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SALES TECHNIQUES
It’s the Relationship, Baby

All things equal – people want to do business with people they like.
All things not being equal – people will still do business with people they like.
(Jeffrey Gitomer www.gitomer.com - again)

This is the most important point in professional selling.
It isn’t about product.  It isn’t about features and benefits.                                                                                             It isn’t about sales techniques.  It isn’t even about talking.

It is about building relationships with people.
This isn’t a trick or a technique.
It means real relationships.

Relationships earn you time with prospects and customers. It gets you listened too.
It means your prospects are more likely to believe what you tell them and try what you offer. It makes customers stay longer.

You will never take business away from a relationship using features and benefits.

Applying Human Relations to Sales

#1. Invest the time
Many prospects will want to get down to business.
You may be eager to present the product.  Often you’ll be told you have limited times….2 minutes.
Whatever time you have, invest some of it in the relationship. That time will pay dividends.
When you uncover an area of interest, that 2 minutes turns into five.

#2. Establish peer to peer rapport.
Of course you will be respectful. Of course you will be professional.
But also be warm and human and personable.
Use your voice. Make sure your tone is warm and personable.
Not nervous. Not submissive. Not fake. Conversational and human – like when you talk to your friends.

#3 Look for commonality.
Read the office. Look at photos, diplomas, and memorabilia.
Notice golf logos on shirts.  What can you find out about family or hobbies or other interests?

#4. Simply ask a question about what you see.
– Relax. Don’t pressure yourself to talk product.
– Be attentive. Be interested.
– Let the conversation move to the customer. Listen.
– How long can you keep the conversation flowing by developing or discovering topics?
– Trust that the topic will turn to you.
– When it does, have a business opportunity. Deliver it with enthusiasm.

#5. Laugh
It is a unique human trait. It is the best of who we are.
Share a laugh with your prospect and the walls come tumbling down.
Show genuine enthusiasm. Be the kind of person they’ll want to spend time with in their office.

#6. Do all of this before you begin to sell.
Let them talk. Share a personal moment. They’ll listen with greater courtesy when you talk.

Five Reasons People Like You
• Your genuine interest in other people.
• Your smile – it attracts people
• Be a good listener Encourage others to talk about themselves
• Talk in terms of the other person’s interest
• Make people feel important – all people… and do it sincerely

Your relationship is the most powerful tool you have against discounting.
Relationship selling is selling for the long term.

Want to better understand HOW to build relationships.
Download the MP3 on Human Relations and Selling.  It is in the library.

If you manage sales people, Human Relations and Selling
is available as a PowerPoint with exercises.

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Understanding the Bag

The manufacturer expects you to see the full bag – all products.
You’d like to earn commissions from the full bag.
To maximize your opportunity, you must first determine the ‘path’ through the line.  What product is first? What follows? How does the line logically build?

The Rule: Start with the innovation. Move toward the commodities
Innovation makes you an important vendor. Commodities don’t.

Customer will change vendors for innovation.
Once they’ve changed, you can leverage in your commodities.  Make sure the company identifies these innovation leaders and explains them fully.

Also, to be a valued rep, make sure you know which products are most profitable to the company. Are they more profitable for you, too?
Next, where is the volume? Where is the highest commission?
What products relate to each other, allowing you to build a story.
Are there other lines you carry that you can tie together into a stronger sales story?

Spend time with the line developing the sales path.

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Prospecting and Building the Network

Networking works. Cold calling, not so much.
Take that cold calling time and invest it in networking.
Better yet, maintain your daily cold calling, but add evening and morning hours to network. Then use that network to improve your cold calling.

So what is networking? What does it really mean?
Networking is simply people that know you.  Folks that respect you and the work you do.
So it is credibility. It is familiarity. It is a means of introduction. It is also commonality.

It works because it quickly overcomes one of your biggest obstacles; the fact you are a stranger. Today’s Network does what the ol’ boy’s Men’s Club use to do a century ago.  It makes you part of something and vouches for your reputation.

Networking continues to change.
Traditional networks still function. The Rotary, Masons and other fraternal orders still function as a network.

Chambers of Commerce and Visitor Centers still host worthwhile functions to meet people. Media and Sports organizations have networking events like the "40 Under 40" and such.

The real action in networking is online.
LinkedIn and Facebook are two of the most powerful forces in networking today.
Facebook has 20 million users that login 100 million times a day.  It is easier to connect with anyone anywhere in the world than it has ever been before.

How are you connected?
Can you be found on LinkedIn?
Are you expanding your network, allowing others to link?
Do you have a professional Facebook page? Can people learn about your professional activities there?

If not, you’re not in one of the most important, competitive aspects of the game.
It isn’t difficult. Sign in and sign up. You can do it in minutes.
Why would you not participate in the newest, fastest emerging sales networking technology there is?  Quit making excuses.

How to Use It
You’ve identified several prospects.  You know the management team from their web site.
Look for them on LinkedIn. Who else can you identify?  Do you have any natural links to them? LinkedIn will tell you.
Read the profiles. What commonality can you find?  The networks may help you find a gentler, natural introduction.
If not, the background may make your cold calling more insightful and effective.

The Rule: Use your network first.

Researching a Target Prospect

I promise you, preparation is both flattering and impressive to prospects.
Which is sad – it suggests too few sales people are doing it well.
See, we know what to do; we’re just not doing it.

Sources of Information (this works for competitors too!)
- The internet – duh!
- Their literature.  Most organizations have brochures – read them!
- Their employees (especially marketing and sales)
- Their competition
- Their customers
- People you know that know them
- Their vendors
- Online forums and chat reviews

What do you need to know about a prospect’s business to engage?  The more you know, the more ways you can engage.  Each one will be impressive. It’s fun to do.

Besides, you’ll find it difficult to talk about anything but your product if you don’t do the research. And that’s boring.

The days of opening with “Tell me a little bit about your business” went out with the two martini lunch. Actually I heard a sales associate say that line recently.  I cringed.  It made me want a martini. He obviously had not prepared and appeared to have no commitment to the customer. The prospect felt the same way I did.  Do the homework.

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Selling the Appointment

Selling is face-to-face. It is the most powerful selling we can do.
To sell face to face, you’ve got to master selling an appointment.

Why should the person see you? They aren’t looking for your product.
So you’d better decide why they may want to see you. Their ‘Real Need’?
- More sales.
- More profit
- More customers
- Greater productivity
- Reliable supply chain
- Dedicated employees
- Higher morale
- Better image
- More time
- More free time
- Fewer hassles
- Recognition
- Appreciation
- Adventure, or at least new experiences

First, remember that your phone call is an interruption.  Plan to be brief.

- Yes, you’ve got to introduce yourself. But it doesn’t matter. They don’t care.
Name and company, quickly so you can get to your point.

- Yes, a networking referral is important. It adds credibility.
But it doesn’t add value to your distraction. Make it brief – get to the point.

Then engage them…spark….provide value….be interesting….be prepared and informed. Understand how your product or service will be used and by whom to do what. Know the fit. Know the value. Be prepared to prove it.
But couch it in terms of their Real Need: Productivity. Profit. Growth.
Practice developing accurate statements about profitability. Use statements about Productivity.
Prospects want friendly, helpful answers for their business productivity and profit.
Help them understand what they will learn by meeting with you.

Lead with questions or statements that lead to them wanting to know more.
You must determine why they would want to know more.
To do this, you have to know something about them. Before you call, do your homework.

Focus on the Appointment. It is the only goal.
Don’t try to sell the product. Don’t even detail the product.
In anticipation of a successful meeting, ask yourself, “Is he looking forward to this meeting, or does he feel badgered?”    If you haven’t earned the meeting, you may be wasting your time.

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Pre-Call Planning

For each call you make, teach yourself the discipline of Pre-Call Planning.
It is a way to make sure you visualize, anticipate and plan for the call.

The Pre-Call Plan means having a specific goal to accomplish on the call, knowing who you’ll see and making sure you have the appropriate materials. It doesn’t have to be in writing….but these are the things you should consider.

Remember – someone is taking YOUR money from this account.  They aren’t going to give that money up very easily.
You’re going to have to do SOMETHING to make things different.

When Scheduling
Call the right person
Who benefits from your product (not just professional buyers seeking price)
Buyers can buy and become the decision maker – until they say no.                                                                        Understand their motivation for your product                                                                                                          Develop an agenda and set priorities
Get them out of their environment if possible

With whom do you schedule?
Receptionist? Buyer? User?  Department head or Administrator?  Reach as far up the ladder as you can to be effective.

Sales Call Planning
Who are you seeing?
What is the goal of the call?
What do you want to sell? Why this product? What are they using?
Can you articulate your business reason for being there?  Wait, make that their business reason for having you!
Do you have the necessary materials?

Who else might you see?
Gatekeeper
Influencers
Sales floor
Management

Prior to Arriving
Talk to support staff. Know about any problems. Clear them up.
Pull CRM Reports
Review customer or prospect profile sheet for associate names, additional prospects, current product usage and sales call history.  Think about the conversation and visualize switching the business
Take in what you need – samples, studies, sales tools, testimonials, etc.

In one of his blogs, Scott Crawford (http://crawfordinsights.blogspot.com ) made the statement “The workday starts the night before.”

It is all about preparation.
You should finish every workday anticipating and detailing your plans for tomorrow.
Not making plans – it is too late for that.  Not doing your research – it is too late for that.
This is a leisurely review and preparation for your actions.
Making sure you know the facts you’ve gathered, and figured out how to apply them.
Knowing everyone you plan to talk too….what they can tell you….and how you can help them. This is the time to discover an uncrossed t or an un-dotted i.  You’ve crafted how you’ll fulfill the "Real Needs".

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The Professional Buyer
Putting Emotion Back in Buying

Buyers are responsible for budgets and price.
In some industries, they only negotiate price. They don’t even review the product. Their recognition comes from prudent buying.

Without some sort of desire, some emotion, some way to differentiate – sales is very difficult.
Because in sales, the decision is emotionally driven, and then justified logically.
Don’t allow the customer’s buying process to remove emotion from the decision. That emotion is one of your defenses against discounting.

Investing in the relationship with your professional buyers is an important as any other sale. The relationship is another defense against discounting.

Next, clearly identify (first to yourself) your personal value proposition.
Then articulate the value proposition for the product and the company.

Practice communicating it in a manner that will engage the decision maker.
Support that value statement with proof sources – stories, examples, testimonials to help the customer decide both emotionally and logically to buy from you.

It is all about relationship.  It is all about perceived value.  It is all about finding that emotional connection.

30-40% of customers will always buy price.
Or 30-40% of the time, the purchase decision will be made on price (even the hardest price buyer will sometimes connect emotionally).

That means that 60-70% of buyers will buy value if you present it.  Have you defined your differentiated values?
Scroll up to "Selling the Appointment" and review "The Real Need".

Use these motivators to help your prospect see how your product and service will change things. Explain what will improve. Tie the product outcome to the buyer. Look for the emotional connection.

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Questions are How We Sell

Why? Because people would rather teach you, than have you teach them.

You know your competition. You know their problems.  Design questions to lead your prospects to those critical issues.
Don’t make it twenty questions. Be conversational. Let them tell you what they’d like to buy.

You’re looking for information that will tie your product to solving their issues or advancing their goals. If you know your competitor’s shortcomings, you don’t have to ask if they are affected. You know they are. Find out how it has manifested internally or with THEIR customers.

The Rules
Always be conversational and curious.
Always be genuinely interested.
Always shut up and listen to the answer.
Always know where you are talking the discussion.

Don’t be disrespectful of the competition or the decisions that have been made.  Just solve the problem.

Remember, if you want longer answers, avoid yes/no questions.
Another technique is to ask multiple questions, run together. That will generate longer explanations.

Competitor has Delivery Problems
“What happens if you run short of inventory on these?”
“How does it affect your planning if a delivery is late?”

Competitor has Quality Control Problems
“Does that require you to add your own quality control? How does that work?”
“Wow. Is the company standing behind that? It must be a hassle for you.”

Design Problems
“Have your customers ever had a problem with _______________?”
“How do your customers feel about ______________?”

Competitive product with too narrow utility
“Do your customers ever need to _________________?”
“What happens if someone wants to ______________?”

Want to promote Price Segmentation?
“Wow, that’s a beautiful X….I wish I could afford it.”
(I know. It isn’t a question. But it will open discussion about the price point)
“Are there customers that would like a more affordable alternative?”

“That product really established demand. Are you seeing any interest in a more technically advanced model? What do you think people will be looking for next?”

Notice that these are real questions about products and performance. They aren’t just leading sales questions. Customers appreciate you being engaged in the real issues of the category. It tends to make their answers more honest and informative. And that leads right into your sales discussion – focused right on their point of interest.

There is such a thing as poor questions.
They don’t lead to a sales discussion.  You don’t already know the answer. They reflect poorly on you as a professional.
Which is a nice way of saying they make you look stupid or lazy.  Think about your questions. It is the presentation.

Bad Questions
Who are you currently using?
Homework already told you this. Or were you lazy?

Are you satisfied with….
Of course they are – get out.

How much are you currently paying for…
This brings the pitch down to price.

Can I quote you?
Why send a quote. You are right there, now!  But don’t make it about price.

Can I bid on….
All about price. What else do you have to offer?

Tell me a little about your business.
You sound uninformed – lack of research. Lazy again.

Are you the person who decides….
You’re asking them to lie.

If I could save you some money would you….
If they have a relationship, this won’t work.
And you’ve just made it all about price.

What will it take to earn your business?
You’re asking them to do your work. They can’t answer and you look like an idiot.
Okay, they could tell you to charge half your price. Now where are you?

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Multi Level Selling

Every one of us runs into multi-level selling from time to time.
This is where a number of people need to be sold to get the order.  Sometimes it is just a hierarchy, where the buyer has no real authority.  Sometimes it is a legitimate committee of divergent interests.

The overarching rule for multi-level selling is never let someone else do your work.
Don’t delegate the sale. There is no one you can pass the responsibility to that wants the sale as much as you do.        So stay with.

That means:
- Make sure your expertise is appreciated.
- Get on the buyer’s Team as the technical expert. Let her understand your role.
- Support the buyer presenting to the team – make her look good.
- Lead the presentation.

It starts at the beginning of the first presentation.
Particularly if you suspect your contact is too junior to buy.  Or if the product is too complex for a single decision maker.

Before the presentation (afterwards is too late) ask, “Is there anyone else you work with that….?”

Multi-level Hierarchy
This is where the levels have to do with authority more than differing responsibility.  It may be that the buyer presents their recommendation to a Supervisor or Lead.  They may have to present to a Merchandise Manager, Department Head
or perhaps a VP.

Your job is to flush out the real decision maker before you start presenting.  That’s the time to make concessions and plans, when interest and anticipation are high.

Ask “How will this decision be made?”  This might bring out that she’ll tell her supervisor.
Ask, “Then what?”  You’ll learn about the Department Head.
Plan on asking “Then what?” 3 or 4 times to get the full story of the decision, including the real decision maker.          The buyer won’t feel empowered to skip a level in telling you.

Finally suggest that “ So if you find this interesting and beneficial, you and I will present it to the VP and chat about it?
Before you present, establish this idea. You certainly don’t want this person doing your selling for you. You know your message won’t translate correctly up the line. This is the point to establish your expertise and make her team.

Multi-Level Committee
This is a more challenging and exciting sales situation.  You have multiple decision makers with different interests and needs.

The committee may include;
- a buyer,
- Someone from sales (if the product is for re-sale)
- Operations (if the product affects manufacturing)
- An Administrator if the product affects inventory
- Accounting for costs, shipping, terms and inventory
- Executive Management for budgets or capital expenditures

Interests will vary and may include:
- Margin
- Demand
- Features
- Quality
- Durability

Typically, you’ll have to sell this group one at a time, and finally as a committee.
The sales plan is the same. Sell the first level first.
They are driving the need and establishing the requirements.

Ask how the decision will be made.
Identify the players, by name, department and interest in the product.  Find out who the prime decision maker will be.      It won’t be the committee.  Establish your expertise (in each area).

Ideally you’d like the contact to be uncomfortable presenting without you.
Arrange to meet all the influencers. This will make it easier to stay in the presentations. Finally, make the presentation – don’t delegate it.

Product Options
Oftentimes, you’ll have an array of product options. Perhaps it is price (good/better/best).  Maybe it is functions.

Attempt to identify the best options with the primary user with responsibility for the product. Quickly narrow the presentation as you go up the channel, leaving fewer and fewer choices.

It makes the presentation less complex and the decision easier and easier.
It also show support for the primary user initiating the contact, helping to sell the product they identified as appropriate for their needs. That support keeps you on the team.

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Reducing Risk

Changing vendors, making purchase decisions and committing to product lines has risks for the buyer.
That risk is in the way of your sale. It isn’t like an objection, because the prospect will never articulate it.
But it is there.  Your job is to understand the dynamic. Anticipate it. And address it, though it is never spoken.

What are the risks? Here are some examples to think about.

– Will the product work as intended?
– Will this rep fit it correctly?
– Will I end up with complaints?
– Will this change frustrate my staff?
– Is the product easier to use or will it require more staff attention?
– Will this rep be attentive to customer complaints?
– Will this sell?
– Is this product and company respected in the industry?
– Do I look foolish leaving my current vendor?
– What other products am I buying from my current rep?
– How will my current rep react when I change?
– Am I paying too much?

Just remember that changing vendors can be disruptive to a company and a source of anxiety for your prospect. You can make it easier by building their confidence in the decision and enhancing your relationship with you.

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Discounting

Discounting is a fact of life in business and becoming more so.

Corporate ethos wants to focus on price. Whatever it is, pay less.
Buying groups try to create industry wide buying power to decrease price.
Some buyers treat all products like commodities, focusing only on price. They are evaluated on savings, not on product performance.

Worse, many sales people haven’t learned to sell value and rely only on price.

The Discount Result
Consider that you aren’t really discounting price.  You are discounting profit.
The cost of goods doesn’t change. Overhead isn’t short-changed.
The entire amount of the discount, comes straight out of the profit percentage.
Do you know the profit percentage of your company? You should. Because that is the figure you discount.

Remember, profit is investment.  It is future jobs, bonuses and new products.
That’s what you are sacrificing with every discount.  Don’t for a minute think otherwise.

The Discount Defense
You have three defenses against discounting.

1) The value you have established in the prospect’s mind for the product. It fulfills their need and they want it.

2) The emotional connection you’ve established between the prospect and the product. They want it.

3) The relationship you have with the buyer.  They like you. They don’t want to hammer you.

Strategies to Combat Discounting

#1. Recognize the profitability of your line.
Manufacturers are often seen as bottomless pockets. It is their fault. They always seem ready to discount, offer tier pricing, provide promotional support, fund initiatives and so on. Customers don’t really know where the ‘bottom’ is. So they keep looking for more.

The hard reality is that customers typically make more margin on a product than the manufacturer. If your line is for resale, be clear on the profitability of the product to the prospect. Will they make a better margin on it than you?         Tell them. That certainly weakens their position for discounting.  Help them understand the price is fair.

#2. Re-frame the discount
We easily throw around percentages. Try converting it to dollars. Sometimes the amount appears insignificant…a ‘couple of bucks’. That may allow you to brush the request away as ‘close enough.’ The reverse may be true too. The dollars may be significant, allowing you to balk at the amount.

#3. Focus on Value Provided
The product is the focus. Negotiating price is a responsibility. It is a major clash at the end of the sales dialogue. But then it is gone. The more you emphasize value, not features and benefits, but value to the customer, the more discount resistant you’ll be at the end.

If the customer has visualized the product, how it will be used and function and the benefits they’ll reap in terms of profit or productivity, the less time you’ll spend haggling price.

If you find discounting is taking a greater amount of your sales cycle, review your value statements and revisit how you tie that value to your customer’s life.

Discounting is a short term responsibility. Help them focus on results after the sale.

#4. Sell the User
Buyers negotiate. It is a key part of their position. So who else benefits from your product? Who has the day-to-day responsibility for it? Bring additional pressure on the buyer to get the sale done by focusing on their need and your (once again) value. (Review ‘Real Need’ above)

#5. Sell Top Executives
The higher you go up a corporate hierarchy, the less price matters.
Executives know this. That’s why they hire buyers and keep them between you. Executives buy productivity. They invest in profitability.  They have the big picture. They understand that a few dollars discount on the price is irrelevant compared to the value added. They will be more concerned about speed, implementation, support and function than a few percentage points discount. Their eye is on the horizon.

Sales Take-Aways

  • Lead with product quality and reputation
     
  • Focus on value. Tie productivity and/or profit to the product and prospect.
     
  • Reduce the ‘Risks’
     
  • Strengthen your relationship
     
  • Never lead with discounting
     
  • Don’t encourage bids or tease with off price possibilities.
     
  • Don’t talk discounts until you are confident you know
    - Their current product satisfaction
    - Their current volume
    - The price they currently pay
    - Exactly what they want to buy (and what else they can buy from you)
     
  • Don’t discount unique products.
     
  • Tie the discount to additional products or increased volume so you and the company benefit.

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Facing Failure

First, failure is an event, not a person. And particularly not you.

Ask what has ‘failed’?
Perhaps you’re failing to meet quota.  Maybe you’ve failed to make new contacts.  Maybe you’ve failed to prepare.

These can all be easily fixed.
You already know the answers; Attitude. Habits. Work Ethic.

Secondly, you can't lose until the game is over and the game isn't over until you quit.  Failure only occurs when you decide to quit.  So you haven’t failed.

You’re in a Slump…..

The Rules
- Don’t panic
- Don’t press too hard
- Don’t get down on yourself
- Don’t get mad
- Above all, don’t quit.

How to Analyze a Slump

The first step is to sit back and think about your situation. Analyze what you are doing (or not doing). Get back to basics to develop a new work plan with a new commitment.

Are you missing your numbers? By how much? What will it take to correct it?

Are you confident?
Do you believe in the quality of your product and the integrity of the company?
Do you believe you are the best at what you do?

Have you maintained your work standards?
What time are you going to work? How late are you working?
Are you still making ‘one last call’?

Are you giving in to excuses?
The bad economy – high prices – lousy territory?

Are you playing to win?
Sufficient calls and prospecting.
Meeting with decision makers
Doing your homework
Crafting effective benefit statements

Management Issues
Has there been a management turnover?
Excessive or unreasonable firings?
Do you feel your job is threatened?

Outside Influences and Bad Luck
Customer personnel changes
Back orders or production problems
Bad weather
Weak product launches.
Canceled orders

Are outside pressures distracting you?
Money or family problems?

Personal habits out of control?
Drink, Drugs, Food or Late Nights?

Depression
You know what to do. You just don’t do it.

Correcting the Slump

When you are in a slump, you begin pressing for sales. It is not becoming (or effective). It probably delays more sales than it attracts.

Let’s get back to basics.

Remember the Rule: Provide Value First. See ‘Real Need’ above.

Look at your prospects and think how you might be able to help them. Start there.

Actions to Change Your Fortunes

Part A. Recharge

  • Take a day off. Refresh yourself.
     
  • Have some fun. Remember, there is a life out there.
     
  • Distract yourself with your hobbies and interests. Clear your mind.
     
  • Spend some free time with your family. Reconnect.
     
  • Get some exercise. Reinvigorate.
     
  • Motivate yourself with music or books or anything that inspires you.
     
  • Rearrange your office. Clean the clutter. Get it ready for work in a new environment.

Part B. Refocus

  • Define what is underperforming. What do we need to fix?
    Is it leads, appointment, closes?  Do we need more folks to talk to? More presentations? Better closes?
     
  • Get new information. Do better homework. Talk to Product Managers.
     
  • Spend time with our Key Accounts. Let them reinvigorate your confidence.
     
  • Return to the customer’s perspective. Think about the contribution you and the product make.
     
  • Change your presentation. Make it fresh.
     
  • Recommit to your work ethic.
     
  • Co-Travel with your manager or even with a junior rep.
     
  • Tap your network for referrals, including your key accounts. Cultivate new associations

Part C. Relax and Relate

Put some fun and interest back into your sales game.  Help your customers succeed. Smile. Laugh. Get active.
Let your prospects see that you are enjoying being a part of their business.

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© Ryan Hixenbaugh