Know thy enemy: Understanding the salesperson's tactics
Posted
May 27 2008, 09:27 AM
by
Karen Datko
Rating:
This post comes from partner blog Blueprint for Financial Prosperity.
If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not your enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle. -- Sun Tzu's "Art of War"
In this post, I'm going to try to identify a salesperson's tools, why they work, and what you can do to defend against them whenever you're going to make a purchase.
These aren't tricks or scams. They are solid sales techniques that have been proven to work. I won't go over outright scams, like bait and switch -- just the ones that are generally honest and good tactics.
While reading this, remember one truism: Salespeople need to eat. They will try their hardest to sell you something and they will persist if you give them any reason to believe a sale can be made. Being polite is one thing, but being honest and forthright is better. If you've decided not to buy, make it clear and salespeople likely will understand. If they don't, they won't be in sales for long. If they do, they'll be thankful and move on to someone who will turn into a commission check.
Becoming your friend
All salespeople worth their suits will try to build a rapport, try to get into your comfort zone, and ultimately try to become your friend.
The key to business is building relationships and networks. Business owners build relationships with customers, and customers come back and are more trusting, right? Would you buy from a random store or one in which the owner has shown an interest in your well-being? Certainly the latter. This practice extends to salespeople. By building a relationship, they know that you might not buy right now, but when you do buy, you're more likely to do it there.
Here's what you need to do: Become a friend but don't drop your guard. The goal of any businessperson, even if she or he is becoming your friend, is to close a sale and earn another dollar. You can take advantage of this by asking for discounts today in return for promises of future business and positive word of mouth. "If you help me out and knock off a few bucks, I'll be sure to tell all my friends to shop here."
Yes leads to more yeses
Studies have shown that people who are in a "yes" frame of mind are more agreeable. Salespeople use this by asking you a bunch of yes questions in the hopes that they prime you to agree to a sale. Sometimes the questions are ridiculously obvious. "Do you want something that lasts? Something with a brand name?" Sometimes they're not so obvious. Don't confuse primer questions with legitimate questions about your needs.
You should answer everything truthfully because some questions are information-seeking. Just remember that some salesperson psychology is going on here.
Making you wait
This always happens at a car dealership. You test drive a car, you start talking numbers with the salesperson, and then he or she has to get a manager to review the numbers. He or she leaves for what seems like a while, then comes back and says the manager is on the phone. Then the salesperson starts up an unrelated conversation about weather, what you like to do, her kids, etc. The manager might show up or disappear for a while.
Sometimes the manager is honestly busy, and sometimes they're trying to tire you out by making you wait. People make mistakes when they're tired. The salespeople are hoping your guard lowers a little more with each passing minute. It's also another opportunity for the relationship-building to continue.
If you have to wait more than five minutes for a manager, get up and leave. If you feel tired and drained, get up and say you want to sleep on it because you are tired. Firmly shake hands, ask for a business card, say thanks and walk away. You should never make a large capital purchase without reviewing the paperwork with at least two people you trust, and certainly never do it if you're not 100% clearheaded.
Special offer, today only
I talked about this when I got a quote on windows, and again when I got a quote on carpet. It's the "special offer" price that's good only for the next four hours. Or the next day. Or a week. Whatever the case, they cut a few percentage points off the price in order to get you to sign right now. They're creating a sense of urgency when none exists.
The deal is not a special offer and will be valid for at least a week if you ask. Once they recognize you aren't going to bite on a deal that "expires in 10 seconds," they aren't going to insult your intellect by insisting on it. If they won't extend it a week, walk away because it won't be the best offer out there. I think it's unreasonable to ask for a month because prices of raw materials fluctuate, but it can't hurt to ask.
The sample close
I forgot about this great tactic until SavingFreak reminded me about it. This is when they say something along the lines of "if we were able to do this, this and this, would we have a deal?" A close cousin of this is when the salesperson says, "What would I have to do to win your business today?" With the first version, they're trying to guess what roadblocks you may have and overcome them right off the bat. If they guessed wrong, they're hoping that with the second question you reveal what is preventing you from signing so they can try to address it.
When they ask, tell them what you want and tell them everything you want. If it sounds unreasonable, that's OK. Don't ever give up something without asking for it first. For example, if you need $500 knocked off the price, 12 months of 0% same-as-cash financing, and for it to be leather and not cloth -- say so. You never know until you ask, and you don't want to say $250 off and then feel compelled to sign when they make it happen.
The handoff
Some people are good at buttering people up, some people are good at explaining technical details, and some people are good at closing deals. The handoff occurs when it appears that you aren't going to buy. This is a last-ditch effort when they bring in the big guns -- a VP or a sales manager --to "solve your problems."
The salesperson will usually tell you that he or she wants a manager to speak with you. Don't bother arguing, because chances are the salesperson could be fired for never employing this tactic. Just say "OK, but I need to leave in five minutes for (something)." At the very least, you can give the salesperson an excuse he or she can give to the boss if needed.
The few tactics I outlined are tried and true methods that have sold a lot of things to people. There is much more to sales, such as identifying the benefits of products, being persistent, working hard. But these are the tactics that can turn an otherwise level-headed buyer into a foolish one. I suspect that you've encountered one, if not all, of the tactics above, so please share your experiences. I'd be interested to see if there are any that I missed.
Other articles of interest at Blueprint for Financial Prosperity:
"Top 5 ways to save money without noticing"
"$1,200 in credit card promotions"
"Personal-finance psychology"
