Business Fundamentals : Mastering Sales And Negotiation | Streamversity Academy | Skillshare

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Business Fundamentals : Mastering Sales And Negotiation

teacher avatar Streamversity Academy, Experts in every field

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

27 Lessons (3h 6m)
    • 1. Introduction

    • 2. About me

    • 3. Why should we learn business

    • 4. The principles

    • 5. The importance of transaction

    • 6. Transaction precondition

    • 7. The pricing principles

    • 8. Internal pricing factors

    • 9. External pricing factors

    • 10. Initial pricing

    • 11. Timed pricing

    • 12. Positional pricing

    • 13. Conditional pricing

    • 14. Selling strategies overview

    • 15. Reciprocation

    • 16. Damaging admission

    • 17. Reactivation

    • 18. Effective sales landing page

    • 19. The sales process framework

    • 20. Sales negotiation process

    • 21. The universal currencies

    • 22. Gaining trust instantly

    • 23. The 3 forbidden acts

    • 24. Handling objections

    • 25. Closing the sale

    • 26. The 5 barriers to sales

    • 27. After sales process

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About This Class

What we are going to cover.

In this course I want to share the things that I’ve learned the hard way from almost 2 decades of running different types of businesses, combined with the things that I’ve learned academically from university and from many other sources.

Just for a quick summary of what we’re going to cover in this course. If we look at business from a macro overview. Every business in the world, whether it is a large business or a small business. They all have to do these 5 things:

  • Creating values
  • Marketing
  • Making sales
  • Delivering the values
  • Managing finance.

If just one of these missing, then it is not a business. If you take a master degree in business or read any book about business. Every skill or topic you learned will fall into one of these 5 categories. I call these “the 5 pillars of business”. If you can understand the principals behind these 5 pillars of business, then you should understand how every business in the world work. Is like you are Superman looking at a building with your x-ray vision. You’ll able to see the little pieces that make up the building, like: the steel beams, the woods, the bricks, the bolts, etc.

In this course we’ll be focusing on the third pillar of business which is SALES & NEGOTIATION. We will cover topics like:

  • How transaction actually works.
  • How to price your offer correctly by considering the internal and the external factors.
  • Learn to use pricing as a tool in your business strategy.
  • Learn different sales tactics by leveraging human psychology.
  • Uncover the secrets of effective sales landing page.
  • Learn about the sales cycle and all of the processes that happen inside it.
  • How to gain trust instantly in a sales negotiation.
  • How to gain optimal result out of any business negotiation.
  • Avoiding dangerous traps that can destroy your negotiation.
  • How to handle sales objection correctly.
  • Understand the real causes of sales rejections and how to overcome each of them one by one.
  • Learn how to close sales.
  • Etc. 

Who is this course for?

This course is important for anyone whose life is affected by business in any form. Whether you want to start your own business, or you are responsible to lead a business, or perhaps you work inside a business or maybe you sell something to businesses. If you are in any of these conditions, then I strongly suggest that you take this course. Because understanding how business works is the best way, if not the only way, for us to make better decision related to business.

So, if business is your thing, join the course now and I’ll see you on the other side!

Meet Your Teacher

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Streamversity Academy

Experts in every field


Hello, we're Streamversity. We're a team of dedicated experts committed to aid humanitarian cause which is giving foods to poor people in Indonesian regions.

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Related Skills

Business Sales Negotiation

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1. Introduction: Salam aleikum. My name is we D Ma, Takin from ST Diversity. I am an entrepreneur and also on academic lecturer in business management and creative industry. I started my first company when I was 22 years old. It was right after I got my degree in computer science. At that time, I didn't have any formal education in business yet, but I was confident enough to start a new company with funding from sufferer investors. I thought Business is simple to run and easy to manage. I was wrong after two years running the company. It went bankrupt, but I didn't give up. Just a few months after it, I started another company again with funding from an angel investor. But the same thing happened again. After two years, the company went bankrupt. I was depressed at that time. As it seems, my life is just running in place. I learned my lesson that just having a passion and a resilient to never give up it's not enough to build a successful business. If we want to do things correctly, then we need to have the knowledge for it first. This is true for everything, including business, so I went back to the university to take master degree in business management and read a lot of books about business, and I'm glad I made those decisions. I learned things that I wish I knew when I first started my business. All this time I've been making mistakes upon mistakes. We don't even realizing it now. Alhamdulillah, I have found my success. I own several businesses that can already run by themselves. No, I am not a millionaire or winner off the best See off the your contests or anything like that. For me, success is about how you live your life. By owning this out or running businesses, I can earn more than enough money to support my family without having to work from 9 to 5 like most people do. I live a wealthy life, but what is more important, I can be together with my family almost 24 hours a day, and this, for me is just priceless. In this course, I want to share the things that I have learned the hard way from almost two decades off, running different types off businesses, combined with the things that I have learned academically from university and from many other sources just for a quick summary off. What we're going to cover any scars If we look at business from a macro, overview every business in the world, whether it is a large business or a small business, they all have to do this five things. Creating values, marketing, making sales, delivering the values and managing finance. If just one off this missing, then it is not a business. If you take a master degree in business or read any book about business, every skill or topic you learned well fall into one of these five categories. I call these the Five Pillars off Business. If you can understand the principles behind these five pillars off business, then usual understand how every business in the world work. It's like you are Superman. Looking at a building with your X ray vision, you'll be able to see the little pieces that make up the building, like the steel beams, the woods, the bricks, the Balts, etcetera. This course we will focus on 1/3 pillar off business, which is sales. So if you haven't take the first and the second courses, I really recommend you to take those courses first before taking this one. In this course, we will cover how transaction actually works. How to price your offer correctly by considering the internal and the external factors. Then learn to use pricing as a tool for your business strategy. After that, we will learn different sales tactics by level. Raging human psychology. Uncover the secrets off effective sales blending page. Then we'll discuss about the sale cycle and all of the processes that happen inside it. Learn how to gain trust instantly in sales negotiation. Learn how to gain optimal result out off any business negotiation and how to avoid dangerous straps that can destroy your negotiation. Next, we will discuss how to handle sales objection correctly. Understand Auriol cost us off cells rejections and how to overcome each off them. One by one. Learn how to close sales and finally to evil. Wait and keep improving the wholesale cycle. This course is important for anyone whose life is affected by business in any form, whether you want to start your own business or you are responsible to lead a business, or perhaps you work inside a business or maybe you sell something toe. Businesses If you are in any off these conditions, then I strongly suggest that you take this course because understanding how business works is the best way, if not the only way for us to make better decisions related to business. So if business is your thing during the course now and I'll see you on the other side. 2. About me: in this video. I'm supposed to talk about myself so you guys can get to know me better. Honestly, I hate talking about myself, like talking about my success or even talking about how great I am. Because the truth is I'm nobody. Okay? Essentially, I want this car's Toby about you giving values to you, not pitching about myself or any off my cos I'm not going to do that. But because we still need at least one session where I introduce myself. Therefore, I just put together all of the things I need to share about me in this one lesson. After these, there will be no more about me. Lesson. Okay, so my name is William Attack in. I am a native Internation living in Bakassi, which is a city in eastern side off Jakarta. I am 40 years old when I recorded video. I have a family, a wife and four kids. The first company I found it was back in the year 2000. At that time I was just graduated from the university after earning my bachelor degree. At that time, I was 22 years old. So yes has become a CEO in a very young age. I didn't have any experience running any companies before. I never started business before, whether in formal education or in higher academy clef or in the university. I was majoring in computer science and specialized in software. The Flagman. So my bachelor degree is actually in computer, not in business. And yet, Alhamdulillah, I am able to pitch my business plan toe three big investors to fund my business. And no, these three investors are not my family or anything like that. They are high profile entrepreneurs that I just met the full months before in the first year my company take off. We made a lot of money. I had six employees At that time. We had great looking office space in a skyscraper building in Jakarta. But things get more difficult in the second year, and at the end, off the second year, I decided to actually the company, our founder and literally just give away all of my shares to the investors. I did that because I'm not performing well and just lost the passion to continue running the company several months after that. In the same year I created number business plan and found on Angel Investor to start a new company. I had only for employees back then and a smaller office space compared to what I had before , and the same story happened again. In the first year, everything went smooth, but in the second year, the company performance just went down. The here there are too many problems that I must face and also pressures from every direction. So then, just like before, I decided to lift the company and give all of my shares to my investor. So after four years graduated from the university, I just found it to companies and failed two times, and I was broke. I had almost no money. I was 26 years old at that time and already had a wife. Moreover, I was waiting for my firstborn, so I did what every responsible men will do. I try anything that I can do to make ends meet. I sell stuffs like books. If Edie's etcetera, I start teaching computer graphics and design related skills, insufferable non formal schools and on international college. I did a lot of freelancing works on through the animation multimedia game, the flop Hman, etcetera. Ah, Ha Mula. Eventually, my freelancing business got me to learn architectural through Auto D deck because apparently a lot of people like my design. Although I don't have any formal education in architectural, I had more and more clients in the architecture industry, which led me to start thinking about building my own firm in the architectural industry. But who will believe in Architectural Firm, founded by a non architect. So I teamed up with a friend of mine who is an actual architect with formal architectural education. We both founded the firm with just bootstrapping. We don't use any money from any investors. Well, this is because it is just a firm. It is essentially a surface based company, So all we need, besides our skills, are this computers we don't even need on office space. That's mostly We work remotely at our own home and do everything online. Ah, Hamdullah. The company grew from just the two of us, toe having more and more employees and eventually a nice looking office. We've been doing works ever since, from large property developer companies in Indonesia and also from clients all across the globe. We have clients from Dubai, Shanghai Australia, Malaysia, United States, Lee Barrier and so much more. In 2000 and nine, I decided to go back to school and take a master degree. I studied business management and system information at the same time, mostly in system information field. There are anything really new for me as I started computer science before, but in business and management field there are so many ah ha moments. When I was learning them, I learned things that I wish I knew early. When I started my 1st 2 companies, learning about business become my passion. I read dozens off books about business essentially I both and read almost all bestselling books about business. After graduated and earn my master degree, I was full with passion and loaded with so many new knowledge about business. I eagerly started suffer more companies. I started a company in publishing, then in educational field. Then I started a new company in horse seller and imports, also in several other fields. Currently, the income from my business is can go up to $10,000 in a day. Well, most off the time. It is lower than that number. Okay, Now you might be thinking that I am a filthy, rich person. Honestly, I am not. I am not a billionaire or anything like that. Because there is a big difference between income and profit. The $10,000 number in a day is an income, not profit. Again, I'm just like any typical entrepreneurs who struggle day by day to keep their companies running. What makes me different, though, from most people is that I have freedom. Okay, I get to choose when I want to work, who I want to work with and how I do the work, etcetera. When most people go shopping with their family only in weekends or holidays, I go shopping in Monday or Tuesday or in any work days I choose. And while most sea or walks in a nice week office, I used to work from home, utilizing online tools. I built an office just beside my house in which my wife or my kids can go in an hour s day , please. So practically, I am always with my family almost 24 hours a day. I get to see my kids born and growing up and always be there when my family need me I have systems that generate passive incomes. So even if I decided to play around all day, seven days, a week, like the whole time, I'm not working at all. I'm still making money, but believe it or not, currently I am working for a non profit organization because I want to. I knew Toe found her very well and resonate with his vision. The organization are giving foods to orphans, old widows and people who are in needs. I decided to help their course because it is something I want to do in my life helping other people. Now you need to understand that if you follow all off the lessons in its course, there is no guarantee that you will be successful. Hey, I even never consider myself successful, only a lock and guarantee your success. Me? I am not God. I'm just a simple human like you. If we talk about success well, the definition off success is a very subjective Some people think that having lots off money is success. Other things. Owning a Tesla car is success some off. My friends think that having for wife's is success. Other things, having freedom and time is success and for some other people, including me, because off my belief as a Muslim success only happens in the after life in this world. There is only hard works upon hard works. You just need to enjoy the process. So again, because off this reasons, I cannot guarantee you any success. What I can guarantee in Shallow is that the knowledge you gain in his course will be very, very beneficial for you in your journey to become a better entrepreneur or a better C o. I am here to share my knowledge, my expertise, my experience on running businesses for almost two decades. That is all from me. Let's move on to the next lesson. 3. Why should we learn business: Why should we learn about business? Some people believe that you don't actually need to learn business. You just need to jump into it and learn about business from trial and error, just like we learn how to swim. Some people also think inside a box called the job category. They say stuff like, Hey, I don't need to learn business because I'm a designer or I don't need to learn business because I'm a doctor or programmer for teacher or whatever. Essentially, these people think that learning business is just always off time. Well, here are my answers for these people. First human have been doing business since thousands off years ago. So if you ever face a problem in your business, most likely other people already facing the same problem before and already came up with some kind of solution, all of this accumulation off people's experiences and knowledge are documented inside a sheer amount off books about business. If you shut yourself from this knowledge and just go straight jumping to any business that your gut feeling tells you, yes, you may end up being success, but the course off, try and error along the way will be very costly compared if you already knew the pitfalls way before. I mean, why do you need Tofail? If other people before can and already fail for you, you just need to take the fruits the result off their trial and error process. And if you compare business with swimming, it is through that you can only learn to swim if you jump into the water. But I just want you to be aware that there are people died drowning when trying to swim and still with swimming ethnology. If you can pick which off, these two scenarios, you think is best for you first. Learning to swim by yourself without an instructor are learning to swim with a professional coach who often train athletes off course. You will pick learning to swim with the professional coach because he can guide you the correct way to do stretching and warming up. How to kick your legs efficiently. How to breathe correctly, etcetera. It is much safer and faster to learn how to swim this way. Essentially, my point is we should never underestimate the knowledge, because inside this knowledge are the experiences off a lot of people. A lot of experts who have undergone all of the trials and errors before we do before we even exist in this world. Okay, next, you may think that your job or your category has nothing to do with business. Well, trust me, every job category in the world has something to do it business. A doctor, for example, is working for a hospital, and the hospital is business. A lecturer is working for the university, and, believe it or not, university is a business. Also even, let's say, if you are working in the public field, such as the government, well, we all know that the government needs to regulate business practices right. They need to collect taxes from different type of companies, etcetera. Now imagine if the people inside the government do not understand business. How can it perform well as it is supposed to be? So my point is, business is everywhere. Okay, if you drive around with your car, you will see businesses after businesses along the side. Off the road, you walk into a convenience store. That store is a business, even if you are at home browsing the Internet. The Internet company is a business and when you purchase online. That online store is also a business. After you order, the product will be delivered by a business also. Okay, So again, business is everywhere and you cannot escape from it. Unless perhaps you are Tarzan who lives in the middle of a jungle with a gorilla community who never use money. Moreover, Cryptocurrency well, you get my point. And one less important thing I need to mention here about business knowledge is that if you are working inside a corporation, the more you understand the business process off the company, the more valuable you are to the company and the more chances you will have climbing up the corporate ladder. Okay, so this is something that you need to keep in mind to summarize this lesson. Learning business is important for anyone who wants to be better at his job. Entrepreneurs need to know how business works because they built one. CEOs need to learn about business because they lead one. Freelancers need to know about business because their clients are mostly businesses. And even if you are just on employees, understanding business is a requirement for you to climb up the corporate ladder. 4. The principles: before we jump into the curriculum, I want you to step back and think about all off the knowledge you have learned in your life . Every knowledge in this world in any field can be divided into three laugh falls. The first level is the principles. The second level is the methods and the less one is the hex, we can describe their correlation to each other with this pyramid. The principles are the most basic yet the most important level off knowledge because the other pipe off knowledge sit on top of it. If this is a really building taking all the principles, it's like destroying the foundation. The building will break and crumbling down. The second level of knowledge is methods. It is the how toe part off the knowledge. This level of knowledge is more dynamic and more subjective. More dynamic means that the methods off doing things are evolving over time and subjective means that different people may have different way off solving the same problem. Okay, the less level off knowledge is hex. These kind off knowledge is known to be very specific to a certain problem and has a very short life. Spen they are mostly experimental and inventor to outsmart existing systems. Okay, now what we are going to learn in this course are at the principal's level, not methods, not hex. Because we are talking at the principal heir for what we're going to cover in this course, are applicable to any business in the world. I'm in any type off business, not just my businesses or someone else's businesses. Eventually, yes, we'll discuss some off the methods or even hacks just for the sake off, giving real world examples off the principles that we are discussing. But at the core, we are learning the principles off business, lowering the principles off business is surgeon, and you should learn about them before you learn anything else about business. Why there are at least two reasons for these First, by knowing the principles, you will have a deep understanding about that matter. Therefore, you will look into things differently. It's like you are Superman looking at a building with your X ray vision. You can see all off the brakes, steel beams, wooden planks, bolts, nails basically all off the bits and pieces that make up the building. While common people only able to see the building as is from the outside. By understanding the principles off business, you will have a strong insight off how business works, the inner parts off it and what makes it takes. Inshallah, After taking this course, you will not be confused anymore when reading articles about business. We're watching business experts talking about stuffs with so many business, Jagan's the second reason why learning the principles is great. It is because by knowing the principles, you can actually create your own methods and hacks. If you learn straight to the methods off doing things without a strong foundation on the principle fo you won't be able to see the big picture off it, you will stop with that method and unable to evolve. Every business in the world will do. These five things from the smallest business entities to large multinational corporations should have these five pillars off business. If just one off this pillars is missing from a thing, then that thing is not a business. And if you go to business school taking MBA program, for example, all that you will learn in that school will be these five pillars each course that you take in that business school will fall to anyone off these five pillars or categories, so let's quickly discuss each off them. One by one, force is creation or, in other words, value creation. Basically, value creation is the process off, discovering what people need or want and then go creating it. Every business in the world create some form off value or solution. For example, Apple and Samsung create gauge. It's McDonald's. Create burgers. Toyota create cars. You get the idea. Next. It's marketing. Now a lot of people confuse between marketing and sales. They are actually very different. Essentially, marketing is the process off. Attracting people's attention and building demands off what you have created in the creation process. Just imagine that you just created an awesome and sophisticated product that can solve a lot of people's problem. But nobody knows that this product even exists. It just said they're in your office. Are you going to have a business this way? Of course not. You need to make people aware off your product. This is what marketing is all about, creating large scale attention and awareness. Several examples off what marketing people do are copyrighting placing online advertisements on Edwards and Facebook ads are on more conventional medium, such as magazines, TV's radio's etcetera. All of these are marketing jobs. Next is sales. Okay, so you have a great product, and with marketing efforts, you make the whole world know about your product. But if nobody actually opened their wallet and give you the money to buy your product, then you don't have a business. Essentially, cells is a negotiation process to convince people to buy your product. So again, cells is different from marketing. In their simplest form, marketing is a public communication process. While sales is a negotiation process, the next biller off business is delivery or so called value delivery. After a customer purchase your product, you don't need to deliver that product to them. Why so essentially value delivery is a process off, giving your customer the value that you have promised and making sure that they are satisfied. Okay, if someone sell you something and then you pay for it. But then the product never delivered to you. Do you call that a business? Of course not. That is a scam, not a business. And of course, you are here now to learn about business, right? Not learning how to scam other people. Finally, the last pillar off business. These finance essentially, finance is the process off managing the money in your business. The finance job is to analyze all off the four processes before from value creation, marketing, sales and value delivery so that we can answer two biggest questions in business force. Is this business bringing enough money to keep going? And second, is this business profitable? Okay, guys. So these are the five pillars off business, and in this course, we will focus only on 1/3 pillar off business, which is sales. 5. The importance of transaction: in this lesson video. We are going to discuss about the importance off transaction in business. Currently, we are discussing the third pillar off business, which is sales. And we are now on the fourth subject, er which is transaction precondition. Okay. Looking back to the five pillars off business sales is different from the rest off the peelers. Why? Because if you think about it only if sales, where the money actually flows into your business while the other four pillars drained the money from your business. As we all know, businesses can only survive if they can, bringing in more money than they spend. Or in other words, the money coming in from the sales process shall be ableto coffer, value creation, marketing, valued livery and finance. So by knowing this fact, you should realize by now how critically important for us or for any business is to conduct and to complete, then sections. Okay, so let's define what the injection is first. In essence, transaction is an exchange of value between two or more parties. If, for example, I have something that you need and you have something that I need, then it is better for both off us if we agreed to trade right off course. Nowadays, it is easier to do transaction with the help off money, instead off bartering goods with other goods. France section is the defining moment off every business. No transaction means no sales and no sales means no revenue, which at the end means no business. I rip it again. No transaction means no business. I need to stress this enough because many people confused project with business. For example, many start up companies trying so hard to create something viral without any clear roadmap on how they actually make money or a transaction to be exact from what they are developing , most off them, just hoping to get enough users so that later they can sell the company toe a bigger company who can see the value off what they have developed. I am sorry to say that these start ups are not business. They are just projects. If those projects ableto pull out a profitable transaction, then that will be the defining moment where they finally transition from being a project toe. Being a business so essentially when you are starting a new business, your main focus or Your main objective is to get to the point where you can make your first profitable transaction as quickly as you possibly can. All the things that we have learned before in a previous chapters which are value creation and marketing, they all comes down to this to create profitable transactions. Okay, but to have a transaction, we cannot simply plan and execute because then section would happen on a single entity. It can only be possible if at least toe parties taking part. So what we can do at maximum is to understand what are the preconditions that make a transaction happen and try to accommodate those preconditions in summary. In orderto have a transaction, we need toe have two things in place. First, you need tohave trust, and second, you need to have a common ground in the next lesson. We're going toe cover each off these preconditions more in depth 6. Transaction precondition: in this lesson video. We're going to discuss about the preconditions off transaction. Currently, we are discussing the third pillar off business, which is sales. And we are no Wonder Force subject er which is transaction precondition. Okay. Previously, we learned how important transaction is to any business. Every business needs transaction to survive. But we cannot have a transaction without its preconditions. And they are trust and common ground. Let's discuss the trust precondition first, and then after that, the common ground precondition. Okay. Without a certain level off trust between parties, a transaction will never take place. No matter what promises are made or how good the deer sounds. No customer is going to pay you money unless they believe you are capable off delivering what you are offering. Likewise, it is also not a smart move for your business to accept credit from random customers that you just met. Building a trustworthy reputation over time is the best way to build trust. We have discussed about how Toby reputation in depth in a previous marketing chapter, so I won't go over it again. In this lesson. Essentially, the stronger you can demonstrate your business trustworthiness and the easier. You can verify that your customer is trustworthy, the greater the chance off a successful transaction. Okay, now the question is, what if you are in a situation where you cannot really show that you are a trust 40 business? Perhaps you are new, so you don't have any reputation yet, or you are selling something online across radiance or countries where people don't speak your language. Moreover, recognize you well. In this condition, you can use third party help to signal that you are trust warty. There are many methods to do these for examples by using credit and background check surfaces are using escrow accounts, etcetera. Just think about it. Why people prefer to purchase and import Chinese products from Alibaba or Ali Express rather than directly from the actual merchant's website. The answer is because the leg off trust, by paying through Alibaba or through any marketplaces websites the money we pay as a customer are help by 1/3 party on behalf off us until the seller fulfill their obligation. These surfaces exists because they can help us break down the barrier toe Trust precondition. We dont be surfaces. Many transactions will never take place the second transaction precondition is common grown . We can think off common ground as the offer lapping interested between two or more parties . Imagine you have a circle where you have your available options, which basically things that you need or you want. And also resource is that you own and another person also have his own circle off available options. If these two circles overlap, the area where they are offer lapping are called the common ground. For example, what happened when you purchase something from a retailer, they have a product you want to own, and you have a certain amount off money they are willing to accept for the product. And so the transaction took place. Right now, if you don't want the product or the retailer wants more than what you are willing to pay, no transaction will take place. Okay, now, from the business standpoint, it is your job to find exactly where these circles offer left. So how can we do that? How can we find our magnify the tens off finding these common grounds? There are several steps to do these. First, you need to make sure that what you are offering is economically valuable. We have talked about this in depth in the value creation chapter. Basically, if you don't have anything your prospect customers want, they want buy from you. This may seems obvious, but it is amazing how many business enter the market without something the market Once. Second, you need to make sure that you are targeting the right people that actually align with what you have to offer. Sales is not about convincing somebody to buy something against their own interests. Ideally, you should offer exactly what your prospects want. The more your interest US are aligned with your prospects interest us, the bigger the tens, you can close the transaction. That is why it is important for us to understand who our customer avatars are. We have missed cost all of this in depth in the previous marketing chapter. Okay, the third step is negotiation. There are always many pats toe a successful transaction, which is the essence off negotiation. Negotiation is the process off exploring different options to find a common ground. The more paths you explore, the greater the chance you'll be able to find a common ground. We're going to discuss about negotiation more in depth in a future lesson. So to summarize this lesson and the lesson before transaction is critical to any business so important that you don't call it a business. If it doesn't make any money transactions and to have a transaction first you need tohave truss and second, you need a common ground. We don't. These toe preconditions transaction will never happen. 7. The pricing principles: in this lesson video we're going to discuss suffer basic principles in pricing. Currently, we are discussing the Caterpillar off business, which is sales, and we are no on a second subject, er, which is pricing Okay, before we go into the details about pricing strategies and different methods off pricing in this lesson, we're going toe cover the foundation off pricing, and that will be understanding the three basic pricing principles. These three principles are pricing, ambiguity, pricing power, and the less one is prices increase. Let's start with the first principle, which is pricing ambiguity one off. The most interesting fact about pricing is that there is no exact rule for pricing. All prices in the world are arbitrary. It means if you own a product, you can put any price take you like, and there is absolutely nothing will stop you from doing that. You can sell that product today for $10,000 for example, and then tomorrow you lower it to $100 for example, you can totally do that. Any price can be set to any level at any time without limitation. Yes, there are some exceptions, especially in area where there are large public needs involves, such as electricity, water, gasoline, etcetera. At least there is the case in my country, but outside off this exceptional cases, if you own the product, then you can set the price for their products any way you like it. Okay, now this pricing ambiguity principle is school because we have so many freedom to set our own price. But this is just one site off a coin on the other side. There is no guarantee that people will be willing to purchase the product from you at the price that you have said. Because in general, most people prefer to pay as little as possible to acquire the things that they want. So what you should do after setting the price is you need to provide the reasons to support that price before customers can accept it. If you fail to provide the reasons most likely people won't buy it. We may not realize it, but we actually experience this all the time. Sometimes we see a product that we like so much, but the price is higher than the rest. We really want to purchase it. We just need more reasons to justify the price. If the sales person can explain the reasons well, most likely we will end up buying that product. So again, to summarize this pricing ambiguity principle, all prices in the world are arbitrary. You can set any price however you like for your offer, provided you can support that price with enough reasons. The second principle we are going to discuss is the pricing power. What pricing power means is the ability off our business to rice the price without losing customers nor profit pricing power is very important. And it is one off the factors that you should consider when choosing a business or a market to start with serving customers takes time, energy and resources. So the more we can earn per customer served, the better our business will be. Changing our prices can help us maximize our results while minimizing our effort and investment. Now, I know this sounds easy in theory, but in practice it is not. Different. Markets or different industries have different price sensitivity. For example, in commodity market where everybody sell the same team everywhere, such as rice, cooking oil, so food place etcetera, unless you are able to create something new and unique that the customers badly want. Increasing your prices above the others will cost customers to stop buying from you and start buying from your competitors. But in different markets, such as luxury goods, the customers aren't that sensitive to price changes. You could potentially double the price with little change in sales. At this market level, customers actually purchased the goods because they are expensive, not because they are cheap. They used these luxury items for prestige and social signals, not because they badly need them to survive and so increasing the price off this products. We likely make those items become even more desirable, not less OK. But in whatever market your business is in, if you able to offer a product that is in some way unique or superior, then your business will be in a much better position to preserve its pricing power. So again, to recap, different industry or market may lead to different pricing power. If you have a choice to a market in which you have more pricing power, because it will be much easier for you to maintain that business over time, another reason why you should consider having a strong pricing power Business is the third principle that we are going to discuss in this lesson, which is prices increase. Like it or not, all prices in the world always go up over time, not down. I know that sometimes we also experience price decreases, such as with the government, regulate gas prices or electricity or public commodities, for example. But these price decreases are generally short term. And eventually, when the time come, they will go up again. Just do a flashback. Do you remember? How much does it cost to purchase your favorite food 10 years ago, what about 20 years ago? They were way, way cheaper back then, right? I believe many of us already understand that this prices increase is due to the effects off inflation. Our paper money value decreases over time. This is related to a concept called the Time Value Off money, which we are going to discuss more in depth in the finance section. For now, we just need to realize that all off this increasing courses that are happening around us are just illusion. What really happened is the decreased value off our currencies. $100 money several years ago, is worth more than $100 money that we have currently today. So the way this phenomenon impact our business is that it takes more currency to purchase. The same raw materials and or professional surface is necessary to keep our business running. Essentially our businesses sufficiency requirements are increasing from time to time. We don't proper price increase strategy. Our business may not be able to remain sufficient in the face off higher expenses. So to recap the last principal all prices will keep increasing from time to time due to the inflation to be able to survive, our business needs to have a price increase strategy. Okay, guys, So by now you should already realize why understanding these three basic principles off pricing is crucio. In the next lesson, we'll discuss more in depth about pricing factors and in the methods and strategies to set a price is for our offers 8. Internal pricing factors: in this lesson video, we're going to discuss the factors that can influence pricing decisions. Currently, we are discussing the Caterpillar off business, which is sales, and we are now on the second subject, ER, which is pricing OK. As we all may already know. By definition, price is the quantity off payment needed for exchange with certain unit off values such as products or services, etcetera. But the real question business people often ask, is not the definition off price after spending time developing a product one off. The biggest question many entrepreneurs need to deal with is how much should I charge for my offers Now a lot of people who never bean in business thing that pricing is easy. If we know the costs off the materials, just add several dollars on top of it. For example, if it costs $100 for the raw materials, then it should be fine. If we put $120 in the price tag, right? Well, I'm sorry to say no. In reality, pricing is not a simple as heading small margin on top off the course Raw materials course is just one off the costs involved in product creation. There are many other hidden costs, and even if he combined this costs, they are just still one off the manufactures defining the final price. Okay, so how many factors exactly there are which influence the final price? Well, first, we can divide the pricing factors in tow to big categories, internal and external. The internal factors are the ones that are coming from the company who produce or create the offer. The external factors are the ones that are coming from outside off the company, such as from the customers, the government, in any other parties. Outside, off the company, you may find different type off pricing factors unique to your own business that I may not least that in here, but at least by understanding this factors you have solid for a nation to understand how pricing works and so that later you can create pricing strategy more wisely. Let's just briefly discuss each off these internal factors first, and in the next lesson, we will continue with the external ones. The first factor is courses. Courses can be a lot of things from raw materials, staff, wages, electricity, etcetera. These are called the direct courses. But there are also hidden or indirect courses such as amortization. We'll discuss about this more in depth in the final section for now, to keep things short and simple. Just imagine this scenario. If you produce a certain type off product using expensive machinery, what happened when that machine eventually die or a broken Well, you have enough money, then to reporters that machine. If, during production time, when your machines able to run, you never allocate money to replace them. Most likely you won't be able to report us them again when they died, which means you will go out off business. So you understand by now that there are many different courses connected to our product, and we need to take all of this into account when setting a price is if we want our business to survive in the long run. Second is goal. What is your business? Is goal in term off profit? Perhaps you have investors that said considerably high targets on your business as part off the capital agreement, so you need to achieve these goals by rising prices. Essentially, the higher the goal, the higher you need to set the price The third factor is positioning. What positioning means Issa strategical AK off putting our company or our offer to a certain position in the market. It usually involves estimation off what will happen in the future. There are many examples for this position in factor. For example, let's say you know exactly that a certain component in your product will go down in price in several months. Perhaps the government we were subsidised it or there will be over supply off that component products in the future. For some reasons, by knowing this upfront, you can start lowering the price now toe gain more loyal customers in hope that when the time comes, you can make profit from the course decrease. The next factor is business model. For example, let's say aces and L both sell PC for gaming, although they both sell the same type off products and target the same niche market. Del used a different business model than aces, instead, off creating many, many built in models. They create an online surface where customers can really pick each off the components for their own custom PC. For some savy customers, they love having discussed Emaciation control even if it costs a little more than the other sellers. So by using this approach, Dell has gained more pricing power than aces. Now you need to understand that this is just purely a fictional example. By no means that this case really happens to both aces and L in the real world. Okay, the next factor is channel. When setting up prices for your products, you should also need to think about the margin for your distributors or resellers. For example, if the raw materials and the production costs off, your product is $100 and then you said the end price for $120. How much margin are you going to spare for your channel, then $5 $10? Are they willing to sell your product within those margins, or are you make enough profit with that reduced margin? These are the questions you need to answer or to find out first before you can set the end price correctly. The less internal pricing factor that you need to consider is the supply rate. There is a micro economics principal called Supply and the men. If there are too many quantity supplied, the price will go down to make things simple just, for example, if you have first production rate, but you don't really have enough storage space to showcase or to store your product, this is a bad thing for certain type off products such as ice cream or frozen foods. For example, having a adequate storage facility is crucio. You cannot just put your ice cream products outside in a parking space, right? Well, you can do that if you are producing cars, but still we don't have infinite space and space costs money. And so balancing between the customers demand and our business supply rate is important and it is not as easy as it looks. That is why we see many companies from time to time discounting their products heavily due to the oversupply problem. Okay, guys. So these are the internal factors that commonly taken into consideration when businesses try to price their products. There are also external factors which we are going to discuss in the next lesson. 9. External pricing factors: in this lesson video. We're going to discuss the external factors that can influence pricing decisions. Currently, we are discussing the third pillar off business with these sales and we are no on a second subject, er which is pricing OK. Previously we discussed factors that influence pricing decision that are coming from within the company itself. Now we are moving on to the factors that are coming from outside off the company. And so we call these factors as the external factors. Let's dive in and discuss each off. This factors one by one for us is demand. Previously, we have talk about supply very briefly. Now, if you go toe on economy school, you might already learned some micro economics theory ISS, such as supply and demand serious and also market equilibrium theory. Now, if you never go to economy school and on fully understand about this theory ISS no problem , because, honestly, I am not a big fan off micro economics terrorists myself, as most off them are, well, just theories. I find it hard to use these theories in the real world scenarios, especially when you are busy running your own business is, but nonetheless, I won't say that mysterious are useless because to a certain extent, you can see and feel these theories at play in the real world. Take a flight ticket, for example, in certain holiday events, or at times when there are many people expected to travel, fly tickets become more expensive. Vice versa when less unless people expected to travel at certain times, fly tickets prices are going down. Essentially to make the supply and demand theories more practical for us as a business owner is that if the customers quantity, the man is high. You can safely increase the price. And if the customers quantity demand is low, then you should lower the price. Okay, The second factor is competition with talk about competition before in the context off value creation, we knew that competition can be bad, but it also can be a good thing. Now, in a compact off pricing, the same principle applies. Healthy competition is good, but overly aggressive price wars can have negative long term effects for both consumers and the player companies. Generally speaking, competition will mostly force prices to go down and eventually lowering the profits earned by each off the players in the industry. The third factor is customers. Expectation. A buffing example. Off this price effect, er is the Oculus brief case. If you follow the VR or virtual reality trend in early 2016 you might already hurt the massive We are friends. Disappointment over the Oculus rift, half the price tag when the product first released to the public for ah, high end, we are head set. A price off $599 seems reasonable. But why? There are so many people disappointed? Well, this is because several months before Oculus founder Palmer Luckey me spoke the riffs price Toby approximately $350. His statement created a huge initial customers expectation around the product. And so when it was finally released with the price off $599 many people got angry. There are at least two lessons we can learn from Oculus rift case for us. We need to be very careful in setting up customers expectation for our product. Second, if you enter a market when there is already a certain degree off pricing expectation, then you should try to follow this expectation as best as you possibly can. The next factor is legal. Unless you want to live alone in the middle. Off a jungle, you cannot live a normal life. We don't the existence off the government because the more people living in a certain area , the more complex it is to keep them in order. This is why we need government. Government creates public policies to ensure its citizens right are well protected. It's a business toner. Following regulations sometimes means that we need to pay additional courses, which leads to a price increase. For example, if you create a medicine product and then start producing and selling the product massively , we don't any permits or certifications. You might end up in jail even though your medicine product is legit and harmless. Food and medicine products must go through and past several testing faces before they can be released for public consumption. Different countries We have different specific regulations for that, but essentially all of these processes cost money. The next factor is bargaining. Power, by definition, were gaining power is a condition that will grant certain party toe domain it the other party inside a negotiation. No negotiation can be anything but in our case, Let's just assume that it is a business transaction. We will discuss more in depth about bargaining power in a few lessons after this. For now, just to make things simple, a typical business transaction goes like this. We have seller buyer item that is being trade and the price as an exchange for the item. If the seller has more bargaining power than most likely, the price will go up or will refuse to go down on the opposite. If the buyer has more bargaining power than the price will be more towards the buyers favour, which is going down, or it will refuse to go up. The last factor is budget. In essence, what budget means is simply a plan. It is a financial plan off spending a certain amount off money to put to something. There are two things that we need to understand about budget. First budget is not only exists if the buyers are large companies, but it also exists even if the buyers are just individual consumers. Second, you need to understand that budget is not the same as purchasing ability. Whether you realize it or not, we actually experience this budget pricing factor almost every day, but most off us just don't bother to notice it. For example, let's say you go to a shopping mall to buy a pair off shoes. Psychologically, you set yourself a certain threshold off. How much price off this shoes that you want to buy? For example, $100 due to this budget in your head, you escape browsing shoes that have prices above $100. This by no means that you cannot afford shoes that it's pricier than $100. You may have the ability to purchase shoes that cost 200 or $500 or even more. You just simply don't want to do it for whatever reasons, because budget is not the same as purchasing ability. Sometimes when we see a pair off shoes that we like so much but are priced not that far from our initial budget, for example, $120 we may end up buying them. But if the price is too high, we might try to bargain the price first toe, get to our initial budget as far as it can get. Okay, so how can this budget factor really to us as a business owner. Well, understanding different budgets that the customers have will help us create better offers for them. Okay, guys. So these are the external factors off pricing. Knowing both internal and external pricing factors will help us understand the big picture off, how pricing works and also to prepare us for the upcoming lessons where we learn to use pricing not just to replace courses, but to use it strategically to our advantage. 10. Initial pricing: in this lesson video, we're going to discuss about the initial pricing. Currently, we are discussing the third pillar off business, which is sales and we are no on the second subject are which is pricing OK if previously we look into pricing by dividing the pricing factors into internal and external factors, we know look into pricing from different perspective. Now we are dividing pricing not based on the factors but based on the process or the stage of it. The first stage off pricing is setting up the initial price. What initial price means is the real end price off a product before we do any strategic actions to the price after we have the initial price established, the next stage is strategic pricing. This diagram shows the correlation between initial pricing, strategic pricing and the pricing factors, whether be the internal factors or the external factors, we will discuss about strategic pricing more in depth in the next lesson. For now, let's focus on the initial pricing. There are at least for methods that you can use to define or to support the initial price forces cost to be placement second IHS Markit comparison. Third is income substitution and finally, value comparison. Let's discuss each off this methods one by one. Now, if you produce and sell products just as we discussed earlier, you can simply calculate all off the course is I mean, all off them, Weatherby, direct or indirect courses. And then after that, you need to add enough margin for yourself and for your channels. If you have any, then you have yourself on initial price. Okay, But what if you are selling something more abstract or something that has more subjective consideration, so it is harder to value it. For example, if you own a house and you want to sell that house, how much is the price? Are you going to put on that house? Well, these four methods can help you answer that question. The first method is the cost replacement method. This method supports a price by answering the question, How much will it cost to replace it or to reproduce it? For example, if we want to sell a house, we can set the price for that house by calculating all off the cost us needed to build that house from zero. I mean, what would it take to purchase similar land pay for an architect to design and to grow our plans, acquire identical materials and hire construction workers to create exactly the same house . After you total apple off these courses, you can add a bit off margin toe, compensate your time and effort, and finally you have a price. So basically, the first method is similar with how we said prices on products. The second method is the market comparison method. This method supports a price by answering the question. How much are other things like it selling for in the case off selling a house like we discussed earlier, we can try to look the surrounding area. You may probably find a few other houses similar to the one you own that have been sold within the past year. Well, they are probably not exactly the same with your house. Perhaps they have an extra bedroom or bathroom, a little less square footage, etcetera. But with little adjustments, you can use the sale price off those comparable houses to create an estimate of how much your house is worth. Okay, next is the income substitution method. This method supports a price by answering the question How much is it worth if it can bring in money over time? Usually this method, commonly used for pricing assets that can produce ongoing cash flow, such as in buying and selling company shares, etcetera. In a case off selling a house, the question becomes, How much money will the House bring in for each month? If you rent out the house for a period off time? Assuming you could render House for $500 a month for a period off the predicted life spin off a house, for example, 10 years, you will have a supportable estimate off what your house is. Work off course. In financial perspective, future income must be discounted using NPV or net prison value consideration. This is because, as we discussed earlier, the value off money decreases. Over time, we'll discuss about NPV more in depth in a future finance section in Charl Aw, The last method off initial pricing is value comparison method. This method essentially supports a price. By answering the question, who is this particularly valuable to? In a case off house example, the question becomes what features off this house would make it variable to certain types off people, different buyers will value different things. We have discussed this in depth in the earlier section off discourse serious for our house . Some people may buy it because it is near our favorite school. Some other people prefer to buy your house because the house is near their working place. Some people may buy a house because the house is in quite neighborhood, far from the clatter off traffic or city life. By knowing the true values, your buyers, actually after you can set the price by comparing it to the other authorities that offer less off the values. For example, if you know that a buyer need to buy your house because it is located near his or her office, and you know exactly that other houses located further away are valued at roughly $80,000 you can argue to sell your house at $100,000. 11. Timed pricing: in this lesson video. We are going to start discussing about pricing strategy. Currently, we are discussing the third pillar off business, which is sales, and we are no under third sub chapter, which is selling strategy. Okay, after we have the initial price, the next process is to take the price strategically due to various off reasons. This is what I mean about pricing strategy. Now there are so many pressing strategies that companies use to tweak product prices from their initial prices. But we can divide these pressing strategies into three B categories. Time pricing, positional pricing and Leslie conditional pricing. In this lesson video. We will be focusing on the first category, and that is stunt pricing. Basically, time to pricing is a time bone pricing strategy. There are at least three pricing strategies in this first category penetration pricing price skimming an anchor pricing. Let's discuss each off them one by one. First is the penetration pricing strategy or also known as the lost leader pricing or get way pricing strategy names can be different, but the basic idea is the same. Essentially, we said the initial price to be lower than most competitors in hope to get market awareness and attract buyers. Many new companies used this technique to draw attention away from their competition. Over time, the increase off markup awareness can help small businesses to stand out from the crowd. And in the long run, after penetrating the market, companies often wind up raising their prices back to the initial prices Using penetration. Pricing strategy seems to be a good move, but you need to be aware that penetration pricing will cost your company on initial loss off income. So you must be extra careful in considering and comparing the losses at the start with the benefits again. From the emergence off the market awareness, some businesses can achieve great success with the strategy, but some other businesses fail. Most successful examples off the strategy arise from businesses that sell subscriptions. Cable television, wireless communication and Internet providers are notorious for their use off penetration pricing. They regularly offers low introductory prices, sometimes even free for the first month or so. Take Netflix, for example, when Netflix entered the market, video or DVD rental shops are the most popular means among American families to be able to get the latest entertainment in their homes, Netflix had to convince consumers by offering introductory subscription prices. A slow S $1 Netflix penetration pricing strategy was so effective their traditional providers, such as Blockbuster, soon lost the competition and were edge out off the market penetration pressing strategy, mostly not working very well on a more price sensitive markets, such as consumable goods and commodity products. There are many examples off these failures, but to sum up mostly the stories are the same. Consumers jump onto the offers because mainly off the cheap introductory price. But when the company start raising the price, the customers then going away because they start switching to cheaper brands, the next pricing strategy is price skimming. This is the opposite off the previous penetration pricing strategy. Essentially, price scheming involves setting prices high during the introductory face, and then after that, the company gradually lowers the prices. Now you might be wondering why in the world we want to do that and why customers willing to purchase that high introductory prices well, price Qiming is actually a well known strategy that has long been practiced by many technology based companies or companies that create innovations by setting the price high at the beginning, Two things can happen. First, the company will be able to immediately recover the courses from product development process. Second, it creates an illusion off quality and exclusivity off the product when the product for introduced to the market. This works well because in technology or innovation based products, none off the competitors make or sell the same products that we have, Okay. But then over time, new technologies and innovations begin to emerge from the competitors. Also, the course off producing the products decreases over time due to the effects off economy off scale. For these two reasons, our products price that were initially expensive can be gradually reduced. At this stage, our product will likely attract more price sensitive consumers who were not interested or unable to afford it before the pricing strategy is anchor pricing. No, honestly, unlike price skimming or penetration pricing, this anchor pricing strategy doesn't necessarily depend on time in terms off its implementation. But I include the strategy in this lesson because enterprising is more or less like the previous two strategies combined. We set the price high, but at the same time we try to push a product to penetrate the market. So how is this anchor pricing works exactly. Let's just take a real example so that we can easily understand the strategy. When Apple started entering Smartwatch Market at the end off 2014. Hey, Beau and some other brains already sell a smart watches at the price range off around $200 . Apple was going to release their smartwatch at the price off $1500 off course 1500 verses. 200 is a steep price comparison to overcome this EPO, made on exclusive smartwatch of Aryan that was even higher in price at $1700. So what Apple has done here is that they reset the highest price point, which also reset the expectations off people about smartwatch prices. With the existing off $1700 Smartwatch product, the $1500 Smartwatch product doesn't feel that expensive anymore. So from this example, we can conclude that anchor pricing is essentially a strategy to push a certain product to be accepted in the market by creating another Varian off the product with higher price. The goal is to make the main product not to be perceived as expensive and so increases market acceptance 12. Positional pricing: let's continue discussing the pricing strategies in this lesson video. We're going to focus on pricing strategies that are not bound to time, but rather on how we want to position our product in the market. Currently, we are discussing the third pillar off business, which is sales, and we are now on 1/3 sub chapter, which is selling strategy okay for position or pricing category. There are at least two strategies that we can discuss prestige, pricing and economy pricing. Let's discuss each off them one by one. For us is the prestige pricing or also known as premium pricing. Essentially, with the strategy, we intentionally set our product to be the most expensive product in the market. So why we want to do that? Well, there are several reasons for these. First, we can use this premium pricing as a way to stand out from the crowd to be different from the rest off the competition. Second, the premium price can signal high quality product to the market, and third, as we discussed earlier, having ah high margin can help our business in many ways, for example, to return the investment quickly and cover the initial development costs us off course. There is a care fear off having a prestige pricing strategy. First, the higher you set the price, the more potential consumers you put aside out off your target market circle because not everyone can afford high priced products. Second, you will also need to justify your premium price with premium quality product. Generally, you must work hard to create and maintain high value perception, for example, by using only top quality materials for your product design premium. Look on your product's packaging and the stores, the core etcetera. If you fail to do this, people, we lose trust in your product and eventually in your company. So because off this advantages and disadvantages, we should realize it by now that not all products are suitable for the strategy. If you have a unique product, I mean only you or your company can produce it. The more likely it is you can make use this pricing strategy now you might be wondering. So what is the difference between prestige pricing with price gaming strategy we discussed earlier? Well, the big difference is price skimming strategy will lower the price gradually in time, while prestige pricing will not we prestige pricing. We want our product to be known as the number one product, both in quality and in price permanently. The second strategy we want to discuss in this lesson video this economy pricing. The strategy is the opposite off the previous one. Essentially, we set the price as slow as we possibly can with this strategy. Ideally, we should be the one that are for the product at the lowest price in the market. The strategy works well for common consumable products for commodity products because most consumers at this market level are very price conscious. We can see this strategy used everywhere by a wide range off businesses such as generic food suppliers and discount retailers, etcetera. We can easily tell these because their marketing messages are mostly about low prices and discounts. OK, while economy pricing can be incredibly effective for large companies like Wal Mart, for example, the strategy can be dangerous for small businesses. Why? Well, because the way business is able to survive the low margin is because they can compensate it with high sales volume. Now, most small businesses they don't have large sales volume like larger companies have, so they may struggle to generate a sufficient profit when the prices are to loan 13. Conditional pricing: in this lesson video. We're going to discuss the less pricing strategy category, and that is the condition of pricing strategies. Currently, we are discussing the third pillar off business with the sales, and we are no honor third subject matter, which is selling strategy. Okay, the condition or pricing strategies are pricing strategies that change based on various conditions. There are at least two pressing strategies we're going to discuss in this category. First, it's bundle pricing, and second is dynamic pricing. First, it's bundle pricing. Wonder pricing is directly related to the process off bundling and unbundling offers that we have discussed in a value creation section. Essentially, we bundle suffer products or offers into one unit off sale with the added benefit off this gown. So what this means for the customers. They can purchase multiple products at lower price, in total, compared if they purchase each item individually. I put bundle pressing strategy a spot off the conditional pressing strategy because usually for the customers to get this benefit, they need to purchase the product in certain conditions. For example, they need to put a sit in certain amount or in certain days in a week or perhaps they need to pay using certain payment methods or by owning certain membership cards. Etcetera. Bundle pricing can provide benefits to the company into the customers in several ways. First bundle pricing helps to create more sales, although the margin from each off the items are generally smaller. But together they can make significant profits. Second, bundling is also an effective way to move unsold items that are taking up space in our inventory. So, for example, we have product A that is selling well. But they also have product be that its not selling so well. We can try bundling product be to product A with a discounted price. If you do wonder pricing strategy correctly, you may increase the value perception and press from your customers because in their perspective, we are helping them by providing affordable products that were previously expensive. Of course, as with other pressing strategies, not all businesses fit to use the strategy. Generally, wonder pricing is most effective for companies that sell complementary products. For example, restaurant can take advantage off bundle pricing by including dessert, with every main course menu sold on particular days off the week. We can't use the days where there are really visitors come to the restaurant. Another example off complementary products are cameras. Most professional camera products are sold in bundles because, as we all know, we cannot use those cameras. We don't the accessories. They are typically sold along with lances or with additional batteries, or even bundled with lighting equipment and other accessories. We can also use bundle pricing based on the amount off purchase. For example, an amusement park can provide plastic it for all off the rights, if only the customer by at least five tickets. This will encourage people to come together with their families or their friends. You can also use bundle pricing for market penetration. Usually, this involves lowering the price off the secondary product at the production courses or even below the course off production or, in other words, at a loss price. If you are doing this, then all of the things we have discussed about penetration pricing before should be take into account for a small businesses with limited budget, it is wiser to avoid this losses by keeping the profits off higher value items to be able to make up for the losses off the lower value products. The less conditional pressing strategy we are going to discuss in this lesson is dynamic pricing. A great example off this dynamic pricing strategy are online transportacion services such as Uber Grab or one online transportacion company Here in Indonesia is Gogic. I don't know if you have this kind of companies in your country, but mostly they operate in dynamic pricing strategy. So, for example, if we order their surface in normal hours, their system will provide normal pricing based on the distance we want to travel. But if we order their surface in the rush hours or in certain condition, like when there is a heavy rain or unusual heavy traffic condition, the system will automatically rise the price. What's so unique about their pricing system is that they also use it to manage their customers and drivers. For example, the system can increase the price to punish certain users who are too picky and keep canceling orders. So basically, if you keep canceling orders without any justified reasons, the next time you order the price will go up above the normal rate. Another example off dynamic pricing is cloud hosting provider, some hosting companies provide adaptive performance feature meaning there for virtual surfer can automatically use more hardware resources when needed, such as when where traffic is high and then automatically re foot back to use less hardware resources. When the traffic is slow, the price will be adjusted based on this hardware load conditions. Okay, now there are so many different types off businesses out there that I might never have heard off. So who knows? Maybe your business is the type off business that can fit to this pricing strategy. 14. Selling strategies overview: From this lesson forward, we're going to start discussing different selling strategies. Currently, we are discussing the third pillar off business with the sales and we are now on 1/3 sub chapter, which is selling strategy. Previously, we discussed about different types off pricing strategies. Now you need to realize that this lessons are actually the breach between the second sub chapter, which is pricing, and the third sub chapter, which is selling strategy. After we have the prices set, we are now going to discuss the actual selling strategies. There are many different selling strategies in this world, but we can group them into three different categories. General selling strategies in direct selling strategies and direct selling strategies. We will discuss each off them briefly in this lesson just to give you an overview off what we will discuss next. OK, so general selling strategies are strategies that can be applied to every type off selling techniques they are not born toe. Whether we are doing it directly on indirectly in this category, we will discuss three important selling concepts and strategy. They are reciprocation them aging, admission and reactivation. The next category off selling strategies is in direct selling strategies. What in direct selling means is all types off cells processes that do not require direct human interaction? Some examples off these are online sales newsletters, commercial media, etcetera. Now, because we actually have discussed most off the indirect selling techniques earlier, before, when we discussed marketing in its category, we will only discuss some additional strategies that are directly related to sales. First, we will cover the concept about the cells flow and then, after that, educational based selling. And finally, we'll discuss suffer guidelines on how to design effective sale speech. Finally, the less category off selling strategies is direct selling strategies. Direct selling means all types off cells processes that require direct human interaction. Essentially, direct sale is a negotiation process. We will cover different concepts and strategies off negotiation in the less sub chapter off the sales section. 15. Reciprocation: in this lesson video. We're going to discuss a concept in sales strategy called reciprocation. Currently, we are discussing the third pillar off business with the sales, and we are now on 1/3 sub chapter, which is selling strategy. Okay, Even though we are discussing business, we are currently discussing a topic that intersects with human psychology. We cannot avoid this because when we discuss sales and negotiations, we are talking about human interaction. And in every human interaction, psychology always plays a huge role in it. Okay, so what is exactly reciprocation, in short, reciprocation is the inner desire that most human half to pay back favors to others that provide them in simpler words. When someone does something nice for you, your inner human nature will force you to do something nice in return. Just for a simple example. If you are out to lunch with a friend and he paid the bill, you will feel a blood toe cover the bill next time you go to lunch to repay his kindness. Most off us just doing it. We don't consciously pay much attention to why and how this inner force works. And from a business perspective, we don't actually need to go deeper on this psychology matter. It is enough to know that this reciprocation tendency does exists and so we can use it to our advantage in the cells process. Now, before we go any further, you also need to realize that this low off reciprocity has a dark side. What I mean by that is if someone does something awful to you, your inner human nature will force you to do something bad in return. Or, in other words, you want revenge as the business people. We need to realize that this dark site off reciprocity also exists and can impact our business directly or indirectly now, because avoiding wrongdoing toe others should already become a consensus we all agree on. I mean, we all here to learn business, right? We are not here to learn, to cheat or to scam other people. Let's just focus on how the bright side off reciprocation can help our business. The basic idea is very simple. Give your customer something valuable and memorable, and that's it. The key words here are valuable and memorable. So how can we achieve these two? Then? Let's discuss how to make it a valuable first and then later how to make it memorable. Okay, the term valuable can be a lot of things. As long as they are perceived as value by the customers, they will work. And as we discussed earlier, different people value different things. But as a guidance, we can at least categorize them into one off these four things. First is free items. You have likely seen organization giving away free items, and this is a prime example off reciprocity, a gift. My only be a cheap Brenda pen, but you should never underestimate its power, although they are not much in price, but they can lead to a huge return on investment. If you go out and give your customers or clients free items, they will start thinking positive thoughts about you. The second thing that you can give is hospitality. I think you already understand how important hospitality is, but strangely enough, we still often find cells. People display annoying green faces when we meet them. If you own a business and or lead many cells, people getting them to behave hospitable this one off your biggest responsibility because hospitality is not a nice tohave thing. It is actually a muss and expected by anyone. Even a simple gesture off hospitality can bring significant impact in your business, which lead us to the next valuable thing, which is a small favor Now. Small favors can be categorized also s hospitality. But I consider small favors different from hospitality because they are not something expected by default by the customers. Essentially, they are not in our obligation by common standards. For example, offering your customers of free coffee or a snack or even lunch are all considered as small favors. The less valuable thing that we can give to our customer is over delivery. We actually going to discuss this more in depth in an exception, which is a value delivery. But just for a quick overview over delivery means that you provide something more than what your customers are paying for or giving more than what you have promised before. So it is like giving away items, but over delivery is related to what your customers have both. It is a nice surprise for the customers at the end off transaction, for example, your customer by three kilograms off, eh? Pose from you. So you give him or her three kilograms, but you also include additional three more apples as gifts. Another example. Your client asks you to design just a logo for his company. You didn't deliver that logo design, but also with additional letterhead and envelopes. Designs for free. OK, now, of course, all of these valuable things you are giving should be within your finance. Your capacity. You really don't want to push yourself too hard over what you can afford, because there are two reasons for these. First, you cannot give something that you don't have right. And second, because giving or reciprocation, it's not about the amount or the price of it. Giving is about providing values or benefits to others, even though it may seems chip in price. Because there is a unique fact about reciprocation that you should know the desire to receive Brocade is not necessarily in proportion to the original benefit provided Robert killed Any explained this very well in his book Influence the Psychology Off Persuasion. It is a very good book. If you want to learn more about psychology in sales process, the next keyword in reciprocation is memorable. It is important to make our provided benefits become a more herbal to the customers. Why? Well, because sometimes our customers are not ready yet to make the purchase when they receive our gift. But if they remember our kindness when the time has finally come for them to make a purchase, the likelihood is that they will choose our product or our company over the competitors. There are at least three ingredients to be memorable for us is to have empathy. Second, Toby sincere and third to go above and beyond. Let me explain all off these three ingredients a real quick force is empathy to empathize Means you need to truly curious to learn what other people needs and then go try to provide that you need to eagerly listen and try to understand what it feels like to stand in the customer's shoes and feel what they feel. Essentially, you need toe. Do it for them, not for yourself. Okay, next is sincere, since here means that you need to conduct all of these givings we don't asking or even hoping anything in return. Now you might go jump on me and argue. Hey, Reedy, Are you crazy? We're doing this to increase our sales. Now you ask me to do it for nothing? Well, I know this may sounds counterproductive, but just hear me out for now. People are not robots, okay? Our customers are not them. They have feelings. And just like us, they can sense if someone giving them something out off greed, they will generally appreciate you. If you generally provide all of these free benefits from your deepest heart, Trust me, it is very, very different. Also, if you give away stuffs in hope for return, if they don't return something, you'll be disappointed and feel very bad. Eventually, this negative energy will affect yourself and the people around you. We just never be a good thing. OK, The next ingredient to make a memorable reciprocation is to go above and beyond every single time. Most likely your competitors already know about reciprocation and already have their strategy in place. To stand out from the crowd. You need to be different and where to go above the others. If your competitors giving away Candies, you can give away cookies. If they usually offer a glass off mineral water, you can offer handmade coffee. I think you get the idea here. Okay, guys, To sum up this lesson, being generous, it's one of the best things you can do to improve your results as a salesperson. By giving away values and helping others sincerely as much as you can, they will respect you. And at the end you will earn their respect. Truss an increase your reputation. 16. Damaging admission: in this lesson video. We're going to discuss a concept in sales strategy called damaging admission. Currently, we are discussing the pillar off business with the sales, and we are no under third sub chapter, which is selling strategy. Okay. About three decades ago, sufferer researchers at Cleveland State University made an astonishing discovery the researchers created to fictitious job candidates Dave and Jon for each off them. They created identical resume ease and two almost identical letters off reference. The only difference was that joins letter included the sentence. Sometimes John can be a little difficult to get along with. Essentially, Jones Rescue Me acknowledges that he's not perfect. The researchers showed the Rays amis toe personnel directors guess which applicant the directors most wanted to interview. Believe it or not, the answer is John. The researchers concluded that the criticism off John made rest off the reference for more believable. So what is exactly a damaging admission? In short, damaging admission is being truthful about the drawbacks or the force off our products. To the prospect buyers, it may seems counterproductive, but a lot of business researchers, such as the example I mentioned earlier proof the other way around making a damaging admission can actually increase your prospects, plus in your offering, because it shows integrity. After all, if you are honest enough to admit the weakness or flows off what you are offering, it stands to reason that all of the positive things you say about the product are true. Your customers will feel that you have a very good intention in helping them, not just to blindly pushing them to close the deal. Some people might think that making their products all great and all perfect in front off the customers is the only way to close sales. This is a huge mistake. Why? Let's face it. Nothing in this world is perfect. The products that we sell are no exception. Your prospects No, you are not perfect. So don't pretend to be people actually gets a species when something appears to be too good to be true. If on offer appears abnormally good, your prospects will start asking themselves what is the hidden catch? So instead off, making them wonder, Why not just tell them yourself by being up front with your prospects regarding the drawbacks and the limitations off your product, It stops your prospect from attempting to uncover those limitations by themselves. You will increase your trustworthiness and eventually able to close more sales. For example, let's say you want to buy a new car if you meet salesperson A who keep talking about how great his car is and keep pushing features upon features that you don't even care versus cells. Person B who honestly explained everything, including the drawbacks off his car. So this person be say's something like this. This car is designed to be a few officiant, so the drawbacks are the speed and the exploration of it are not in part with the car from the other company. If you need economical car, then this will serve you well. But if you need a face car instead, I have to say that the car from the other company were suits you better? Yes, you can see from this example sells person be even redirect you to a product from his competitors. Er, if their product with her suit your need. He display honesty and integrity and ec upon your interest. Us as the customer, not his own. So which sells person. Do you think you will trust when you need to buy a car. Of course it is. Sells person be because you trust him. Okay, Now what about online businesses where we cannot interact directly with the customers? How can we practise this damaging admission? Then, well, we can see your duties in many ways. One great example is a cosmetics company called Lush. They have long understood the power off damaging admission very well in their website after their product descriptions, the actually include both positive and negative Commons from the customers. It is different and unique compared to most websites which usually only display positive testimonials, Right. If you see other websites, you will think that all of these perfect testimonials are manufacturer. But lush website feels genuine and honest, and so no wonder they can manage to make a lot off cells from it. For 30 years, this family business has existed and continues to grow until now, when a record the video one last thing I want to mention in this lesson is a small advice for fellow Muslims. If you are a Muslim who do business or sell products, then the meeting admission is not just a recommendation. No damaging admission is actually an obligation for you Because Prophet Mohammed Solo Ali was Selome once said it is not hollow for a Muslim. You sell an item that has defect unless he explains that defect. So it is considered to be a scene to hide products flows in. Your transaction will not be blessed. Okay, guys. So to summarize this lesson, what stops most people from making the damaging admission is because they are afraid that by showing the weakness, they will lose the sale. In actual fact, the opposite is true. By being truthful about the drawbacks off your products, you are more likely to win your customer stress and respect which eventually increases yourselves results. 17. Reactivation: in this lesson video. We're going to discuss another self strategy called reactivation. Currently, we are discussing the third pillar off business, which is sales, and we are no honor third sub chapter, which is selling strategy. Okay, reactivation is perhaps one off the orders. Cell strategies in the history off business. So what is exactly reactivation by definition, reactivation is the process off convincing pass customers who haven't done business with you in a while to buy from you again. Reactivation should be part off the sales strategy in any business exists in the world. Why? Well, if you think about it, sales is actually a process off convincing prospects to become customers, right? The thing is, getting new customers is costly and time intensive. But using reactivation, we are targeting people who already knew and had experience in our products or offers. In other words, there is already a certain level off truss between us, the business and them as the customers. Also, you already have their contact information in your database, so there is no need for you to go through the prospecting face again like you normally do to get new customers. In short, reactivation can be a great way to bring in additional revenue at very little additional costs. If compared. Toa acquiring new customers Reactivation is quicker, simpler and more effective. Sales strategy There are many examples off the activation strategy at play. One simple example is when you stop your TV, cable subscription or Internet subscription, what do you think will happen after three or six months later? Well, you will get a phone call or email from these subscription companies offering you toe re subscribe with an attractive discounts or bonuses. Okay, so how can we use these? The activation strategy effectively. Well, there are suffer points that you need to have to make sure you get the optimal result from reactivation self strategy first s permission. What permission means is that you need to us the customers first, whether it is okay to follow up with more information and offers usual duties when the customer's purchase from you for the first time. If you don't have that initial permission, your reactivation off for us, we'll just be a non knowing interruption in the customer's eyes. For the best result, you really should provide regular values to your customers. For example, you can provide regular information such as news how to videos, tips and tricks, etcetera, essentially in any topics that matter to them, so they are willing to give you permission to keep in touch. Next, you need to have a system that can track your database off customers. This can easily be done because most C R M or customer relationship manager software already offers this feature out off the box. Basically, with the system, you can keep track on which customers that happen purchased from you in a while or which customers dropped their subscription since a certain period off time. For example, even with a simple P or S or point off self systems, you can easily extract police off customers data based on the sales history. After dead, you need to craft an attractive offer for this customers. It can be a huge discount for the 1st 1 or two months off subscription. Or perhaps you can offer bonuses or other benefits, such as additional TV channels or faster Internet speed etcetera, for example. The resting you need to do is, of course, sending this customers the offers. You can do this via phone calls, emails, physical males, etcetera. It's an entrepreneur or business owner. The biggest challenge that you need to tackle is how can you make all of these steps become automatic or ourself running? You can make a priority for every three or six months to re contact your press customers with another offer and see if they can be encouraged to start buying from you again. If you can do all of these things in show low, you'll be amazed by the results. 18. Effective sales landing page: in this lesson video we're going to discuss about how to design effective sales lending page. Currently, we are discussing the third pillar off this knees with the sales, and we are no another sub chapter with you selling strategy. Okay, as we discussed earlier sales is a process of convincing people to buy our product. Mostly, sales is a negotiation process. That is why we dedicated a sub chapter discussing about negotiation. But sometimes sales also can or need to happen. We don't any real people negotiation or, in other words, the communication happens, but only in one direction. From the cellar to the Prospect customers. This is the case with selling online through the use off sales lending pages. So what is exactly Sale slinging? Peach Force? Let's discuss what lending pitch is in general. In short, lending pace is a special way pitch that you said as the target for the visitors to come and see. In fact, that is why it is called lending page, because this is where all of the people that you are targeting in your marketing campaign will eventually land. And if they talk about lending pitch alone, there are actually many different types. Off landing pages exists in Internet. Some landing pages are built for converting traffic to Leeds. Some are built for a shadow testing or a pre sell testing, as we mentioned earlier in the value creation section, some are built for getting shared across the Internet. These type off landing pages are often called viral landing pages and the man purpose. Off this landing pages are mostly only for brand awareness. Basically, lending pages are created for different purposes, and in this lesson, we're focusing only on landing pages used for sales purpose. Okay, so by definition, sales lending pages are lending pages built specifically to generate sales. If you compare this to a sales presentation meeting where you have to do yourself speech at the end, well, this lending pitch is like your whole self speech. Okay, if the prospect customers like it, they will know forward to purchase your offers. If not, they will go elsewhere off course in B two B or a business to business sales process. This is more complicated. We cannot simply ask the buyers to pay with their credit cards because the buyer represent a business, not themselves, so mostly in B two B sales lending pages. The goal is not actually direct purchases, but instead we want to get the buyers contact information and permission to send ourselves people to meet them in further negotiation process. So the next question is, how can we create an effective sales lending page? The question is short, but apparently the answer is not. There are many aspects to consider and to work on to create an effective sales lending peach. There are even books and courses focusing on this topic alone. But as always, I will try to cover the most important fundamentals. So you have a strong foundation to develop further. When designing landing pages, you need to divide your contents into two parts above the fold and below the fold above. The fault means the contents your visit, our see right way without them having to scroll the page down, we load the fold means the contents. That would only be feasible when the visitors starts crawling the pitch down. Now you might be wondering, where do we need to divide the contents like this? Well, this is because based on many Internet researchers people's attentions when looking at the website spent on Lee between 2 to 6 seconds, meaning you only have upto six seconds to grab their attention. Now you might be wondering, How can people read contents in just six seconds? The answer is, they don't Most people, including me and probably including you, don't even bother reading all off the Texas in the page. What most people do is just scanning the page, trying to get the conclusion quickly off what the content is all about. After six seconds scanning the page, they will then decide whether to stay and redress off the content or move on to another website. So because off this fact unit, different strategies when designing the contents above the fault for sister contents exists the load afford. There are several points that you need to pay attention when creating above the full contents. First, you need to create a compelling headline, something that can entice people instantly to stay. We have discussed about these attention grabbing concepts before in the marketing section off the scores, so I won't repeat them again in this lesson. Second, you don't want to add a long body tax in this area if you need to add text description. Make it as short as possible. Do not focus on the features but focus on the benefits for the customers. We have also already discussed about these concepts before. Third, you need to make sure that the audience know exactly what you want them to do. So display your city or call to action right away. Using strong, notable colors such as red or orange City A or call to action can be a buy button to purchase your offer. Or, if you are in two b two b market, then the city A could be a contact form that the audience need to fill out. The next important point is to avoid destruction. You showed that read off anything that can potentially distract people from pressing the buy button or drive them away from yourselves. Page this include banner ads, pop ups, any type off navigation such as the top navigation bar or breadcrumbs or sidebars with different types off wings. Okay, next, this is my personal tip. You should use video for yourself. Speech. People enjoy videos more than tax because just think about it when you re takes us, only your eyes are used to capture the content and the content itself is in the form off letters and words. Therefore, your brain must work harder to process them into usable information. But if you watch a video, you use your eyes to capture the visas and also use your ears to capture the audio. Your brain works less harder as it is easier to convert this multimedia stimulants into understandable information. Essentially, by using video, you can prolong the attention cap from only six seconds toe about 2 to 3 minutes off attention. Therefore, you can put more contents in the video to pitch yourselves when people scan your page and then within 2 to 6 seconds, they decided that this page is worthy off their attention. They will start wanting more detailed information about your offer. This is where they scrolled the page down to get more information that can convince them to purchase. Now there are many different strategies and different things that you can put in this area . In this lesson. I will only point out three things that you need to consider First is products features, although you have more loose constraints when working with the loader for contents. But Still, you really don't want to waste people time here what I mean by dead. Although you can put all off your product's features in this area, I still suggest that you only show a handful off them. Show just enough features that are important to your target audience. Again, we've talk about framing concept before in a marketing section. This is where you should apply this marketing concepts. Second is the trust builder. Now I know we are currently talking about sales here in based on what we have discussed before about sales. Funnel sales should only come when people already know, like and trust you, because these are the foundations off transaction right? But in the realm off Internet business, it is possible that people lend in your sales pages without them going through the CEOs funnel. This can happen for many different reasons. For example, someone may like yourselves landing page and decided to share it in his or her social media . Then his or her curious friends open, dealing directly to see whether your offer is interesting or not. My point is, you still need to support yourself speech with enough tools to create credibility and trust so people don't hesitate to make a purchase. These tools can be in many different forms. For example, if you are a company, then you should display your legal company name in your real address and for numbers. This way, people know that they are buying from a legit organization. Other tools that you can use to build trust are, for example, adding customers, testimonials, product reviews, the meeting, admissions as we discussed earlier products, warranty and or money back guarantee policy, for example, all of these can greatly help You will trust you need from the unexpected audiences. The last thing I want to mention is the secondary city. A oracle toe action. We already have the city a above the fault, which is great, but you also need to at the secondary city a at the bottom off the page below the fold. Why? Well, if you think about it after someone scroll and learn all off the great stuff about your product and finally decided to purchase the product, it will be too bothersome for them. Toe have to scroll back up just to click the buy button right by placing another or secondary city a at the bottom off the page. You are actually helping your audience to make the purchase right way. So those are the strategies that you can apply to your own line self's page Again. There are still many aspects that you need to know about this topic, but this lesson should give you a solid foundation for you to develop for very. 19. The sales process framework: in this lesson video we're going to discuss about the sales process framework are also known as the sales cycle. Currently, we are discussing the third pillar off business with its sales, and we are no under four subject er with this negotiation. Okay, so what is exactly sales process framework or cell cycle? Essentially, it is a breakdown off the entire stairs activities from A to Z off a sales person or assess the apartment inside a company off course. As with many other frameworks, different companies or different industries may have different ways off. Executing their sales process did is why sell software like Salesforce, for example, they let you craft your own cells process. We cannot simply replicate the sales process off one company to another company, especially if they are in completely different industries. But we're here to discuss the general activities that most companies will have to deal with in term off sales process. So in general there are 12 steps or stages that you need to go through in the cells cycle. We'll discuss for off them in this lesson, which belonged to the pre cells stages, and we will continue to rest in the next lesson. The first stage off cells psycho is prospecting. Essentially, this is where we acquire leads. If we connect the step to the marketing process, then this step might already be handled by the marketing department. At least there is the case in most large companies, but in many smaller companies, getting leads is often becomes part off the sales department jobs. Now you can get leads using many different methods, as we discussed earlier in the cells from the lesson in the marketing section off this course, There is one method that we haven't discussed that are being used frequently by many companies, although it is ethically questionable and that is buying contact information from contact brokers. Obviously this contact brokers used shady or devious techniques to capture people's contact information, all without the consent or any information from the people who own the contact information . I don't know about your country or the privacy low in your country, but these kind off practices happen a lot in my country. The next state is qualification. Basically, the stage involves court calls or called emails or anything that we can do to compact the leads and filter out which off them are the potential buyers so logically? After this qualification step, we eventually working with a smaller subset off people. If, for example, we have 1000 people in the Leeds database after qualification, there might only be 150. People laugh now, depending on your business or industry you are in at this stage, you might already have finished giving yourself speech, But let's just assume that in this process you only try to make an appointment with the prospect buyers, so you can then send yourself steam, so visit them to give a sales presentation. The third step is analysis. Basically, in the step we gather information. I divided the information into two sides. The internal side in the external side, Internal information means everything that the buyer may need to know about yourself, your company in your product or your offer. Every sales person in the world need to truly understand the products they are selling in and out. If your customers understand your product better than yourself, that is a very, very bad sign. That means you don't know your homework very well. At this stage, you are ruining your own credibility. This way. The other side off information that you need together is the external information. Essentially, these are the information about the prospect buyers that you are going to meet. You need to do the research about their company, like, what is their mission? Who are their target market? How large is their market share, how important our product is to their success and so on? You also need to learn about the buyers in person. You can check their linked in profile or Facebook profile, for example, or through other people's references that you know what is their position in a company, how important the deal is to their careers? What are their goals? What are their biggest pain points that you can help to solve and so on? Essentially, the more you understand your prospects customers, the bigger the chance you can succeed. The next stage is planning, believe it or not, a lot of sales people like to escape or to rush at the analysis and the planning steps. They get so excited to meet the prospects and want to do the sale speech right way. And that is why most off these cells people failed rushing or escaping these two steps is a huge mistake because these two steps are actually what separate. High Chief for sales professionals from the mediocre ones. The first thing you need to do in the planning stage is to set up your goals. What is your goal for this year, then your monthly goal, your weekly goal in your daily goal. Then think about your ideal goal for each sales or a transaction, and you're bare minimum goal. Also, the next thing you need to do is to plan the scenario carefully. What I mean about scenario is the flow off the cells. Negotiation with all of the possible branches and outcomes. You need to anticipate everything because you cannot expect the negotiation process to go smoothly in a linear fashion. Depending on what you are offering, there can be many twists and turns along the way. You need tohave plan a Plan B, Plan C and so on as much as needed to adapt to different situation that can branch out in the negotiation process. The last thing you need to do is to prepare yourself speech for yourselves. Presentation now in terms off cells presentation, there are at least three things that you need to prepare for us is the prototype off your product. We've talked about prototype before, more in depth in the value creation section off discourse. Serious, Depending on your business, the prototype can be a lot of things such as Design, mo. Cops still models, pieces off material or even the real product itself. If you are selling small devices, the second thing you need to prepare is the visual side off your presentation, essentially anything that your prospect buyers we'll see in the negotiation process. This includes the presentation slides, which will be displayed on the screen and also brochures, handouts, charts, posters, etcetera. Finally, the last thing you need to prepare is the aural component. It is basically everything that will be spoken by you as the sales person during the sales presentation. Now here is the biggest secret that many successful sales professionals use that set them apart from the rest off the crowd. And that is scrip. Now you might be wondering, Scrape, Do you mean like speech, scream or a movie scrip? The answer is yes. Sale strip is almost like a speech scrape or a movie script. You need to write down everything that you want to say or need to say in the sales presentation, the more time you re find a scrape, and the more you practice the scrip, the better sales person you become. What makes so script more challenging than movie, script or switch script is that sales script? It's not linear. It should be designed to follow the scenario you have created before. So for every possible turn off events in the cells negotiation, you should already know what to say because you already have the script for that situation . Okay, guys. So those are the 1st 4 steps that you need to go through in the cell cycle. In the next lesson, we will cover the rest off the steps. 20. Sales negotiation process: in this lesson video. We're going to continue discussing about the sale cycle. We have discussed the 1st 4 stages before, and now we will discuss the final stages that are part off the negotiation process. Currently, we are discussing the third pillar off business with its sales. And we are no honor for subject er with this negotiation, okay, you finally have the chance to meet your prospect buyers face to face. You have done your research and you have done your preparation. So what is the next step? What should you do when you finally meet your prospect? Buyers too often sells. People are so anxious to jump in and talk about their own companies, their products for the projects they have done before for the other clients. They assumed they know what their customers want and need. And so they go straight into the sale speech. This is a common stake that many, many sales people do. Your prospect buyers actually don't really care about you or your company or your offer. Their biggest concern is that they have a problem that they need to solve, and the number one thing that they have in their mind when they meet you is can you really solve their problem? So it is always about them and not about you. And the thing is, how can you release off their problem if you don't even know what the problem is? If you go directly into pitching your offer, it really shows that you don't really care about your buyers, and you just want to close the sales quickly and get away with the money. So the idea negotiation process should always ghost like these. First, you need to assess the needs off your buyers. Second, you need to find the best solution for that need by finding the best product for them. Next, you didn't present and explain that solution to the buyer. After that, you need to handle the objections if there is any and finally close the sale. So there are a total off five general steps that you need to go through that are part off the negotiation process. In this lesson, we will cover the 1st 3 steps more thoroughly and we will discuss the other two steps in later lessons. Force is assessing your prospects needs. So how can we do this? Well, it is very simple, actually, you ask them questions. In fact, you can spot a well trained sells professional first, us A. Rookie one right away when you meet them. Based on this for step, well trained service professional will always asks questions first before they do anything . Okay, now you might be wondering what kind off questions do I need to ask? Well, it really depends on your business. There are many books and articles about this topic, but essentially you need to find out what that the prospects need is a good fit or not with what you are offering. When asking question to, the buyers always try to avoid questions that only lead toe yes or no responses, the questions that give the opportunity for the customer to speak and explain. Then, once you have asked your questions, you have to listen closely. It's even way better if you take note why. Well, this is important because it help us to focus. Also, we tend to forget things that we heard by taking note. We're making sure that nothing is missed or the for gotten also because by taking note, the buyer will see that you truly care about their problems and their needs after the buyer finished explaining, You should then re confirm and clarify what you understand from the conversation. This is also important because sometimes there are misunderstandings in communication. So to summarize the assessing process again, you need toe ask open ended questions. They listen closely, take notes and finally clarify and reconfirm the next stage after the assessing process is trying to solve the bayous need with the right product or surface or whatever you are offering. This is why it is important to have different types off offerings that suit the needs off different types off buyers. We can do this through bundling and unbundling, as we discussed earlier in the value creation process. Now what if, after assessing the client needs, we actually don't have the right offer for them in this situation? There are two things that you can do first if you don't have the right product or offer yet , but you are sure that you can craft a new type off, offer that cancer to buy your sneed, then just ask for more time to the prospect buyers. Just tell them that you can come up with a solution in two or three days and then just follow up after that. Second, if you know that your buyer's requirements are not fit at all with your product or what your company can offer, then there is really no point to continue further. It is better to just help the prospects by directing them to a better product or company that really fits their needs. It is totally okay to Rudy's. I know you won't make any sales that they, but you show them your integrity. You show them that you really care about them. And so even if you don't close a sale, you make a new connection. And hopefully a new friend, the next step is presenting the solution to the buyer. This is where Durio cell speech happens. As you can see, pitching your offers is actually just a small part off the many cells processes that happen before it and later after it. There are many good and detailed contents out there about public speaking and about creating great presentation slides, etcetera. We're not going into that level of detail in this lesson because, as I mentioned earlier, we are covering the principles level about business in this course, not the methods off how to do things. But I just want to share you three tips. When you are doing sales presentation force, you must have your objective checklists with you. You can write it down on a piece off paper and hold them as a jet shit. These objectives are the things that you need to convey or to communicate clearly with your prospect buyers. This is important because sometimes we digress us from the original plan When doing speech . The second tip is to practice with a lot of time. If you know that the meeting only scheduled for one hour, then you need to make sure you can compress your presentation to less than an hour, preferably in just 30 minutes, because you own it sometimes also allocated for the question and answer session, and the last step is to keep smiling, become and be natural in the presentation process. After representation, the real negotiation process will happen at the stage. You only toe handle objections and then finally, if all goes well, close the sale now before we continue discussing the next sales processes first, I want to discuss several higher concepts and principles in negotiation 21. The universal currencies: in this lesson video. We're going to discuss about one off the most important principles in any negotiation process, and there is the universal currencies. Currently, we are discussing the pillar off business with the sales, and we are no wonderful sub chapter with this negotiation. Okay, As you probably already know, negotiation is a form off discussion between two parties or more, where each party will try to escalate their gains or advantages while at the same time trying to reach the final agreement. Now many people think that business negotiations are all about money and products. This assumption is not true. If you only think about money and product, then you miss out on many different ways that you can use to resolve conflicts that may occur inside a negotiation. This is the reason why the concept off universal currencies become important to know for anyone whose job often deals with negotiations. Weatherby, salesman, diplomats, legislators and brokers, etcetera. So there are three types off universal currencies. They are resource is time and flexibility. Anyone off this currencies can be traded for more or less off the others. By understanding this basic concept, you as a negotiator can makes these currencies in many different ways. If one path seems to be stuck, it's easier for you to get around that by taking the other currencies into the equation. Essentially, by understanding the three universal currencies, it is easier for you to reach an agreement in any negotiation process because you have more ways to do that. Let's discuss what are these universal currencies more in depth? The first type off the universal currencies. Our resources resources can exist in many forms, but we can divide them into two main categories. Tangible items and intangible items. Let's discuss tangible items first. Essentially tangible items are physical resources, meaning you can hold or touch them with your hand, such as money, gold oil, real estate, car, etcetera. A simple example. Off this. If you want to buy some for each other, you need to pay money in exchange. So in terms off the universal currency perspective, money is just a type off resource is another example. Let's say you are selling your house. The purchaser happens to have a lot of goat savings. So instead off paying you it money, he offers to pay you with several bars off gold Essentially, you are trading one resource for another resource. Okay, the second type off resources are intangible items. Essentially, these are everything that are valuable to people but don't really have any physical forms some people may refer to it s I P, which stands for intellectual properties, for example, software data Song Comey character online course. Patton Bren, etcetera. Unlike tangible items, the values off intellectual properties are more subjective as an example for architects. Can software are extremely important, But for medical doctors, they are worthless. Another example is pattern. Some companies can fight over patterns, spending millions off dollars in the court, while other companies who are not in the same industry they won't even pay a penny to buy the pattern royalty because they never needed. Of course, the values off tangible items are also subjective, but it it's worse for intangible items. The next currency is time. Time is the second major universal currency at a glance time, it's like intangible items because you cannot really see it or touch it. But they are a very different time is probably the most valuable currency you can ever have . Why? Well, you can always manufacture more resources or create another intellectual properties. But you can never manufacturer more time. We all have only 24 hours in a day, whether we like it or not. And let's face it, we human have a very short life spin. If you spend time doing something, then that time that you have spent are gone forever. There is no way you can get them back. There are many examples off trading time with other currencies. We actually already discussed this in depth in the value creation section when we discussed about surface for more value. If you are unemployed, for example, who are paid hourly or daily or monthly, you are basically trading your time and effort with a certain amount off resources with this money in most cases. But if you are an employer, you are basically doing the refers You are trading resources in exchange for other people's time and effort. The less currency is flexibility, for some people may refer to it as freedom or options. This is perhaps the most underrated universal currency compared to the others. When you work as an employee, for example, you are actually giving up a certain amount off freedom in your life, because in most companies, if not all, there is an agreement that you may not do other things when you are at work. Well, except the things that are part off your jobless. We just, in my opinion, is a very real opportunity costs. So those are the three universal currencies. By keeping this universal currencies in mind, we're negotiating, you'll be amazed at the range off potential alternatives that you can offer to the other party. Let me give you some more examples. Let's say you want to purchase a house for $100,000. The owner off the house wants a cash payment. At that time, you only have less than 100,000 in your account, but you are very sure that you can pay it for three years in Stallman, even if the price is a bit higher. So you negotiate in, make a bargain. You are willing to pay $120,000 for a house. If the owner let you pay in installments for three years in this example, you are trading more time with money. Another example. Let's say you own a martial arts center or a dojo in a spot off your utilization management you created for membership packages. Each member can choose to practice either on Monday, Thursday or on Tuesday, Friday or on Wednesday, Saturday or on full Sunday. But after noon there are members who ask for a different time from the ones provided in the packages. So you finally decided to make an additional premium package that lost the customers to freely choose two days in a week to do the training. In this example, you are trying to sell flexibility with money. The less example. Let's say you are a freelance writer. You are asked by a new client to create an e book for his new lead magnet. You didn't calculate the time and effort for creating an e book and then propose $1000 for one week. Delivery turned out the client only half $500 budget, and he's actually not in a hurry. So instead of turning down the offer, you negotiate for another solution. You are willing to lower the price toe $500 but within a longer period off deadline, for example, you can promise to finish it in two months at maximum within these two months, you can still freely work with other clients that have more tighter deadlines, and we're on the e book in your spare times. So in this example, you are giving up money to gain more flexibility and time to sum up this lesson. There are three universal currencies. Resource is whether be tangible or intangible, then time and finally flexibility. By knowing and using this universal currencies within negotiations, you have more waste that can lead to the final agreement that can benefits all parties. 22. Gaining trust instantly: in this lesson video we're going to discuss about how to gain trust instantly inside a negotiation process. Currently, we are discussing the third pillar off business with the sales, and we are no under for sub chapter with this negotiation. Okay, as we discussed earlier, plus this one off the prerequisites to transaction or sales, and to gain trust, you must first build your reputation. This is the ideal way to gain trust. But sometimes you encounter situations where you have to build that trust quickly because the prospect never knew about you, nor heard about your company or even your offers. This is not an ideal situation, but if you are in this situation, you just need to make the most out off it. So how can we get other people stress in this condition? Well, I want you to stop and just think about this for a moment. Who are the people you trust the most in your life force? They will be your family right after that, your closest friends, and then after that, your friends in general. If a friend tells you to try a certain product or he tells you that a certain product is good. Will you believe him? Off course you will. So the idea is like this. If you want a person to trust you, then you need to transform yourself into a friend. So the first step that I want to give you is you need to shift your goal or priority from making sales into making friends, and you need to change these from deep within your heart, not just acting, but you shall truly want to make friends because again people are not robots. They can sense whether you are just acting it for the money or not. If you can get customers, they may purchase now, but they may not purchase from you again in the future. But if you get new friends, although they might not purchase anything from you now, they will keep producing from you whenever they need your products or your surfaces. That is why when my students ask me for advice about marketing and sales, my first stop answer will be make friends. That's it. Now the next question is, how can we really show to other people that we want to make friends now? For this topic alone, you can find many different methods and tactics from books or courses or blocks in the Web . But I like to point out to best steps that are simple yet very effective. Force is be similar and second is be interested. The similar means that you need to find ways to have as much as similarities possible with the prospect. For example, if the prospect speaks slow, you need to speak slow as well. If the prospects posture is a bit bent or lean forward, then you should do that. Also. Essentially, if you see anything that you can copy, just copy it. This non verbal signals are very sub toe, but they can help you to send a message to the prospects sub consciousness that you have many similarities to him. Besides body language, you also need to find out other similarities, such as similar hubby, religion, birthplace or hometown. Or perhaps you both being to the same school etcetera. Again, any similarities that you can find will help. The second thing that you need to do is tow. Be interested. What I mean by this is that you need to be curious about other people and believe it or not , this is actually the biggest secret off charisma when you see the charismatic people around you, people who are genuinely interesting and usually become the center off attention, they all have one thing in common, and that is they are all interested and curious about other people. So, basically, Toby, interesting. You need to be interested by asking other people about their health, their family, their job, etcetera. You show that you care about them. You show them that you are not a selfish, ignorant or arrogant person. If you can do all off these steps every day and just make them become your habit in show law, you will see a significant positive impact to your rule as a sells professional. 23. The 3 forbidden acts: in this lesson video we're going to discuss about the forbidden X inside a sales negotiation process. Currently, we are discussing the third pillar off business with the sales. And we are no under four sub chapter with this negotiation. Okay, When cells people doing something to extreme, the buyers will immediately lose their interests in making the purchase. Essentially, there is a mental war inside every human that will automatically builds up if the brain sends us in. Security psychologists call this mental state s reactant, and it is a major barrier to making sales. As a sells professional, you need to understand the causes of it and avoid them as much as you can. So there are three things that can cost this reactant state. They are pressure, desperation and chase. Let's discuss each off them one by one for us ISS pressure. What I mean about pressure is pushing the prospects too hard to close the sale. This is exactly the main reason why most people feel uncomfortable around cells people. It is the feeling that they are going to get the heart cell or be tricked into agreeing to something that is not in their best interests. When a prospect census that someone is trying to convince or to compel them to do something they are not sure about, they automatically resist and attempt toe move away from the conversation. This is particularly true in situations where the sales person is trying to force a choice or limit the prospects available options in some way. The harder the cells person pushes, the more the prospect resists. That is why Hartsell approaches usually fail to generate sustainable results. No more effective strategy is to present yourself to the prospect as a guide. A. So I mentioned this over and over again. Your job as a sales professional is to help the prospects to make the best decision. You are not pressuring them to give you their money. You are helping to ensure they invest their resources wisely. The second forbidden act ISS desperation, signaling a desperation in a negotiation process can seriously damage the outcome of it. Desperation can be interpreted in too many negative things by the Prospects force. It can be interpreted that the only focus on yourself and on your own needs you were never care about the prospects problems. If a prospect feels that you are desperate to make a sale, it diminishes their interests in a matter off seconds. Second, it is a proof that what you are offering, it's not that good, because if it is that good, why is it so hard to sell it? Desperation is a sub toe signal that other people don't find your offer desirable to recap . Prospects don't want to do business with someone who desperately wants or needs their money . It's much better to present yourself with confidence. This way you are signaling that your offer is truly valuable, but don't just act like it. The offer has to be a really good fit for the prospect and will be a wise investment off the prospects money. If you don't genuinely believe that, well, then I think you need to find something else to sell. The third, forbidden back in sales, is chasing. Being chased is never a good thing. Imagine you are in a safari in Africa and you see this huge lion stand up staring at you and then run towards you. What is your instinct? Goingto tell you? Of course you will run or drive as fast as you can to get away from that lion, right? There is a survival instinct in all of us to run away from anything that is chasing us. It all makes sense. If we correlate these to the sales process, if a prospect sends us you are chasing them, their first impulse will be to move away from you. So chasing a prospect to make a cell is actually counterproductive. It is always off time and energy. The better way to do this is to actually flip the situation. You need toe frame it like the prospects are chasing you and not you testing them. If you're prospect feels like they need to justify why they are good enough to work with you, you are in a very strong position to make sail on favourable terms. Just for example, I've done so many cells presentations for my design from business. And every time I finished a sales presentation, I always close with this statement. Gentlemen, I am very grateful to be here, and I look forward to working with you guys to create amazing works. But I need to mention this in front because we have limited resources and because we need to maintain the quality off our work. Sometimes we are forced to reject projects again. This is nothing personal, but this is due to our limited resources. Disclosing statement, although seems very simple to say, works very well. It immediately flip the situation. Suddenly it is the client who is Justin me and not the other way around. Okay. To sum up, there are greetings that you should never do inside a sales negotiation. Whether you do it intentionally or not, force is giving pressure to the prospects. Second is showing desperation and third is chasing them by understanding and avoiding these three things. You can plan your peach in a way that minimizes the resistance and encourages the prospects to desire what you have to offer. 24. Handling objections: in this lesson video. We're going to discuss how to handle objections in the sales negotiation process. Currently, we are discussing the third pillar off business, which is sales, and we are no under for sub chapter with this negotiation. Okay, after doing the presentation, the next sales process is to handle objections. But before we can discuss this as a sales professional, it is expected that you know in advance whether the prospects are satisfied with your presentation or not. We can do this by analyzing the verbal and non verbal signals. These signals can vary from one person to another person can very also from one culture to another culture. So basically these signals are not set in stone. You will develop this skill as you go long doing your daily source routines. Basically, the more you do sales presentation, the more experience you gain, the better you will be at understanding these signals. So, for example, let's start with the less obvious signals, which is non verbal signals. If during the sales presentation, your prospects keeps staring at the window or constantly looking at the clock or their watch or their smartphones, these are all negative signals this could mean that they are not interested in your presentation or you're offers other, more obvious, negative nonverbal signals are when their eyebrows and their lips are going down. They keep taping their fingers or their feet. Or even worse, they are shaking their heads left and right. These signals are all negative signals, But if your prospects are smiling or they are nodding their heads also, if they make good eye contact to you or to your presentation slides, these are positive signs that they like what you are offering. Besides body language, you can also tell if they are interested in your offers by their actions. For example, if throughout the presentation they are taking notes for doing some calculations when you propose a price, all of these are mostly positive signals. The next signals are verbal signals. Now for these, I don't think I need to explain anything. As mostly this signals don't need any interpretation, but there are some verbal signals that might get misinterpreted. For example, if your prospects ask you to repeat a certain content in your presentation, such as product features or benefits, this is a strong indication that they are interested Another example is, if they are for a price discount, asking for a discount is actually a positive sign. This means that they are interested in your offers, apart from the price. Now let's move on to our next cell cycle, which is handling objections. If you're prospects express objections. Congratulations. This is actually a good sign that to a certain extend they like. What you are offering it is that there are barriers between them and with what you are offering, we'll discuss more in depth about these barriers in the next lesson in shallow. For now, let's focus on how we can handle objections. The first thing you need to do when handling objections is to keep calm and smile. Don't panic or get too emotional because, remember, objections are actually a good sign. Second, never give a quick response. I repeat, never, ever give a quick response. If you do that, I mean, if whenever they finished a sentence, then suddenly you interrupt them with a quick response force. In many cultures, this is considered to be in polite. Second. By doing this, you are asking for a war off debate, and that is just childish and unprofessional. Not only you will lose cells this way, but you will lose a potential lifetime customer. What you should do instead is to listen carefully and write down everything they say. It's a mentioned earlier. By taking notes, you show them that you really care about their problems. Also, it gives you a few moments to think about the answers or solutions. Now, in this process, you may find silly or stupid questions from the prospects. Perhaps it is because they make mistakes or misinterpret the information. These things happen a lot. The questions may sound silly to you because you know your industry very well inside and out with the prospects may not, or even not at all familiar with your industry. So never ever left at silly questions. Because there is no such thing as silly or stupid questions. You just have to respect all of them. The next thing that you need to do after they are finished explaining is to clarify the objections, make sure you are at the same frequency with them, so there shouldn't be any miscommunications happening between you and them. Next, you need to process and think about the objections together your thoughts and try to find the best answers or solutions. If you already anticipate the objections through the scenario and scrip in the planning process before then, this will be an easy task. If not, well, then you need to improvise and use these objections no further refined yourselves scripts for future sales presentations. After you have the answers, you don't need to respond appropriately. Explain to them clearly and with confidence. 25. Closing the sale: in this lesson video. We're going to discuss how to close the sales. Currently, we are discussing the third pillar off business, which is sales, and we are no wonderful subject, er, which is negotiation. Okay. After handling objections, we finally come to the less process in a source negotiation face and that he's closing the sale or, in other words, asking for the business. Many new source people are phobic or scared about these terms, but closing the sale is the tipping point off any sales cycle. It might even be the tipping point off your entire business. Believe it or not, there are no magic words or magic sentences that can guarantee anyone toe always close the sales. Any closing sentences are basically the same. For example, you can say so can we now place the order? Or we can say we have agreed on the price. Should we move forward or a simple OS? When can we get started? Essentially, after interacting with the prospects for quite some time, you should already know how they like to communicate. Do they prefer the formal language, or do they prefer the casual one destroy to tone in with their styles or customs. In my country Indonesia, for example, we have a unique business culture. It may not exist in Western countries in Indonesia, in B two b or business to business domain. Most sales closings are written by your emails are formal letters. Therefore, we as a sells professional almost never asked for the business. Early after the sales presentation meeting, the prospects always asked for legal quotation letters or proposals in the next 2 to 3 days . And then after that, the answer to the proposal, which basically their business decision will be sent via emails or formal letters also. So if you are a foreigner who happens to be a new sales professional Indonesia, when the prospects say that they will be in touch with you over your email, you might lose hope and think you have to just lost the sale. But you are not. Actually, I don't know if this is the case also in your country, but that just holdings are mostly in my country. So again, the key take away here is that you need to understand the culture or the habits off your prospects. This becomes critical, especially if you are working on multinational companies. Okay, but apart from just a sentence selection or the techniques off how we asked for the business, what more important are actually the whole process? Is that happened before the closing face? These are the defining factors in determining your success in sales. If you did well in all of this faces, I guarantee, in shallow closing, the sales were just come natural and easy. In fact, in most cases it just happens automatically without the need for you to ask anything from the prospects. Getting that business after you close the sale feels so great. But what if you get rejected? What are you going to do now? Based on my experience? And I believe, based on many other sales professionals experience us. Also rejection. It's not the end. These are the things that you need to do when you're offers. Get rejected force. You should never, ever take the rejections personally. Why? Because it was never personal. Remember that mostly your prospects are just employees who are given a processing task or to live a certain project in their company. They have many responsibilities and obligations and getting the right product at the lowest price possible is just one off them. By getting into their shoes, you start to understand that none off this rejections our personal, they are simply just business decisions. Okay, Second, you need to truly understand why they reject you. So how can we do this simple? You just need to ask them most off the time. They will gladly tell you. You need to know exactly the real barriers to sales off this rejections. There are five different barriers to sales, and we are going to discuss them in depth in the next lesson. After asking for the route off the problems, you also need to ask for permission to follow up further. It should be in their consent that you are going to send another riff iced proposal. If they don't give you permission, then you Children do it. It is time to move on to the next prospect. The last thing that you need to do is to it rate the sales process and again for the business. Now you might be wondering, Is that even possible? Yes, of course. Very, very possible. Believe it or not, Sometimes it takes three toe five times off, proposing for the business until they finally say yes. Remember again, the prospects actually needed the solution within their available budget. So they are actually happy to see us trying to provide the solution that they need. This is not about signaling desperation or chasing forgiving pressure to them. No, not at all, because we already ask for their permission before to refresh the proposal. This is all about trying to find the best solution for the prospects, but at the term that can still benefit you as well. And the prospects we will respect your efforts for these. 26. The 5 barriers to sales: in this lesson video, we're going to discuss about the fourth barriers to sales. Currently, we are discussing the pillar off business with your sales, and we are no wonder for subject are with this negotiation. Okay. Previously, we have discussed handling objections and sales rejections. We knew that objections or even rejections are not the ends. There is still hope off getting the business. If you start asking the right questions, you need to try to dig deeper into the prospects mine to understand route courses. Off this rejections, you'll be surprised that most off discourses are actually within your reach to solve. There are many reasons for the prospects to say no, and it is impossible to really countem or categorize them as there are more than seven billion people in the world, each with their own problems and conditions. It is your job as a sales professional to ask and to understand the true reasons behind your prospects objections. But in general, most off these objections can be categorized into five standard objections that appear in sales off all kinds. Now I'll be using language from B to C customers perspective to explain these barriers, but you should have no problem toe correlate this with B two B customers also. Okay, so the five barriers to sales are it causes too much. It won't work. It won't work for me. I can wait and it is too difficult. Let's digest each off them one by one and also learn what we can do to overcome them. The first objection is it causes too much. If this is the case, there can be two possible scenarios here. First, the prospects just cannot afford it. For the first scenario, there is not much you can do. In the second scenario, the prospects can actually afford it. It just that dating the value they will receive its less than what they are paying. So essentially, this is a question off value for this. You can try lowering the price while adjusting your offers specifications. But I will suggest that you first try to negotiate with your prospects and get them to see the big picture. You need to explain that the benefits gained from your product are way bigger than what it costs. You need to do a comparison in numbers. For example, if you are renting a machine that can help them generate on additional $10 million a year, and you are asking for only $1 million a year. Is that really expensive? Off course not. It's like buying gold with dirt, right? If it is clear that the value off your offer for exceeds the asking price, the objection becomes irrelevant. Okay, now what if the prospects bring the competitors into the equation? They might think that your price is more expensive than the next alternative. What can you do then? Well, you just need to explain why the price is different. Maybe you are offering more features for your product. Uses better materials or you give better after sales support or longer warranty etcetera. You need to clearly communicate this edit benefits with your prospects. Okay, based on my experience, almost all off me to be customers. Objections, like 95% off them, revolved around this first objection. So if you can tackle these first objection, you can almost conquer the B two B sales domain. The remaining for objections are mostly happening in B two C sales, and it is actually easier to overcome. Objection. Number two is it wouldn't work this kind off objections can be easily overcome by just showing the proof that your product actually works. You can notice either by demonstration or test drive, for example, essentially, anything that you can do to prove that your product works well will be enough to overcome this. Objection. Abduction number three is It won't work for me. Okay, so now the prospects believe that the product is legit. It can do things as advertised, but they are still not sure whether it will work for them or not. There are several things that you can do to address this objection force is through social proofs sort as reviews, testimonials. Case studies, etcetera by showing the prospects how other pressed customers, just like them are already benefiting from your offer can help break down this objection. The more similar dis best customers with your prospects, the better the second method is by removing their risks or, in other words, by using risk reversal policies. Nobody wants to feel stupid after purchasing the wrong product. People just hate taking this kind off risk. If you can eliminate this risks, then they can try the product. We don't any burden. You can do this by giving a money back guarantee, for example, or by providing a free trial for a month or two. Essentially by providing a way for the customers to exit from a bad purchasing decision, you can boost sales significantly. Now you might be thinking that a lot of people will take advantage off this risk reversal policies. And yes, you are right. A small percentage off. These honest people will take advantage off this policies, but the amount off benefits that you will get is far greater than what you lose. Objection Number four is I can wait. So the prospects already agreed with the price and also believe that the product is working as expected and shoot works for them also. But they don't really need it now. They feel that they can purchase the product later in the future. Now, for me personally, this is actually not a big problem, because eventually when the time comes, they were purchased the product from you. But if you really need them to purchase the product now, then what you can do is creating a sense off urgency. For example, you can explain or a display the number off products left in the inventory, or you can also offer a discount only for a limited time. Okay. But you need to be aware, though, that these tactics are being used or abused too much by many companies around the world after new see sale signs 50% off only for today. But then, after 2 to 3 days later, that sign appeared again. So this is just like a big joke. These retail companies obviously assume or accuse their customers like idiots, and this is actually bad for their reputation. So my advice is to use this tactic wisely and not over doing it. The less objection is it is too difficult. The best way to address this objection is via customer education and after sales support. If you are offering software, for example, consider providing free tutorials or learning materials on your website, or you can bundle the purchase with three months off free in house training. By making your customers smarter and more trained in using your product, you're building yourself in authority and also you actually creating greater customer dependency on your product. Okay, guys. So those are the five barriers to sales now, since these barriers are a very common. You should already prepare off the solutions to overcome them in their planing process before you even meet your prospects to do the sales presentation. In other words, you need to add them to the structure off your initial offer beforehand. This will make the CEOs closing process much easier. 27. After sales process: in this lesson video we're going to discuss about the after sales process. Currently, we are discussing the pillar off business with the sales, and we are no one afford subchapter with this negotiation. Okay, so we finally caused a sale. But the whole sales process or the sale cycle is not over yet. There are still treating that you need to do in the after CIOs face. They are delivery, follow up and evaluation. Let's discuss each off them one by one forces delivery. Now this seems very obvious. After closing the sale, you need to deliver the product or the work that you have promised in a sales agreement, whether be the specifications or the time frame, or any other terms and conditions that you have agreed upon in this lesson, we're not going to go too deep in value delivery topics because there will be a whole dedicated section about value delivery in the score. Serious. But there are at least three tips that I want to emphasize here. The first step is always over the river. What I mean by this is you always have to strive to surpass your customers expectation, which essentially providing more than what you have promised for example, delivering in advance before the promised date, giving unexpected bonus products or reading free additional surfaces and so on. Off course, everything should still be within your financial capacity. You need to do this because delivering as promised is just plain expected. Yes, this is ethically crack, but there is nothing special about it because your competitors are also doing it. But if you are able toe over deliver, you're putting yourself above the crowd by constantly, always trying toe over deliver. You boost your credibility and trustworthiness significantly. This way, it is more likely that your new customers convert into loyal customers. Okay, unfortunately, sometimes issues do arise that may delay deliveries. For example, there are times when manufacturers fail due to machinery breakdowns. Or perhaps there are unexpected bugs in the software that you are developing. Or maybe some off your team members get seek. I mean, bad things happen, right? So what can you do about them then? Well, this leads us to the next two tips, and that is always under promise, and we open early. Under promise means that you need to give a bit off spare when you promise something? These serves as anticipation for any potential bad things that could happen. For example, if you can do it in three days, tell your customers that you can do it in five days. If you eventually deliver the walk in three days, then you are successfully over believer. And that is great. Another example if for the price request that you can produce 12 products, tell them that you can produce 10 products. If you eventually send 12 products, you are over delivering again. I'm pretty sure you get the idea here. The next step is to be open early. What I mean by this is if something does go bad, then you should immediately let your customers know about the problem. Don't wait until the last minute to tell them about it. If you communicate this early, you and your customers may still have time to walk together to develop on authority of solution. Remember, we knew close a sale. It is not just a purchase order you have received. No it ISS. More than that, it is a commitment to deliver on your promise to get a clearer picture. You also need to see these from the buyer's perspective. I mean, you need to realize that after your customers place an order, they are tied to that business as much as you are. People within their company are expecting that your product or surface can help them make more money or to perform better or to solve a certain problem, etcetera. Basically, the customers are now on the line also just like you, when they put their trust in you to deliver. In other words, we knew close a sale. You are putting your credibility, trustworthiness and ethics on the tipping point. That is why delivering value is the backbone and the foundation off every successful sales professional. The next process in the sale cycle is follow up. What follow up means is contacting your customers and making show they are satisfied. If they are not satisfied, then you need to do everything in your power to fix that condition. Such s by providing a replacement or by providing additional surfaces, etcetera. Believe it or not, the biggest secret off some off the best salespeople in the world is because they do one simple thing. They follow up. There are many benefits from follow up activities. First you showed the customers that you are responsible and you truly care about their business and their success. You show them that you are not just some random sales person who like to do hit and run only for the money. The second benefit is that you were eventually able to build a true friendship. We have discussed this in depth in the earlier lesson about how to get trust. So you should already know how important it is to develop a friendship with your customers . The reason why Follow up It's important because as a sales professional, you always need to explore and cultivate the next opportunities. It is actually cheaper and easier to get repeat orders from satisfied customers, then trying to find new customers. We have discussed this also more in depth in the earlier lesson about reactivation. The rest off the sales process that is no less important than the other processes is evaluation. Essentially, what evaluation means is the process off analyzing everything that we have done at each stage in the sale cycle and try to find ways to make them better. This is important whether you are a brand new sales person or someone who's been in the sales division for a long time. Every sells professional should constantly be looking for ways to improve their sales processors. Updating your CRM system, enhancing your scenarios, refining yourself. Scripts are affecting your presentation, etcetera. These are the things that all successful sales professionals constantly do.