Do you want to maximize your potential? Then you need to be saying “NO” on a regular basis. Salespeople who can't do so always find the path to success harder to travel than those who have learned the art of being able to say “NO” at the right time and in the right circumstances. If you're ready to sell more orders at higher margins, then continue reading.
What “NO” really means
Using that word during the selling process means that you are setting boundaries on people with whom you deal. When you impose limits, you're demonstrating to others the way you run your business. By doing so, you will be able to operate more efficiently and make the most from your sales opportunities.
What happens when you don't say “NO”?
Many of us have a tendency of taking on too many projects at a time. We do so mistakenly thinking that by doing many things simultaneously, we are more productive. How many times have you heard the saying, “If you want something done, give it to a busy person!”? But the reality is that most of us over schedule our lives and that leads to failure. When you learn to say “NO” at the proper time, you make sure that your efforts are channeled in the right direction for you.
How Boundaries define you
Are you one of the thousands of salespeople who will take orders from anyone who will give them one? They don't set standards for themselves because they only want to book the order and are not concerned about the selling price, the terms of the sale, or when they will get paid. These salespeople only care about writing orders, many of which are either unprofitable or more trouble than their worth or both! Distributors who take this type of business operate on lower margins, and end up spending countless hours being frustrated.
Here's who needs to hear “NO”
- Customers who want a Bid
Distributors who have to bid on orders spend too much time trying to figure out what price they need to quote. If they bid too little and end up getting the order, then they badly for leaving money on the table. If they lose jobs because their bid was too high, they beat themselves up trying to figure out how low of a bid they should have submitted!
- Suppliers who sell only on price
There are hundreds of suppliers who only know how to do business based on price. They try to attract distributors by offering products at prices cheaper than their peers. Unfortunately, suppliers who do business this way are rarely able to back up their cheaper price with either service or quality, which leaves both them and their customer suffering the consequences.
- Customers who ‘slow pay'
Customers who slow pay are always full of excuses. Their stories run the gamut from claiming their business is slow or that they are suffering problems with receivables. Here's the bottom line: Customers who don't pay on time should be eliminated from your account base. Once someone becomes 90-120 days past due, sue them in small claims court. You'll be amazed at how fast you will get paid when you show them that enough is enough. The majority of people with whom you use this collection method will call and say, “You didn't have to sue me to get paid; I was just about to write you a check.”
- Prospects who ‘shop' you
There are thousands of prospects that will use your ideas and then place orders with someone else. Avoid giving away your expertise by only dealing with people whom you know. To make sure that new customers don't use your ideas and then buy from your competitor, ask a series of qualifying questions before you show anything to anyone. One example of such a question is to ask the prospect who they've been buying from in the past. By asking the right questions up front, you will be saving yourself the heartache of being used.
- Factory reps who offer nothing
There's a wide variety of abilities among supplier representatives in this industry. Make it your policy to only spend time with multi-line or factory reps that you find to be sincere. You will know how well they will stand behind you by the way they follow up on their meeting with you. If a rep comes to see you and fails to send a thank you note and/or email or follow up phone call, beware of placing orders with the companies they represent. If they can't follow up on their meeting with you, chances are they won't be there when you really need them.
There is an art to saying “NO ”
Use the “NO” word politely
In their efforts to please everyone, some salespeople end up getting themselves into difficult situations. They take on too many tasks, or accept orders that offer low profit margins. In some instances, they place orders with bad suppliers, which causes nothing headaches. To keep yourself out of situations like these, learn to tell people that you deal with exactly what you expect. If they cannot provide what you need, learn to tell them “NO” in a diplomatic way.
Tell Customers “NO”, too
Being able to say “NO” also applies to taking orders from customers. If the margin on a sale is insufficient, don't be afraid to tell the customer that you will not be able to sell them at that price. It's better to be honest with people. If someone doesn't want to pay your price, politely walk away from the order. It's best to let people know up front that they will never get a cheaper price from you, but they will get better ideas and superior service.
Saying “NO” brings real Success
Distributors who are able to set boundaries on customers and suppliers are more successful than those who say, “yes” to everything. By wisely picking and choosing your customers and suppliers, you are setting standards for your business practices. When you do, you will be joining the list of distributors who sell orders that offer really big margins and a greater sense of satisfaction.
