This newsletter series will give you insights and techniques to help you build a better business no matter how large or small yours is. I always say that success comes from working on your business as opposed to in your business. I want to share with you the systems and philosophies that have been successful for me over the years.

This is newsletter #20 in the series. If you have missed prior newsletters, and are enjoying the series, we encourage you to purchase the program. More information can be found by clicking on the coupon at the bottom of this page.

Selling begins when the customer says “no.” The manager or the estimator who delivers the proposal to the prospective customer for consideration must be sales-minded. They have to know how to use the most important word in their vocabulary - “why?” If you don't know why they won't sign, you can't overcome the objection. If you know why they won’t sign, you can concentrate your sales efforts to overcome that obstacle. Don’t lose a job because of price.

Remember these steps in the sales presentation:

• Attention—get it.
• Desire—create it.
• Action—get them to say yes, ask for the order, and close the sale. It’s amazing how many times sales personnel fail to ask for the order in a sales presentation.
  

You have many other selling points to offer. It doesn't have to be a "hard sell", but you should emphasize your record of service and follow-up, the reputation and dependability of your company, and your liberal credit or warranty terms. Refer them to some of your satisfied customers. Be prepared to negotiate price, but not to the point where the job is financially unattractive or downright risky. It's important before going in, to know the lowest price that you can offer, and what discount or accommodation would get to you that price. If you are willing to go far below your original asking price, you can lose credibility because they will think that your original proposal was over-reaching. Try to get the order confirmed in writing then and there (the first time you call), before a competitor has the opportunity to convince them that they’re making the incorrect decision. Be sure to follow-up. We’re all subject to moments of doubt that we’ve made the correct decision. A phone call in an assuring tone helps us calm our fears and dim the voices of doom from competitors.

If they haven't already done so, encourage the customer to solicit other bids for the same work to do a line-by-line comparison for value purposes and invite them to call you with any questions. In the end, they may opt for a lower bid and you may not get that job but, the customer will acquire a new-found trust and confidence in you that will almost always result in future consideration.

To keep your shop busy, you may sometimes have to accept work at a price below your regular profit. In order for those occasional bids to not affect your overall profit, make a concentrated effort to develop and maintain a well- scheduled backlog of profitable work. The bottom line on your statement of operations (income statement) at the end of the year will tell you how successful you’ve been in not only getting the proper sales mix but, managing it as well. Remember that the end-of-the-year statements are just that—it’s too late to change things but never dismiss their value! You must keep up with the current condition of your business and evaluate on a day-to-day basis.

Aggressive companies can get leads by contacting federal, state, county and city purchasing agents, and asking to be placed on their approved bidding lists. Also, contact the government departments that handle construction and maintenance for bridges, parks, roads, schools, prisons, and hospitals. Before placing you on the bid lists, these agencies will usually check to see whether your company is bondable and will require your meeting their financial and credit standards.

Government work is usually awarded on a price basis. Purchasing agents must be very careful not to bypass the low bidder, since they must show ample justification. Government agencies pay slowly so be prepared for financing and retainage costs, and unique billing requirements. Historically Underutilized Busi-nesses (HUB) are given some consideration not totally based upon price. When you’re provided with a competitive advantage, to not use it would be wasteful. Sit in on publicly announced planning board and or zoning meetings as these are a look into the future and give you a ground floor opportunity to network with persons seeking approvals for their projects.

Read books on sales techniques. Listen to tapes. Attend seminars. Take on-line courses. Discuss selling techniques at your trade association meetings. Why not show your customers how you arrived at your price, and let them see how reasonable your profit is? Give them a bid as per plans for the lowest possible price and, if you get the job, that would be the time to sell them on value-added extras.

Don’t waste your valuable sales time. Be selective in screening out the leads. Target your efforts where you’ll have the best chance of getting the business you want at a fair profit.

The above content is extracted from Mike Holt's Business Management Skills Program.