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I began my career in sales in 1968. My company referred to its sales force as a technical sales force meaning, I guess, that we sold a very complicated product and service. It was obvious that to sell something technical one needed an engineer to do the selling. My division director told me that since I was an engineer-with sort of a personality-that I was ideal for a selling position. He said to me, "You could go out and talk to a customer and the customer might like you, because you aren't boring. Because you aren't boring, the customer might even listen to you." I was really impressed with me; I told him, "Thanks." He blessed me and said, "Go forth and meet or exceed quota." I said, "I will." He said, "Bill, you have a great attitude." That was the sum total of my sales training.
After six weeks, my supervisor called me in. He was a great guy-not an engineer, but a very good and perceptive boss. He wanted to know how things were going in my territory. I told him things were great. He smiled at me and told me that he was there if I needed anything.
After six more weeks, he again called me in and asked about my territory and how things were going. This time he mentioned something about being concerned that I had not made quota for three months. Looking back on my sales training, I remembered I was to, "Go forth and meet or exceed quota." I instantly became depressed. I had failed.
He asked me what was wrong. I told him our prices were too high and there was no way I could compete in the territory. We were higher than the competition, and I just didn't know what I was going to do. He asked how I determined that our price was the problem. I responded that my customers were saying that.
He asked how I approached the customer. I gave him my standard spiel. "My name is Bill Nunnery and I represent XYZ Company. I would like to work with you on your new project. I believe my company can save you money." He thought for a minute and asked how I planned to save them money. Well, I told him by the price of our product of course, but we were always more expensive than the competition. He wanted to know when price was first mentioned. I told him when the customer asked how much our product cost. He asked me what the customers wanted and I told him equipment. He asked me how they would use the equipment. I told him to build their stuff. He wanted to know what stuff. I said, "Their stuff that they sell."
He looked at me and said, "Bill, you set up the money-saving expectation for the customer. Then you focused on price. You knew you were more costly and could not fulfill that savings expectation. Price became an issue, because you made it one."
He told me that money saving was a great lead in, but I needed to know why the customer wanted to buy. I thought he wanted me to become a mind reader and told him so. He said, "You are absolutely right. I want you out there reading the customers' minds, because that is where the buying takes place."
My wife and I had recently bought a home, and he asked me why we bought the one we did. I told him it was all we could afford. After further cross-examination, I admitted that we could have afforded the other two we looked at, but we wanted this one. He smiled and said, "Now we are getting somewhere."
At his urging, I came up with several reasons why we wanted this home over the other two. The list of reasons included proximity to school, corner lot, fenced in backyard, central air, great landscaping, and so on. He asked if the list of items were for this home only. I told him that the list was for the home I bought. The other two did not have all these things. He asked how we came up with this list. I told him my wife and I had discussed this thoroughly. He said, "What about the realtor?" I told him we did discuss this with the realtor. He wanted to know how this came up in the conversation. I told him the realtor asked what we were looking for.
He asked about price. I told him my home was in the middle. He wanted to know if I had asked for a price cut. I told him that I asked, but was told that based on the list of features and the location that the price could not be reduced. "What did you do?" he asked. "I bought the house," I replied.
Bill, the realtor found out what you wanted from your list of wants, needs, and expectations. While price was a concern, it was not the determining factor since you could have afforded the other homes. This was an issue of seeing value in certain items that this home possessed relative to the others. What about saving money?" He sat back and smiled at me. He then went into a litany of costs savings associated with my list of wants such as savings in gasoline, the wear and tear on our car because the kids could walk to school, and the landscaping I would not have to do.
Bill, the realtor asked what you wanted and found three options for you based on those desires. Then, he mentioned price. He showed you value for your selection based on those desires. He justified the asking price, and you bought. Why don't you try this on your customers and see what happens."
I did what my division director suggested and began this approach. However, I kept a list of the sales I made and why the customers bought from me. I also kept a list of the sales I lost and why those customers didn't buy from me. I was going to go in there and show the director that indeed price was important. When I reviewed the results, I found all of my sales won were because of something other than price. Of my lost sales, less than one percent were because of price. I was staggered. From that point on, I never worried about price. I never mentioned it until I found out want kind of house my customer wanted.
Be a mind reader.
Read the customer's mind.
That is where the buying takes place.
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