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How to Close a Sale

Closing a sale is the most important skill a sales person needs. You can be charismatic, come up with the best leads, have incredible presentation skills, but if you can't close, you can't sell.

WHAT TO EXPECT

Closing a sale is the most important skill a sales person needs. You can be charismatic, come up with the best leads, have incredible presentation skills, but if you can't close, you can't sell. This Business Builder will take you through the key stages of closing a sale including recognizing the buying signals, understanding the 3 steps to a close, choosing the appropriate closing techniques, knowing the right time to close, and putting yourself in the right frame of mind for a successful close.

WHAT YOU SHOULD KNOW BEFORE GETTING STARTED

An accepted definition of closing a sale is "influencing a prospect into making a positive decision in favor of the salesman." Simply stated, this is when the prospect agrees to buy your product or service.

The close is the culmination of a lot of work and preparation on the part of the sales person — moving from the initial contact to sales proposal to sales presentation to overcoming objections. For most sales people the close is the reward and everything else is meaningless.

There is nothing more challenging for a sales person than having the ability to influence a prospect to make a positive decision in his favor. When this happens, the successful sales person experiences an exhilarating high that motivates him to move to the next deal to be closed.

Remember the words of Vince Lombardi as we move into our discussion on closing the sale: "Some of us will do our jobs well and some will not, but we all will be judged by only one thing — the result."

BUYING SIGNALS

Good closing techniques can overcome many shortcomings including a weak sales presentation. You can excel in many aspects of selling, but if you are lacking in closing skills, you will not experience success very often, if at all.

A good salesman should be ready to close at any time. There are signs that you should watch for during your presentation. Prospects do give buying signals which, with experience, you will be able to recognize. A simple gesture, such as leaning forward might indicate the willingness to buy. Some other examples of buying signals are:

* "Yes, it sounds really good to me, but…" Satisfy the objection on the spot and the sale could be yours.
* "I was thinking about getting these but with the new budget being approved…" Perhaps you could offer special payment terms and circumvent this problem.
* "I'd like to think about this for a while…" Find out what the uncertainty is, satisfy it and you might just have a sale.

These are not examples of objections. They are buying signals. It will be up to you to reassure the prospect that if he buys now it will be a safe and profitable investment for him in many ways. The secret is in the wording or tone of voice. For example, if the personal terms such as, "I think," "I feel," "I suppose," "I should," "I shouldn't" are used, they are signals and not objections. When you hear these or similar terms, give the prospect more information or details about your offer then try to close again.

STEPS TO CLOSING

There are four steps to closing a sale and they are:

1. Recognizing the Time to Close

2. Debriefing the Prospect

3. Deciding on Your Closing Technique

4. Making the Closing Statement

A. Recognize When It's Time to Close

From the first moment you meet with the prospect, the close begins. That's the purpose of your visit, your presentation and your response to objections. When closing any sale, your goal is getting the prospect to commit. Once they have done this, your job is nearly finished.

You can influence your prospect's decision much the same way a surgeon can convince the patient that he needs an operation. You must let the prospect know that what you are doing is in his best interest. When you can do this effectively, you will eliminate mistrust and anxiety, increasing your success rate time after time.

No one will close every sale. However, a dedicated sales person will find out why the sale did not close, and if it was something his control, now he can do better next time. According to Charles R. Whitlock, "In ancient China, doctors were paid when their patients were kept well, not when they were sick. Believing that it was the doctor's job to prevent disease, the doctors paid the patients if they became ill. If a patient died, a lantern was hung outside their house. If a doctor lost too many patients, you can imagine what it would do for his practice." You must commit to learn from your mistakes as well as those others make. Use these mistakes as your "beacons" to success. Knowing how to close a sale will lead you to the rewards you deserve.

A secret to closing is knowing when the prospect is ready to buy. You have to be in sync with their mood and personality. If the prospect seems pressed for time, acknowledge the situation, scale your presentation down and stress the important points. If on the other hand, the prospect seems relaxed and desires conversation, accommodate that as well.

Remembering that everything you do during your business presentation is leading up to a close, recognizing certain "closing" signals from the prospect will help you make your move. Here are a few for you to consider:

1. The prospect leans forward.

2. The prospect starts taking notes.

3. Another person is asked to join the presentation.

4. The prospect communicates agreement with your ideas.

5. The prospect asks questions such as:

* Who will do the work?
* What technology will you use?
* When will you be available to help us?

If you have ever closed a business deal, think back about how you did that. Think about the questions which were asked of you and how you responded. Also, try to recall when you knew it was time to close.

B. Debrief the Prospect

When debriefing the prospect, use a client-centered approach using reinforcing statements. You should re-state the benefits the prospect can expect. Create a word picture of the prospect's desired situation, and show how they will be able to attain that using your products or services.

Use statements such as, "Let's review where we are, and see if we have covered everything you need…" Or, "If I'm on target, you are interested in our super hydro conductor XF19…?" When you know exactly what the prospect needs, use a statement such as, "Specifically, you need…"

It is important to reiterate what you have agreed to do and what the prospect needs to do such as: "As I told you, we will deliver the product on…; and "When the products arrive you said you will…" By mentioning the goal discussed throughout your presentation (solution to the prospect's problem), you set up an informational loop which can lead to a close. The loop, simply stated is: You need — we provide — the solution is — your need is met.

For Example

C. Deciding on Your Closing Techniques

There are probably hundreds of closing techniques. Individually, they could fit into a few general categories. The following techniques are very effective in closing the sale. If mastered, you will be equipped to close just about any sale.

* The Direct Close. The obvious and most frequently used close is the direct approach of asking for the order. Once you are sure in your mind that you have done everything possible to overcome objections, and if you feel that you can fulfill the prospects need, go for it. "With your approval, I'd like to place this order for you." "If I call this order in, you'll have it by week's end." And if you're especially confident, fill out your order blank in advance and present it to the prospect and ask for his signature.
* The Concession Close. This technique is a good one to use because in it, you give the prospect the feeling that you are offering a special deal, a bargain: "Order this today, and we'll ship it to you free." "If you order this now, we'll give you an extra 10% off and extended payment terms." This works effectively when the offer is tied to a specific time period.
* The Option Close. The more options you give someone, the better your chances to close. The old adage states, "If you can get someone to say yes three times you have a guaranteed sale." "Our truck is in this area twice a week, do want delivery on Wednesday or Friday?" "Do you want this charged to your Visa or MasterCard?" "Do you want this shipped in crates or will pallets be easier for you to handle?" These choices require a commitment and "no" is not offered as an option.
* The Immediate Close. You have probably heard of this close on many occasions, and it works. "Buy now because we are having a price increase tomorrow." "If you buy now, I can throw in the extended warranty at no extra cost" "Our inventory is low on this item and we're not going into production for another month." Some of these claims may seem exaggerated, and perhaps they are. The purpose is to set up a condition of urgency. So that you can obtain a close right there and then.
* The Trial Close. Let the prospect use your product or service for a specified period of time with the understanding that you will pick up a signed order after the trial period. The concept here is that the prospect will get to know the product and realize that it fills the need. This is a great technique for products which ease the prospect's burden makes his job easier. For example, if you let a building maintenance department use a new floor cleaning machine that's fast and easy to use, most likely they'll be reluctant to return it to you.
* The Fear-Factor Close. This is very powerful because you are playing on people's uncertainties, insecurities and fears. People want products and services which minimize their risks whether it is personal or property related. "This water purifier will protect you and your family from some of the deadliest forms of bacteria in the water." "This travel insurance will provide for your family in the event that something tragic happens to you when you are away on a business trip."
* The Presumptive Close. Picture the prospect using your product and put yourself into that picture as they are using it. "I wish I could be there with you when you drive down your street in this new car." "I wish I could see the look on the faces of your employees when you install this new computer system." This is an excellent close to be used on reluctant or indecisive prospects. This can be used in conjunction with the Direct Close.
* The Qualifying Close. This close appeals to a basic need and is especially effective when dealing with prospects who have large egos and who cannot stand rejection. For example, "We normally require five years of favorable credit history to offer this reduced interest rate, but in your case, we will waive that requirement."
* The Involvement Close. This technique gets the prospect involved in the sales process. Ask for help in getting the product out of your car. Ask for help in setting it up. Show the prospect the various aspects of the product during the set-up phase. Because people tend to get involved in the process, frequently they will sell themselves.
* The Callback Close. Sometimes, it's just not possible to close the sale on the first call. There may be extenuating circumstances on the part of the prospect, and these must be respected. For example, a purchasing agent might have to get a department head's approval before signing the purchase order. In return, you might want to set up a sense of urgency and state that you are willing to hold the price for a specific time period. "O.K. Mr. Bates, I understand. I'll hold these prices until Friday and by then, hopefully, you will have the approvals."
* Incremental Close. This is done by getting the prospect to agree to different ideas, concepts and suggestions on your part. It is as if the prospect is saying yes to a series of "mini proposals" within your presentation. After he commits to each mini proposal, you can then summarize the total presentation noting that he has agreed to each point you have made.
* You Already Have the Order Close. Act as if you have already made the sale. Let your tone, mannerisms and posture exude confidence. Judy Brewerton states, "you want to get out of the 'audition' mode and into a working relationship mode as soon as possible." A positive statement such as, "I'm glad you have given me this opportunity to make this presentation. I've helped many clients with needs such as yours, and I know I can help you immensely."

Avoid pressure selling at all costs. Today's prospects are very wise to trickery. A few don'ts to consider are:

* The old, "I can give you this price, but only if you order today," is not a good technique for closing.
* "I'm getting extremely busy, and if you don't sign up with me today, I may not be able to handle your job personally," shows a lack of depth to your organization and sets up an unrealistic scenario between the prospect and your company.
* "We're so busy now, that if I don't place this order today, I'm not sure when we will be able to deliver it," will be perceived as a lie, which it most likely is. Honesty between the sales person and the prospect cannot be stressed enough.
* "If you buy this widget today, it'll cost you $1.25, but if you wait until tomorrow the price will be double," is closely related to "We're so busy now…"

D. Making a Closing Statement

Once you have established the client-centered debriefing and decided on your technique, you are ready to make the closing statement. It is time to ask for the order. There are some considerations, stated as do's and don'ts, which you must understand so that your efforts to close will be successful:

* Do stay in your normal discussion mode and tone. Don't telegraph what you are going to do by a change in posture or tone of voice.
* Do include all of the necessary information that the prospect needs to make a decision. Don't add anything that has not been brought up in prior discussions. This may confuse the prospect and extend the overall process.
* Do remember that you are asking for the order but don't pressure for a sale. Move slowly but deliberately to the next step in the process, if there is one.
* Do expect your close to fail if you have not provided all of the information needed by the prospect. Don't discount the failure, learn from it and do better next time.
* Do ask questions if the close fails to determine what went wrong and see if you can salvage the situation. Remember, if you can't save that one, there's always the next. Don't show resentment or leave the prospect in an angry state.

After making the closing statement, you will encounter one of the following statements:

* Outright rejection — "I'm not interested at this time." What do you do? Don't panic is the best advice. Also, as stated previously, don't react angrily. Ask the question, "Can you tell me why you made that decision?" in a conversational manner. Perhaps in the discussion that follows, you can present the information that the prospect needs to reverse his position. Never lose sight of the importance of the client-centered discussion. After you have listened to him, you might want to say something like, "If it's O.K. with you, let's take a few minutes to see if there is another way we can produce the results you need to meet your goals."
If it appears to be futile, always leave the door open for another opportunity to do business with him, "Well, Mr. Black, I wish we could have worked something out. I'm glad I had the opportunity to meet with you."
* A stall — "I'm not ready right now." This can be handled with a simple question, such as, "Oh?" or "not ready?" Once you have responded to his statement, be quiet and let him respond to yours. Very often, the prospect will tell you why he made his decision. If he does respond, you can acknowledge his remarks by saying something like, "Thank you for telling me why you were not ready to proceed." The key phrase in this statement is "were not." If this gets by the prospect, you are ready to handle the objections he voiced. You never want to negate his reasons for not moving ahead. You can still close the deal by answering his objections and turn the negative energy into positive action. Acknowledge his decision, indicate that you listened to his objections, move ahead with the answers that will turn him around.
* Acceptance — "When can we get started?" This will be music to your ears. As you build your skills and gain experience, you will surely hear those words on a consistent basis.

PREPARING YOURSELF

Your first close might be difficult for you. It's a new experience and the possibility of failure is real. However, if you have followed the pointers presented in this Business Builder, you can lessen the possibility of that happening. Here are a few suggestions that can help put you in the right frame of mind for the closing process:

* The worse case scenario is that the prospect say's "no." That's not the end of the world. There are other chances, other prospects. Learn from your mistakes and move on.
* The situation need not be an unpleasant one if you keep your cool and remain professional. Your attitude should be, "I'd like to help you, but if you can't see that, the loss is as much yours as it is mine."
* Whenever the prospect buys from you, he is not doing you a favor because he needs you as much as you need him.

Closing a sale is the moment of truth for the sales person as well as the prospect. It signals the coming together of two parties for the mutual benefit of each other. You have developed a sales strategy, followed leads, prepared proposals, made presentations and overcome objections. You've paid your dues and you're now ready to enjoy your successes.

Nevertheless, you can do everything right and not get the order. Does that reflect on you or your sales ability? Only you can decide that. The important point, whether you make the sale or not, is that you can still be a winner by maintaining a good attitude and by learning from your mistakes. A successful sales person is a life-long student — constantly learning from his successes and failures, continuously improving his techniques and skills.

Once again, the great Vince Lombardi says, "Winning is not a sometime thing; it's an all-time thing. You don't win once in a while, you don't do things right once in a while; you do them right all the time. Winning is a habit."

CHECKLIST

___ The Buying Results

___ Steps to Closing

___ Recognizing the Time to Close

___ Debriefing the Prospect

___ Closing Techniques

___ When to Close

___ Prepare Yourself to Close

RESOURCES

Books

Million Dollar Closing Techniques. (Wiley, 1999).

One on One: The Secrets of Professional Sales Closing by Ian Seymour. (Pelican, 1996).