Have you given any thought to the cost of not closing a deal? Some of you may say yes, and others may be no. I suspect you are aware there is a cost associated with bringing a customer through the door. Even if you have to go out and get your customers through prospecting, there’s a cost involved with that as well. Each opportunity comes with an initial investment of money and potential time.
The average advertising cost per customer when I was in the furniture business was about $300. It is said to average about $250-$350 dollars in the automobile business with some dealers well higher than that. Now, this is just to attract the customer, get their attention, get them to come in, and give you the salesperson an opportunity to earn their business. Advertising will bring people in but it won’t guarantee a sale, only the close does that. So as you can see, there is a cost to the company you work for when you fail to close a sale. If you work for yourself, you feel the cost of not closing a sale even more. Regardless, you should be aware of the cost of not closing a deal and the consequences that follow. Take responsibility for the close and the money your company, or you, have invested in the customer already.
When you fail to close your customer, they lose.
Also, remember that not only does your company lose, your customer loses when you don’t close them. If your customer can truly benefit from buying your product or service, then the truth is they lose by not buying it, right? When you fail to close a deal your customer continues using what they have, or even worst they replace it with your competitor. Take this responsibility very seriously and never lose a deal that can be closed.
There is no one better to take care of the customer than you, right? If you truly care about your customer and want to solve their problem, you will also care enough about them to close them. You won’t think about anything else. If you don’t close a deal, it should be because of some ethical reason like it’s the wrong product or service and you don’t have an alternative. The money isn’t right or the money can’t be made right. The customer doesn’t feel comfortable, etc. You should never fail to close someone because of a reactionary response like “we need to think about it” and you gave up on them and yourself.
When you fail to close, your confidence tends to drop a bit. Even the most confident and successful salesperson will experience this to some degree even a little bit when they fail to close someone. Whenever you fail to close a deal, you take a bit of a confidence hit that you need to be able to quickly overcome. The best way to do this, in my opinion, is to find another customer to help with your product or service, and close them on it! Self-confidence is a sales persons best friend. It allows you to build awesome positive momentum, and it tends to activate your ultimate superpower, your smile.
Now, I want to give you a real-life example of what I am talking about. Let’s say you sell automobiles and you sold 200 cars last year and made $100,000, completely realistic numbers. So that means each sale averaged $500. Not closing a deal would cost you $750 by the time you add the avg. of $250 to get your customer in the door I mentioned earlier and the $500 you avg in commission. Now Add the fact your customer loses out and the self-confidence hit, you can see why closing is always the best option!
This is an important point to remember especially when you are new to sales. Many new salespeople are taught and learn how to sell and sell very well. However, in my experience, very few salespeople know how to close so very few new salespeople get training on how to really close deals. Most salespeople have very few closes, and the ones they do use are old and worn out closes that have come to be expected by the customer. If you are new to selling, you need to think about having an arsenal of closes, a full library of them. You cannot rely on just a few closes, you need closes for every situation.
Learning How To Close Will Result In Greater Financial Success
Learning how to stay in the Close and get your buyer to make a decision is critical to your sales success, and your ability to have financial success as well. You cannot build your business, build your customer base if you do not close deals and have customers. You have to be willing to ask your customer multiple times to buy using an array of different closes. You may have to stack close on top of close. Can you do this? If you are new to sales you will likely answer no. But, there is no excuse to remain unprepared now that you know the importance and the cost of not closing deals.
You’re absolutely no service or good to your customer if you don’t close them. You haven’t bettered their situation or helped them at all if you fail to close them on your product or service. The more you are able to see it this way, the more urgency you will have with closing your customer. If you know it’s in everyone’s best interest to do the deal, then don’t feel adverse to asking more than once for a commitment, make the close, and then truly you will be of service to your customer.
Wrapping it all up!
So remember, figure out and determine what it’s costing you every time you fail to close a deal. I bet you will be sick thinking about missing deals after you do this. Then, you will want to learn how to close like a master. Use this information to fuel your passion for closing your customers, and refusing to accept anything less than yes. Get a win/win experience, become of service to your customer, improve your customers’ situation, and close the deal.
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