FIND THE BOAT IN EVERY SALE

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Did I throw a curveball at you with the title? Especially since you don’t sell boats, LOL! I chose that title to summarize a lesson I learned during my years as a Segment Business Development Specialist at one of my previous employers.

Back then, I was responsible for opening new accounts and growing sales with existing customers. Needless to say, I faced every challenge and objection a salesperson can encounter, from dealing with gatekeepers while cold calling to overcoming the "you-are-more-expensive-than-your-competitor" objection.

The story I am about to share illustrates how I unknowingly used basic psychological principles that you can apply in any situation to close more deals quickly. Ready? Here it comes.

A Territory Manager invited me to visit a prospect who had been reluctant to do business with us because, as a restaurant owner, he bought his groceries from the cheapest supplier by comparing their price lists every week. We arrived around lunchtime, and knowing it was a busy time for the owner, we decided to have lunch there while we waited.

I used the waiting time to gather some background information from the Territory Manager, observe the waiting staff interacting with customers, take inventory of the restaurant layout and decoration, analyze the menu, and take notes on the food taste and presentation, among other things. Not long after we finished our lunch, the owner came to our table ready to hear us out.

The Territory Manager opened the conversation by introducing me and subtly setting the expectation that we were interested in earning his business. The owner quickly responded by saying he buys from the cheapest supplier to remain profitable and compares price lists to “keep everyone honest.” He asked us to leave our price list and said he would get back to us if our prices beat the competition's.

After listening to him, I expressed my admiration for his beautiful restaurant, the quick service despite the busy lunch hour, and the delicious meal. I then asked him to share his story about becoming a restaurant owner. He told me he started as a line cook, was promoted to main cook, then to waiter, assistant manager, and finally to manager. He worked as a manager until he saved enough money to open his own restaurant. By the time we spoke, he had been a restaurant owner for over five years.

I then said to him, "Wow, that is a very inspiring story of personal success. I can tell you've put a lot of sweat and love into this restaurant. You must be very proud of it." His face lit up as he replied, "Yes, I am! This restaurant has allowed my family and me to live a comfortable life." I then asked, "You've achieved so much through hard work. How do you reward yourself?" A big smile appeared on his face as he unlocked his cellphone to show me a photo of a sailboat he wanted to buy. I said, "Wow! That is a beautiful and expensive-looking boat." He agreed, saying, "That is my next dream."

I asked him if he had a few more minutes because I wanted to show him something. He said, "Sure!" I went into the kitchen and prepared a sample of an exclusive product I had brought with me. After a few minutes, I came out and placed the sample in front of him and asked him to try it. He loved it! I asked him how much he would sell that dish for in his restaurant. He said, "Nine dollars." I said, "Look at this beautiful restaurant and the excellent service it offers. Why wouldn't you charge as much as other restaurants of this level?" I then added, "Would you feel that $12 is a fair price?" He agreed. Then I asked, "How much profit do you think there is in it?" He hesitated, "About four dollars?" I said, "Try almost twice as much, and you noticed how quickly I put it together, right?" He looked surprised. Finally, I showed him his menu and asked him to point out any dish with a similar or higher profit. He pointed to a couple of far more expensive dishes but said those dishes didn’t sell as well because they were more expensive. I asked him how many orders of this new dish he could sell per day, to which he said about twenty.

At this point, I leaned forward and said, "Look, when you compare prices, there is only so low everyone can go. You won’t get your groceries for free, so your profit is not on the buy but on the sell." I took a piece of paper and made some calculations using the number of orders of the new dish he said he could sell. I turned the piece of paper around and showed him a big number, then I asked, "Do you know what this number is?" He hesitated, "My total profit?" to which I said, "This is your boat!"

He proceeded to open a new account and place an order for the new product I sampled. I committed to helping him succeed by providing two additional services: the first, table tents to promote the new dish, and the second, waiting staff training to teach them how to upsell and generate higher sales and tips. He didn’t even bother to ask how much the case of the new product was because his focus was on how much money he was going to make, not on how much he was going to save.

Now that I am far more experienced and knowledgeable in sales, I can quickly identify from this story five basic psychological principles I unknowingly used to help me land this new customer:

1. Reciprocity: By choosing to have lunch at his restaurant, the owner felt compelled to reciprocate the gesture with his time and attention.
2. Scarcity: By emphasizing the unique value and higher profit margin of the new, exclusive dish, I created a sense of scarcity and urgency.
3. Authority: I established credibility by demonstrating knowledge about the restaurant industry and providing a practical solution to increase profits.
4. Anchoring: By suggesting a higher price for the new dish, I set a higher reference point, making the actual price seem more reasonable.
5. Emotional Appeal: Connecting the product to the owner's personal dreams and aspirations made the offer more compelling on an emotional level.

In conclusion, the story illustrates how understanding and applying basic psychological principles can significantly enhance sales effectiveness. By building rapport, demonstrating value, and aligning the product with the customer's personal goals, I was able to educate the customer on a new way to make buying decisions and effectively overcome price objections to close the deal. This approach not only secured a new account but also fostered a long-term relationship based on trust and mutual benefit.

Remember, the key to successful selling lies in your ability to identify your customer's needs and motivations by asking probing questions and using that insight to create win-win solutions.

I’d love to hear any success stories from you based on what you learned here today. Feel free to share by leaving it in the comments section.

Happy selling!

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About the Author

???? ?????????????? is a multifaceted trainer, speaker, coach and author of the book "7 Principles for Finding Meaning & Purpose in Life."

JP brings a unique blend of expertise, passion, and practical advice that has helped countless individuals to excel in their careers, sharing the secrets of success from a seasoned sales professional. You can follow JP on LinkedIn HERE.

You can check out his book HERE.