Chapter
12
Some questions answered in
Chapter 12
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
12 - 1
How much emphasis should be placed on closing the sale?
Why is obtaining commitment important?
When is the best time to obtain commitment?
What methods of securing commitment are appropriate for
developing partnerships?
How should pricing be presented?
What should a salesperson do when the prospect says yes?
When the prospect says no?
What causes difficulties in obtaining commitment, and how
can these issues be overcome?
Chapter
12
Closing!
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
What’s the first
thing that comes to
your mind when
you hear the word
closing?
Can you think of a
manipulative, tacky,
or devious attempt a
salesperson used on
you?
12 - 2
Chapter
12
Always Be Closing!
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
12 - 3
The ABC’s of closing
are Always Be Closing.
This makes good sense
when selling in a
business-to-business
context.
1. True
2. False
Chapter
12
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
12 - 4
Examples of commitments
salespeople may attempt to obtain
From Exhibit 12.1
To have the prospect agree to come to the local branch
sometime during the next two weeks for a hands-on
demonstration of the copier.
To have the buyer agree to pass my information along to
the buying committee with her/his endorsement of my
proposal.
To set up another appointment for one week from now,
at which time the buyer will allow me to do a complete
survey of his/her printing needs.
To have the prospect sign an order for 100 pair of Levi’s
jeans.
To schedule a co-op newspaper advertising program to be
implemented in the next month.
Chapter
12
Solving real problems
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
Name some goods or
services that you really
needed to purchase.
When the buyer
says no
Terminology
Buyers do have real
needs.
Thus, the goal should be
to help buyers solve real
problems, rather than
just to get the business.
12 - 5
Chapter
12
Is the customer ready to buy?
Questions
answered
What is
closing?
When
to close
Which of the following customer responses would be the
best indication the customer is ready to purchase?
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
12 - 6
1. “Is this available in red?”
2. “Wouldn’t this take a long time
to get delivered?”
3. The customer picks up a
product brochure and places it
in her purse.
4. “Could I have the floor model?”
5. The customer begins to
reexamine the product.
Chapter
12
When is the right time
to seek commitment?
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
There is no one right time, but
Watch for verbal indicators
Prospect agrees to value of benefit
Prospect accepts response to objection
Prolonged silence
Positive verbal indication (e.g., “Sounds
good,” “How should I pay?,” etc.)
Watch for nonverbal indicators
Reexamining product
Starting to figure with pencil or calculator
Nodding the head, leaning forward, etc
12 - 7
Chapter
12
Effective closing
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
What would you say to a friend to
get them to agree to go on a Spring
Break trip using each method:
Direct request
“Can I put you down for...?”
Benefit summary
“You wanted... We’ve seen that...”
Balance sheet
“Let’s see if we can summarize…”
Probing
“May I ask...?”
12 - 8
Chapter
12
Effective closing
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
Did any of those methods appear
devious or manipulative?
What method(s) do you prefer
salespeople use with you?
12 - 9
Chapter
12
Traditional closing methods
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
The real estate agent told the
prospective home buyers, “You seem
to really like that last house we
looked at.” She takes out a contract
and says, “Let’s go ahead and fill out
the paperwork. How much do want
to offer on the house?”
The real estate agent is using which
closing method?
1. Emotional
2. Minor point
3. Direct action
4. Standing-room only
5. Assumptive
12 - 10
Chapter
12
Traditional closing methods:
minor point close
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
12 - 11
From Exhibit 12.3
The seller assumes that it is easier to get
the prospect to decide on a very trivial
point than on the whole proposition:
“What color do you like, blue or red?” If
the prospect makes the minor decision,
the seller assumes the sale is made and
begins writing up the order.
This can upset a prospect who feels that
s/he is being manipulated. No one wants
to feel that they have been tricked into
making a commitment. Even
unsophisticated buyers easily spot this
technique.
Chapter
12
Traditional closing methods:
continuous yes close
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
12 - 12
From Exhibit 12.3
The seller, throughout the presentation,
constantly asks questions for which the
prospect most logically would answer yes. By
the end of the discussion, the buyer is so
accustomed to saying yes that when the order is
requested, the natural response is yes.
This method is based on self-perception theory.
As the presentation progresses, the buyer
begins to perceive him/herself as being
“agreeable.” At the close, the buyer wants to
maintain this self-image and almost
unthinkingly says yes. Use of this method can
destroy long-term relationships if the buyer
later feels manipulated.
Chapter
12
Traditional closing methods:
assumptive close
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
From Exhibit 12.3
The seller, without asking for the order,
simply begins to write it up. A variation
is to fill out the order form as the
prospect answers questions.
This does not even give the buyer the
courtesy of agreeing. It can be perceived
as being very pushy and manipulative.
12 - 13
Chapter
12
Traditional closing methods:
standing room only close
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
12 - 14
From Exhibit 12.3
The seller attempts to obtain
commitment by describing the negative
consequences of waiting. For example,
the seller may state, “If you can’t decide
now, I’ll have to offer it to another
customer.”
This method can be effective if the
statement is true. However, if the
prospect really does need to act quickly,
this should probably be discussed
earlier in the presentation. An earlier
discussion would tend to reduce possible
mistrust and feelings of being pushed
without apparent necessity.
Chapter
12
Traditional closing methods:
benefit-in-reserve close
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
12 - 15
From Exhibit 12.3
First the seller attempts to obtain commitment
by another method. If unsuccessful, the seller
says, “Oh, I forgot to tell you that if you order
today I can offer you an additional 5 percent for
your trade-in.”
Although this method can be effective, it can
also backfire easily. The buyer tends to think,
“If I had agreed to your first attempt to obtain
commitment, I would not have learned about
this new enticement. What else do you have up
your sleeves? If I wait longer, how much better
will your offer be?” Use of this technique can
also cause the buyer to seek additional
concessions in every future sales attempt.
Chapter
12
Traditional closing methods:
emotional close
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
From Exhibit 12.3
In this technique, the seller appeals to the
buyer’s emotions to close the sale. For
example, the seller may say, “This really is
a good deal. To be honest with you, I
desperately need to secure an order today. As
you know, I work on a straight commission
basis. My wife is going to have surgery next
week, and our insurance just won’t cover…”
Many obvious problems arise with this
method. It is an attempt to move away
from focusing on the prospect’s needs to
focusing entirely on your own personal
needs. It does not develop trust or
respect.
12 - 16
Chapter
12
How selling style relates to closing
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
Aggressive selling style
Overwhelms the customer
Responds to objections without
attempting to understand them.
When the buyer
says no
Terminology
Submissive selling style
Assume customers will buy
when ready.
Assertive selling style
Respond to objections, leading to
a somewhat automatic close.
Adapted from Exhibit 12.2
12 - 17
Chapter
12
I want time to think it over
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
You are selling bar-coding
equipment to a company.
After completing your
presentation, the buyer
says to you, “What you say
sounds interesting, but I
want some time to think it
over.”
Write a good response
that you could use with
this buyer.
12 - 18
Chapter
12
Effective closing
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
12 - 19
What do you do if the buyer says yes?
Go over information the customer
will need to fully enjoy the benefits
of the product.
Get the endorsement on the
agreement.
Show appreciation. If it was the
first order, or a large one, send a
thank you letter.
Follow up. Make sure the order
was delivered, and that the
customer understands how to use
the product.
Chapter
12
Closing terms
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
12 - 20
A customer orders 20 cases listed at $100 per case.
Customers who order more than 16 cases receive a
15% quantity discount.
Terms are 2/10, n30.
The customer pays five days after getting the invoice.
How much did the customer pay?
1. $1700
2. $1666
3. $1660
4. $1530
5. Impossible to tell
Chapter
12
Effective closing
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Have you ever told a salesperson no?
Were you trying to be mean?
Did you do it because you didn’t
like the salesperson?
Terminology
So what do you do if the buyer says
no?
12 - 21
Chapter
12
Any questions about the terminology?
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
12 - 22
Aggressive
Assertive
Balance sheet method
Benefit summary method
Buyer’s remorse
Buying signals
Cash discount
Closing
Closing cues
Cumulative discount
Direct request method
Follow-up
Free on board (FOB)
Postpurchase dissonance
Probing method
Requirements
Submissive
Trial close
Trial order
Chapter
12
Questions
answered
What is
closing?
When
to close
Closing
methods
When the buyer
says yes
When the buyer
says no
Terminology
12 - 23