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Sales are the lifeline of our businesses. As start-up entrepreneurs, we need to score those first few sales to show that our offering is in demand. The first few years are when we want to break-even, proving to all that our businesses are self-sufficient. After that, selling as much as we can brings profitability and unleashes growth potential.
But closing the deal is one of our most difficult tasks. We give all of ourselves to our businesses, and asking people for money can bring on fear of rejection. First time entrepreneurs are worried about pushing the sale too hard and scaring away consumers altogether. More experienced business owners often think that their offering is so great or established that it will sell itself.
These ways of thinking prevent our businesses from meeting our expectations and fulfilling their promise. We can, however, boost our confidence in selling and, in turn, improve our sales by practicing a few techniques to seal the deal. When I began my modeling agency, I believed that all fashion designers and editors would immediately want to book my diverse models because of their talents and benefits alone. After all, how could anyone resist my marketing logic: "Imagine if your consumer saw how great a particular dress looked on someone of her age, size, and background, and liked what she saw. Don't you think she would be more likely to purchase the dress?"
My pitch garnered interest, but never solidified the sale. Clients needed more. And time was my enemy. Second thoughts, competition, or unforeseen events made them change their mind. I had to persuade, listen, negotiate, and, if they were still not convinced, embark on a last ditch effort. Through these experiences, I developed a series of techniques that turns potentials to purchases. Here are my tips on how to close the sale:
Give a Summary. Recap the major benefits associated with the product or service. Be specific. This is a good technique for a potential customer who has told you their needs. Highlight each benefit as it relates to their needs.
Be Indirect. Ask the customer to buy in a causal manner by asking "What do you think?" and "Do these terms suit you?" The prospect's answer determines your next move. If the consumer says, "I want to think about this for a few days," ask when would be a good time to call again. Follow up immediately with an email thanking the customer for their time and then call on the specified date.
Seize the Moment. If the consumer indicates interest by saying that "this looks great" or "I am interested," do not wait. Proceed by showing them a contract or taking them to the cash register. If they ask for a different colour, size, or package, ask whether they would prefer it. If they answer "yes," move forward as if the sale is agreed.
Overcome Doubts. When a prospect opposes an objection to your proposal, listen to their doubts. Politely address each one with evidence. Do not be hostile or discouraged. Every objection puts you one step nearer to closing the negotiation. An objection is purely satisfying a concern of the counterpart that was not addressed earlier in the negotiation.
Share News. Throughout the negotiating process, funnel new information to your prospect. This might be a press release, a copy of a story about your business from the local newspaper, or a testimonial from an existing customer. Prospects that are nervous about working with you, perhaps because you are new or it is their first time buying from you, will particularly appreciate these reassurances.
Build Urgency. Sometimes the consumer will be happy to close the deal — when they can get around to it. Timing may be much more important to you. Create a sense of urgency to get their commitment by making some final concessions to refocus their attention. This may involve offering a greater discount or offering a two-year service agreement. Alternatively, you can let them know that the offering is limited because either you have exclusive stock or that bookings for your service are quickly filling up.
While all of these tips will help you close the deal, the one sure way is to build relationships overtime. Consumers who have tried your offering and trust it will be less cautious about closing future deals. For me, it took some clients one day while it took others one month to agree to the terms and sign. But it was worth it; the first deal is the first step in a long relationship of many more.
