Day 9
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Review
Rearrange these letters into words.
SMRUC DROAB _ _ _ _ _ _ _ _ _ _
YPROTTOEP _ _ _ _ _ _ _ _ _
Selling
What is selling?
Selling is when you exchange your product or service for money.
How long does it take to sell your product or service?
Depending on your product or service, selling may happen quickly. This is known as transactional sales (e.g. buying an ice cream). Alternatively, selling may require a longer sales process which requires time and resources.
Usually, a longer sales process is required when your product or service is complex (e.g. retirement planning), has a high price (e.g. home), is new to the market (e.g. new medication), or is custom (e.g. lifted truck).
Your business may need a person dedicated to a longer sales process, a salesperson, to persuade a customer to buy your complex or custom product or service.
What’s the downside of having a salesperson?
It costs your business money to hire a salesperson.
What’s the upside of having a salesperson?
It increases the chance of a sale since the salesperson can take the time to articulate the values of a complex, high priced, new, or custom product or service.
Prospecting and Qualifying
The first step of a salesperson in a long sales process is to PROSPECT.
What does prospecting mean?
Prospecting means to identify which individuals in your target market have a need and a desire for your product or service.
While a salesperson is prospecting an individual, he/she will describe the value of your product or service and/or compare it to other businesses.
An individual who expresses interest in your product or service is called a LEAD.
A salesperson will keep a list of these leads.
What are some communication channels a salesperson can use to prospect?
- Direct Email
- Telephone – Cold Calls
- Video Conference
- Public Speaking
- Demonstrations
Depending on the channel, it is important for a salesperson to use COMMUNICATION TACTICS like ‘breaking the ice’, asking open ended questions, and actively listening to increase the chances of establishing a personal connection.
What does ‘breaking the ice’ mean?
Immediately asking an individual if they want to buy your product or service often makes people feel uncomfortable. It helps to ask or say something more personal such as “I love your sweatshirt. Purple is my favorite color”.
What are open-ended questions?
Compared to a closed-ended question like “How old is your car?”, an open ended question encourages a longer, informative response rather than a quick one worded answer (e.g. “What are your thoughts on replacing your current car?”).
What does active listening mean?
Listening is the most important communication tactic. For example, passive listening occurs when you are introduced to a new person, but forget their name a minute later. Active listening is focusing on the details of what is spoken by the other individual.
When you pay attention, you can pick up important information that can lead to a sale.
After the salesperson identifies a desire from an individual, he/she will QUALIFY.
What does qualifying mean?
Qualifying means determining if the prospect has the buying potential, urgency, and authority to make a purchase.
- What does buying potential mean?
- Buying potential means whether the person can afford your product or service.
- What does buying urgency mean?
- Buying urgency means how quickly the person would want to purchase.
- What does buying authority mean?
- Buying authority means whether they have the ability to purchase (e.g. age constraint
Closing
Finally, a salesperson will CLOSE.
What does it mean to close?
Closing is asking the lead for the sale. You can use a direct or an indirect close.
What is a direct close?
– “Would you like to buy this car today?”
What is an indirect close?
– “Our finance department is open for another hour. Will you be buying or leasing this vehicle today?”
Do you think it is common to be rejected in selling?
Yes, you will be rejected more times than you close in selling. Being rejected by leads is difficult, but you can learn over time how to overcome the uncomfortable feeling.
- Everyone gets rejected, you are not alone.
- Always be positive.
- Have persistence.
- Be confident.
Response
What is prospecting?
What is qualifying?
What is closing?
Give an example of an icebreaker question and an open-ended question.
What communication channel would you prefer to use for prospecting? Why?
Build Instructions
On the next slide, you will be developing three indirect closes to use for your product or service.
For example, Dwight would write down the indirect closes below.
Indirect Closes:
- “Are you free in the evenings or mornings?”
- “Should we schedule your mentoring session on Thursday or Friday?”
- “Would you prefer to be mentored over the phone or in-person?”
Long Term Goals:
- Generate at least $3,000 in monthly revenue
- Enter into the LA and San Diego market.
Prototype:
- Perfect Version – Launch Group clients will be tracked through our online, secure portal. In-person meetings, phone calls, and video conferences with Dwight can be easily scheduled through the online calendar. Long-term and short-term goal progress will be displayed on the portal for reinforcement. Each client will be given 50 GB of storage inside the online portal to place their startup files and media content. Launch Group will also provide clients a meeting room at an office building that can be used for meetings with Dwight or for their own business purposes.
- Minimum Viable Product – Dwight will drive to the client’s location for mentoring meetings. Meetings can be scheduled by emailing Dwight with a 24 hour notice.
Profit:
- How much profit do you want to make each time you sell your product or service?
_______$75_________ (desired profit per product/service)
- How much profit would you like to make from your business each year?
_______$75,000_________ (desired yearly profit)
- How many products or services do you need to sell each year to make your yearly profit?
(desired yearly profit) / (desired profit per product/service) = ___________1,000________________ (# sold per year)
- How many products or services do you need to sell each month to make your yearly profit?
(# sold per year) / 12 (months in a year) = _____________83.3_______________ (# sold per month)
- How many products or services do you need to sell each week to make your yearly profit?
(# sold per year) / 52 (weeks in a year)= _____________20.75_______________ (# sold per week)
Price:
- $200.00 for 2 / 1 hr mentoring sessions a month.
- $350.00 for 4 / 1 hr mentoring sessions a month
- $400.00 for 6 / 1 hr mentoring sessions a month.
Pricing Strategy:
- Receive $100.00 if you refer a friend and they sign up.
Costs:
- 13 inch MacBook Pro – $1,299.00
- iPhone 14 Pro – $999.00
- T-Mobile Magenta Plan – $70.00/month
- Nissan Leaf Lease – $425.00/month
- Car Insurance – $99.00/month
- Electric Charging – $40.00/month
- Office Supplies (ex. notebook) – $15.00/month
- Business Cards – $9.99
- Social Media Advertising – $100.00/month
Business Name: Launch Group
Logo:
Marketing:
- Direct messaging and paid advertisements on social media platforms.
- Attend Meetup entrepreneurship events and hand out business cards.
Target Market:
- Age: Young Adults, Adults
- Location: Orange County, California
- Interests: Entrepreneurship; Technology; Innovation; Stock Market
- Lifestyle: Ambitious individuals who have a busy schedule which revolves around activities/tasks for their business. They take limited vacation time and frequently attend networking events.
Industry: Mentorship
Product / Service: Service
Values: In-Person, Flexibility
Description: My business idea is to provide mentoring to startups.
Please have your child write down all their answers on paper.
The purpose of this builder is to be a guide to their idea.
Business Builder
___________________________
___________________________
___________________________
___________________________
___________________________
Pitch Instructions
Present your closes to the class.
Write down questions to ask your classmates.
Remember to be respectful during each pitch.
Active listening is focusing on the details of what is spoken by the other individual. When you pay attention, you can pick up important information that can lead to a sale.
True
Depending on the channel, it is important for a salesperson to use communication tactics like ‘breaking the ice’, asking open ended questions, and actively listening to increase the chances of establishing a personal connection.
True
The first step of a salesperson in a long sales process is to prospect. (True or False)
True
It should not take longer than 7 days to sell a product or service. (True or False)
False
Day 9 Homework
(Complete your homework assignment on paper)
Write about a time when you were rejected by another person.
- How did it make you feel?
- How did you respond?
- Looking back, what would you have done differently?