Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
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Art of the deal
1. Quick Start - The Art of the Deal
Presented by: Frank Coker
CompTIA Faculty
CEO, CoreConnex
frank@corelytics.com
425-454-5006
2. Why is Deal Making Important?
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Good deals lead to profit
Bad deals lead to loss
The difference is subtle
Itâs part science, part art
Doing it well takes practice
Each person has their own style
Good deals are win-win
(nobody looses)
⢠Getting it right will change your
future!
3. What is a âDeal?â
⢠All sales are deals â large and small
⢠All that is required is a price and a deliverable
⢠Deals can be formal or informal
â Informal: you give a customer a piece of equipment, they give
you a check.
â Formal: you negotiate an agreement with multiple phases of
delivery and have a payment due at the beginning of the project
and at the end of each phase.
⢠A deal requires 2 parties to agree to an obligation to
each other â pay for product, pay for service, etc.
[Deals with more than 2 parties are really multiple related 2-party deals]
⢠Both parties give something and receive something
4. Deal Life Cycle (example)
Phases
1. Initiation
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Business Need
Solution Concept
Preliminary
Analysis
Project Proposal
Approval
2. Investigation
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2.
3.
4.
5.
Project Team Initiation
Research and Analysis
Alternatives Evaluation
Recommendation
Approval
3.Implementation
1.Implementation
1.
Team Initiation
2.
2.Detailed task plan
3.Pilot Implementation
4.Rollout
5.Post Implementation
Review
4. Operation
Sustain
Performance
Review
(SWOT)
[Phase 1 is a billable project to investigate and analyze alternatives]
5. Selling Approaches
Passive
Active
Order takers
Proactive Dealmakers
Sell what the customer asks for
Sell what the customer needs
now and in the near future
Solve todayâs problem
Solve problems with the future in
mind
âTactical salesâ
âStrategic salesâ
Compete on
price and features
Compete on
quality and benefits
6. Where Should Sales Come From?
⢠65% from existing customers
⢠20% from referrals
(ask existing customer for referrals)
⢠15% new leads
Source: IBS Sales School
7. Features Drive Interest
Benefits Drive Decisions
Features
⢠Capacity
⢠Speed
⢠How it works
⢠Specific functions
⢠Specifications
⢠New capabilities
Benefits
⢠Results
⢠Effect on business
⢠Impact on customer
⢠Confidence
⢠Risk reduction
⢠Reliability / scalability
⢠Perceptions / feelings
⢠Alignment w/ goals
8. What is Margin?
Warning: most people get this wrong and donât
understand why they are losing money!
Formula:
(total price â all direct costs) / total price
Example:
⢠Total price = $100,000
⢠Total cost = $60,000 (product + service labor)
⢠Gross profit = $40,000 (a.k.a., âgross margin dollarsâ)
⢠Margin = 40% (most people think 67% markup = margin)
9. 10 Tips for Successful Deals
1. Understand customer requirements
2. Present 3 alternatives that solve the problem
3. Separate features from benefits
4. Organize your proposal for an executive
5. Discuss alternatives and pricing before the proposal
6. Follow-up on proposal to verify fit
7. Understand customerâs approval process
8. Ask about potential objections
9. Focus on reliable, low risk, and solid solutions
10. Ask for the order
10. 1. Understand Customer Requirements
⢠Ask about pain points
⢠Ask about goals, priorities, timing, volumes, etc.
⢠Determine ânon-requirementsâ - rule out potential
requirements by describing options that are outside of their stated
requirements, and confirm that they are not requirements
⢠Write down what you learn â taking notes builds trust and
shows that you think this is important
⢠Confirm what you think you heard
⢠Determine âunderlying requirementsâ â donât confuse
solutions or desired results with requirements
11. 2. Present 3 Alternative Solutions
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One solution = yes/no
Multiple solutions = choice (much stronger path)
Always look for high/medium/low price options
Be sure that all choices are viable
even if they donât meet all requirements
⢠Expect customer to choose the middle option
encourage them to consider all 3
⢠Evaluation of alternatives should be billable
especially for implementation and service projects
⢠Understand budgeting and availability of funds
donât do projects where recommendations canât be funded
12. 3. Separate Features from Benefits
⢠Each alternative should have a separate list of
features and a list of benefits
⢠Features and benefits should be compared for the 3
alternatives as part of the summary
⢠Features are good for comparisons
⢠Benefits are the âreason to buyâ
13. 4. Organize Proposal for an Executive
⢠Put the âbottom lineâ up front
⢠Tell the whole story on the first page
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Short proposal summary
Cost and benefits
Key milestones
Signatures
⢠Everything is an exhibit after page 1
⢠Legal provisions are an exhibit
See CompTIA Guide for further detail
14. 5. Discuss Alternatives Before Proposal
⢠Before proposal, prepare detailed summaries of
alternatives and discuss these with customer; find
out their preference and their reasons
if you canât get confirmation on the customers preferences, writing a
proposal will be a waste of time
⢠The final proposal should include a brief summary of
the alternatives and a recommendation that aligns
with prior discussions
the final proposal has already been sold, the document simply
becomes the formality
15. 6. Follow-up on Proposal to Verify Fit
⢠Create a follow-up process for all proposals that is
followed by your team
⢠In approximately 3 days, call to verify that the
proposal fits their criteria and fully addresses their
needs
⢠Get confirmation on timing of approval (assume
agreement)
⢠Get permission to continue follow-up
16. 7. Understand Customer Approval Process
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Is funding already budgeted?
Who makes the decision if funds are not budgeted?
Who makes the decision if funds are budgeted?
What are the steps involved in the process?
â Legal / contractual
â Financial
â Operational
⢠What does the customer require for acceptance of
delivery?
⢠What you donât know can harm you!
17. 8. Ask about potential objections
⢠Donât wait for the customer to raise objections â ask!
⢠The more you learn about objections, the easier it is
to make a sale
⢠Donât confront objections; be on the customerâs side
when you discuss objections
⢠Key question: âHow do we get alignment with all the
key players in this decision?â
⢠Donât submit a proposal if there are unresolved
objections
18. 9. Focus on Key Benefits
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Reliability
Low risk
Solid solution
Proven solution
Your commitment to the customer
* Trust ties back to benefits (not features)
19. 10. Ask for the Order
⢠Many sales donât happen simply because nobody
asked for the order
⢠This is not asking for a âyesâ to the proposal; it is
asking for the signed document or the approved
purchase order
⢠Preferred approach: ask âhow do we get the needed
signature or approval so we can proceed with the
order?â
*Nothing happens until the order is placed!
20. Bonus Tip: Know the Key Players
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Decision maker
Internal advocate
Likely objector
Gate keepers
Key influencers
Potential blockers
Read: The New Strategic Selling by Heiman, Tuleia, and Miller
21. How Do Your Sales Compare To You Peers?
⢠Benchmarks
â to industry peers
⢠Monitor industry
trends
⢠Share data with
your team
22. What Benchmarks Exist?
⢠CorelyticsŠ by CoreConnex, Inc.
(www.corelytics.com)
⢠CompTIA sponsorship of Corelytics Financial Dashboard
⢠S-L Index⢠Included in Corelytics
⢠S-L Index⢠by Service Leadership, Inc.
(www.service-leadership.com)
⢠S-L Index⢠Comprehensive Diagnostic ReportŠ
⢠S-L Index⢠Quarterly Comprehensive ReportŠ
23. What is Corelytics ?
TM
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Financial Dashboard
Benchmarks
Business model calculator
Analyzes data from Your Accounting System
â QuickBooks (automated)
â MYOB (Australia, New Zealand - automated)
â Other Accounting Systems (file import)
⢠Goal tracking
⢠Solution for showing financial progress to your team
Special Edition for CompTIA
Members
25. Where am I headed?
Use the âbig pictureâ to understand your trends
By line of
business
Basic trend
lines
Peer
benchmarks
Your goals
26. How do I compare with my peers?
Your business model has unique industry benchmarks
Your revenue
mix
Using the PBMÂŽ
Calculator
Your model
27. VMware and CompTIA Offer:
Free Financial Forecast
See your trends, financial
strength and future forecast
How?
⢠Email: support@corelytics.com
⢠Subject: VMWare Report
⢠Text: Your contact information
28. References and Additional Materials
⢠CompTIA website (www.comptia.org) â Member
Resource Center â under Business Management ď
Finance
⢠Corelytics â www.coreconnex.com for overview
⢠Sign-up â CompTIA.Corelytics.com
⢠Questions â frank@corelytics.com
Iâm aware of two industry benchmarks â CorelyticsŠ by CoreConnex and the S-L (Service Leadership) Index⢠by Service Leadership, Inc. Is anyone aware of any other benchmarks?Both CoreConnex and Service Leadership offer their industry benchmarks for comparison thru service agreements. To the best of my knowledge, both companies offer two levels of their benchmarks. CompTIA sponsors its members into the Corelytics Lite product at no cost for the first year. I will be walking you through a description of the Corelytics benchmarkI will leave it up to you to investigate these two products further, and any others you might find, and determine which product meets your needs. I do believe industry benchmarking is important to you in managing your P&L â so I would urge you to investigate these benchmarks, and any others you might find, and try one. So the following slides were developed by CoreConnex to describe Corelytics.