Chapter 11 Flashcards
prices are set to represent…
reasonable and fair picture of the product’s value
price is…
a logical part of sale. NOT the focus
financial terms and conditions
discounts
credit terms
shipping costs
quantity discount
encourage large purchases by passing along reduced processing cost to buyer (single order discount and cumulative discount)
credit terms
most US sales made on this
give cash discounts for early payments
FOB
when buyer assmes responsibility of goods and cost of shipping them
FOB destination
buyer takes responsibility for goods once they reach the buyers location
- seller pays the freight
FOB origin/factory
buyer takes responsibility as product leaves the sellers factory.
- buyer pays for shipping.
FOB installed
responsibility doesn’t transfer until equipment is installed
single order discount
discount based on one time sale volume
cumlative discount
discount based on cumulative volume over set period
buying signals
buyer questions requirement statements responses to trial closes benefit statements nonverbal cues
how to successfully obtain commitment
positive attitude
let customer set the pace
be assertive/not aggressive
sell right item at right amount
submissive salespeople
socializers
good rapport
fear rejection
assertive salespeople
self confident and positive
responsive to consumer needs
aggressive salespeople
control sales interaction
don’t gain commitment because they prejudge consumer needs
direct question method
most straight forward & effective method.
asking for commitment without being aggressive “can i put you down for 100 pairs of the model?”
benefit summary method
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
balance sheet method
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
probing method
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
alternative choice
limiting the umber of options they present to a buyer
trial offer
“the puppy dog close” - won’t want to give it up.
shouldn’t rely on this method
if commitment is obtained
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)
if commitment is not obtained
identify reasons for lost opportunities - wrong attitudes - poor presentation - poor habits/skills discover the cause - post cause analysis
