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Yes
Created on: April 19, 2009 Last Updated: April 21, 2009
I'm always trying to illustrated how professional sales really work - helping your prospect self-realize that he or she needs (or in some cases, doesn't need) your product or service. One of the best examples I've ever seen is one that happened to me when I decided to purchase a new Jeep.
About six years ago, I agreed to marry a man who had two children. I also had a child of my own, so we were going to need a more "Brady-esque" car. After a lot of research, we decided that a Jeep Cherokee would do the trick. At that time, A Cherokee Loredo, the base model, would cost $299 a month to lease for three years with $1,000 down. A good deal for us by all accounts.
Since I know how car dealers work (or so I thought), I felt very strongly about staying emotionally detached and just purchasing the car for the price I wanted. I called the local Jeep dealership and asked for the sales manager. Richard (who I believe is still there) answered the phone.
I explained to him that I wanted a Jeep Cherokee Laredo, dark green in color, and that I'd be willing to buy it today if he could match the price I wanted: $299 for a 36 month lease plus $1,000 down. I was strong in my demand, making sure he knew I was in charge. Richard said he could match the price, but the only Cherokee Laredo he had on the lot was army green, not the dark green I wanted. Even thought I was disappointed (the dark green is so much more "me"), I decided it was the route to go.
We arrived at the dealership, and I commanded my fiance and the kids to stay in the car. "Wait here," I said. "I'll handle this."
I walked into the showroom, where Richard greeted me. "You must be Greta," he said with a sincere-looking smile.
"I am, " I answered cautiously. He smiled. "OK. Let's go drive the car."
I stopped him. "Oh no," I exclaimed. "I want to talk money first!"
"Okay," Richard replied. "But didn't you say $299 for three years with $1,000 down? Since that's what we agreed to, that's what it is, right?"
With a half-smile on my face, I nodded proudly. "Right!"
As we walked through the lot to the army green (more of a pea green, actually) Jeep, Richard asked which car in the parking lot was mine. I pointed to the blue BMW where my fiance and our kids waited. As we got into the Jeep, Richard made an interesting comment.
"This car doesn't have a leather interior," he said. "It's cloth, but that shouldn't be a problem. I'm sure your kids don't spill things at their age."
"No, that's OK," I quickly replied.
As we pulled out of the dealership for the test drive, Richard played with the radio, then asked what kind of music I liked.
"Oh gosh, jazz. Top 40. Lot's of different things."
"Really?" he replied. "Do you have a lot of CDs?"
"Oh yes!" I proudly proclaimed.
"Hmmmm," he mused. "You know this car doesn't have a CD player, but I'm sure you've got cassettes."
"Or I'll just play the radio," I said, not without reservation.
He smiled. "Of course you can," he replied confidently.
As we pulled back into the dealership lot, Richard asked "So, what do you think?"
"Pretty nice," I hesitantly replied. "It drives more like a truck, but hey, it's not a BMW and you have to give up something, right?" Silent, I walked into the showroom to go sign the papers.
"Okay," Richard replied. "But didn't you say $299 for three years with $1,000 down? Since that's what we agreed to, that's what it is, right?"
With a half-smile on my face, I nodded proudly. "Right!"
As we walked through the lot to the army green (more of a pea green, actually) Jeep, Richard asked which car in the parking lot was mine. I pointed to the blue BMW where my fiance and our kids waited. As we got into the Jeep, Richard made an interesting comment.
"This car doesn't have a leather interior," he said. "It's cloth, but that shouldn't be a problem. I'm sure your kids don't spill things at their age."
"No, that's OK," I quickly replied.
"Hey Greta," I heard Richard suddenly say. "That emerald green down on this other carwas that the color you originally asked me for?"
I felt sudden excitement. "Yes! But I thought you didn't have one."
"Not for a Laredo. But that's a Grand Cherokee. It's got all the bells and whistles, you knowCD player, leather seats and a smoother drive train. But that's not the one you said you wanted."
I couldn't resist. "Ummmmmhow much more is it?"
Guess which one I drove away in (and only paid $70 more a month more for)? You got it! And guess what I said to my fiance when we were walking toward our new Grand? "Honey, it's more expensive, but I'm in sales. My care is like my office. I have to be comfortable"
So what happened? Well, Richard did a really good job of finding out what was important to me. But he never told me those things were important. Instead, he asked the right questions that got me to self-realize that I wanted those things.
And what did I do? I made an emotional decision and justified it intellectually to my family. Remember, people love to buy, but they absolutely hate to be sold. So help them buy and stop selling them. It even worked on me and I saw it coming.
When you're this good, should you be held back with salary?
Learn more about this author, Greta Schulz.
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No
Created on: November 27, 2008
Having been in the sales line and with three different kind of pay packages, namely 100% commission, a low salary with the commission component and a 100% salary based, for the past three years, I can safely assure you that salary does have a certain place in a sales environment.
The sales environment is all about a Numbers game and a career with potential good earnings. Basically your earnings depend on the amount of commitment in your daily sales activities. But a sad truth is that the sales environment is one of those with a high turnover rate and the first group of people to be retrenched when the economy is bad.
What Is Wrong With The 100% Commission Environment?
This Reward Plan is definitely the best model for Sales Personnel who know this trade inside and out, they have their killer moves to seal the deal and their daily stable of referrals to follow up with. With this 100% commission environment, the earning is the sky is the limit.
The negative aspect is that there are bound to be some black sheep who are good in this line and only keen in selling high commission products or services. This, in turn, will not benefit clients who are in need of an actual solution (which may come with lower commission for the salesperson, think mis-selling!)
Another negative aspect is that for many of those who are just starting this line, the only time that they will get to see their commissions is when the client signs the dotted line, hand over the cash and over the money-back guarantee period. Meanwhile, they may have to depend on their savings and such to tide them over. Think about the expenses they may have to incur before being able to enjoy the fruits!
What About The Idea of 100% Salary In A Sales Environment?
The idea of having a 100% Salary is not one of those ideas that are welcomed by all sales personnel. In reality, the best sales personnel having a fixed salary is really short-changed in their rewards and for their efforts. The best reward model should be of Part Salary and Part Commission.
The 4.5 Benefits Of Having A Part Salary Part Commission In A Sales Environment
1. Salary, the fixed amount of money you will get every month, will help the sales person with their daily expenses - transportation, entertainment that's commonly related to sales activities. The commission will serve as the reward for their persistence, their sales skills and patience.
2. Think about Needs-Based Selling. By getting part salary, these sales personnel do not have to worry about selling high commission items to ensure that they have enough money to last for the month. Instead think about the good karma they'll be getting with needs-based selling. They are more than willing to serve any clients with any needs and provide a real solution.
3. The Business Cycle. Once a client is well-taken care of their needs because the Sales Personnel has done a good job, there is actually a business cycle that's being formed. Happy clients will help to promote and share what they have gotten and many others will in turn be interested to know if they can get the similar deal. This is a good testimonial and good advertising for the sales company and sales personnel.
4. Think about the turnover rate. Most salesperson leave the job for greener pastures because they are facing a stagnant stage of their sales career (which is very common). You have to consider the accounts they leave behind and all these new clients have to build a new relationship with the new sales personnel, which is very time-taking.
4.5 Climbing Up The Sales Career Ladder. With the above benefits, most Sales Personnel will be more motivated to climb the Sales Career Ladder. These Sales Personnel will even be more confident to go for a 100% commission environment because they have the skills, referrals and accounts to work on.
Learn more about this author, Dexter Damien Chan.
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