Your Prospect Will Remain a Prospect Until You Close
Part eight in a 12-part series highlighting the development of a proven new home sales process
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Myers Barnes' Editorial Archives
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As a salesperson, you can turn closing the sale into an exciting and positive event. Make no mistake, closing is the bottom line. The result is a paycheck to deposit.
Common Selling Errors
1) Failure to ask for the order
It's hard to believe, but the main reason people do not buy is that they are not asked to own. Up to 60% of all sales calls end without an attempt by the salesperson to close even once.
Only a small percentage of salespeople have the skill to ask for the order multiple times. The average salesperson waits until the end of the presentation, shifts nervously back and forth, and timidly asks, "Is this what you had in mind?" Or the classic, "Well, what do you think?"
2) Talking too much
Most salespeople know how to stop talking. They just don't know when. There is such a thing as overselling. When it happens, it's like knocking on a turtle's shell, trying to get the turtle to stick out its head. The prospect is dazed, not dazzled, by a salesperson with loose lips.
Superior salespeople question skillfully and listen attentively to the prospect's needs. They ask their way into a sale, they don't talk their way into it. And their words inspire, rather than tire, the buyer.
3) Talking past the close
When you ask a closing question and your prospect confirms a readiness to own in your neighborhood, the conversation stops, your presentation ceases, and you start preparing the paperwork.
For example, you say: "The current production schedule guarantees your new home delivery by the end of August. Is that satisfactory?" Your prospect answers, "Yes, it is." At that moment the decision to own has been made. End your presentation. Move swiftly to prepare the contractual agreements.
4) Arguing with the prospect or customer
When you receive objections or challenges to your claims and you defend your product, you are in essence saying the customer is wrong. People dislike being told they are wrong, even if they are. Remember, when people have objections, respond to them in a positive, nonthreatening way.
5) Knocking the competition
Avoid referencing your competition, but if something is said about a competitor, negative or positive, simply reply, "They are a fine company and seem to do a good job."
When and How to Close
The most appropriate times to close are during a presentation and at the end of it. Don't put off asking for the order later in the day or week. After the presentation, or maybe during, the prospect usually has 100% of the information available and is emotionally closer to making a decision than at any other time.
Have Your Closing Material With You ... Always
Be ready to close anytime, anywhere, the moment your customer acknowledges acceptance. Keep your closing forms, calculator, pen and all other materials with you at all times. Take them with you wherever and whenever you are with a prospect.
When you receive commitment but decide to process the paperwork later, the client will have additional concerns you will have to address. In some cases you virtually will have to start your presentation over. As difficult as it is the first time around, the second time is worse because the emotional odds are against you.
Learn to Talk on Paper
Ink it, don't think it. When delivering a presentation, display the presentation and its highlights in writing. Write any key benefits, warranties and assurances on a pad and then let the prospect view it during a planned oral presentation. Combine a verbal presentation with the power of the printed word.
Ask and You Will Receive
Those of you who are hesitant to ask for fear of appearing like hard-sell, high-pressure salespeople should know that asking for the order is the fundamental quality of the top new home and neighborhood sales professional. The critical closing instruction is to ask for the order. Ask enthusiastically. Ask confidently. And continue to ask until your invitation to own is accepted. Then have your paperwork ready.
The Final Instruction: Silence
Why is it necessary to remain silent after asking a closing question? If you say anything before receiving a response, you take the pressure off the prospect. By remaining silent, one of two things will occur:
Either answer is acceptable. If the prospect commits, it's just a matter of completing the paperwork. If not, you know why. This gives you the opportunity to overcome the objections (not conditions) and continue with the closing process until you conclude the sale.
What Are Closing Techniques?
To understand what closing is, let's discuss what closing is not. Closing techniques are not tactics of the cunning used to manipulate people into purchasing homes they can't afford or don't want to own, in a neighborhood where they don't want to live.
Closing is a skill that leads people to make decisions that benefit them. Closing techniques are designed to move decision-makers past a moment of tension, indecision or fear.
'I Want to Think About It' Close
"I want to think about it" and "I want to think it over" are the most common objections a salesperson encounters, regardless of the product offering. The prospect says "I want to think it over" for three reasons:
1) A brush-off. Many times it's a nice way to send you on your way without hurting your feelings.
2) Buyer's remorse in advance. Fears cause the prospect to back away.
3) Financial resources, or the price or terms surrounding the home/home site. Your response: "That's fine. Obviously you wouldn't take the time to think about it unless you were genuinely interested, would you? Since you are interested, I can assume you will give this careful consideration, won't you? Just to clarify my thinking, what phase of the offer will you be considering? Is it the area? Is it the community? Is it the home/home site? I sense your hesitancy. Do you mind my asking if it's the money?"
The Alternatives Close
This close automatically concludes the sale by offering the prospect alternatives. You offer a choice between something and something, rather than a choice between something and nothing. You never ask a prospect, "Do you want this or not?" This allows for the possibility of "no." Instead, you say, "Would you prefer item A or B?" Either answer is a "yes."
Delivery: "Closing on your new home/home site could occur on the 15th or the 30th of the month. Which would you prefer?"
Finances: "The initial investment is to be secured by cash or personal check. Which would you prefer?"
Options and Features: "Which do you think would best complement your new kitchen, the oak or maple cabinets?"
Appointments: "I have either Monday or Wednesday available for this week. Which works best for you? My office or yours? How about 10 a.m. or noon for lunch?"
My Conditional Close
Prospect: "This seems to be the perfect solution, but before making my final decision, I need to run this by my lawyer (or accountant, banker, committee, friend, adviser, etc.)."
Salesperson: "I can understand. Then am I correct in assuming you are totally satisfied and there is no question in your mind that you feel it's the right thing for you to do?"
Prospect: "Yes, I'm satisfied. I just want her to look it over."
Salesperson: "Great, then the only question is whether your lawyer or accountant says it's the right thing to do. Is that correct?"
Prospect: "That's it."
Salesperson: "May I ask you a question? (Pause) If your lawyer were present at this very moment, and she advised you to take advantage of this offering, would you act today?"
Prospect: "I suppose I would."
Salesperson: "Unfortunately, she is not with us today, but before you speak with her and to facilitate the transaction in a timely fashion, let's prepare the paperwork now, and we will make the sale subject to her final approval. This way the process has begun, and if by chance she doesn't agree, we will simply start over. That makes perfect sense, doesn't it?"
Next installment: Do You Give up or Clean up on Follow-up? 10 Proven Strategies
Myers Barnes writes articles for many of the nation's top sales-related magazines and trade publications. Myers is also the best-selling author of Reach The Top In New Home & Neighborhood Sales and Closing Strong: the Super Sales Handbook. He is a nationally known motivational speaker and a consultant on new home and resort property sales. You may visit Myers' web site, www.myersbarnes.com or reach him at his e-mail address sellmore@myersbarnes.com.
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