The Psychology of Selling

Being from the United States, one becomes use to the constant “push” for sales.  Car dealers are notorious for the dreaded “push” sale.  Lots of tricks to get you to buy a car.  They “hold” your keys for appraisal and don’t let you leave – I had that happen to me at a Tom Wood Volkswagen dealership in Indianapolis.  I not only left mad, but I told many other people about how ridiculous it was I had to be put through this as a customer.

Years ago, I had training from the Sandler Sales Institute that made a lot of sense.  I remember first understanding that customers don’t trust salespeople (because they lie) during the sales training.  The Sandler system was set up to not make you look like a salesperson.  The aim was to build trust.

Since, I have learned the 95 Method.  The Method helps eliminate failure demand (demand caused by a failure to do something or do something right for a customer).  Bad service in the form of failure demand helps undermine trust in the eyes of a customer.  Try selling to a customer that has an outstanding issue can only make them mad.  Overselling to a customer creates failure demand when they discover that they don’t need to overpay for a service that is too much for their needs or budget.  This is all “push.”  “Push” too often leads to failure demand.  Sales organizations with revenue shortfalls often rely on more “push” to hit revenue targets which in turn creates more waste in failure demand.

There are many reasons for failure demand in service organizations, standardization and “push” selling are only two.  The only way to learn what causes failure demand is to study your organization as a system.  The 95 Method does this (we offer a free download at www.newsystemsthinking.com or even on this blog).  No matter what the cause of failure demand, it is a barrier to greater sales.

The elimination of failure demand removes the barrier and gives customers the opportunity to “pull” for products and services.  All customers like to buy, very few like to be coerced through “push” methods.  Service organizations can build trust with their customers and that is the real winning psychology of selling.

Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public).  His organization helps executives find a better way to make the work work.  Read his articles at Quality Digest and his column for CustomermanagementIQ.com.  Learn more about the 95 Method for service organizations.  Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.

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Another Fine Mess

“Well, here’s another nice mess you’ve gotten me into!”                                                   – Oliver Hardy

Lobby Card c. 1921 featuring the first appeara...

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Will Governor Daniels have to testify or not in the IBM lawsuit?  Who knows.  However, we all should care as the $1.3 billion boat anchor (Cancelled IBM contract) continues to be the gift that keeps on giving.  The State of Indiana sues IBM and IBM sues the State of Indiana.  Costs increase and waste begets waste.

In a recent Indianapolis Star interview, Peter Rusthoven (Attorney for the State) describes IBM in this manner:

We thought we were getting the guys who were building a better planet, and we ended up with Larry the Cable Guy.”                                 – Peter Rusthoven

Wow, if that isn’t a shot across the bow.  Although it does take two to tango when you form a partnership.

“Hello partner, you are to blame.”  Doesn’t sound like either side knew what they were doing.  This is the predictable result of assumptions in management.  Modernization and automation are the key words to future waste in any organization.  Start with flawed logic and you make your own bed.

The problem is that Federal, state and local governments continue to flock to IT companies like IBM for the same flawed assumptions.  The waste is enormous and predictable.  The only loser is the taxpayer, year after disastrous year – we all pay for having leaders and vendors make bad decisions.

This is a disease of all parties – not just Republicans.  Democrats face the same issues.  There is a simpler way to design work, but it requires changing the way you think about work.  You must first get knowledge about the “what and why” of current performance.  Redesigning the work without IT, but even this can not be done unless leadership participates and changes too – something that elected leaders fail to do is change.  Ego of being elected may be partially to blame, after all . . . doesn’t every elected official have a mandate?

Elected officials are in most cases not fit to make decisions as most come with a slew of assumptions.  Most of these assumptions we don’t learn about until after they are elected.  Ability to govern apparently is a side road to the main street of politics.

Until our leaders learn how to govern properly, we – the people – need to ask better questions about things that matter.  A good place to start would be by asking. “what method” will you use to reduce the deficit?  If automation and modernization is the answer prepare to pay dearly.

Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public).  His organization helps executives find a better way to make the work work.  Read his articles at Quality Digest and his column for CustomermanagementIQ.com.  Learn more about the 95 Method for service organizations.  Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.

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American Toast: The Revenue – Expense Debate

A classic quote from Dr. Deming was “let’s make toast the American way . . . you burn, I’ll scrape.”  This quote has so many references that you can see in manufacturing, but the same applies to management.  I see more burning and scraping in service organizations with management than I care to mention.

The most obvious is when we take the income statement and functionally separate it into revenue and expense by having sales be responsible for revenue and operations responsible for expense.  CEOs claim that we must grow the top-line and reduce the burden of expense – nothing wrong with that, except asking the question “by what method?”

Getting the sales dogs to hunt and the operations to cut is the formula most management embrace for organizations.  The problem is that revenue and costs are the two sides of the same coin.  The two are inextricably tied together.  The optimization of each as independents leads to sub-optimization and waste.    The burning of toast and scraping becomes a way of “doing business.”

We have functionally separated organizations and rely on specialists to optimize the functions.  This erases the real aim of business . . . profit!  The reward and incentive systems lock in the waste.  Too many times have I seen management make their functional targets and rewards while the organization goes down the tubes.

Profit comes from the combination of revenue and expenses together.  The next step is to manage that way.

Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public).  His organization helps executives find a better way to make the work work.  Read his articles at Quality Digest and his column for CustomermanagementIQ.com.  Learn more about the 95 Method for service organizations.  Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.

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