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In Sales, Start at the Top
Article 12

By Terry Booton, President
Advanced Marketing Instruction

How many times have you or your salespeople spent weeks or months trying to close a deal only to see it suddenly fall flat? More times than not, that's because you weren't talking to the right person.

One of the main reasons salespeople aren't as productive as they could be is that they don't call high enough in an organization. One of the things that has made Donald Trump so successful is that he deals only with the person in charge. That same principle should apply to every VAR engagement.

Many of the prospects that salespeople are calling on are only trying to gather information. They're recommenders, not buyers. Salespeople can't afford to waste time with a bottom-up sales strategy in today's market. The average sales call costs more than $500, and it takes six calls to close a new account. At this rate, it costs no less than $3,000 to seal a deal-a dreadfully high expense, especially for small VARs.

The problem is, salespeople often lack the confidence to approach the 'C-suite.' Instead, they'll talk technology with lower level managers without sufficient authority. To identify real opportunities and expedite closings, salespeople need to ferret out the person who can acrually write a check.

That person-the decision-maker-may not be the CEO or president. In small shops, you'll deal with the owner or president. In midmarket companies, you'll likely deal with vice presidents, presidents and CEOs. In large corporations, you'll deal with division managers and vice presidents. The one complication in large organizations are purchasing departments, which often rake over once you have a manager on the hook. Regardless of their title, the decision-maker is the person who can come up with money even when there isn't a budget for a purchase.

The dynamics of the sales call change when you're talking to more than just a recommender. People on the lower rungs will want to hear about the technology and functionality. When talking to decision-makers, you need to focus on the value of the deal to the business. Decision-makers want to hear about efficiencies, new business opportunities and ROI.

If your solution changes the way a company does business, the president or CEO will most likely be involved in that decision. So why not start there? .

Copyrighted material reprinted with the permission of the VAR Business Nov 13, 2006


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