to all the fantastic sales professionals, managers, business owners and entrepreneurs I’ve met, interviewed, helped and learnt from, through NZ Sales Manager. Thank you also to all our contributors and experts for being generous with their knowledge and their willingness to help New Zealand businesses get ahead – our readers appreciate it!

And an especially huge Thank you to our art director

Jodi who took the vision and ran with it - apparently she’s even learnt a thing or two about selling!

The purpose of NZ Sales Manager is to promote learning and development in the sales profession so before I sign off I thought I would take the opportunity to share a few of the lessons I have learned and that have been reinforced for me in my time as Editor: • The good ideas have not all been done already.

• Where there’s a will, there’s a way – but only if your will is strong enough.

• There are heaps of people out there who are only too happy to help – but you must be willing to ask for help first.

• Those who need help but are not ready to ask, usually can’t be helped.

• Deadlines and targets are your friends not your enemies.

• There is nothing you can’t learn if you want really want to.

Remember, our results in life are a reflection of how much we’ve learnt and have applied. Get clear on what you want, keep learning and taking action on it, and you can achieve anything.

Happy selling!

Richard

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THIS WEEK’S MUST READ

Negotiation vs Haggling Increasing sales through negotiation

By Adam Sands

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common negotiation mistake made by many sales people is thinking that negotiation is about persuading the other guy that he wants what you’re offering and then making some sort of concession on the price in return for an order.

There is a flaw in this logic – firstly, the term “negotiate” is well overused. Often, when sales people say, “We’re just negotiating with the client” they actually mean, “We’re just haggling over the price”. Haggling is not negotiating.

Haggling is about offering your product for a reduced margin – you’re simply making price concessions until the buyer says yes.

Negotiation though, is about getting something of equal or higher value, in return for any concessions you make.

For example, getting a buyer to place an extra order in return for giving them a slightly lower price.

Secondly, to enter into a negotiation, all parties need to believe it is in their interest to do so. How often have we found, as salespeople, that we believe we have a product or service which will help the customer, but the customer doesn’t seem to see it that way?

I’ve spent many hours, over many years, sitting beside salespeople during sales calls. I’ll see the sales person begin to come to the realisation that even though the benefits to the customer seem obvious, the customer’s just not ‘getting it’.

All too often the next step by the sales person is to start dropping the price in the mistaken belief that in doing so, the customer will NZSM / JULY 15th 2009 / 4

suddenly realise that there is indeed some benefit in the product or service and decide to buy it. The sales person thinks they’re negotiating but in reality they’re in a one sided haggle with someone who doesn’t want their product...

People only realise that is in their best interests to negotiate when they perceive that the costs associated with saying “No” are unacceptable.

Under what circumstances would your director normally agree to this?

Under what circumstances would you be able to do this?

If your prospect tells you that there are circumstances, under which they’d agree, then they are now a provisional “Yes” and you are now able to negotiate.

So what can you do to help a prospect to go from a “No” to a “Maybe” - something you can build on?

If there aren’t, then you know not to waste your, or their, valuable time now by exploring the issue further, and you can agree to revisit at a later date.

a. Research your prospect to find out what difficulties they might be facing;

A good sales process is underpinned by a strong negotiation process. Negotiating skills are the oil in the machine.

b. Ask questions to help the customer to think about these difficulties and what they are costing them - ideally in $ terms; and then

The difference between seller and buyer interactions that work, and those that don’t, is trust. Not necessarily the trust that takes five years to create, I mean the trust built up over a short period of time (sometimes in just a few minutes) by a good use of skill and process, and most importantly, an attitude of openness and sharing of information.

c. Ask the question that helps discover what it might take to shift the prospect from the status quo – the ‘Under what circumstances?’ question.

Under what circumstances would you consider committing to an un-budgeted spend of $4000 this side of year end?

Under what circumstances would you be able to give me commitment this week?

The question every seller should be asking themselves is not, “How can I sell my stuff to this customer?” it’s, “How can I give this customer what they want, on terms that are acceptable to me?”

NZSM / JULY 14th 2009 / 5

Tips for better negotiations: • Be well prepared.

• Prepare some great questions, which will help you to uncover the real commercial issues facing your customers organisation, and also the issues of concern to the person you’re dealing with.

• A long, and comprehensive list of items you can ask for, which (in the event you need to make a price concession) will recover, or even improve, the overall deal for your company.

• Be cooperative • The easiest way for you to get what you want, is to find out what the other party wants, and give it to them... but on terms acceptable to you.

• An attitude of openness will build trust – trust is the differentiator between seller and buyer interactions that work, and those that don’t.

• Get creative • The more variables there are in a negotiation, the more opportunities there are to keep repackaging your offer to meet the needs of the customer, and your own organisation.

• Develop your negotiating skills • A strong sales process gets your customer motivated to buy – negotiating skills gets you a deal that will actually make you and your organisation money. Both skills are important, but anyone can give it away.

Adam Sands is a principal consultant for negotiation experts Scotwork following a successful career in B2B sales, sales management and sales coaching. Visit www.scotwork.co.nz for more info.

NZSM / JULY 14th 2009 / 6

ZERO TOLERANCE FOR POOR PERFORMANCE

Sales Management lessons from Singapore

By Rob McKay

R

ecently I was in Singapore delivering an address at the annual symposium for the Contact Centre Association of Singapore. Singapore is an impressive country. It’s the size of lake Taupo with the same population base as New Zealand. Many people refer to this city as the Switzerland of the East. This is an apt analogy as the city is so efficient and the financial hub of Asia. What really struck me were the low crime rate, genuine honesty and politeness of its citizens.

Singapore has a zero tolerance on bad behaviour. They

I only saw two policemen over the week I was there. I am told that 50% of taxi drives are working policemen. What a novel idea – cheap taxis and crime fighters in one package! But then again Singapore is full of novel ideas that make this city so safe and prosperous. The place is run like an efficient organisation.

Why, because Singapore has an over-riding policy of ‘zero tolerance for poor performance and bad behaviour’.

We have become so PC in this country that people are too afraid to do anything for fear of repercussions from fringe groups and individuals. This permeates into our work force. Managers are constantly accepting below average performance – why?

In many cases the manager has hired a person who does

achieve this by being tough on those who break the rules. The phrase “political correctness” is non-existent.

You talk on your cell phone in a car; you lose the phone and $500. You eat on the train and there goes another $500.

Drop a lolly paper on the ground and that will cost another $500, all of this compliancy and not a policeman in sight.

not ‘fit’ the job and once hired they try to “fix” the problem by embarking on a treadmill of coaching and training, or a mixture of other ‘touchy feely’ processes. Let me tell you straight up, if you have hired a person who does not have the innate personality, mental ability and attitude (this can only be measured through psychometric profiling) to do the job, no amount of training will make a silk purse out of a sow’s ear. You might as well toss the training budget - and the six months of your time pandering to the situation - out the window!

Poor performance must be addressed immediately. The longer it’s left, the worse it will get. Then one morning you’ll will wake up and decide, enough is enough, go to the office and deal with it in an inappropriate manner that will probably cost you an expensive personal grievance claim.

NZSM / JULY 14th 2009 / 8

It’s time to get tough – ‘zero tolerance for poor performance’ should be your new mantra...set goals, introduce targets, measure output – ride hard, reward well.

Usually when the pressure to perform comes on, these slackers fold like a deck of cards and leave – your goal is achieved. But be aware when you are looking for the replacement, the next candidate lining up to work for you could be the joker who was dealt off the deck of the last company because of poor performance.

As organisations we have three opportunities to do something about our people performance. The first is at the front door – hire the right people first time - hire for attitude, train for aptitude.

The second opportunity is training and coaching your current Usually you will find three kinds of employees – have a look people – ideal for your A and B people, but a huge waste around your team now – you’ll see people who were born of management time and money if you never got the first to perform well, some who have the capacity to perform opportunity right. well and those who will never perform. Jack Welch, CEO of CUSTOMER: NZIM AUCKLAND INC PROOF TIME 8/05/2009 11:44:23 a.m. to grade team into REPthe ID: world 960largest company GE, usedLAST RUN: his 14/05/09 And finally, show the 6848644AA poor performers the back door – A’s, B’s and C’s. The A’s were groomed The SIZE:for high things.

9X4 almost impossible to achieve in today’s litigious employment B’s were trained to maintain, or fill the A slots and C’s were targeted to be managed out.

Often managers take work off the C’s and lump this work onto the A’s because they can be trusted to do quality work without a fuss. So the C’s get rewarded for bad performance and usually get the same take-home pay as the A’s. Here we see motivation working in the negative. There is motivation to perform bad because you get paid to do nothing!

It’s time to get tough – ‘zero tolerance for poor performance’ should be your new mantra. Don’t allow the C team the luxury of passing off their responsibility to perform – set goals, introduce targets, measure output – ride hard, reward well.

People are the only lasting competitive advantage you have, so here’s another mantra - hire tough and manage easy.

environment. Getting rid of poor performers is a long morale sapping, customer killing, bank balance denting process.

Looking for a new training/conference venue?

NZIM Northern in Auckland CBD

NZIM Northern is excited to announce our new training and networking facilities in Auckland central are available for hire. Whether you are looking to save costs on expensive hotels or simply looking for a change, our outstanding new premises are a perfect choice for a venue.

Physical Address: Level 4 DLA Phillips Fox Tower, 209 Queen St Full day and half day packages with or without catering Smart Boards, broadband internet, video conferencing Extensive selection of on-site management training resources Full-time conference staff Simple flat fee pricing structure

For more information and to download a guide please go to www.nzimnorthern.co.nz or contact Conference Coordinator Sera Churchward on 0800 800 694

Singapore is not perfect and there are huge human rights issues with entry-level workers, but their ‘zero tolerance’ policy is a living demonstration of how it can drive productivity and efficiency.

People are the only lasting competitive advantage you have, so here’s another mantra - hire tough and manage easy.

Rob McKay MA(Hons) CMCT is a Business Psychologist and Director of AssessSystems Aust/NZ Ltd. Visit his website at www. influenceatwork.co.nz

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NZSM / JULY 14th 2009 / 9

WED 15 JULY

NZSM CALENDAR SAT 18 JULY

MON 20 JULY Sales Planning David Forman Auckland (20-21 July) Negotiation David Forman Wellington

Sales Development David Forman Auckland

THU 16 JULY Sales Development David Forman Auckland

SAT 25 JULY

TUE 21 JULY Negotiation David Forman Wellingt Sales Basics Geewiz Auckland Negotiation Skills Top Achievers Sales Training Auckland

MON 27 JULY Presentation Skills David Forman Auckland Sales Skills One EMA Northern Hamilton

SUN 26 JULY THU 30 JULY

FRI 31 JULY

Sales Skills One EMA Northern Auckland

Leadership With Results Geewiz Wellington

WED 22 JULY Workplace Coaching & Mentoring Zealmark Group Auckland Negotiation David Forman Wellington

SUN 19 JULY

FRI 24 JULY

FRI 17 JULY

SAT 1 AUG

Fundamentals of Selling Seminar Top Achievers Sales Training Hamilton

TUE 28 JULY Cold Calling & Prospecting Workshop Top Achievers Sales Training Auckland Advanced Serious Selling Geewiz Auckland Sales Leadership Skills Workshop Top Achievers Sales Training Auckland

MON 3 AUG

Sales Planning David Forman Christchurch

THU 23 JULY Telephone Sales Zealmark Group Auckland Exceeding Customer Expectations Geewiz Auckland  Hit The Road Running Sales Seminar Top Achievers Sales Training Wellington

WED 29 JULY Territory Management Geewiz Christchurch

TUES 4 AUG

Sales Planning David Forman Christchurch

SUN 2 AUG WED 5 AUG Key Account Management David Forman Christchurch

THU 6 AUG

FRI 7 AUG

SAT 8 AUG

Sales Skills 1 Zealmark Group Auckland

MON 10 AUG Sales Development David Forman Christchurch (10-13 August)

Key Account Management David Forman Christchurch

SUN 9 AUG TUE 11 AUG Sales Skills 1 Zealmark Group Auckland Sales Basics Seminar Geewiz Christchurch

WED 12 AUG Professional Selling Skills Core AchieveGlobal Auckland

THU 13 AUG Personal Planning & Time Management Zealmark Group Auckland Professional Selling Skills Core AchieveGlobal Auckland

FRI 14 AUG

SAT 15 AUG

Professional Selling Skills Core AchieveGlobal Auckland

SUN 16 AUG

SALES FORECASTING

PART 3:

Turning your sales reports into a Sales Action Plan Part 3 of a 3 part series by Michael Taplin

I

n the last issue we looked at how to start building a simple forecasting system that will provide enough notice that your team is falling behind for you to take corrective action well in advance.

Today we look at how you can use those reports not just as historical records of what’s happened but to drive each sales reps actions and activities for the month ahead.

I assume that each of your sales people now uses the forecasting model we created in the last issue to give you a monthly report, in a simple Excel spreadsheet that looks something like this.

Prospect/ Name

Stage in sales process

Job value

Probability of Winning

Expected Value

Timing M/Y

ABC Company

3

$10000

10%

$1000

Sep-09

DEF Company

4

$21400

25%

$5350

Sep-09

GHI Company

2

$25000

5%

$1250

Sep-09

JKL Company

2

$15000

5%

$750

Sep-09

MNO Company

7

$22750

70%

$15925

Sep-09

PQR Company

6

$14990

60%

$8994

Sep-09

STU Company

8

$17450

80%

$13960

Sep-09

Totals

$215580

$91147

You can see at a glance the status of each prospect, and its current value to the business. How has the status of each prospect changed in the past month? The bottom line shows you today’s value of the work in your sales funnel.

That the status code for each prospect has changed positively from last month. If not why not?

The total at the bottom of the “Expected Value” column is the one that counts.

The total Expected Value has increased.

The probability of banking the cheque has improved.

The total Job Value of work in the pipeline has increased.

If the salesperson has been working effectively throughout the month you can expect:

The Expected Value as a percentage of Total Job Value has increased so your sales effort is more effective.

NZSM / JULY 14th 2009 / 11

You can now sort this spreadsheet and calculate the Expected Value for jobs won each month. This is sales forecast for each rep for the month and you can compare this against your sales budget.

You can also quickly assess the status of each significant prospect and decide what action to take to move each prospect to a higher stage in the sales process and increase the probability of banking the cheque. Inevitably this will involve work on behalf of the sales person!

You can also expect the salesperson to add to their report what action they plan to take for each prospect and if they have a problem you have real information to provide guidance for them.

This means you can take action before the issues become impossible to resolve - it’s starting to look mighty like a Sales

Action Plan to me!

Your people will be motivated by clear guidance on their own performance and by compiling this report for you each month they will improve their own ability to manage their work.

Most importantly, as a manager, you can rely on the information because it is impossible for your salespeople to fudge this type of report two months in a row!

If you have followed the step-by-step process I have set out in the three articles in this series you should now have a simple, reliable and proactive forecasting system operating.

I wish you good fortune in making your sales forecasts deliver the results you need and if you run into difficulties please don’t hesitate to contact me.

Michael Taplin is a business mentor and strategy consultant with special expertise in sales forecasting.

You can visit his website at www.bizlearn.biz.

   

                      

    

  



     

       

  

 NZSM / JUNE 3rd 2009 / 12

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 



  

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   

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

   





   

   

   

   

   

   

   



   

  





   



   

 

   



   

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   

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   

   

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  



   

  

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   

   

    

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   

    

    

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        

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   

        

  

   

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    



   

  

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   

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   

    



   

 

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   

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         

  

   

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     

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   

     

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   

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    NZSM / JULY 14th 2009 / 14

R ES O U R C E C O R N E R

First, Break All The Rules

By Marcus Buckingham & Curt Coffman Published by Pocket Books

G

reat managers do not help people overcome their weaknesses. They do not believe that each person has unlimited potential. They do play favourites and they break the ‘Golden Rule’ book everyday.

into performance. Finally, the authors have distilled the essence of good management practice into twelve simple questions that work to distinguish the strongest departments of a company from all the rest.

“

This amazing book explains why great managers break all the rules of conventional wisdom. The front-line manager is the key to attracting and retaining talented employees. No matter how generous its pay or how renowned its training, the company that lacks great, front-line managers will suffer.

Great managers are the heroes of this book. Vivid examples show how, as they select, focus, motivate and develop people, great managers turn talent

This book is the first to present this essential measuring stick and to prove the link between employee opinions and $26.96 from productivity, profit, customer satisfaction, and the rate of turnover.

A goal is something we reach for.

A standard is something we settle for.

“

Roger Hamilton, Social Entrepreneur.

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NZSM / JULY 15th 2009 / 15