But there’s always the psychological aspect of selling.

Sales reps who are paid on volume, not on gross margin, don’t mind the idea of free, because they seem to inherently get the law of reciprocity (more articles here, here, and here on the subject). In the context of small-product sales, here’s one expert’s perspective on the power of free (video may be somewhat slow-loading, but it’s a good one at only three minutes).

The company that comes to my mind with this is Video Professor, where the company used to let you “try” their product for free, you only pay $6 for shipping and handling. Of course, you’re not really trying the product, you just bought it. Interestingly, the company only offers this via television commercials now. If you visit their website, it’s the 10-day trial concept they promote. Got to change things up from time to time, you know.

So what are your thoughts on this?

Other posts you may enjoy:

• Basic Principles for Handling Price Issues
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• 3 Categories of Sales Prospects
• Making Prospects Feel Like They Want This
• Locked In

(Side lesson: ask good questions, get thoughtful answers.)

A quick cross-section of answers from an extraordinary group of individuals follows (but read the thread to see who said what and to get everyone’s full explanations).

After reading all the replies, we thought we’d highlight the most compelling.

3 Reasons to Fire Your Customer

It’s OK to say no to a client:

1. When You Would Be Comprising Legal & Ethical Standards

Douglas Marlow said: “It’s okay to say no in a situation where you may be breaking the law, taking a bribe, paying a bribe, compromising your own morals or religious beliefs, or where it will embarrass or hurt the feelings of another.”

2. When You Would Be Compromising Quality Standards

Kelly Karius said: “When time doesn’t permit for you to do a proper job for them.” We thought this was a tremendous addition to the conversation. It was echoed by Len Mastrapa, who said: “When he/she requests from you what you know right off the bat you cannot & will not deliver…”

3. When The Deal Would Not Be Win-Win

Both Gerry Mann and Kevin Harville brought this one up. Excellent point. If you can’t look a client in the eye as a peer on a professional level, you should feel comfortable opting out, without begging for the business.

Gerry specifically said: “If the deal isn’t a win for both sides, then it’s better to say no deal and walk away.” While Kevin stated: “It is OK to say no, politely and professionally, whenever the relationship is not mutually beneficial. But it is better to look for a way to say yes that is mutually beneficial.”

The question did bring up some opinions that differed. For example, Chaitanya Kumar offered a technique that allows you to say no, without saying no: “Avoid saying NO. I don’t care what business you are in. You must say ‘What I can do is…’. If you have to go above and beyond tell them the cost of it. That means, ‘I can do it but it has a higher cost…’

And Dave Stein adds another reason to stay in - even though your instincts may tell you to say no, to fire your customer or prospect and to get out of the deal: “For example, let’s say you’re in late. You find out you’re just in there so the company can meet the requirements of having three vendors and it appears the incumbent will be selected. You still may want to stay in the deal to learn more about your other competitor–or to keep them busy so they are distracted from another deal where you are competing against them.”

In our opinion, there are plenty of times when it’s okay to say no to a client or to go as far as firing a customer or prospect. It may be an ethical crossroads, or an invitation to failure, or when the relationship is one-sided to your detriment. The takeaway for you? Be clear about what is unprofitable business for you in terms that aren’t just financial. There are relationships that can be unprofitable emotionally or ethically as well. Know your limitations to stay on track in your career.

Reasons to fire a customer? What are your rules for saying no?

Other posts you may enjoy:

• Be a Contributor, Not a Sales Rep
• 18 Questions You Must Answer to Grow Existing Business
• Basic Principles for Handling Price Issues
• 3 Categories of Sales Prospects
• Do You Know How To Separate Good Prospects From Dead Ends?

Here are a few of the responses. Comments are open - what has been the best $100 you ever spent?

1. Donuts for the guys in production - used to do this regularly and thoroughly enjoyed sharing with them the progress in sales that my team was delivering. Funny enough never had a problem getting shipments out of the door and was often alerted well in advance to do something about it if an ingredient shortage was going to cause problems. - Hamish Taylor
    
2. Throwing a beach party for a group of nurses to open the sales door, have some fun, and introduce a new product I was selling. Infusing fun and differentiating yourself is always a good idea in sales (at least that’s my personal sales style). I even wore a floppy beach hat … I looked ridiculous but I didn’t care. The customer got a kick out of it and they definitely remember me. - Tracy Price
     
3. Buying the best headset i could get so my phone calls were clear - nothing is as unprofessional as static or dropped voices/having to constantly ask someone to repeat themselves. - Kira Stone
    
4. The best $100 I ever spent is on our group admin. First, we all know that admins are the gateway to EVERYTHING! Treat them with respect and kindness and they will take care of you. That being said, you must return the favor. In NY, a Bliss gift card is gold to any woman. So a $100 gift card from Bliss, to tell our amazing group admin that I appreciated keeps the flow of business going! - Amie E. McCarthy
    
5. Audio tapes and CDs - Earl Nightingale’s “Lead the Field”, Fred Hermann’s “Keep It Simple, Salesman”, Zig Ziglar’s “Secrets of Closing Sales”. - Sam Wee
    
6. The best hundred dollars I ever spent was treating my boss (several years ago) to a round of golf at Doral Country Club (Blue Monster). I was promoted soon after. - Kevin Suarez
    
7. Several times, I have made donations of $50 to $100 to a church, or a charitable organization that I was at the time working on a proposal for. I did not make a big deal out of it, I just made out a check, or went online to make a donation. I am not sure if a few times it was just Karma, or if it was actually noticed, but pretty much every time I won the opportunity I was working on. - Frank Napolitano
    
8. For a $50 investment, I was able to take my entire sales team to an event in Boston that featured Donald Trump, Barbara Walters, Brain Tracy, Tom Hopkins etc. My teams results skyrocketed after this meeting. They felt more appreciated, developed better team chemistry and each admitted they learned a thing or two. - Eric Blumenthal
    
9. Buying my first fax machine. - Michelle Trent

What say you?
 

Other posts you may enjoy:

• Do You Know How To Separate Good Prospects From Dead Ends?

Probably not. You deal with it every day. You dream up seemingly innovative ways to sell your products or services. Your differences with competitors are clear to you.

Problem is, your customers likely don’t see it. You and your competitors are virtually identical. There’s only the slightest of superficial differentiation.

Rarely enough to justify switching. That’s why they stay with you or with them. It’s why you’re not closing even more deals.

My suggestion: push the envelope. If you can influence the fulfillment of your product (how it’s packaged, delivered, or serviced), do so radically. If you can’t influence it, change the playing field in buyers’ eyes.

Change the way your products are perceived by customers by changing how they evaluate their current service and how they approach the problems they think they’re solving with your products and services.

Focus all of your communication, from beginning to end during the sales process, on changing how your industry is seen. Re-position everything so that you are carrying the flag for the industry into the new wave of doing things.

Now, not every buyer wants to work with a revolutionary. Not everyone will want to try something new. But the newness piques curiosity initially. It gets the ball rolling. Momentum has to start somewhere.

We’ve suggested previously that you should carry a “You want this” attitude about how you sell. Go shake things up. Speak confidently about your new, innovative, cutting-edge look at the future of your business and industry, and people will begin to follow.

Other posts you may enjoy:

• Basic Principles for Handling Price Issues
• Great Sales Habits - Talk We, Not Me
• Great Sales Habits - Waking Up Early

But the reality is, we’re shortcutters in life. More and more people ignore fine details in their decision-making and go with what feels right. Sure, they’ll listen to the details, but they don’t play as much into the final decision as we all think. And honestly, who has time for details. This is a get-it-about-right world we live in. Everything is beta.

You know what? We’re secretly far more influenced by factors cited in this article than we want to admit. We are heavily influenced by people, who by shear self-belief and persona, cause us to feel “I want this, too.”

Our guidance to you as a persuader: Yes, you should strive to understand the other person’s wants and needs. And you should ask questions to get a clear picture of these things. You should show interest in the other person as an individual.

But then, frankly, your bold, confident, no-frills “you want this,” expert recommendations and guidance will win deals for you. Your lack will lose them.

Other posts you may enjoy:

• Do You Know How To Separate Good Prospects From Dead Ends?
• Think You’re Different from Your Competition? I Bet You’re Not
• 3 Categories of Sales Prospects
• Write For Us
• Are You Cohesive?

Don’t quote a price on your service until you understand the customer’s situation completely and it plays to your strengths.

Don’t quote a price on your product until/unless you know you can back it up with better service (that’s easily validated by existing customers) and with better support, and these things matter to the customer.

You want to avoid, as far as possible, the quote-and-run, show-up-and-throw-up, spray-and-pray tactics employed by, even today in 2008, most sales professionals.

Steer clear of prospects wanting immediate, up-front pricing, or find ways to screen them out earlier in the process. And sprint towards anyone wanting to honestly evaluate the strengths and advantages of similar competitors.

Other posts you may enjoy:

• Lower Price or Give It Away for Free?
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• Great Sales Habits - Talk We, Not Me
• 18 Questions You Must Answer to Grow Existing Business

Here are five specific things you can control that should dominate your mind. These aren’t my original thoughts, they are excerpted from Michael Boylan’s The Power to Get In.

1. Your confidence level in the product, service, proposal, or idea you have to offer.
Do you realize how many sales professionals still try to wing it on pure logic and product features? You’ve not only got to know your product or service cold, you’ve got to know how it specifically helps a buyer. Specifically.

Then, you’ve got to be absolutely sold, on a very personal level, that what you offer provides tremendous value–even over and above the cost of the product itself.

2. Your confidence level in yourself.
It’s a shame this one has to be listed. Any given day, any given moment, you’ve got to be able to walk in and talk with any individual with unwavering confidence in yourself. We’re not talking arrogance here, but confidence. You’ve got all the talent you need, all the knowledge and training. Now go act like it, don’ t just think it. You can be kind, caring, compassionate, friendly and understanding…and still be a competitive bulldog. You can be a “people-person” and still be someone people don’t play games with. Believe in yourself.

3. The naturalness of your approach.
Can’t overemphasize this one. Win people over. Be excited to see them. Build connections on legitimate grounds. Smile and be ready to help and serve, not sell. Adapt your approach to the personalities of the people you encounter. Be real. You control whether you’re stiff and boring, or alive and engaging. You can be scripted, or natural. You own it.

4. The level within each organization’s hierarchy at which you choose to enter.
Of course, we all say “aim high.” But really, for most salespeople out there, you simply need to aim high enough. Not every sale requires the CEO’s “buy-in” or “endorsement” to be more of a sure thing. But you need the nod of key influencers with enough clout to carry your proposal through to a “yes.” You decide who you contact first.

5. The specific strategy you develop to get in the door–and how you execute that strategy.
I’ve long felt that, yes, you need to ask the right questions in the right way to develop sales opportunities, but first, you’ve got to get the ball rolling. How you start the process determines if you can even get to the questioning/interviewing at all. You’ve got to get in front of someone first! And again, you can control this!
 

Other posts you may enjoy:

• Focus On Things You Can Control
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• Do You Know How To Separate Good Prospects From Dead Ends?

There are 18 basic questions you should answer to begin crafting your action plan to do that. We’ve listed them in this post.

Please feel free to leave your feedback or additional questions in the comments!

1. Do you and your team have regular conversations with your primary contact’s boss?
2. Do you know and occasionally speak with your primary contact’s boss’s boss?
   
3. Do you know the most influential, most outspoken users of your product or service?
4. Are they anticipating aggressive growth, moderate growth, stability or a
   decline in sales and profits in the coming year?
5. Will they have: more people doing more, fewer people doing more, or fewer people doing less, over the next 12 months?
6. What products or services could you offer that would help them more easily capitalize or be prepared for the situation over the next 12 months?
7. Is your customer fully utilizing your product or service?
8. Is there another department that could also use your product or service, or a “lite” version of it?
9. Are there companion/similar products or services that your customer is not taking advantage of at all?
10. Are there companion/similar products or services that your customer is using, but not through you?
11. Is your product presented professionally and confidently at the customer’s facility–is it clean, organized, well lit, in an intelligent location and easy to read?
12. Are customers able to contact you easily and instantly in the event of product failures based on your contact info being posted?
13. Do you proactively service or maintain the product–or would more regular preventative maintenance or replenishment be helpful?
14. Do you have an established frequency for proactive calls or visits with the customer?
15. Do you check in with all key decision-makers and influencers on arrival?
16. Do you leave easily observed notification of your next scheduled visit?
17. Do you use language that would cause decision-makers and influencers to feel confident in what you offer?
18. Do you have targeted items or categories of items to sell that would add value to what you already do for the customer?

Questions 1-3 deal with you and your people; questions 4-6 deal with your customer’s situation; 7-10 deal with your specific product or service selection; 11-13 deal with your customer’s experience with your product or service; and 14-18 deal with your customer’s service experience.

After you’ve evaluated your present position with the account, you can then target your specific products or services that will help them solve additional challenges they face as a company.

We made the full document available as a Microsoft Word file over at SalesTeamTools. Simply register for free and you’ll gain immediate access to this resource and many more.

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He tells us that companies are looking for experts to solve problems, not sales reps that close deals.

He scales down the Jim Collins thinking behind his Fast Company article, Built to Flip, by saying:

The single most lethal flaw in selling as a professional happens when the salesperson focuses on themselves rather than their customer or prospect. 

I believe a true sales professional sees their role as a consultant and coordinator. She consults with a company to diagnose their problem(s); determines if she can truly solve them; presents options for solving them; then coordinates the implementation if her solutions are selected. And the difference for the professionals is…they check in regularly to ensure the implementation is getting the desired results.

Unfortunately most sales representatives don’t work this way. But in many cases it’s because that’s not the culture of the sales organization they work for. It’s a churn-and-burn selling culture. Sell a deal, move on to the next and leave the rest of the work up to the service team. Organizations like this encourage high turnover and high customer churn. That’s why in these industries you’ll see iron-clad contracts locking customers in. But I digress.

If you personally want stronger customer relationships and a higher rate of referrals (and thus, fewer cold calls), be a contributor, not a sales rep. Check back with your customers to see how what you sold is working.

(Don’t go to the typical dictionaries to remind yourself what cohesiveness or cohesion is. Go here or here for definitions that fit our context.)

Here’s my definition: you are cohesive if you’ve got your behind-the-scenes colleagues working on your behalf. If your coworkers (sales support personnel, administrative assistants, controllers, general manager, and everyone else who can cut you slack or weigh you down) feel “stuck” to you, if you make them feel a part of your success, you build cohesion between them and you.

Far too many salespeople neglect the behind-the-scenes support personnel who can make their lives easier or harder. They forget that when they take time to win people over, they create fans who pull for their success…or who facilitate their success.

But building cohesiveness can make things so much easier and enjoyable for you. Procedures are streamlined. Details aren’t required as often to convince others to your way of thinking. Coworkers stay late or come in early.

The value of being cohesive is immeasurable. What can you do this week to build a stronger grade of “stickiness” between you and your team?

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• Do Your Prospects and Customers Like You?