Chapter 11
Obtaining Commitment
Obtaining Commitment Today

Closing- obtaining commitment by asking for a buyer’s
business – necessary to get commitment

Closing techniques are viewed by many to devalue buyer
perceptions of the company

Major research, based on more than 35,000 sales calls over
12 years, has found that in a MAJOR sale, reliance on
closing techniques actually reduces effectiveness

See Exhibit 11.1 for examples
Closing the Sale






Part Of The Process
Obtaining commitment is more than just securing an order,
it is a foundation for securing a long-term relationship
The Importance Of Securing Commitment
Gaining commitment tells the salesperson what to do next
and defines the status of the client
If salespeople fail to gain commitment it takes longer to
obtain a potential sale
The sooner a prospect buys, the sooner benefits are realized
Company’s future success depends on goodwill and profit
Financial rewards for the salesperson
Financial Terms and Conditions

Price is the last, and often the most important step in the
buying process

Factor in discounts, credits, and shipping terms

Figuring out the final actual price may be difficult with
products which have many options and packages –
software packages designed specifically for certain
businesses help with calculations – NetSuite, Salesforce.
com
Financial Terms and Conditions

Discounts
Quantity discounts- encourage large purchases by passing
along savings resulting from reduced processing costs
(most common)
2 Types of Quantity Discounts
Single-order discount- percentage discount on a single
order of a specified number of products

Cumulative discount- quantity discount for purchases
over a period of time (must meet minimum)
May also use end of period rebate
Financial Terms and Conditions

Credit Terms
Cash discounts- price discounts for early repayment
Calculated after quantity discounts are calculated
Common discounts include 2/10 and n/30

Shipping Costs
Free-on-board-(destination) seller agrees to load the
goods; buyer takes responsibility for the goods once they
reach the buyer’s location, and seller will pay freight – see
examples in book
FOB installed – know this! P.289
Shipping costs play important role in the purchase!

Price
Presenting Price

Price should be carefully analyzed, taking into account
competitors’ offerings

After careful consideration of price, determine the most
effective way to present it to the buyer

Present the price with confidence since the price is not the
focus of the presentation
When To Attempt To Obtain
Commitment

Determine when the buyer appears ready

Most buyers commit themselves only when they clearly
understand the benefits and costs of such a system
Buying signals (closing cues)- indications that the buyer is
ready to buy

Buying signals are evident in buyer’s comments and
nonverbally
Buyer Comments

Buyer Questions
Signal the buyer’s degree of readiness
(Ex. How soon would you be able to deliver the equipment?)
Requirements
 -conditions that have to be satisfied before a purchase takes place
(Ex. We need to get this in weekly shipments.)
Benefit Statements
 Reflect strong feelings in support of the purchase
(Ex. Good, that color will match our office décor.)
Continued
Responses To Trial Closes
Trial closes- questions regarding the prospect’s readiness to
buy
(Ex. How does this sound to you so far?) Provides guidance
regarding when the salesperson should attempt to obtain
commitment


Nonverbal Cues
Positive signals include eyes that are open and relaxed, face
and mouth not covered with hands, a natural smile, and a
relaxed forehead
Indicates readiness to buy or make a commitment
How To Successfully Obtain
Commitment




Maintain A Positive Attitude
Confidence is contagious
Unnecessary fear can be a self-fulfilling prophecy
Let The Customer Set The Pace
Sales reps need to practice adaptive selling
Buyer’s decision-making styles vary widely
Be Assertive, Not Aggressive
Aggressive- salespeople control the sales interaction but
often fail to gain commitment because they ignore the
customer’s needs and fail to probe for information
Submissive- salespeople are often excellent socializers and
like to spend a lot of time talking about nonbusiness
activities, usually reluctant to obtain commitment
Assertive- responding to customer needs while remaining
self-confident and positive
Sell The Right Item
At The Right Time

Customers have long memories

Salespeople should not rely solely on trial orders

Likely to happen if salesperson keeps a service attitude
Effective Methods

The salesperson’s purpose is to sell the right product in the
right amounts

The salesperson should sell in a consistent fashion

Enables salespeople to help prospects buy a product or
service they want or need
Direct Request

The most straightforward, effective method of obtaining
commitment is simply to ask for it

Do not become overly aggressive

Works best with decisive customers

Ex. (Is it a deal? Or Can you call the meeting next week?)
Benefit Summary

The salesperson simply reminds the prospect of the
agreed-on benefits of the proposal

Helps buyer to synthesize points covered in the
presentation to make a wise decision

The seller can help the buyer remember all the points
discussed in the presentation
Balance Sheet Method

Attempts to obtain commitment by asking buyers to think
of the pros and cons of the various alternatives

This method can insult a buyer’s intelligence if used
inappropriately

Can help hesitant buyers express their feelings about the
decision, which gives the salesperson an opportunity to
deal with those feelings
Probing Method

The salesperson initially uses the direct-request method
and, if unsuccessful, uses a series of probing questions
designed to discover the reason for the hesitation

Also the method used in a role-play for major sales

Salespeople attempt to find all the issues of concern to the
prospect; then resolve the issues as soon as possible

Always keep in mind cultural differences
Alternative Choices/Other Methods



Alternative Choices
Keep options simple when presenting multiple options
to a buyer
Other Methods
Hundreds of techniques have been tried; tend to be
ineffective with sophisticated customers
No method of obtaining commitment will work if the buyer
does not trust the salesperson, the company, and the
product
Trial Offers
Sometimes called the “puppy dog” close
 Be careful – don’t always rely on this
closing technique. If your product or
service is simple, a trial offer can be
effective. For more complicated products
or services, the trial offer may backfire!

Other Closing Methods

See Exhibit 11.3
 Favorites:
Minor point close
Standing room only close
Benefit-in-reserve close
If Commitment Is Obtained






No Surprises
Disclose any important information the customer will need to
fully enjoy the benefits of the product or service
Confirm The Customer’s Choice
Assure the customer they have made an intelligent choice
(Important to decrease or eliminate buyer remorse or post
purchase dissonance)
Get The Signature
Make the actual signing an easy, routine procedure
Fill out the order blank accurately and promptly
Be careful not to look overly eager or excited prior to signing
Continued



Show Appreciation
Writing a letter or giving a small gift develops goodwill after large
purchases and with new customers
Cultivate For Future Calls
Customers like doing business with salespeople who do not loose
interest immediately after securing commitment
Follow-up- what a salesperson does after achieving commitment
Review The Actions To Be Taken
Reviewing what needs to be done to build a partnership is important
If Commitment Is Not Obtained
Some Reasons For Lost Opportunities
Wrong Attitudes
 Keep a positive attitude
 Don’t fear making the sale
 Avoid being eager or overexcited
 Historical importance on obtaining a sale
Poor Presentation
 Trial closes should be used; buyer must understand benefits
 A poor presentation can be caused by haste
 Lack of product knowledge

Poor Habits and Skills
Knowing when to quit talking is just as important as knowing
what to say
Continued
Discovering The Cause

Reasons for not obtaining commitment must be understood
to lift barriers
Suggestions For Dealing With Rejection



Maintain The Proper Perspective
An answer of no should be a challenge
When a buyer says no, it usually is because the buyer is
not yet fully informed
The salesperson should have a clear objective for each
sales call
Continued
Suggestions For Dealing With Rejection (Contd.)




Recommend Other Sources
When a salesperson cannot supply a product, volunteer the
name of a competitor that can
Then, the salesperson should ask the prospect for names of
people who might be able to buy the seller’s product
Good Manners Are Important
Salespeople must accept no if they expect to call on prospects
again
Leave a business card
Bringing The Interview To A Close

Keep the close simple and brief

If sale isn’t complete, leave with a clear action plan for all
parties

Always make sure the next step is clear for both parties

It is important to follow up promptly with a thank-you and
a reminder note after the sales call