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No 58                                                                               May 2005

The phone is one of the pieces of communication equipment that we take totally for granted and yet it is our most powerful selling tool that we have. Successful sales people know it's not what you're saying but how you say it.

You say that you don't sell anything. With that I beg to differ. If you are in business or carrying out any activity, you are indeed selling. It may not be a widget but it is surely yourself, your service or even your beliefs. Here are a few tips to help you maximise your phone potential:

1. Get to the point fast. Set your objectives before you call and present them in a timely manner that will maintain your prospect's attention.
2. Use your name or your company's name frequently. By familiarising prospects with your service or product you gain customer confidence and establish fast rapport.
3. Don't waste time! Research and qualify prospective customers to discover if your product or service meets their needs and budget. Don't waste their time or your own.
4. Acknowledge complaints. Empathise with customers who have problems with your company. An irate customer can be calmed easily when you acknowledge his/her complaint and work toward a solution. A customer who has their complaint dealt with to their satisfaction becomes your salesperson within their network.
5. Avoid sounding rehearsed. A spontaneous sounding voice conveys to the prospect that you care about him/her in particular.
6. Preplan. Have a list prepared before each call with the information needed for the sell. This equips you to answer questions promptly, leaving additional time to stress valuable points.
7. Use testimonials to support your claims. Testimonials give valid support to what you are saying and cast aside doubts a customer might have. If you are providing a service, it may be useful to have a list of satisfied customers who are prepared to speak on your behalf.
8. Ask questions. This places you in control of the conversation. By directing the conversation you are able to communicate more effectively and set the prospective customer at ease.
9. Record your presentation - you might get only one side of the conversation but you can improve your presentation immeasurably by reviewing your approach. This aids you in recognising weak points in your conversations and which areas of your business you should emphasise.
10. Start with a smile. We are told that a "smile on the outside brings joy to the inside!" So make certain you always begin your conversation with a smile. A smile adds a pleasant tone to your voice that consumers can hear and feel. This conveys a sense of warmth and genuineness that consumers find hard to resist. Thus, with a smile, you're not only adding a natural boost to your mood but you're eliminating phone barriers as well.

Pricing means more than how much you charge. Smart customers look beyond pricing when considering a purchase. Price is important but so are delivery times, guarantees, customer support and quality to name a few.

Small and home based businesses can - in many cases - do a better job than "big businesses" in some of these areas. You should evaluate your pricing based on this fact. You're small and don't have the inertia or paperwork logjams of a bigger business. You're quick on your feet and can change direction easily and quickly.

You cannot determine prices based only on costs and desired profit margins. First step is to do a little research to get some "real world" pricing guidelines. You don't need a high priced marketing firm to help. Remember, you know your business better than any consultant. Here are some marketing research tips:

1. Contact your competitors. Call, like any customer, and ask for pricing information. Quick and easy.
2. Find out about competitor's costs. Use trade groups, suppliers' sales reps, former employees.
3. Trade associations are a great source of pricing data. Use the library and the Internet to find these appropriate trade associations.
4. Use the Internet for research! This can be your most valuable research tool. Visit competitors websites; trade associations; newsgroups. Search the Internet using any of the major search engines.
5. Review catalogues that carry your product(s) or services.
6. With this information and your own costs you can determine where you set your own pricing and still be competitive.
7. Don't sell yourself short. You are not he cheep alternative.

Price carefully. You might not be able to compete on price only but remember your advantages as a small business and emphasise your "quick service" or "outstanding customer service." You may be able to price higher and still win customers within your market niche.

Be careful about lowering prices just to meet or beat the competition. There are, however, some good reasons to lower prices:

1. A strategy to increase market share.
2. Promote a new product or service.
3. Attract attention to a over stocked product.
4. Encourage high volume purchases.
5. Increase seasonal business (Christmas sale, etc)

Sometimes you have to increase prices in order to cover, for example, increased cost of materials, labour, etc. When an increase is necessary ease the pain for your customers by considering the following:

1. Notify your existing customers of the increase and, if possible, give them an opportunity to purchase at the existing prices.
2. Try and advertise the increase along with "new and improved" products or services.
3. Give the customer something in return for the increased costs. For example, free shipping with orders above a certain value.
4. If possible, delay the increase for existing customers.

The biggest mistake small businesses make concerning pricing is not reassessing pricing on a regular basis. The marketplace is constantly changing making it mandatory you keep a close watch on your pricing. Raise or lower prices as necessary keeping the above suggestions in mind.

© 2003 The Nework Centre   |   email neworknz@yahoo.co.nz

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