 |
Sales Process - How to Avoid Wasting Time on Prospects Who Can't or Won't Pay
Author: manoj kumar  | Posted: 28-03-2008 | Comments: 0 | Views: 15 | Rating: (57)  (?) 
Do you have blind faith that, if you can somehow convince a prospect to engage in a sales cycle, you will eventually make a sale? If you do, watch out! This belief can waste your time, effort, and company resources.
Unfortunately, time and resource investments do not inevitably produce sales. How many of the opportunities in your pipeline have been stalled at the same step in the sales cycle for weeks...or months? In how many opportunities have you and your company invested enormous amounts of time, energy and resources (conducting product demonstrations, writing lengthy proposals, providing product evaluations, etc.), only to have the prospect decide they don't WANT to buy, or prove INCAPABLE of funding the purchase? Even when you make sales, how many turn out to be "nightmare" customers who are always dissatisfied and consume huge amounts of post-sale resources?
All Prospects Are NOT Created Equal
You DO need to help your prospects explore whether their business problems are substantial enough to justify investing time in a sales cycle. However, you also need to figure out whether each prospect is WORTHY of your time and resource investments! If a prospect is not a good fit, gracefully exit from the opportunity! (Why not refer them to a competitor and let the competitor burn some cycles?)
How can you determine whether a prospect is worthy of your time and resource investments? Many sales skills training courses teach an acronym, M-A-N, that stands for Money, Authority, and Need. The basic idea is to determine whether:
1. The prospect is willing to commit enough budget dollars (MONEY) to pay for the product or service
2. The key decision makers and influencers (AUTHORITY) have been identified; and
3. The prospect's pain (NEED) is severe enough to justify investing in a solution.
Unfortunately, even when you do a good job of M-A-N qualification, you can be "blindsided" by issues that delay sales cycles or destroy opportunities outright. For example:
* Some prospects prove incapable of securing financing. They may have a budget, but they are not "credit worthy", so they can't FUND the budget.
* Some decision makers need to have specific information provided in a specific format before they can authorize a buying decision.
* Sometimes you invest considerable time and effort in troubleshooting complex problems and designing solutions, only to be informed that the prospect must take the proposed solution OUT TO BID. This can lead to the opportunity being lost to a low bidder or the profitability of the opportunity being pummeled.
To avoid these issues, add additional questions to the M-A-N qualification process. The acronym that I have assigned to this revised process is M-A-I-N BP, which stands for MONEY, AUTHORITY, INFORMATION, NEED, and BUYING PROCESS. Here are sample M-A-I-N BP questions:
MONEY
* How will your prospect pay for the product or service?
* Has a budget been established?
* Are they credit worthy?
AUTHORITY
* Who (in the prospect's organization) needs to approve an acquisition of this nature?
INFORMATION
* What information do the decision makers require before they can make a decision?
* What format does this information need to be in?
NEED
* What are the prospect's business problems?
* How compelling are they? In other words, can you quantify (associate dollars, percentages, and time frames with) the pain the prospect is feeling?
* Are the quantified business impacts substantial enough to warrant investment by the prospect's organization (and YOUR company) in identifying and fixing the problem(s)?
BUYING PROCESS
* What is the prospect's buying (procurement) process?
* What impact might this process have on the profitability of the transaction?
* What competitive advantage will you receive if you invest your time and resources in designing a solution that goes out to bid?
If you decide to add M-A-I-N BP qualification to your sales opportunity qualification process, here are some final thoughts to keep in mind:
* If you don't know the answers to ALL of the M-A-I-N BP questions, it is highly likely you are wasting your time and resources!
* Opportunity qualification is NOT A ONE-TIME EVENT. As an opportunity advances through the sales cycle, you should frequently ask whether any of the answers to the qualification questions have changed. If an answer changes, it could impact the length of the sales cycle and even destroy the viability of the opportunity. At minimum, an answer change will probably require a change in focus and/or a reprioritization of planned activities.
* Never feel bad about disqualifying an "opportunity". The amount of opportunity in each territory is virtually unlimited. If you carefully qualify and re-qualify each opportunity, and only invest time and resources in qualified opportunities, you will maximize your return on time and resources invested.
Rate this Article:
Current: 0 / 5 stars - 0 vote(s).
Article Source: http://www.articlesbase.com/business-articles/sales-process-how-to-avoid-wasting-time-on-prospects-who-cant-or-wont-pay-371249.html
|
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free! |
|
Related Articles
Failing at Your Network Marketing Business?
By: Shailesh Kumar Singh | 06/03/2008 | Internet Marketing
Readers read this! Do you know that Network Marketing whether online or offline has been a good source of income for young business establishers nowadays? Well, Network Marketing is not a simple business topic. This form of business does not just demand a debiting and a crediting knowledge background. Leave the task of computing among accountants.
How to Delegate: One Key Step Towards Leadership
By: Shailesh Kumar Singh | 10/03/2008 | Internet Marketing
You've made an unusual discovery - there's not enough time left at the end of the day. The corollary, of course, is your list of important things to do never get smaller. In any company, the CEO's to-do list has the potential to grow infinitely.
Want to Earn More Profits
By: Sonia Sood | 11/03/2008 | Networking
It's a simple yet common question, "How can I make my business more successful?"
Success can mean a lot of different things to a lot of different people but when it comes down to it, the success of your business should only be measured by one thing - profit.
Preparing yourself Mentally for Business
By: gurpreet singh | 13/03/2008 | Business
People say that starting your own business is difficult. Guess what? They’re not kidding. Starting a business, in many ways, is a lot like having a child
Give the Gift of Gas!
By: Shailesh Kumar Singh | 14/03/2008 | Internet Marketing
Gasoline prices are at an all-time high, and this fact has created an outstanding opportunity for motivating employees and thanking customers, by presenting them with official Gas Rebate Coupons.
Home Cleaning Business Plan
By: Raj Kumar | 15/03/2008 | Business
Until about 10 years ago, business advice guru’s used to say that the best business to be in was the one you knew most about!
Writing a Business Plan What Makes a Good One
By: harjeetkaur | 15/03/2008 | Business
Writing a business plan can be a lot of hard work or it can be great fun. An effective plan can help your company to greatness. A poor one can lead you out of business. No plan is like asking to fail before you even start. Not every business needs a 200 page bound business plan. However every business needs to have some idea of where they want to go and how they are going to get there. This article covers some key insights into writing a business plan.
Why Cutting Your Prices is Like Cutting Your Own Throat
By: surjeet kumar | 17/03/2008 | Interior Design
And it's not only when they tell you they won't buy. Many people in sales mentally calculate the discount into their profit calculations, and start discounting even before they try to close the deal. In almost every sales job that I've worked in, people faced with an end-of-quarter crunch to "make the numbers" start playing the discount game. In many industries, it's become common practice to give away all the profits, and many customers are trained to expect it.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Could you tell me if Executive Imaging Systems is ...
By: Alice | 19-07-2008
Could you tell me if Executive Imaging Systems is still in business? It was headquartered in Cherry Hill, NJ.
Big bank cheaters
By: Betty Beckham | 19-07-2008
how can a co. as big as bank of america--take closed credit cards and put money on the card and expect senior citzens that are disabled pay this money back to them--even if they don't owe it?????? i had a credit card in 2007-the bank was always sending access checks-after calling bank of america-i used 1 access check for $2,000.00-after a couple of weeks my bank notified me that this check bounced-i had a credit limit of $7,500.00-i called and closed and canceled this card (which was clear)--on april 24,2008 bank of america pulled this closed and canceled credit card and put this $2,000.00 back on my closed account--then harrassing statements started-i would call bank of america and explain (i do not owe this) then harrassing letters and late night phone calls-i told them (i do not owe this)--then -late credit reports- finally july 3, 2008 they called and said i was right-i did not owe this--after ruining my life and my credit now they are sorry and want to forget it=i can not drop this-and let other senior citzens be taken by bank of america-check out miller VS bank of america-i want a letter of apoligy and a small settlement --clean my credit report-- one of the bank member told me this was fraud--of course they can't find this one truthful man--probably fired!!!!!-
admrlsqtrs@aol.com
How to get a small business license for an animal rescue
By: icybaby05 | 19-07-2008
how to get a small business license for an animal rescue
Dark Red Business Jacket in natural fibers, needed by 7/24/08
By: Denise | 18-07-2008
My dress code is a dark red slenderizing long sleeve jacket and a black pencil skirt. My problem is that I am on a budget and need natural fibers. I am allergic to Polyester, Nylon, and have to be very careful with Rayon. I am doing great with Silk, Cotton, Wool, and Linen.
Please let me know who can help me out, size 10 - 12, petite, and for an affordable price for me. I need it by Thursday, July 24, as I am leaving for Seminar on Saturday morning, July 26.
Thank you very much for helping me find something in Long Beach or close by, so I can go try it on.
Sincerely,
Denise
How to get a concession stand at a major ball Park?
By: Concession | 18-07-2008
How would I go about getting a concession stand at a major ball park?
Bad credit due to divorce. Any companies that believe in secind chances?
By: Glinda | 18-07-2008
BAd credit due to Divorce. New Business need credit card.Any companies out there that belive in secind chances? I am opening an afoordable creative arts studio to help build children,s self esteem.
Tracy
Q&A Powered by: 
Latest Business Articles
Water Damage & Solano County Flooding
By: Mark Decherd | 26/07/2008
If you live in Solano County, it's imperative that you are aware of the flood potential and understand the risks. The wet months run from November through April. During these months, you are more likely to experience flooding.
Is it Time to "reset" Your Business?
By: Linda Feinholz | 26/07/2008
When is 'too much to do' finally enough? I mean enough to have you reach out and slap your personal and business 'reset' button? Do you ever feel like you're buried under overwhelm? Sometimes prioritizing the to do list isn't what needs to be done.
15 Ways to Improve Your Closing Ratios and Sales Presentations
By: Katrina Sawa | 26/07/2008
It is not enough to do launching effective marketing campaigns to obtain new customers and to continually market to your existing database for more referrals and repeat business. In addition, you must be able to ask for and close the sale. Otherwise, it is a waste of time and money!
In Searching for Cost Reducitons, Look at Total Cash Flow Costs Rather Than Accounting Costs
By: Donald Mitchell | 26/07/2008
If you are a privately held company, look to reduce overall cash costs when considering alternative cost reductions, rather than the impact of reported earnings.
The More Trust, the More Time to Succeed
By: Andrew Cox | 26/07/2008
Bill Oncken, in his book Managing Management Time, says that the more trust you have with your "universe " of people, the more time you have to do the things that lead to success. Trust is hard to earn. Once lost it's hard to regain. It's the most precious asset in any relationship - at any level - at any time. Read on to see how a successful Division President builds trust.
10 Tips on the Issues With Selling Professionals
By: Drew Stevens | 26/07/2008
The world of professional selling is rich with information related to selling skills, sales training and techniques to assist professionals. However, after much rhetoric and information I am finding something completely different...a problem with selling professionals.
India - the Next Economic Powerhouse
By: Paul Hata | 25/07/2008
India is one of the fastest-growing countries in Asia. In 2006, India recorded a 1.2% of world trade share overall. The stat was picked out from WTO. The growth is mainly due to the liberalization that took place in India way back in 1991. Ever since then, there's no looking back.
Customer Service Toolkit
By: Drew Stevens | 25/07/2008
All businesses make money, yet those that are customer focused are more profitable.
More from manoj kumar
Beginnings
By: manoj kumar | 21/03/2008 | Writing
Just about everyone is familiar with this beginning: “In the beginning God created the heavens and earth. The earth was without form and void, and darkness was upon the face of the deep . . .” (Genesis 1: 1-2 RSV) In a sense we’re playing God when we write a story. We create the characters, plot, and setting, turning a blank page—nothingness—into a compelling story.
Make Money Tearing Up Old Books and Magazines and Selling Them on Ebay
By: manoj kumar | 20/03/2008 | Business
For the past few years I've been tearing up old books and magazines, and selling them on eBay. Other people's "rubbish" is earning me $20 a time - sometimes a great deal more - every single day!
Is Your Market Already Saturated?
By: manoj kumar | 20/03/2008 | Business
I recently offered my ezine subscribers a free gift easily worth over four hundred dollars. It was the free master resale rights to 106 niche products (mostly PDF eBooks). Some of these are products I'm actually selling from some of my websites (or offering as bonuses with other products).
Retired? Need Some Extra Cash?
By: manoj kumar | 19/03/2008 | Business
Are you retired? Are you considering part-time work to make some extra cash? Have you ever considered the Internet as a means of making that extra cash? Questions, questions, questions! Well, here is an idea for you.
Holiday Decorating Tips: Christmas Candles
By: manoj kumar | 18/03/2008 | Interior Design
How to Light Up Your Home for Joy
Do you love the winter holiday season or does this time of year cause you stress? One way to lower your holiday stress, using fewer decorations, decreases your "just have to much to do" list.
How You Can Make Your Ad Command Attention
By: manoj kumar | 17/03/2008 | Web Design
There are lots of ads for lots of product out there , so it is very easy for your ad to get lost in the shuffle. To avoid this, you must do all that you can do to make sure that your ad gets noticed. Here are some things that you can do to ensure that your ad commands attention.
Notebook or Desktop Computer -- Which Should You Choose?
By: manoj kumar | 14/03/2008 | Education
On TV and in the movies, we see a lot of portable computers being used in homes and offices. Does that mean that's the trend? Is that what you should get?
Culinary Traditions of France
By: manoj kumar | 14/03/2008 | Cooking Tips
French cuisine is the amazingly high standard to which all other native cuisines must live up to. The country of France is home of some of the finest cuisine in the world, and it is created by some of the finest master chefs in the world. The French people take excessive pride in cooking and knowing how to prepare a good meal. Cooking is an essential part of their culture, and it adds to one's usefulness if they are capable of preparing a good meal.
|
|
Business 
