How to prevent a "down year" in 2007

[Steve]

I've read a number of times how some dealers are experiencing slower sales than in past years. I believe as this industry becomes more competitive, sales are diluted to a degree but there are a number of things we can do as business owners to eliminate this as much as possible. Weather and the economy are things we can't change so there's no need to complain about those. Instead, let's focus on the things that dealers CAN do to improve their overall sales.

In my experience, the really great dealers haven't seen a lull in sales in the past couple of years but I'm talking those dealers that represent the top 5%. Why is that do you think? Because they know how the game is played and they aren't working harder.... they are working smarter!

I'm going to pass along some of my suggestions to all of you and in no way am I suggesting I have all the answers but if only a handful of these make a difference, it has been worth it. That, and you didn't pay anything to receive this info!  

It's understood that upwards of 75% of annual spa sales are gained by sales events. Sit back in your store, advertise like crazy (spray & pray advertising is what I call it) and you’re in for a tough year! What I mean by this is that these MUST be sales driven events such as parking lot sales, off site sales, etc. I DO NOT put home shows in this category as these are RARELY sales driven. They are more targeted at the masses and no doubt you'll get a few sales but don't hang your hat on these! These are great if you are a newer business requiring exposure to the general public. Hand out some brochures and business cards is about it. It wasn’t always this way but the past 5 years has seen a change in home show climate where we’re seeing the cost to be in them is increasing while sales are falling sharply.

A well executed sales event has many facets to it and the better a sales manager or owner understands this, the more successful the event will be! It’s far more than a couple ads in the local paper or radio remote and a few spas kicking around! I have a very advanced checklist and if anyone would like a copy, PM me with your email address and I’ll send a copy to you.

It amazes me how some dealers complain about sales but when asked to provide their list of prospects, they stare blankly at me. If your closing ratio is 100%, then fine but if it’s not, you need to track these leads (prospects) and manage them properly! They are people that YOU KNOW are interested in buying a spa and you don’t have to pay for advertising to bring them in again! On average, it costs about $500 for each person that walks into your store when you look at your overall cost of your annual advertising budget so why wouldn’t you want to manage these properly? When you do a sales event, who are you inviting? Spray and pray advertising again? Hell no! Target your leads! I’m not saying don’t advertise but the reality is that your past prospects if managed properly, will generally make up over 50% of your sales in an event.

GET THEM IN THE DRY SPA! So many sales people miss this critical step. Comfort is a HUGE part of this sale and they need to be exposed to that.

Have a clear presentation and know what you need to cover. It will change slightly with each prospect but the key components MUST be discussed. Therefore, it requires a detailed presentation. Ask your staff for a copy of theirs and see what you get! Everyone should have the same story and if they’re all saying something different, you will lose credibility!

Does your store look like this is a good time to buy or is it just another day? Why should they buy today? If there’s no real value offer with a limited time, you have created no urgency to buy.

Understand your competition without slamming them and more importantly, UNDERSTAND YOUR POSITIONING AGAINST THESE PRODUCTS.  What makes you different and why should they purchase from you?

Have a closing area! A table with at least 3 or 4 chairs that has everything you’ll need to close the sale. Don’t just be an “information giver”. Guide them to this area where you can write up a quote just like you are writing up the sale. When done properly, this one sales technique can dramatically increase your closing ratio. Let me know if you want the full spiel!

Write up EVERY customer that you have done a full presentation to and ask for the sale. There’s some great salespeople out there but very few actually ask for the sale.(This is about 45 minutes long in my seminars so this is really the Cole’s Notes version of all of this)! Recall the aspects of the spa they liked and be sure to show the value.

Again, this information is a really brief overview and there’s so much more within each aspect but I wanted to share some of it with you in an effort to maximize your sales potential. Should any of you want to, I still do offer my services in a sales training capacity and my in-store sales course is a 6-8 hour seminar. The cost is almost free!  

Steve

[SpaNE]

Here is a suggestion from a customer's perspective.  

1. Treat your customers with RESPECT.  
2. Be HONEST.
3. LISTEN to what they are telling / asking you.
4. Follow through on COMMITMENTS.
5. Say THANK YOU.

[hottub.pool_boy]

Well done Steve. I'm pumped up with just reading your post!

[hottubdan]

Here is a suggestion from a customer's perspective.  

1. Treat your customers with RESPECT.  
2. Be HONEST.
3. LISTEN to what they are telling / asking you.
4. Follow through on COMMITMENTS.
5. Say THANK YOU.

And I say well done Spa NE also.

[hottubdan]

Steve,

Your points are well taken.  We are actually up this year by following many of your points.

I question the 75% of sales at events number.

I do not question working your prospects, selling professionally, asking for the sale, treating customers with respect and saying THANK YOU.

I will PM you for the cheklist you generously offered.  We have an outside event in a couple of weeks.

Dan

[Steve]

Steve,

Your points are well taken.  We are actually up this year by following many of your points.

I question the 75% of sales at events number.

I do not question working your prospects, selling professionally, asking for the sale, treating customers with respect and saying THANK YOU.

I will PM you for the cheklist you generously offered.  We have an outside event in a couple of weeks.

Dan

Great to hear Dan and I wish you all the best with it! Thanks for the PM and I'll send that off to you.

I don't suggest that any one number reflects all dealers worldwide but that has been my personal experience while working for a store that sold close to 400 spas annually. Maybe it was 70% but I'm real close! We did 4 major event sales every year and 2 home shows.

I didn't add the obvious thoughts on how to treat the customer as I believe that this should be a given. If people don't practice these beliefs in their stores, why would they be in a service related business?  :-/

Steve

[anne]

Steve, you are clearly an experienced, knowledgeable and thoughtful salesperson, but from a customers perspective, I personally disagree with a few things that you said. I know that I'm probably a little more sensitive to/irritated by subtle sales techniques than average, so this perspective may not apply to many people.

1. I dont want a detailed "presentation" when I'm first shopping. Certainly I want detailed info once I have narrowed down my options and need to choose a tub, but I HATED walking into spa stores and getting the obviously canned, lengthy "spiel." I just want to look around, ask questions, and have some time ALONE to look around. I very much appreciate someone taking the time to help me, but I would rather be the one to initiate that. Maybe I'm weird.

2. "Limited time" offers just make me think of slimy sales tactics. This may work for some people, but I immediately lose respect for someone who pushes that. I realize that there are different degrees to which this technique can be taken, but I still dont like it.

3. If you guide me to sit down at a table for any kind of offer, or write up or whatever, I'm going to feel pressured and trapped. I agree this is a good idea for once a sale is established, but NOT early on. It reminds me of a car dealership.

I'm just giving my perspective. I'm in no way a professional sales person, and I realize that your guidelines may work well on the majority of the population. I am in the midst right now of planning a kitchen remodel, so I have been doing some medium to big-ticket shopping lately, and so I found your thread both interesting and representative of what I have been experiencing in the appliance/contractor/other professional services world.  Perhaps my recent shopping endeavors have also made me overly picky about sales tactics.

 

[caribbeansun]

Interesting thread,

Unlike Anne I crave information at the beginning and afterwards can narrow my questioning as I become more educated so I don't mind more detail at the beginning.

Limited time offers - do those really still work?  IMO there is no such thing.  Almost without exception you can always get that price again later on.  I understand the need to create a sense of urgency in order to get action but it's the oldest trick in the book.

Closing area - I understand the need for this but like Anne I wouldn't sit down.  When I'm ready to decide then I'm ready, if I get pressed before that I'll likely not return to that store.

[Steve]

Steve, you are clearly an experienced, knowledgeable and thoughtful salesperson, but from a customers perspective, I personally disagree with a few things that you said. I know that I'm probably a little more sensitive to/irritated by subtle sales techniques than average, so this perspective may not apply to many people.

1. I dont want a detailed "presentation" when I'm first shopping. Certainly I want detailed info once I have narrowed down my options and need to choose a tub, but I HATED walking into spa stores and getting the obviously canned, lengthy "spiel." I just want to look around, ask questions, and have some time ALONE to look around. I very much appreciate someone taking the time to help me, but I would rather be the one to initiate that. Maybe I'm weird.

2. "Limited time" offers just make me think of slimy sales tactics. This may work for some people, but I immediately lose respect for someone who pushes that. I realize that there are different degrees to which this technique can be taken, but I still dont like it.

3. If you guide me to sit down at a table for any kind of offer, or write up or whatever, I'm going to feel pressured and trapped. I agree this is a good idea for once a sale is established, but NOT early on. It reminds me of a car dealership.

I'm just giving my perspective. I'm in no way a professional sales person, and I realize that your guidelines may work well on the majority of the population. I am in the midst right now of planning a kitchen remodel, so I have been doing some medium to big-ticket shopping lately, and so I found your thread both interesting and representative of what I have been experiencing in the appliance/contractor/other professional services world.  Perhaps my recent shopping endeavors have also made me overly picky about sales tactics.

 

Great reply Anne and I appreciate your opinion on these points. I do however, want to point out a few things with regards to your 3 points;

1) Most that looking to spend this sort of money want as much information as possible. People crave information and it's what makes the www. what it is today. I don't suggest that anyone start in talking about all the features and benefits throughout the presentation. Again, I have an hour long seminar just on presentations! In a nutshell, the salesperson should be asking more questions than the consumer. I always teach this in a manner where we are assisting to buy and not selling them something. I can't provide you with what you want unless I fully understand your needs.

Some, if left alone for more than a couple minutes, feel they are being ignored so it's a fine line in sales. I always recommend to acknowledge anyone who comes in but to give them a minute or two unless they seem like they are looking for help. There's no right or wrong here as we're all different.

2) Limited time offers are NOT a TODAY ONLY price. I agree that there needs to be real value and yes, there are better times to purchase. That's why I suggest that dealers have a defined pricing strategy that offers real value at event sales and not perceived value. A dealer must be willing to take less margin during sales and make it a real sale. This is time limited with a specific end date. There's also times where the manufacturer might offer an add-on package or a price break for these items. There is also an end date to that.

I just want to be clear that I'm not talking about knocking a few hundred bucks off the spa for today only as yes, I agree that this is sleazy tactics.

3) With regards to sitting down at the end of the presentation, let me put it to you this way.
"Well Anne, that's everything I can think of unless you have more questions? What I'd like to do is sit down and just go through the package with you and give you an exact price. I want you to be clear on everything that comes with this spa and the EXACT price of it so there's no grey area or misunderstanding. Follow me..."

Most sales people scribble a few numbers down on a napkin and that's their "close". This alternate method is more professional, gives the consumer a detailed document that shows everything that comes with the spa, the real price at the bottom and all costs associated with this purchase. Again, most consumers want this information and they can take it home and discuss it. No pressure to make a buying decision NOW!

What I DON'T teach are closing techniques!!!! If your presentation is done properly, you are closing throughout! This is the right time to ask for the sale but I believe a no is a no. Deal with objections best you can and ask if that makes them more comfortable with this purchase but do not pressure the consumer!!

Hopefully that addresses your concerns Anne?

Steve

[Polar Bear]

Great info. Thanks Steve.

[drewstar]

Steve,

Is "Asking for the Sale" as litteral as it sounds? (ie "Do we have a deal?" )   How does a salesperson "ask for the sale" ?

[SpaNE]

Steve,

Is "Asking for the Sale" as litteral as it sounds? (ie "Do we have a deal?" )   How does a salesperson "ask for the sale" ?

Steve already explained one example.


"Well Anne, that'a everything I can think of..."

[drewstar]

I didn't take that as "Asking for the sale" and thus my question.


I can see Anne's points and I too sometimes feel that way. It all depends on where I am  in the buying process. If I am ready to buy, and I can't get a salesman to work with me, I leave. I've done this many times with big ticket items (cars, TV's contractors).  But also, if I am just in "info gathering mode"  and I feel the salesman is really moving me to "close the sale" that day, I'm put off in a big way.    

[SpaNE]

I didn't take that as "Asking for the sale" and thus my question.

  

That's the beauty of the technique.

[drewstar]

Eh.

and I maybe wrong (and that's why I asked Steve for his specific technique). I think many sales folks go through everything, and lead to the "Well that's all I can think of" point,  as you said,  BUT never follow through and  actually "Ask for the sale"  I thnk this is a critical distinction.

I think Steve was  specifically making this distinction, between wrapping up a presentation, and "asking for the sale" and from my limited experenience,  think this is where most salesfolks loose potential sales.  Wrapping it all up and letting the customer leave the store with a written quote is not "Asking for the Sale".    Closing the deal. pushing for it. Asking for it.  If it's not a  clean clear distinct movement for the sale, then hedging around it could cost you the sale.

 (Guys, think of your dating techniqes in high school.  There's a difference between "Well Mary, that's all I can think of" and as you sit there on her front porch,  hopping she understands and givesyou a peck on the cheek, and says "Ill call you tomorrow  versus   actually being invited in and knocking boots with the Home Comming Queen.    However, as anne points out, it's a tough call,  this could get you a slap across the face.  Ahh sales.