I was asked by my friend Charlie Green representing The Customer Collective to contribute to an e-book that was just published. I recommend that you download it, read it and use it.

Selling Through A Slump: An Industry-by-Industry Playbook

A Guide by Salespeople for Salespeople on How to Sell Your Way to Recovery

Download this Free eBook

Selling in a recession is tough. And simply doing more of the same is not the way to survive, much less thrive, in a recession. There are important dos and don’ts in times like these. This eBook is your industry-specific roadmap out of the economic slump.

Selling through a Slump: An Industry-by-Industry Playbook brings together sales strategies and best practices from 11 top sales experts from 11 distinct vertical market sectors, ranging from retail to health care to telecom—because one size doesn’t always fit all. The practical tips and experience-based wisdom here aren’t just limited to any single industry, though. Regardless of your market sector, you’re bound to find value in this arsenal of great sales ideas.

Get access to exclusive tips on how to sell in a recessionary market, from renowned
sales experts like Jill Konrath, Charles Green, and Dave Stein. We know you’ve
got questions—this eBook was created to give you answers.

Click here for valuable sales strategies from experts in every industry:

Charles Green, Founder and CEO, Trusted Advisor Associates Selling for Accountants and Consultants

Mike Wise, VP, Insurance Technologies, IdeaStar Incorporated Selling for Insurance Agent

John Caddell, Caddell Insight Group Selling in Telecommunications Markets

Skip Anderson, Founder, Selling to Consumers Sales Training Selling for Retailers

Mike Kujawski, Founder, Centre of Excellence for Public Sector Marketing Selling to Public Sector Clients

Matt Homann, Founder, LexThink LLC Selling for Lawyers

Anne Miller, Founder, Chiron Associates Selling Media

Dave Brock, President and CEO, Partners in EXCELLENCE Selling to Manufacturers

Jill Konrath, Author, Selling to Big Companies Selling in Services

Anneke Seley, Founder and CEO, PhoneWorks LLC Selling in Health Care

Click Here to Download

(A simple registration is required)

Brought to you by The Customer Collective and Oracle CRM. Welcome to the conversation.

ESR’s Sales Training Vendor Guide: Third Edition was published this morning.

The Guide analyzes, compares, and contrasts 23 leading sales training providers across many areas including:

• Solutions Range
• Range of Target Companies
• Range of Target Audiences
• Range of Training Programs
• Adaptability
• Range of Instructional Aids & Tools
• Quality of Instructional Design
• Measurement Programs
• Post-training Reinforcement
• Supporting Technology
• Yield Growth
• Return-On-Training (ROT)
• Utilization among sales teams
• Ease of Learning/Adoption

The Guide weighs in at more than 150 pages with 40 graphs and charts.

Based upon pre-publication sales, I believe this edition of the Guide is going to be the most widely appreciated and used to date.

You can learn more and order here.

With the assistance of The TAS Group, ESR recently surveyed nearly 400 users of the following technologies to determine the effects that these new technologies in helping them win B2B sales opportunities:

• Jigsaw;
• LinkedIn;
• Twitter;
• Plaxo;
• Facebook;
• Hoover’s or OneSource.

The pace of technology development today is dizzying. It seems as though a new sales-related technology appears daily. The question is, do these new technologies produce additional sales or just consume valuable selling time and distract sales leaders and their teams from focusing on what can really improve performance?

A few specifics from the survey:

1. 35% of respondents say that LinkedIn has helped them win sometimes or often;
2. 69% of respondents say they don’t use Twitter. Of those that douse the tool, 20% say it has not helped them win;
3. 8% of respondents say that Facebook has helped them win sometimes or often.

Buy the 10-page ESR/Insight™ Brief, The New Social Media: Do They Enable B2B Selling? now.

Photo credit: © altiso – Fotolia.com

A while back messaging and branding expert Maureen Blandford asked me to lend an endorsement to what was then her new book, Branding Doesn’t Work in Business to Business. I had not met Maureen.  I was skeptical. By the time I got through with the book, I was a Maureen Blandford fan.  Why?  Maureen provides the quality of insight and advice that is too rare these days—she’s passionate and completely devoid of B.S.  See for yourself:

Dave Stein: You’ve been pretty strident on Twitter about companies not getting the messaging thing right these days. What’s your perspective on what they’re doing wrong?

Maureen Blandford: It seems the sales thought leadership community is pretty aligned that selling collaboratively is where sellers need to be. I’m a huge fan of sellers asking great questions, building relationships, uncovering pain AND holding their opinions and solutions until they’ve first uncovered and quantified pain.

But HQ folks are busy flooding the marketplace with a lot of noise. Corporate marketers have a tough time shaking the Brand—the Dog & Pony Show sell. They’re creating boatloads of copy for upfront in the sales cycle when prospects are least likely to be paying attention. They spend days talking about tactic aesthetics (color, shape, size, etc) that are meaningless to our prospects. Our prospects want a solution that can solve their pain for less than the pain is costing. And if they can work with someone they like and possibly even trust to implement that solution – all the better.

Marketing and sales support tools essentially need to be the feet on the street in place of salespeople. Our sales folks can’t be everywhere at once. So we really need our tangible tools to mimic what we want our sellers doing: Be cool, confident, savvy. Ask great questions. Don’t assume you know all the answers. Intrigue the prospect enough to want to talk to a rep. Think: questions, bullet points, phrases.

DS: Is this any different from how it’s been in the past?

MB: Here’s the thing. We’ve been selling the same way for, what,  thousands of years, right?  Show your product, do a song and dance, negotiate price, close or lose the deal. Classic dog and pony show. That type of selling is in our DNA. Relationship Selling has only really been around for probably between 15 & 20 years. So, even though we can all be fans of Relationship Selling, it’s still really hard for salespeople to make that transition.  If you get Jill Konrath’s newsletter, she just wrote about some classic mistakes she’s made just recently. And she’s a fabulous seller. So, again, it’s tough to get this great model right.

But Marketing hasn’t even begun to make this transition. They’re still in Dog & Pony Show + Branding glory days. Marketing must make the transition to supporting how we sell today. The problem with that for marketers is (sorry, marketers) they’ve always been more concerned about shooting that next commercial, or winning that next ad club award, than they have been about how to help sales move the ball down the field. It’s a new day. Sales organizations are the stars now and marketers need to be happy and find the honor in being the back stage crew.

DS: Can you give us an example of a company that recently made a change in this regard, what the symptoms were and how they are faring now?

MB: Wow. I wish I could. Most of the orgs that are really successful at this fly under the radar. (I guess they value success over a globally-recognized brand. Huh.) Remember that there are thousands of B2B companies in the US alone. The big ones (IBM, Microsoft) get a lot of attention. But there are so many good companies out there, with salespeople generating revenue that many of us will never know about.

The way I see B2Bs today is in a kind of suspended animation. Our sales organizations need help making the transition fully to the consultative sale model. But where’s the budget, Dave, for on-going, sustainable training, mentoring, and support? (I can see you shaking your head, Dave…) Those budgets have vanished. Meanwhile, we only need to read the national news to understand the silly ways corporate is spending the revenue that the sales folks generate.

DS: Other than what you just described, how would a sales leader know that it’s their messaging that may be part of a sales problem?

MB: Most salespeople and sales leadership have given up on getting help with bad messaging. A colleague of mine, a VP of sales at a very successful biotech company, was at a product launch for a truly breakthrough, efficacious cancer drug targeted toward premier oncologists around the country. The marketing folks modeled their product launch campaign after, get this, a popular laundry detergent campaign. Uh huh. You read that right. Cancer drug, laundry detergent. Sheesh.

If I’m ever strident (!) about these issues, it’s because it’s unbelievable to me what’s going on in B2Bs. How long are we going to starve our salesforces of the training and support they need when their marketing teams (most of whom have never carried a bag) have the keys to extraordinary budgets but are quite clueless about the tactics necessary to support a consultative sale.

DS: Without asking you to give the entire content of your book away, could you enlighten us on why branding doesn’t work in B2B?

MB: Branding is a great methodology for consumer marketing. The consumer buying process, however, is the polar opposite of the B2B buying process for big deals. Universities don’t teach the difference between marketing for Consumer v. marketing for B2B. It doesn’t make sense to take the methodology for one and try to apply it to a completely different model.

Great B2B marketers need to think much less about what color does X need to be? And more about the revenue targets, prospect and customer buying processes, how sales needs to sell to match the buying process, who influences the prospects, and what are the best support tools to land new accounts and grow existing accounts.

Trust. Confidence. Relationships. Deals. Branding can’t get us there. But our people can.

1. Please join me on April 8th when I present Nailing Your Sales Training—An Independent Expert’s View a complimentary webinar sponsored by The TAS Group.
2. On Tuesday, April 14, I’ll be joining a stellar panel of sales experts for The Top Sales Experts Kickoff Event: The Future of Professional Selling.

Photo credit: © Beboy – Fotolia.com

I’ve been involved in a number of posts on The Customer Collective where there have been some personal attacks by a few social media zealots against some of us that have a more balanced view of the capabilities and tools required for effective B2B selling going forward in this new(est) economy.   Jonathan Farrington¹, Dave Brock, Niall Devitt, and I have a somewhat similar opinion of the role of social media.  (These are smart guys.  I recommend you subscribe to their blogs.)

The four of us had an email exchange today after some comments to one of Jonathan’s posts.  The comments sounded like sweeping indictments of “old school,” and the four of us as well.

What’s really worth considering, as Dave Brock pointed out in the email thread, is that people are attacking the four of us for being old school, when we’re all entrenched in the new social media: blogs, Twitter, Facebook, LinkedIn, Plaxo, virtual meetings, and much of the rest.  Are they attacking our not being immersed in the new social media, which you would think might be their mission? No.  They’re attacking us for the opinions we voice about the social media from within the social media environment.² We’re not outside observers.

Here is an edited slice of my thoughts on the subject of social media zealotry and “old school” from that thread:

ESR has studied the issue of inter-generational selling. It’s a big challenge for companies and for consultants and trainers. It will become even more challenging. How do we “experts” stay relevant to younger salespeople, managers and CEOs is one question. The bigger question is how will younger salespeople become relevant to serious corporate buyers?

Here are a few more questions: The Millennials (Y’ers) show considerably less willingness to follow convention (read process) than those who are older—a generalization, I admit. Salespeople in general have less discipline and process-orientation than professionals, which compounds the problem. B2B customer buying patterns and practices are getting tougher, requiring more discipline, process, strategy, etc. on the part of those who sell to them. So how will the Millennials, many of whom are rejecting much of what has come before, wind up selling though this capability gap? Answer: Many will not! Companies will have to tighten up their profile for B2B salespeople and a boatload of soft skills with little else won’t be a desired characteristic—not in the kind of serious B2B selling that drives the economy. So the pure social media types will have that to play with that in their spare time, or lock on to a subset of buyers in corporations who may be open to that stuff.

A client of ours went into a very tough negotiation with a well-known company yesterday.  Big, big bucks! They were meeting with a senior strategic procurement executive. Facebook? Twitter? Blogs? Virtual or online anything?  No. Weeks of research, customer profiling, political positioning, testing approaches, strategizing, number crunching, competitive positioning, collaborative brainstorming and one very, very important face-to-face meeting. Is that model going to change in the next few years? Sure, in some sales environments, but not in mission critical areas of most companies over $200 million in sales.

With all this being said, with respect to the business side of my life, I’ll listen to and consider anyone’s opinion on any subject, so long as they can express their opinion clearly and succinctly and don’t resort to manipulation, games, or personal attacks.  I believe passion is good.  So is being a zealot, if your goal is benevolent as well as your means of getting there.  I confess:  I’m a sales effectiveness zealot.

Notes:

1. Jonathan Farrington is hosting the kick-off event for the Top Sales Experts Roundtable:  The Future of Professional Selling on Tuesday, April 14th, 2009 at 1.00 pm EDT.  I’ll be a panel member.  With Jonathan in charge, it’ll be worth your investment.
2. ESR will be publishing the findings from our recent survey on the new social media’s role in B2B selling next week.  If you’d like to be notified of the publication of this report, subscribe to this blog or the ESR/Alert^TM.

Photo credit: © Carsten Reisinger – Fotolia.com

After seven days on a bike tour through Northern Thailand, my wife and I wound up at the Anantara Resort at the Golden Triangle.  She was ready to sit by the pool for the day.  I was ready for one more ride.  Last day.  Only 25 miles.

I got used to the left-side-of-the-road traffic the very first day.  No problem.  I lived in England.  Drove quite a bit there. Also in Australia, Ireland, Jamaica, and other places as well.

Most days we biked 30 miles or so.  Two days we biked 70.  That’s a lot on a mountain bike.  I was strong and confident.

I was uncharacteristically late getting myself ready for the ride.  I missed the briefing.  No worries, the guide told me.  Better hurry down the hill, he said.  Catch the rest of the group.

I jumped on the Trek and tore downhill.  I couldn’t see the group down the driveway (opens up the location in Google Earth).  I pedaled faster.  Two-thirds of the way down there was a sharp right turn.  I figured the group was just around the bend.  As I got closer a guy on a moped came around the corner.  I was doing about 25.  I moved to the right.  He moved to the left.  I moved further to the right.  He moved further to the left.  Just before we crashed I remember the guide telling us on that first day, not to get hurt to the point you’d need a blood transfusion.  This is Thailand, he said.  I remembered that as I was flying over the guy and his moped.

Somehow I wound up with nothing more than a scratch on my right elbow and one on my knee.  I still can’t imagine how.  The guide, who had been following me in the van was astounded that I was OK.  I was as well.  I asked for a new wheel.  Done.  The guy on the moped was fine.  His moped wasn’t.  Employee of the hotel.  Don’t worry, sir, he said.  Within a minute I was on the bike again, catching up to the group, staying diligently on the left side of the road.  In fact, locked on the left side of the road.

Breaking a habit is like that.  Everything is fine.  Feeling comfortable.  Maybe you even get a bit complacent.  Then an interrupt resets the circuits in your brain and you react.  Not as you learned you should. But as you used to.

New times call for new approaches and new habits.  And practice and discipline so they stick.

ESR has a unique perspective on sales performance improvement. We don’t deliver sales training or sales consulting. We’re sales training industry observers, analysts, researchers and advisors to our clients on what works in sales effectiveness and training.

Here’s what’s been going on at ESR:

• A large client in the financial services sector is working very hard to keep their sales opportunities from coming down to price.  That tendency is considerably worse right now than it’s been in previous years.  They have superior service, a stellar reputation, a world-class team, enviable financial viability, and other significant customer-focused advantages. But in many situations, it’s a challenge to get the customer to acknowledge the direct link from all those capabilities to measurable business value for them.  The client is becoming considerably better a competing, employing advanced selling skills, strategies and tactics for overcoming price disadvantage, when it exists.  Even though demand is up, commoditization is the biggest challenge.  All in all, a challenging year.  I believe they’ll get through this pretty well, with everything considered.
• A smaller client is facing other challenges.  They are doing well at demand creation.  A strong marketing function is serving the sales team well.  However, they’re facing the all-too-common 80/20 situation.  The 20% of the reps that are bringing in the deals are top quality.  The company has to make a move to redeploy the reps who can’t be trained and coached into a higher level of sales productivity.  Also, the company is relatively process deficient.  They possess a single, high-level Powerpoint slide that represents their selling process, but it is in no way sufficient to drive consistent performance across an entire sales team.  The good news is that a strong management team is determined to overcome the challenges they have.  We’re working with the CEO who will be driving the transition to a more effective sales capability.  They aren’t looking for shortcuts.
• One Fortune 500 company is coaching us through creation of a collaborative proposal for ESR to perform an assessment of their global sales approach and capabilities.  That will result in an RFP and a vendor evaluation and selection process.  They need to transition from the commodity approach they employ now to a more collaborative and consultative relationships with customers.  They are seeking a long-term sales training/consulting partner.  We are delighted that they are taking a strategic approach to sales effectiveness. They aren’t looking for shortcuts either.
• Another Fortune 25 is in an enviable position with regard to the stimulus package and Obama’s strong energy initiatives.  They want to make the most out of this situation.  We’re providing guidance to them on the right approach for re-engineering their sales processes as well as in selecting a training partner.  They’ll only have one chance to get this right, and they know it.  No shortcuts here either.
• ESR is working with a leading sales training company, surveying the effectiveness of social media in B2B selling.  I’ll provide a link to the short survey soon.
• ESR has been investigating and evaluating the use of virtual worlds—mainly Second Life—for training and strategic account management among some very large corporations.  Anders Gronstedt is the expert in this area when applied to sales effectiveness and training.  We’ll be reporting on Second Life in March.
• Having suffered through a number of delays, ESR’s Sales Training Vendor Guide, Third Edition will be published.  Right now, I’m the bottleneck.
• Within a week ESR will be publishing a research update on Sales 2.0.  I’ve been writing about this subject a lot on this blog.  I’m very concerned about all the hype around Sales 2.0 and that it is distracting many companies from doing the right things to improve sales effectiveness.  Al Case, our Principal Analyst, performed the research and is authoring the reports.  I’m certain they’ll be enlightening because we’re unbiased, objective and don’t have any Sales 2.0 products or services to sell you.
• We’re working with a few trainers looking to sell or license their IP.  At the same time we are in discussions with several entrepreneurs looking to invest, in one form or another, in sales training IP.  Lots of phone calls and a bit of match making.
• We’ve got a number of events coming up:
  • FranklinCovey Sales Performance Group — Wed, March 11, 1:00 pm ET — Strategies For Getting Your Customers Through the Financial Crisis A webinar.
  • The TAS Group — April 8th — Time and subject to be announced for this webinar.
  • Callidus Software — June 26 — Sales 2.0: How to Realize the Full Potential Value – A webinar.
  • Boston Conferencing — July 30 — Hiring Salesreps and Managers That Get The Job Done A paid webinar.
  • We’re presenting at ASTD’s ICE conference May 31 to June 3: How to Measure Sales Performance Improvement
  • I’ll be keynoting at SMT’s annual conference October 14-16
  • Assorted presentations at different internal company events…
• Lots more going on, including a new ESR website, new value for our subscribers, and a few new, exciting initiatives.

We at ESR are fortunate, at least for the moment.  We see opportunity.  Our clients need our guidance.  So long was we can directly contribute to them getting through these tough economic times, they’ll be OK and therefore we will as well.

Photo credit: © Stephen Coburn – Fotolia.com

Years ago I was based in Europe, opening up operations there for Datalogix International, an ERP software company.  Datalogix “wound up” in Europe after selling a large deal to a Boston-based adhesives company, Bostik.  Bostik came to us with a problem: the were being sold by their parent company, Black & Decker, and Bostik had to get off B&D’s mainframe within five months.  Bostik had a number of locations, including several in the U.K.  They were being acquired by Total Chemie (pronounced toe-TAL Shem-EE), the chemical division of the very large French multinational petrochemical company.  Talk about a compelling event!  Bostik had no choice but to invest in their own system.  There was a need, a budget, a timeframe and we were talking to the key decision makers in the company.

Greg Taylor was the salesrep.  He, along with VP of sales Steve Andersen, did a fabulous job.  The deal came in at $1.9 million, which was the largest deal for Datalogix up until that time.  We took a customer-focused, proactive approach.  I was VP of Operations at the time, and I drew up a plan to commence support operations by moving several people to the U.K., and opening up an office there.    Bostik felt very comfortable with it and that was a key reason they decided to go with Datalogix.  Since I had a diversified background in sales, operations, professional services, software development, marketing, etc., the board asked my to spend the next 18 months in Europe.  (By the way, Greg and Steve completely outsold Marcam, who was our competitor.  I wound up working for them several years later.)

My new role as VP of International Operations was to drive the launch of the company in Europe.  I was to bring the VP of Europe, Jim Cluchey, up to speed.  Another of my roles was to drive the strategic relationships we had established with IBM, DEC, and HP, and to contribute to the sales effort wherever I could.  Jim was a really smart guy and a experienced software executive.  We had recruited him away from Cognos, where he ran their European operation.

Datalogix was making significant progress implementing additional Bostik sites in other countries in Europe.  During that time, Jim Cluchey and I were devising a strategy on how to expand our reach within Total.  We had the right software, but the wrong platform.  Total ran on IBM’s AS/400 platform, and our Unix-based software ran on just about everything else.  There was a possibility that we could rehost our software onto the AS/400 and we decided we would approach Total’s VP of IS  with that plan.

Jim Cluchey went to great lengths to secure a meeting with Leo Mercier, Total’s VP of IS to discuss the progress of Datalogix’s Bostik implementations to date (flawless, and Leo knew it) and our future ability to support other Total chemical companies.  Leo was receptive.  Jim and I were encouraged.

Jim and I met in Paris the morning of the meeting.  He had flown in from London, and I from Rotterdam, where I was then living, coaching the new central Europe general manager.  Total was headquartered at La Défense, in Paris.  We were scheduled to meet with Mercier from 1:00 to 2:00 in the afternoon.  As we made our way to the office we took yet another opportunity to validate our plan for the meeting.  We knew we had to overcome the IBM challenge, but we felt confident we could do that.

At one o’clock Jim and I arrived in Leo’s office.  His assistant told us Leo was at lunch and would return shortly.  Jim and I sat there until 1:55.  That’s right, 1:55.  When Leo arrived, he invited us into his office.  No apology.  No smile.  Not even a hint of one.  He uttered one sentence.  “I want a 40 percent discount.”

As GM of Europe, Jim owned that account.  He did the right thing by telling Leo that we needed to understand their situation: what plants needed our software, what hardware platforms were required, timelines, resources, etc., before we could discuss any discount.  Leo huffed and said he had another meeting.  We left the meeting angry, frustrated and determined to go under, over, around or through Leo Mercier.

What went wrong?  Was it the centuries-old Franco-American problem? Ineffective qualification?  The NIH (not-invented-here) syndrome?  Some effective blocking by IBM, who was threatened by our Unix-based solution and had Leo’s ear?  An unwillingness to acknowledge a success in a new, unproven division of Total? Leo just being a tough negotiator? His ego?  Just one of those bad meetings that happens to everyone?

Jim continued to make great progress in Europe.  We made a number of good sales—some strategic and some tactical.  I moved back to the States early having overachieved on my objectives.   Later on I left the company.  I had heard that additional systems were sold into Total, but only after Mercier’s departure from the company.  With all that I had done before that day and considerably more after, I’ll never forget that meeting.

What did Jim and I do wrong?  What would you have done differently?

Hey, I have a proposition for you.

I had a really bad experience with Dearborn Trade Press (now Kaplan Financial Publishing) with my book, How Winners Sell, Second Edition. It’s no longer in print, although companies seem to be able to find copies somehow when I come in to present at their sales kick-offs and other events.  (I will write about the whole nasty Kaplan situation one day.  In the meantime, anyone considering publishing with Kaplan needs to give me a call.)

I was thinking about putting How Winners Sell up on Amazon’s Kindle. After a long, long effort, I finally got the rights back.  I wrote the Second Edition in 2004, but most of it is still very relevant.

The proposition.  Here is a free chapter.  All I ask is if you get some value from it and are interested in reading the whole book on either the Kindle or an e-Book format, let me know.  I may decide to republish it.

Strategy 18: Become an Expert at Competitive Positioning

I don’t know about you, but I get a big thrill when I watch a high-integrity, seasoned sales pro competitively position his company and offering. It may happen during a presentation or during a sales call as objections are raised by the buyer.

When you think about it competitive positioning begins when you formulate your strategy. From that point onward, your messaging, talking points and objection handling are driven off the same thing—the unique value you can provide to your client.

Here are some examples of how winners I’ve worked with masterfully handle competitive positioning:

Situation 1: Selling Against Goliath

If you sell for a smaller company that competes against the big guys, the age-old story of David and Goliath might come to mind. In this story, the giant, Goliath, was beaten in a fight by the small boy, David. I often see “Goliaths” beaten, but it takes flawless execution of a well-designed plan.

The most important thing of all when selling against a much bigger competitor is to be certain that if you meet or exceed all the prospect’s requirements, that size—for size’s sake—does not matter. That’s an issue of qualification. You may have the best product, innovative service capabilities, committed people, stellar customer satisfaction levels, top product quality, most respected investors or anything else that you consider of value, but if size matters, little else will measure up. And if size does matter, and you can’t convince your prospect fairly quickly that it shouldn’t, you need to get out of there—and quickly on to another opportunity. Know your prospect’s history regarding doing business with smaller companies. It may mean nothing to them, since they do it all the time. On the other hand, you may be the first and may have a long, bumpy road ahead.

What all this means is that there are certain opportunities for which you should not compete, because you can’t win them. Sorry, but that’s a fact.

Now What Do You Do?

You’re going to need to influence your prospect’s decision criteria, so that the perceived value of your competitor’s size as well as other size-related capabilities are diluted, neutralized or, in the best case, seen as a disadvantage. Many salespeople are accustomed to highlighting a competitor’s weaknesses. In the situations where you are competing against a bigger company, you will (professionally and subtly) dilute their strength.

Here is a simple, well-proven example. Let’s say I sell for a smaller professional services firm and I am up against a major player. Based upon preferences and needs of the buyers, I may decide to use the “small-fish-in-a-big-pond” approach.

It goes like this: “Ms. Prospect. There are few people who would not be impressed by my competitor’s size, global reach and financial as well has human resources. I’m sure they proudly reference some very prominent customers. However, you might consider that a project such as yours, although highly critical for you, might very well not have the same level of importance for them and therefore may not generate the ongoing attention within executive levels of their company that their premier customers’ projects would. It’s only natural…”

From that point, you would discuss how you would meet their technical requirements and establish a business relationship going forward, stressing attention that would be paid to the progress by your executives. You’d convince them that your company’s success would depend directly on their success, not the other way around. You’ll be portraying them as big fish in a small pond, with the driving message being how important their business is to you.

If you are effective with this approach, you will have moved down in importance the size and impressiveness of their customer list and up in importance the attention paid to them by your executives as well as your company’s interest in their success.

Here are challenges you might face in a David and Goliath situation and some alternatives to consider:

Challenge: The competition questions your viability to the prospect. “What would happen to you, Mr. Prospect, if they were to go out of business or be acquired?”

Your Response: Don’t wait for this to happen, as it most likely will. Immunize. Exploiting their opponent’s size is the first card most salesreps who sell for large companies—the Goliaths—play against the smaller guys. You need a solid story, prepared in advance – concise and compelling – which must be credibly and sincerely delivered first by you, then echoed by your most senior executives. Mitigating perceived risk is on the critical path to success when competing against a much larger rival. Don’t wait.

Challenge: The competition attempts to expand the scope of the evaluation into areas where you don’t have a solution.

Your Response: Again, pretty standard practice for the big guys. Alert your prospect in advance that this may happen. Praise their efforts in defining their requirements as well as they have. Ask if they are prepared to have the scope of their initiative, project or investment substantially expanded. If they say no, alert them that other vendors may employ this “sales” strategy to differentiate themselves as well as to increase the size of their contracts.

Please understand that I never advocate negative selling, mud slinging or “slamming the competition.” On the other hand, when you have built relationships in your accounts with influential people who are willing to help you, you’ll need to provide them with the messages—the sound bites and talking points—to position your company advantageously.

Challenge: The competition attempts to impress your prospect with hordes of resources to demonstrate their prowess and convey a “safety in numbers” message.

Your Response: Again, prepare your prospect in advance that this may happen. Qualify them on this issue, again. Suggest that these bigger companies have extra resources on board just to impress prospects to make a sale. If you know your competitor’s bid will come in considerably higher than yours, you may want to subtly suggest that using resources to win business may be a reason that their overhead is so high. And, remind the prospect that if they do go with your competitor, the meter will start running.

This approach is mandatory when you compete against companies who lavish prospects with toys, gifts, free trips and other goodies to try to influence their decision.

Challenge: The competition, because they are bigger, is willing to guarantee results in a way that you cannot.
Your Response: They may be able to guarantee that their product will get installed (or service delivered) within a certain time, but what if they don’t? The customer may not have to pay the vendor any more cash, but what about lost business opportunities, reduced customer satisfaction levels and employee morale if things go wrong? Will the guarantee cover that?

Tough qualification combined with strategic competitive selling does work. After confirming that size did not matter in a face-to-face meeting with a division president of a $5 billion corporation, my client, the CEO of a small enterprise software company commanded that his team pursue a $2 million contract competing against a $750 million rival. Now there is a David and Goliath scenario.

I coached that sales team during the nine month sales cycle. Among other things, we diluted the competition’s apparent strengths and portrayed their large size as a liability, which in this case it really was.

My client’s team outsold the competition and won the business. And earned a lot more business after that, because they delivered what they promised to their customer. As the CEO related to me, elated with a contract five times larger than anything his team had secured up to that time, “the most important thing for me is that this process is repeatable.”  [Note: The small company is DBM Systems, Inc., based in Cambridge, Ontario. The CEO was Duncan McLeod.  I did not provide those details in my book.]

Situation 2: Outselling a Competitor Who Slashes Their Price to Win

You’ve just read some suggestions on how to compete against a bigger company who uses their size and strength to win – the Goliath. Now, how do you compete against the smaller, more agile David out there who, for example, drastically discounts at the last minute to win business?

Red Alert. First of all, once you learn that one of your competitors in a deal has “bought” business in the past at a price you could not (or would not) meet, your alert status should immediately shift to red.

Remember, early in evaluation cycles prospects may say that price is a consideration, but not first on their list. Later on, once they have ignored or devalued any unique capabilities that your product or service can provide—to the point where they “can see no measurable difference between your offering and your competitor’s,”—price gets elevated to the number one consideration. We’ve all seen it happen. By that point it’s generally too late to remedy the situation. You’re trapped. So recognizing potential situations early on where a buyer will buy on price must become second nature.

Here are some recommendations that will point you in the right direction:

Qualify. In any competitive sales situation you have to monitor the prospect’s decision criteria like a pilot checks her instruments— ever-vigilantly. During the course of an evaluation decision criteria often change. In fact, aren’t we often the ones who attempt to effect that change to gain competitive advantage?

Among the most critical of all decision criteria these days is price. What are the key evaluators’, buyers’, recommenders’ and decision makers’ requirements and expectations with regard to price today? If you are just getting engaged with a prospect and their number one decision criteria is price, you (or your management) will have to decide whether it’s even worth competing. Clearly, knowledge of your competitor’s historic actual selling price will be critical in this decision. So will an understanding of your prospect’s recent buying patterns with regard to price.

• Buyers focused on price de-emphasize or entirely ignore factors such as:
• Supplier product or service quality
• Supplier viability
• Supplier post-sales support capabilities
• Post sales costs (contributing to total cost of ownership)
• The knowledge and experience a vendor can bring forth
• Areas of additional value that you may be able to provide above and beyond what they have specified
• Quality of vendor personnel
• References

Address the issue head on and early. “Is your company going to make a decision based entirely or substantially on price?”

And please, make sure you are asking these questions of, and selling to, decision makers. All this matters very little to the people at lower levels in organizations.

Educate yourself. Here are just some of the questions for which you need answers to outsell a competitor that dramatically discounts to win business:

• Is their discounting tactical or, in the case of some very successful companies, strategic – a key component of a go to market strategy supported by their business plan? (It’s hard to compete against Sam’s Price Club on price…)
• When do they offer these drastic discounts and under what conditions? How do they dilute the value of what you are selling in the prospect’s eyes?
• How well do they deliver post sales service?
• How often do they produce new products or upgrade their services?
• What is the satisfaction level of their customer base?
• What is their financial position? If they are publicly held, look at their P&L, Balance Sheet and Cash Flow Statement for the most recent quarter and going back in time. (If they are privately held, get your CFO to create a pro forma set of financial statements that might represent what that competitor’s financial position might look like. It provide you with insights into where that competitor’s vulnerabilities lie.)
• What do you know about their human resources? Look into staff and executive attrition rates, quantity and quality of SMEs (subject matter experts), levels of staffing, and customer care hours – anything that will point toward discount-caused reduced margins impacting operating effectiveness.
• Look at their corporate culture. What do they value? Integrity? Quality? Are they doing the right things for building a long, profitable future or are they highly opportunistic, with little regard to what will happen tomorrow?
• Uncover what the competition uses to deflect their prospects from exploring the areas listed above. In technology, you’ll often find that the lowball competitor has the sexiest demo, for example.

One client did a terrific job of figuring out that their competitor’s service and support resources were stretched very thin. Highlighting their own strengths in these areas pointed the prospect in the right direction. As a result of a bit of probing, the prospect found that my client’s competitor couldn’t appropriately support them post-sale. “If they can’t bring people to the party now when they are selling to us, it’ll only get worse if we become their customer,” the prospect told our rep. Bingo.

Discover And Quantify The Value. Whether or not you suspect that a low-price competitor will be included in the bidding process, you’ll need to quantify the value of your offering – in terms of financial return. When you are competing against someone who drastically discounts, it’s especially important to get close to the prospect and really understand their requirements. Not only will that enable you to better position your solution, but, more importantly, you’ll be able to uncover areas of potential additional value for the customer that can be derived from the differentiators that you are selling. If these differentiators are linked to financial impact for the prospect, they are not likely to become expendable nice-to-haves, eliminated from consideration in what might turn out to be a commodity buy. Even if the prospect doesn’t want to or can’t invest in that added value now, you’ve expanded their vision past what your competitor has done and have set yourself up for add-on business later.

Educate and Position. Winners who are really good at competitive selling subtly but definitively alter their prospect’s perception that buying at the lowest price is the prudent thing to do. You can really only do this effectively when you are selling at the appropriate executive levels.

• Talk to the buyer about the challenging business conditions that face all of us, and the natural tendency to buy at the lowest price.
• Talk about companies in the prospect’s as well as your own industry who have gone out of business as a result of tactical discounting, and the impact that had on those companies’ customers. (You need to do some homework here.)
• Implore the prospect to ask questions of the other contenders that will expose weaknesses that result from tactical discounting. (See “Educate Yourself,” above.)
• Educate the prospect on the differences between price, cost and business value and the impact on of those factors on their business. Understand the prospect’s own business model, their culture and how they sell to their customers so you can link your approach to theirs. (If they sell a commodity themselves, at the lowest price, you may have a serious challenge.)
• Immunize the prospect in advance against what will likely be a lowball bid by your competitor. Explain how, when, and why it will happen. Prepare the prospect for what you know will come. Don’t just sit there and wait.
  Convincingly reduce what will likely be price differentials into meaningful, real terms. “Since there is typically a five-year life cycle associated with my product, and it will, admittedly require potentially a $240k additional investment, I figure that comes to 4k per month, which, you have to agree is less than a rounding error (or full-time employee) in terms of the business value we’ve been talking about.”

Get creative. If you haven’t tried risk-sharing, phased deliveries, guarantees or extended warrantees or other creative approaches that will enable you to win the business without discounting, you need to do some brainstorming with your team. Very often a cash strapped competitor who has been discounting to win business falls flat on their face when asked to match such creative selling.

Few of us can afford to sit back and wait for the competition to slash their price and walk away with the business. Understand your customer, your competitor, and your value. Then sell.

© 2004 – 2009 — Dave Stein — All Rights Reserved

Photo credit: © hutch – Fotolia.com

“Having hope,” writes Daniel Goleman in his  study of emotional intelligence, “means that one will not  give in to overwhelming anxiety, a defeatist attitude, or  depression in the face of difficult challenges or setbacks.”

Rick Page is right.  Hope isn’t a strategy.   Profound words.  Hope doesn’t replace the comprehensive and objective assessment of a selling situation, the planning, the execution, or the hard work.  But hope is a source of energy upon which you can, under significant adverse circumstances, jump out of bed and face the day, a tough deal, a busines challenge, or a personal obstacle.

Abraham Lincoln said that hope is “more than the sunny view that everything will turn out all right”; it is “believing you have the will and the way to  accomplish your goals.”

Ain’t nothin’ the matter with that kind of hope.

Quotes are excerpted from Doris Kearns Goodwin’s Team of Rivals: The Genius of Abraham Lincoln