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Selling During a Down Economy

"Smooth seas do not make skillful sailors."
                 - Old English Proverb

Common mistakes made by salespeople during tough economic times:

1. Not spending enough time on prospecting, just when needed most.
2. Getting discouraged – the perfect opportunity for the competition to take hold!
3. Forgetting to use your BEST negotiation skills, notably conceding too much.
4. Failing to communicate the customer-specific VALUE you bring to the table.
5. Missing the opportunity to WOW those customers you already have.  

Now, more than ever, you need to spend time on prospecting for new business.

In our Prospecting and Business Development Workshop we cite that successful sellers spend more time than average sellers do at keeping their sales pipeline full. This is always important but notably so when times get tough.  In a down economy, you must spend extra time on prospecting. In addition, a down economy is a great time to be more creative in your prospecting. As one example of the latter point, now is the time to explore for slightly different market segments or geographic regions that may not be experiencing as difficult a time as your existing customer base.

Don’t get discouraged. 

It is easy to get discouraged when customers are slowing down and reducing the frequency and quantity of their orders.  You are likely to encounter more “no’s” when you ask for an order, but keep in mind that your competition is experiencing the same difficult times.  Here is how one seller that is being coached by STAR has responded to the slower economy:  “I'm going to try to contact XYZ customer again this afternoon - I don't give up easily!”  Nor should you!

Don’t be surprised if your current customers ask you to make additional concessions.

The prevailing bottom-line climate has created an increasingly frequent request by customers to reduce costs.  Salespeople are being pushed more and more by customers for deeper concessions, especially on price and payment terms.  The prevailing competitive culture makes sales negotiation skills savvy a top priority, and requires you to be confident and skillful at both giving and getting concessions.

Highlight the value that you can provide.

You don’t always have to make a concession, even though times are tough. If you can provide value to a client in ways other than reducing the price, this is the time to do so and can be a win/win solution for both of you.  As an example, STAR was recently asked by one of our clients to make a concession but offered instead to help them in some revenue-generating actions that will end up increasing both of our revenue streams, and negated the need to make a price concession.

This is the time to “wow” your customers.

What can you do to exceed your customer’s expectations? If you can provide them some additional service or benefit, at no extra charge, you will strengthen your relationship and set yourself apart. For example, look at what is happening in a down economy to the airline industry. Many airlines are taking away services (fewer flights), yet are charging customers for services that used to be free, such as luggage and aisle seats.  Yet, not all airlines have resorted to these nickel-and-dime tactics. I recently flew on a Southwest flight, and was pleasantly surprised to see that their service has remained good and they aren’t charging these same fees. The net result: more loyalty from me, a customer, to them.  The same thing applies to your business.  

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