2. Some questions answered in Chapter 12
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?

3. Closing!
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?

4. Always Be Closing!
The ABC’s of closing are Always Be Closing. This makes good sense when selling in a business-to-business context.
True
False

5. 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.

6. Solving real problems
Name some goods or services that you really needed to purchase.
Buyers do have real needs.
Thus, the goal should be to help buyers solve real problems, rather than just to get the business.

7. Is the customer ready to buy?
Which of the following customer responses would be the best indication the customer is ready to purchase?
“Is this available in red?”
“Wouldn’t this take a long time to get delivered?”
The customer picks up a product brochure and places it in her purse.
“Could I have the floor model?”
The customer begins to reexamine the product.

8. When is the right time to seek commitment?
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

9. Effective closing
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...?”

10. Effective closing
Did any of those methods appear devious or manipulative?
What method(s) do you prefer salespeople use with you?

11. Traditional closing methods
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?
Emotional
Minor point
Direct action
Standing-room only
Assumptive

12. Traditional closing methods: minor point close
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.

13. Traditional closing methods: continuous yes close
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.

14. Traditional closing methods: assumptive close
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.

15. Traditional closing methods: standing room only close
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.

16. Traditional closing methods: benefit-in-reserve close
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.

17. Traditional closing methods: emotional close
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.

18. How selling style relates to closing
Aggressive selling style
Overwhelms the customer
Responds to objections without attempting to understand them.
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

19. I want time to think it over
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.

20. Effective closing 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.

21. Closing terms 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?
$1700
$1666
$1660
$1530
Impossible to tell

22. Effective closing Have you ever told a salesperson no?
Were you trying to be mean?
Did you do it because you didn’t like the salesperson?
So what do you do if the buyer says no?

23. Any questions about the terminology?
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