guerrilla selling pharos marine 1 day
DESCRIPTION
"Guerrilla Selling" custom one-day seminar for Pharos Marine Automatic Power, January 17, 2014 in Houston.TRANSCRIPT
GUERRILLA SELLING
THE GUERRILLA GROUPPresented by:
Guerrilla Selling - How to NaB & CaPTuRe More Customers
Orvel Ray Wilson, CSP Sr. Partner
THE GUERRILLA GROUPinc !
Google me
It’s a jungle out there!
“Thank you, Scott. We get the picture.”
GUERRILLA SELLING
THE GUERRILLA GROUP
What is “Guerrilla Selling”?
Jay Conrad Levinson 1933 - 2013
GUERRILLA SELLING
THE GUERRILLA GROUP
The most successful marketing series in history:
GUERRILLA SELLING
THE GUERRILLA GROUP
Time●4 to 1 ●Golden Selling Hour ●Don’t waste a lunch ●One more stop
GUERRILLA SELLING
THE GUERRILLA GROUP
Energy–Eat Right –20 Minutes a Day –Time Out –Reward Yourself
“…and thank you Jesus for my wonderful job.”
GUERRILLA SELLING
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Imagination●Think Big ●Think Small ●Visualize Success ●Idea-of-the-Week Book
“Imagination is more important than intelligence.” -- Albert Einstein
“Never, ever, think outside the box.”
GUERRILLA SELLING
THE GUERRILLA GROUP
If you’re going to be texting:I’m in Houston listening to @OrvelRay Wilson speak about #Guerrilla Selling and it’s excellent!
Hashtag
Twitter Handle
GUERRILLA SELLING
THE GUERRILLA GROUP
Leverage is Created Four Ways:● You work ● People work ● Money works ● Ideas work
GUERRILLA SELLING
THE GUERRILLA GROUP
The Guerrilla’s Secret Weapons● Information ● Surprise
If this is the Information Age, how come nobody knows anything?”
GUERRILLA SELLING
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10 Guerrilla Strategies to Increase Your Sales Immediately
GUERRILLA SELLING
THE GUERRILLA GROUP
1. Investment●The Law of The Slight Edge:
“The difference between a champion and an also-ran, more often than not, is a very slim margin.”
GUERRILLA SELLING
THE GUERRILLA GROUP
1. Investment● People ● Technology ● Yourself ● Community
GUERRILLA SELLING
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Invest in People● Hire first for Attitude –“Help Wanted” –Jack Welsh 20/70/10
● Train Constantly ● Resource Center ● Outside Expertise
GUERRILLA SELLING
THE GUERRILLA GROUP
Invest in Technology4 Big Trends Affecting Sales: 1. Tablets 2. Mobile; growing at 2X per year 3. Big Data 4. Social Media
GUERRILLA SELLING
THE GUERRILLA GROUP
Invest in Yourself●Read the trades ●Master Mind ●Get an accountability coach ●Build your library.
GUERRILLA SELLING
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Guerrilla Selling 2.0 - 20th Anniversary Edition
GUERRILLA SELLING
THE GUERRILLA GROUP
Invest in your Community● IALA –Intl. Assn. of Lighthouse Authorities
● NOMADS –Natl. Oil Equipment Mfgrs. and Delegates Society
● AWEA –American Wind Energy Association
GUERRILLA SELLING
THE GUERRILLA GROUP
2. Consistent● “Poor selling done consistently will be more
effective than great selling done sporadically.” ● Consistency is interpreted as longevity,
credibility, and trust.
GUERRILLA SELLING
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Why Customers Quit:15% quit for quality - found a better product
15% quit for price - found a cheaper product
20% quit for lack of contact or individual attention
49% quit because contact was poor and inconsistent.
Forum Corporation study of commercial customers lost by 14 major manufacturing and service companies.
“He’s on another line at the moment, would you like to hold?”
GUERRILLA SELLING
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Image vs. Identity
“I’ll tell you why I don’t trust him. It’s that damn sheepskin vest.”
GUERRILLA SELLING
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3. Confident● “Guerrillas believe in their products and their
people.”
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Why Customers Buy:Confidence
Quality
Service
Selection
Price
GUERRILLA SELLING
THE GUERRILLA GROUP
Why Customers Buy:1. Confidence
2. Quality
3. Service
4. Selection
5. Price
GUERRILLA SELLING
THE GUERRILLA GROUP
3. Confident● Expect the Sale –500 hours @ $75 to prepare a Proposal
● Collect Testimonials ● Defend your prices and margins. –Engineering, Drafting and Documentation
“How did I go broke? I was the low bid!”
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3. Confident● Guarantee Everything –No longer a differentiator –Sunshine Trash Service
“Mr. Colton, do we stand behind our products?”
GUERRILLA SELLING
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4. Patient●Fine-tuning your knowledge and skills takes time.
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4. Patient● Less than 4% of sales are made on the first call,
more than 80% are made after the eighth call. ● It takes 9 impressions to take a prospective customer
from total apathy to purchase readiness.” ● It takes 11 positive impressions to overcome a single
negative impression.
GUERRILLA SELLING
THE GUERRILLA GROUPNumber of Impressions
Total Apathy
Purchase Readiness
Prospect Learning Curve
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Don’t Quit 48% quit after the first contact 20% quit after the second contact 7% quit after the third contact 5% quit after the fourth contact 4% quit after the fifth contact Yet 80% close AFTER the sixth call
GUERRILLA SELLING
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5. Assortment●“The old days when Henry Ford could get by with,‘You can have any color you want - as long as it’s black,’ are long gone.”
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Move Them Up the Curve
–Fill the Curve –Show the Best First –Opportunities to Upgrade
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Lifetime Value of a Customer$5,000 year
x 3% Net = $150 per year
x 5 Years = $750
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Lifetime Value of a Customer● Average cost of an industrial sales call* = $1,644 ● Calls needed to close an industrial sale = 4.3 ● Average cost per sale = $7,069.20
* McGraw Hill, Laboratory of Advertising Performance Report #8051
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6. Subsequent●“Guerrillas wage their marketing campaign simultaneously on three fronts.”
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Path of Least ResistanceCustomers
Products
New
New
Old
Current
Easiest Most
Profitable
Hard Some Profit
Harder Less Profit
Very Hard No Profit
GUERRILLA SELLING
THE GUERRILLA GROUP
6. Subsequent● “It takes 11 positive impressions to overcome
a single negative impression.” –Repetition, Repetition, Repetition –You Oughta’ Be In Pictures
Dear Ken,
THANK YOU for the opportunity to serve Pharos Marine Automatic Power. What a FASCINATING group! We had a GREAT time! OrvelRay
From the desk of Orvel Ray Wilson
34316 Gap Road, Golden, CO 80403 800-247-9145
GUERRILLA SELLING
THE GUERRILLA GROUP
Show Up
“80% of sex is showing up.”
-- Woody Allen
René Neuman
GUERRILLA SELLING
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Show Up● “Happy Easter” ● Park Yourself
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7. Convenient● “Guerrillas are user friendly. They are in
touch, easy to reach, and they do everything immediately.”
–Message in a bottle
GUERRILLA SELLING
THE GUERRILLA GROUPTHE GUERRILLA GROUP
GUERRILLA SALES & MARKETING
8. Measurement● “What you measure is what you get.
Inspect what you expect.” – Tom Peters “28 great years.”
Total Sales Volume Number of Transactions Gross Margin %
Jeannie $16,550.00 25 31.1%
Cindy $20,196.00 26 30.2%
Kathy $24,952.00 30 29.3%
Chris $19,252.00 32 32.1%
Pat $22,532.00 31 34.9%
Michelle $21,036.00 25 26.0%
Ryan $26,382.00 19 31.0%
Average $21,557.14 26.86 30.7%
Monthly Sales Performance
Total Sales Volume Number of Transactions Gross Margin %
Jeannie $16,550.00 25 31.1%
Cindy $20,196.00 26 30.2%
Kathy $24,952.00 30 29.3%
Chris $19,252.00 32 32.1%
Pat $22,532.00 31 34.9%
Michelle $21,036.00 25 26.0%
Ryan $26,382.00 19 31.0%
Average $21,557.14 26.86 30.7%
Monthly Sales Performance
Total Sales Volume Number of Transactions Gross Margin %
Jeannie $16,550.00 25 31.1%
Cindy $20,196.00 26 30.2%
Kathy $24,952.00 30 29.3%
Chris $19,252.00 32 32.1%
Pat $22,532.00 31 34.9%
Michelle $21,036.00 25 26.0%
Ryan $26,382.00 19 31.0%
Average $21,557.14 26.86 30.7%
Monthly Sales Performance
Total Sales Volume Number of Transactions Gross Margin %
Jeannie $16,550.00 25 31.1%
Cindy $20,196.00 26 30.2%
Kathy $24,952.00 30 29.3%
Chris $19,252.00 32 32.1%
Pat $22,532.00 31 34.9%
Michelle $21,036.00 25 26.0%
Ryan $26,382.00 19 31.0%
Average $21,557.14 26.86 30.7%
Monthly Sales Performance
GUERRILLA SELLING
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9. Excitement● A Good Word for Everyone ● Never Complain ● Greet them with a “10”.
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10. Commitment●Isolate the “Trigger Event" ●Put your customers second ●Keep your promises ●Take out the slack.
“Small World Machines”
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Two Words That Guide the Guerrilla to the Sale:
NaB & CaPTuRe
GUERRILLA SELLING
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NaB & CaPTuRe1. Need
2. Budget
3. Commitment
4. Presentation
5. Transaction
6. Reward
GUERRILLA SELLING
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Step One – The Need Stage
Swiss Army CouchSwiss Army Couch
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Guerrilla Prospecting:● Do They dis-qualify? Do they have. . . –1) a need. –2) a budget. –3) the authority to make a commitment. –4) and a motivation to act now.
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Getting Behind the Lines● Gatekeeper –Not authorized to say “yes” and trained to say “no”.
GUERRILLA SELLING
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Getting Behind the Lines● Influencer –Evaluating from a technical or financial point of view.
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Getting Behind the Lines● Purchaser –Releases the funds
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Getting Behind the Lines● Decider –Can say “no” even if everyone else says “yes.”
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Getting Behind the Lines● Users –Have to live with this decision over time.
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Getting Behind the Lines● Spy –Someone who, for reasons of their own, wants to see you succeed.
GUERRILLA SELLING
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Getting Behind the Lines● Saboteur –Someone who, for reasons of their own, wants to see you fail.
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The Iceberg Principle
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The Iceberg Principle● Problems? ● Resources Available? ● Other Solutions Being Considered? ● Uncover at Least One Concern
“You really should have called me sooner.”
GUERRILLA SELLING
THE GUERRILLA GROUP
Five Steps in Finding Prospects:1. Identify your ideal prospects, those most likely to buy from you.
–Your Best Prospects are Your Competitors’ Best Customers
–Match Your Demographics.
GUERRILLA SELLING
THE GUERRILLA GROUP
Five Steps in Finding Prospects: 2. Get Out in the Field
–Join Their Associations –Exhibit at Trade Shows –Sell at Reverse Shows –Schedule “Virtual Coffee” over SKYPE
GUERRILLA SELLING
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Five Steps in Finding Prospects: 3. Use an Unusual, Creative, or Unexpected Approach.
Send a Box Send a fork “Happy Birthday”
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Five Steps in Finding Prospects: 4. Ask a Lot of Questions.
–The 37 Magic Selling Questions*
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The 37 Magic Selling Questions:1. What is your main objective?
2. How do you plan to achieve that goal?
3. What is the biggest problem you currently face?
4. What other problems do you experience?
GUERRILLA SELLING
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The 37 Magic Selling Questions:5. What are you doing currently to deal with this?
6. What is your strategy for the future?
7. What other ideas do you have?
GUERRILLA SELLING
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The 37 Magic Selling Questions:8. What role do others play in creating this situation?
9. Who else is affected?
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The 37 Magic Selling Questions:10. What are you using now?
11. What do you like most about it?
12. What do you like least about it?
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The 37 Magic Selling Questions:13. If you could have things any way you wish, what would you change?
14. How would this affect the present situation?
15. What would motivate you to change?
GUERRILLA SELLING
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The 37 Magic Selling Questions:16. Do you have a preference?
17. What has been your experience?
18. How do you know?
19. Is there anything else you’d like to see?
GUERRILLA SELLING
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The 37 Magic Selling Questions:20. What would it be worth to you to solve this problem?
21. What would it cost, ultimately, if things remain as they are?
22. Are you working within a budget?
23. How are you planning to finance it?
GUERRILLA SELLING
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The 37 Magic Selling Questions:24. What alternatives have you considered?
25. What benefit would you personally realize as a result?
26. How would others benefit?
27. How can I help?
GUERRILLA SELLING
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The 37 Magic Selling Questions:28. Is there anything I’ve overlooked?
29. Are there any questions you’d like to ask?
30. What do you see as the next step?
31. Who else, besides yourself, will be involved in making the decision?
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The 37 Magic Selling Questions:32. On a scale of 1 to 10, how confident do you feel doing business with us?
What would it take to get that up to a [10]?
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The 37 Magic Selling Questions:33. Are you working against a particular deadline?
34. How soon would you like to start?
35. When would you like to take delivery?
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The 37 Magic Selling Questions:36. When should we get together to discuss this again?
37. Is there anything else you’d like for me to take care of?
GUERRILLA SELLING
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The 37 Magic Selling Questions:Just like Aladdin, when you ask the right questions, you’ll never know what sort of magic you’ll set in motion.
GUERRILLA SELLING
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Five Steps in Finding Prospects:
5. Listen Actively to the Answers.
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Listen Actively & Visibly● Maintain Eye Contact ● Use Verbal Attends: ● Use Non-verbal Attends: ● Take Visible Notes
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Listen Actively & Visibly● Ask for Clarification ● Paraphrase ● Ask “Who, What, When, Where, How?” ● Don’t ask Why.
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I-Land
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Step Two – The Budget Stage● Discomfort in Discussing Dollars –Avoids Sticker Shock –Defuses Price Anxiety
● You must get a specific amount.
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The About Face● “Your price is too high.” ● “Too high? (pause)
When you say ‘too high’, what do you mean; ‘too high’ relative to what?”
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The About Face● You’re always too expensive until they know
what you deliver. –Engineering, Documentation, Drawings
● “We have no argument with those who sell for less. They know best what their product is worth.”
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Defending Your Price● The Limbo –“I won’t pay any more than...” –“Can you explain to me how you arrived at that figure? What did you take into account?”
–Ask them to itemize their calculation.
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Defending Your Price● “They’re the same (or better)…” –Counter by asking for specifics –“In what way are they better for your application?”
Counter by ____________________.
“In what way are they better for your application?”
GUERRILLA SELLING
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Defending Your Price● The First-timer –“Give me a good deal on the first one.”
Counter by ____________________.!“In what way are they better for your application?”!“Give me a good deal on the first one.”
GUERRILLA SELLING
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Defending Your Price● Moving Up the Launch –“I can do that, but there’s a rush charge.”
● Stopping the Countdown –“I can do that, but our price increase goes into effect next month.”
Counter by ____________________.!“In what way are they better for your application?”!“Give me a good deal on the first one.” !
GUERRILLA SELLING
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Defending Your Price● Excuse me –“I’m sorry, I have to step out for a moment.”
Counter by ____________________.!“In what way are they better for your application?”!“Give me a good deal on the first one.” !
GUERRILLA SELLING
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Defending Your Price● False Quote –“That’s interesting. I imagine that they must have a very good reason for selling at that price.
–“But if prices were all the same, who would you choose?”
–“This looks like a typo.”
Counter by ____________________.!“In what way are they better for your application?”!“Give me a good deal on the first one.” !
GUERRILLA SELLING
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Defending Your Price● Quota Time –“How’s your quota looking this month?” –“Good question. How are your profit figures this month?”
–If they press you, “I’m sorry, that’s not relevant to our discussion.”
Counter by ____________________.!“In what way are they better for your application?”!“Give me a good deal on the first one.” !
GUERRILLA SELLING
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Defending Your Price● “Only price is important…” –Call their bluff –“I get to choose when we deliver.” –“I get to select the specification.”
Counter by ____________________.!“In what way are they better for your application?”!“Give me a good deal on the first one.” !
GUERRILLA SELLING
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Why you don't want price shoppers as customers
● They gobble up your capacity ● You establish a precedent ● They don’t appreciate quality
GUERRILLA SELLING
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Why you don't want price shoppers as customers
● They’re less discerning ● They’re more demanding ● They’re often disloyal ● Nobody ever gets fired for paying too
much.
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Why you don’t want price shoppers as customers
On a 35% margin, if you cut your price by 10%, you have to DOUBLE your sales to make up the difference.
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Do the Math$1,000,000
$650,000 $350,000 $150,000 $200,000
Total Sales — Cost of Goods Sold Gross Margin — Variable Cost of Sales — Fixed G&A
100% 65% 35% 15% 20%
Net Profit $Potential Profit 20¢
0
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Do the Math$900,000 $650,000 $250,000 $135,000 $200,000
Total Sales — Cost of Goods Sold Gross Margin — Variable Cost of Sales — Fixed G&A
100% 72% 28% 15% 22%
Net Profit $ -85,000Potential Profit 11¢
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You have to sell
$1,801,801.80 80% increase in REVENUE
but DOUBLE the unit sales just to break even.
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What to don when they really CAN get it cheaper
● Compared to what? –What the customer REALLY wants is . . . –YOUR product –YOUR service –YOUR reputation –and THEIR price.
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What to Say when you’re asked to cut your price:
● “Hmmmm. . . That’s expensive.” –“We have no argument with those who sell for less. They know best what their product is worth.”
GUERRILLA SELLING
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What to Say when you’re asked to cut your price:
● “If you give me 20% off, I’ll sign right now.” –“Do you make that offer to your customers?”
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What to Say when you’re asked to cut your price:
● “Why are you so much more expensive than (the competition)?”
● “I RILLY wish I could, but. . .” ● “What do I tell my next customer . . .”
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What to Say when you’re asked to cut your price:
● “I’d rather justify my price now, than have to apologize for a failed product later.”
● “What makes you think that I wouldn’t give you the best possible price right up front?”
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What to Say when you’re asked to cut your price:
● “It’s a lot like buying oats. If you want good, clean oats, you pay a fair price. If you’re willing to settle for oats which have already been through the horse, well . . .”
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You Shouldn’t Negotiate:● When you’re sold out ● When the demands are unethical ● When you’re time pressured ● When they act in bad faith ● When waiting would improve your position.
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What to do with Difficult, Demanding or Dishonest Customers?
● Refer them to the competition.
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Develop Strong Rationales● Need . . . ● Because . . . ● Only . . .
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Sell the Total ProductGenericExpected
Augmented
Potential
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Customers Will Pay More:● Quality ● Authenticity ● Stability ● Reliability ● Social or Ecological Values
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Customers Will Pay More:● Knowledgeable salespeople ● Reputation ● Partnership ● Consistency ● Customization
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Customers Will Pay More:● Authority ● Popularity ● Exclusivity ● Scarcity ● Disposal
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Customers Will Pay More:● Innovation ● Miniaturization ● Ruggedization ● Availability ● Delivery
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Customers Will Pay More:● Expediting ● Flexibility ● Financing ● Advanced technology ● Arrives in perfect condition
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Customers Will Pay More:● Problems fixed quickly ● Environmentally friendly –78% Said they would pay $2,000 more for a car that gets 35 mpg
● Benefit a third party
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Customers Will Pay More:● Local Sourcing ● Brand Names ● Referral
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Customers Will Pay More:● Reduced liability ● More Fun.
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The Gradient
If all you want is . . .
Price
Overhead
If money were no object . . .
What we do is . . .
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Realize Your Profit Potential● Shop your competition ● Stop telegraphing that it’s negotiable ● Manage damaging information
“Discouraging data on that new antidepressant.”
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Realize Your Profit Potential● The Pre-emptive Strike ● Expect the Sale ● Avoid Scope Seep ● Invoice $ 0 cost items ● Negotiate terms, not price.
GUERRILLA SELLING
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Realize Your Profit Potential● Offer bonus goods or services instead ● Guarantee everything ● DOUBLE it.
Hans Winsness
Ives Mares
Runa Mares
GUERRILLA SELLING
THE GUERRILLA GROUP
Thank You!● Join my network on LinkedIn ● Friend me on Facebook ● Follow me on Twitter @OrvelRay ● [email protected]
