Podcast Center
Video Center
Webcasts
Resource Center
Events
February 04, 2012 at 11:00 PM
According to “Sell More and Work Less” author and sales expert Alan Blume, there are four phases to the sales process: identify, qualify, present and close. Blume explains how to finesse the four phases and master the sales process to achieve greater results. Here we cover one of the tips from his book:
Tip 29: Use the one-tenth of 1 percent sales-price rule or create your own
“Let’s say you’re selling a survey research service costing $10,000. Does the dollar amount represent a small or large investment for your prospects? One way to answer the question is to use the one-tenth of 1 percent rule. I created this metric for many of the solutions I represented over the years and it was both simple and helpful. If your company is trying to sell a $10,000 solution to a prospect that has $1 million in annual revenues, your solution would cost them 1 percent of their revenues. That’s a fairly significant number to them.”
This percentage of revenue might prompt some real soul-searching, Blume explains, and might be too big an obstacle for a prospect to overcome. The same solution pitched to a prospect with $25 million in revenue, however, would mean the purchase would fall well under the one-tenth of 1 percent mark and would likely go down much more easily.
