Chapter 11

Question 1

prices are set to represent…

Answer 1

reasonable and fair picture of the product’s value

Question 2

price is…

Answer 2

a logical part of sale. NOT the focus

Question 3

financial terms and conditions

Answer 3

discounts
credit terms
shipping costs

Question 4

quantity discount

Answer 4

encourage large purchases by passing along reduced processing cost to buyer (single order discount and cumulative discount)

Question 5

credit terms

Answer 5

most US sales made on this

give cash discounts for early payments

Question 6

FOB

Answer 6

when buyer assmes responsibility of goods and cost of shipping them

Question 7

FOB destination

Answer 7

buyer takes responsibility for goods once they reach the buyers location
- seller pays the freight

Question 8

FOB origin/factory

Answer 8

buyer takes responsibility as product leaves the sellers factory.
- buyer pays for shipping.

Question 9

FOB installed

Answer 9

responsibility doesn’t transfer until equipment is installed

Question 10

single order discount

Answer 10

discount based on one time sale volume

Question 11

cumlative discount

Answer 11

discount based on cumulative volume over set period

Question 12

buying signals

Answer 12

buyer questions
requirement statements
responses to trial closes
benefit statements
nonverbal cues

Question 13

how to successfully obtain commitment

Answer 13

positive attitude
let customer set the pace
be assertive/not aggressive
sell right item at right amount

Question 14

submissive salespeople

Answer 14

socializers
good rapport
fear rejection

Question 15

assertive salespeople

Answer 15

self confident and positive

responsive to consumer needs

Question 16

aggressive salespeople

Answer 16

control sales interaction

don’t gain commitment because they prejudge consumer needs

Question 17

direct question method

Answer 17

most straight forward & effective method.

asking for commitment without being aggressive “can i put you down for 100 pairs of the model?”

Question 18

benefit summary method

Answer 18

salesperson reminds the prospect of the agreed on benefits of the product

find consumer problems, express how your product can meet those needs and ask them if they understand this

Question 19

balance sheet method

Answer 19

helps prospects who cant make a decision (pros and cons of now vs later, yours vs competition, or buying vs not buying).

don’t want to insult intelligence

Question 20

probing method

Answer 20

uses another method to obtain commitment and when it doesn’t work, uses a series of probing questions to figure out the hesitation

ask a WHAT IF question

Question 21

alternative choice

Answer 21

limiting the umber of options they present to a buyer

Question 22

trial offer

Answer 22

“the puppy dog close” - won’t want to give it up.

shouldn’t rely on this method

Question 23

if commitment is obtained

Answer 23

no surprises
confirm the choice
get signature
show appreciation (letter/gift)
cultivate for future calls
review the actions to be taken (review what client does and what they should do)

Question 24

if commitment is not obtained

Answer 24

identify reasons for lost opportunities 
- wrong attitudes
- poor presentation
- poor habits/skills
discover the cause
- post cause analysis

Question 25

suggestions for dealing with rejection

Answer 25

maintain proper perspective
recommend other sources
good manners are important

Question 26

maintain proper perspective

Answer 26

no could mean not now

Question 27

recommending other sources and good manners could lead to…

Answer 27

future sales

Question 28

bringing the interview to a close

Answer 28

leave with clear plan for all parties

follow up and thank you