The Five Ingredients in a Sale

by Shana Fong on April 26, 2011

Source: ACCA Contractor Excellence

Most salespeople have been trained on certain steps to a sale. It may have been a 10-step selling system, maybe a 12 or 13 step selling system – they are all pretty much the same, as selling really hasn’t changed since the beginning of time when Eve was sold on taking the apple from the serpent.

The main steps to a sale are as follows:

  • Meet and Greet
  • Interview – build rapport – investigate
  • Select a product or service
  • Present that product or service
  • Demonstrate that product or service
  • Trial Close
  • Service & Parts
  • Negotiations
  • Close

Let’s now discuss the ingredients.
There are five ingredients that every sale must have. In other words, you as a salesperson must sell these 5 things. They are:

You – you must be able to sell yourself first and foremost. Not many people will buy what you are selling if they don’t buy you first. Yet if you sell yourself, a lot of people will buy whatever you are selling!

Who You Represent – Why buy here? You must be able to sell your customer on buying from your place of business. There are other vendors out there selling similar products with similar prices, so why should they buy from the company you represent? A professional salesperson will honestly believe that they are representing the very best company in the field, and therefore believe in that company. Selling that company then becomes easy. If you don’t think you represent the best – change companies!

Product – You need to be able to sell the product – this is probably the easiest of the 5 ingredients – use the presentation step in the steps to a sale above to do this. As with your company – if you don’t believe you are selling the best product, do something about it.

Price – If you can’t sell your potential customer on the price of the product, go back to the product itself – have you done the best possible presentation of the product? Remember that customers buy benefits, not features. Build value in the presentation and demonstration stages to help sell the price.

Time – Customers need to hear that there will never be a better time to buy this product or service than right now – you need to sell them on this fact by creating urgency.

I am going to discuss each step in more detail – this article will cover the first one, and the others will be covered in more detail in a subsequent article.

Selling You
Your customers will judge you initially using 3 of their 5 senses. They will look at you, smell you, and listen to you.

So, how do you look? Did you shave today? Do you need a haircut? What do your clothes look like?

How did you look when you went on that very important date with someone you wanted to impress? What did you do to prepare for that date?

Here’s what I think – you went to extreme lengths getting ready, chose your clothes carefully, asked other people for their opinion, showered, shaved (guys as well!), clipped fingernails, ironed clothes (yes, that contraption that plugs into the wall and hisses), polished shoes, and put on some “smell nice.”

Why did you do that? Because you were trying to sell yourself – that’s why! You knew that the person you were hoping to impress was going to look at you and assess you. You knew they were going to smell you and assess you. You knew that they were going to listen to you and assess you. You also knew that in order for any relationship to develop, you needed to pass these tests, so you went all out to impress. Anything less just wouldn’t do.

Here’s what else I think – you don’t go to these lengths each and every day for potential customers. Why? Probably because you think you are a good enough salesperson that you can still win your customers over without having to go to so much trouble. You see we are a lazy bunch, us salespeople. We like to do as little as possible in order to gain as much as possible.

What would happen if we made the very best first impression every time, every day, without fail, no exceptions? Are you willing to even give it a try? What is the worst that can happen? Absolutely nothing different than now, right?

How else can you sell yourself? Use the steps to a sale above – the first couple of steps are crucial. You must conduct a professional meet and greet – introduce yourself, allow the client to establish eye contact with you – maintain a sincere smile – have a firm, professional handshake – control your voice.

Conduct a professional interview/fact finding/rapport building session. Allow the client to do most of the talking – the more they talk, the more they will like you. This is not a time to sell, it is a time to allow the customer to get to know and like you. This needs to be a conversation like you are talking to a friend – not an interrogation.

Work hard on selling yourself – all the ingredients are important – I happen to believe that this is the most important of the five, you sell yourself and the world is yours.

Carrots and Sticks: A Comprehensive Business Model for Successful Achievement of Energy Efficiency Resource Standards

by Shana Fong on April 20, 2011
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A new study titled, “Carrots and Sticks: A Comprehensive Business Model for the Successful Achievement of Energy Efficiency Resource Standards” was recently released by the Lawrence Berkley National Laboratory (LBNL). Utility companies and policymakers have different opinions the issues within the energy efficiency industry and resource standards. This study looks into a comprehensive business model that attempts to merge the utilities business and financial interests with state public policy goals.

The report was based off of findings of the Arizona Energy Efficiency Standard (EES), which requires Arizona investor-owned utilities to achieve 22% total energy savings by the year 2020. The report takes a deeper look into the comprehensive business model and what could come with the achievement of the EES.

Check out the full report here: http://eetd.lbl.gov/EA/EMP/reports/lbnl-4399e.pdf

IAQ: Marketing Myth or Money Maker?

by Shana Fong on April 18, 2011
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Source: ACCA Contractor Excellence

Let’s get the obvious stuff out of the way first: Do you agree that energy-efficient homes can seal in and recirculate the same germs, allergens, and chemicals?

Do you agree that this can also cause health issues for occupants within the home?

Did you know that during a recession people spend more time at home?

If you answered “yes” to all three questions, then I bet you will agree with this next one: When you look inside a customer’s air return and see what appears to be a weasel wearing a Snuggie, the homeowners:

(a) have not changed the filters since the Clinton administration; and/or
(b) have nostrils that look like tiny versions of the air return. But I’m not going there.

The point is, you know all this, but your customers don’t. Thus, the largest issues facing IAQ in HVAC are your credibility and their awareness. No one wakes up and says, “Man, what a beautiful day to have my ducts cleaned.” Unlike preventive maintenance (which people recognize as a plausible need), IAQ has both the specter of skepticism and the lack of evidentiary proof needed to go along with it.

You can say, “Your ducts need cleaning,” or “UV lights will protect your coils” all day and have a hard time convincing anyone who doesn’t have sinus problems, allergies, or other health issues that this is a valuable service. Silly them. And considering how HVAC sold IAQ initially, silly us.

Selling healthy air doesn’t require a degree in molecular science. Ever heard of asthma? About 23 million Americans wish they hadn’t. A full 6.8 million of those are children who have parents who are worried sick as well. They’d much prefer to avoid the 19 million doctor, hospital, and emergency room visits spent trying to avoid death by asphyxiation. Ask them if clean indoor air is about microbes and formaldehyde and the technicalities of UV treatment.

Nope, it’s about cleaner, healthier air. Period.

Now consider, asthma is just one of hundreds of problems linked to IAQ. As a heating and cooling professional, that makes you uniquely positioned to both build your business and provide a beneficial and potentially life-saving service.

So what are they buying? They’re buying problem avoidance. It is not a thing; it is a benefit that erases sizeable doubt, fear, and concern with a healthy alternative. Kind of like breathing clean air.

You’re poised to offer problem avoidance and even a cure for certain airborne menaces. Aside from the obvious health benefits, a shorter supply of recession-era leads points toward maximizing each one with higher transaction sizes. Further, with the maintenance of UV lights, super filtration, humidifiers, and other better air solutions, you can lock in more customers.

How to Offer IAQ Now
Bad economies don’t improve air quality or health concerns. Allergens and molds refuse to invest in 401(k)s. So, please, don’t let the economy’s condition or your frightened competition make you think these concerns are equated. Position IAQ not as equipment, but as a packaged path to better health. Sell it against missed work, doctor visits, pharmacies, medication, family wellness — not microns and density depletion.

On a service call, you can offer a point-of-purchase healthy air solution based on an IAQ survey. Many of our clients sell humidifiers, UV lights, and filtration with or without duct cleaning jobs, straight from this survey.

For more complex solutions, consider utilizing in-home IAQ monitors, which help replace the doubt factor with scientific data. The sales cycle is a bit longer, but they can make the sale for you while they collect the data. Offering a free IAQ test has opened thousands of doors for our clients, who merely park the monitor for the appreciative prospect, and return with a diagnosis and options.

Always remember that customers will get what they want, whether it’s from you or from your competition. I find it sad to go into so many homes that have $499 “room air purifiers,” while stacks of superior solutions lay at your distributor’s warehouse. Once again, technical supremacy, greater reliability, and more longevity will not sell — if poorly marketed.

Though the HVAC industry has had IAQ solutions for years, it took Sharper Image and Oreck to show us how to sell over a billion dollars of equipment all without a single service appointment. How? Fact-based fear, evidentiary proof, and piles of compelling testimonials positioned their “solution” as an easier and less expensive alternative to illness and poor health. Oreck’s infomercials are marketing seminars — take notes.

Finally, ask yourself, what are you selling and why. Are you selling hardware (technical) or software (benefits)? IAQ benefits are huge for homeowners and contractors. This is especially true while others pull back on marketing or lower prices just to get the sale (creating their own worsened economy). But when you offer upsells, you create differentiation, enhance margin, and increase average transaction, while winning a longer-term customer with a higher lifetime value. Upsells are smarter than ever.

IAQ is right for the times. Customers are more health conscious and want to preserve dollars wasted on unnecessary doctor visits, more medications, and unpaid sick days. You can offer a superior whole-house solution easily, silently, and out of sight. They’d rather pay you for this anyway; all you have to do is effectively market it. And isn’t that a breath of fresh air?

EGIA, BPI, and Efficiency First are proud to announce the Business Performance Makeover Contest!

by Shana Fong on April 6, 2011
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EGIA, BPI, and Efficiency First are inviting Home Improvement, Home Performance and Energy Efficiency Contractors from across the country to enter for a chance to win a yearlong “Business Makeover” bundle of prizes consisting of a wide range of business services worth up to $50,000 or more. The prize package may include:

  • Website design
  • Payroll and accounting services
  • Marketing and sales consulting
  • Manufacturer and distributor networking
  • Building science training
  • Software
  • Tools and equipment
  • Business development consultation
  • Energy efficient services and products

The winners will be announced on Earth Day 2011 (April 22). The actual prize packages will be determined based on an extensive evaluation of the contractors’ business and other criteria.

The Business Performance Makeover Contest will be conducted nationwide to find two contracting firm owners that want to dramatically grow their businesses in 2011. Owners of home improvement, home performance and home energy efficiency-related installation companies will enter to win online by answering questions about their current business and 2011 plans for growth. An advisory board comprised of industry professionals and contest sponsor organizations will assist EGIA, BPI, and Efficiency First staff to select the two contractors with the greatest potential to demonstrate business growth. The winners will be a traditional single-measure home energy efficiency contracting firm and one comprehensive home performance contracting firm.

Learn more and register at www.egia.org/contractorcontest2011