THE #1 AV NEWS PUBLICATION. PERIOD.

Difficult Customer Situations & How to Deal

n sales, we encounter all kinds of customers. customernegotiating-0413The good. The bad. The dreaded. The bad customers are perceived as bad probably because in the past we’ve had to deal with similar customers and it didn’t turn out so well then and maybe hasn’t turned out well since. So we dread it. Avoid it. Cringe when confronted by it. How do we change our approach and make these situations work for us? Here are my thoughts.

The Negotiator. “Yeah, but what is my price?”

Many people, salesmen and customers alike, are uncomfortable with negotiation. But if you encounter a customer who wants to negotiate for a better deal, you need to get comfortable with it quick because it is usually a buying sign. The negotiator wants to know she got a good deal. You can sweeten the deal by adding value, either through additional goods/services or by discounting, as long as she feels she received more than what she paid for.

How to deal: Negotiating price is the last step in the sales process and should not be attempted until you have confirmed the customer wants to buy from you and what it is she wants to buy. So before entering into a negotiation, establish that the customer is willing to buy today if you can reach terms that both parties are happy with. Negotiating with someone on price when she’s not willing to buy rarely ends well, so just don’t. However, if she says she will buy today if you can reach terms, then proceed by asking her what kind of deal she wants. If it is good for both parties, you are done and should proceed to the register. If not, you’ll need to give a counter offer. Because you will likely be meeting somewhere in between their offer and yours, make sure you counter higher than what you would be comfortable settling on so you have some wiggle room. Remember: It is not always about discounting, so get creative. Finally, don’t be afraid to walk away from the sale if it is bad for your company. All deals should be a win-win.

The Moocher. “I want to take advantage of your services just as long as they’re free.

This type of customer is willing to take your time and use your expertise to aid her in her project but will not financially commit to you in return, either through a design fee, deposit or purchase. Some of these customers may eventually, but when compared to the time you invested to get there, you have invariably lost money on the sale. This is because the client does not attach a monetary value to your time and expertise and thinks it is included in the price of the boxes they buy. If it is, what a screaming deal for them! But obviously our businesses can no longer afford to operate this way. Despite what a moocher may think, your time and knowledge is valuable.

How to deal: This situation can largely be avoided by having a policy in place about consultation and design services that defines what is a “complimentary” service and at what point it becomes a “for fee” service. Next, these policies need to be clearly communicated to clients up front so there is no misunderstanding and later when you ask for a financial commitment it comes as no surprise. Think of this process as a relationship between the client and salesperson in which both parties must invest to be successful. A salesperson agrees to invest time and expertise while a client invests money. We know that in order for our relationships to be successful on a personal level, both parties but be mutually invested and this is no less true professionally.  If you are not charging for your time, shame on you.

The Buddy. “I want to wait for my friend. He’s meeting me here. He knows everything about this stuff.”

The buddy is the person that your customer establishes early on as their “advisor.” This person is usually someone who really enjoys technology and knows more about it than the customer although sometimes not much more. The important thing is that this person’s opinion matters to the customer. Often this person can appear to be an obstacle for salespeople who find themselves in the difficult position of asserting themselves as the expert without turning the buddy into and adversary.

How to deal: The best thing to do is let this person go to work for you! Do this by first validating the buddy and making her feel she’s are an important part of the process. Be sure to engage her and nurture her enthusiasm. Reinforce the buddy’s positive and accurate contributions to the conversation. De-emphasize the information she provides that is incorrect by educating them both with the correct information. If you are kind, knowledgeable and engage both parties, they will both come to see you as the trusted advisor. A happy buddy will likely help you close the sale by reinforcing your recommendations as the right recommendations with the client. If you’re really good, the buddy may at some point become your customer as well and at the very least an advocate for your company.

Melinda Foster is a blogger for the rAVe BlogSquad.

Top