Salesmen and the Products They Sell

I have nothing against salesmen except when they are trying to sell me something. Years ago when I worked as a shift superintendent at a saw chain factory, we said successful salesmen had “the gift.” A salesman with the gift could easily earn 3 times a shift superintendent’s salary and for good reason. One good salesman could keep a factory busy all by himself. In a year or less I hope to have a really good real estate salesman working with me to sell my house.

That said remember to always ask the question, “Why is that salesman there?” Some products do not need to be sold. They are bought. Consider term life insurance. Young family men just go to the web, pick out a policy from a company they trust with the features they desire at a price they can afford and they buy it. No salesman required. Products that are good for the company are sold. The better they are for the company the higher the salesman’s commission. Back during the first oil shock of 1973-1974 I knew a man who worked at a local car dealership that sold Hondas and Mercury automobiles. He received a lousy $60 for every high mileage reliable Honda sold but as much as $800 for an unreliable gas guzzling full sized Mercury! Guess where he put most of his efforts. Life insurance salesmen have a saying, “Sell whole life, don’t sleep. Sell term, don’t eat.” Guess that pretty well explains the commission structure of those two products.

If a product needs to be sold, it may not be in your interest to buy that product. Why would an insurance company give an annuity salesman commissions that are typically in the 5% to 5.5% but range up to 14%? If they were all that good of a deal, customers would just buy them on the web, like term life policies.

Salesmen are becoming more sophisticated. They are no longer limited to loud obnoxious bullies wearing plaid polyester suits and white plastic shoes. They are using very sophisticated psychological techniques to get their customers to lower their defenses.

“Marketers must shift their focus entirely from “telling and selling” to “listening and learning.” Customers do not want marketing relationships with your company they want service relationships.”

Hans Peter Brondmo

This quote captures the essence of what is called new paradigm sales, a theory that begins with the notion that every customer has his own values and goals. These are not the same as the salesman’s values and goal but they are every bit as valid and valuable to customer as the salesman’s values are to him/her. These techniques require a marketer to listen to the needs the prospective client. Rather than pitching a product, the salesman as facilitator allows the customer control of the content of the conversation. In this model the sales person controls only the structure of the conversation, allowing the customer the opportunity to discover her own needs through carefully constructed questions that lead the client to a conclusion that makes them believe buying from you is safe. The goal for the new model marketer is not to treat every prospect as a potential sale but to treat every prospect as a potential profitable relationship.

One more thing, Let’s be careful out there!