Selling in a Recession: 21 Tips and Strategies for Finding New Business in a Tough Economy, or Sales Prospecting Secrets, Sales Motivation, Negotiating Tips, & More to Increase Sales

Now available on Amazon: Selling in a Recession: 21 Tips and Strategies for Finding New Business in a Tough Economy, or Sales Prospecting Secrets, Sales Motivation, Negotiating Tips, & More to Increase Sales

Are you worried about the economy? Is the thought of bringing in new business in this environment keeping you up at night? Do you wish you knew how to survive – and thrive – in a recession? If so, this is the book for you. Selling in a Recession is the definitive guide for any salesperson, sales manager, business owner, or self-employed professional who needs an edge in this tough economy. Written in a brief, easy to understand format, it’s designed to fill you in on everything you need to know about finding business in a recession, including: What a recession really means Where to find new customers How to negotiate in a tough economy And ways to actually increase your income You won’t find academic discussions or feel-good messages in these pages, but you will find real-world advice on how to tackle a recession head-on. Times might be tough, but with the right skills and mindset, you can not only survive, but come out the other side with more customers than ever!

“This book is a real life-saver for any salesperson working in this tough market.” -Brian Tracy, author of The Psychology of Selling

“Matthew has uncovered the secrets to selling in this tougher economy. If you haven’t read Selling in a Recession, then you’re probably losing business to someone who has. Matthew has uncovered the secrets to selling in this tougher economy.” -Jim Pancero, author of You Can Always Sell More

Chasing Down the Big Spenders

A few years ago, when I met my British girlfriend, she turned me on to the biggest sport outside of North America — soccer (or football, if you don’t happen to live on my end of the Atlantic). And so, along with most of the rest of the world, I watched with a mixture of horror and fascination as the Spanish super club Real Madrid forked out nearly $250 million for the services of two top players.

Now, that’s a staggering amount of money in any language or currency. But it’s all the more so if you consider the current state of the economy around the world, and in Spain in particular. It seems implausible that any company, especially soccer team, would have that kind of cash to throw around. So what gives?

It all comes down to timing and perception. Real Madrid, traditionally a leader in their “industry,” which in this case happens to be a soccer league, needed to change their long-term outlook and saw an opportunity. So, sensing an opening, they got creative with their financing and decided to make a move.

The point I want to make today is this: a Spanish team may have grabbed front-page sports headlines, but what they’re doing isn’t all that unique. In every corner of the globe, and in just about every industry, there are people out there taking chances and forging ahead with their businesses. While lots of people and organizations are stuck in the recession mindset, there some that aren’t fazed. Your success as a salesperson is dependent on your ability to tune out a lot of what you’re hearing around you, and then go find prospects and customers who are doing the same.

When this recession ends, it’s going to be people who took the initiative that are going to come out ahead on the other side. I’m not saying that every gamble is going to work out and that every company should just go out spending like there’s no tomorrow; only that it’s up to you to find those people and groups that are still looking for a way forward and help them find the path.

Playing the Waiting Game

An interesting side effect of this recession is that a lot of businesses aren’t necessarily telling salespeople they won’t buy, they’re just putting their purchases off until some unspecified time in the future. In other words, they’re telling us “we love your product and see what it can do for us, but it’s going to have to wait until later…” Of course, no one can actually tell you when later is going to be.
Presumably, these decision-makers are holding off new investments until the economic storm passes. But, as I’ve already mentioned several times on this blog, nobody really knows how long this recession is going to last. So, the best thing to do isn’t to wait the recession out — it’s to sell something that will help your clients make it through the other side.

You see, it isn’t that most businesses and families don’t have any money to spend right now; it’s that they don’t want to spend it on the things they were buying a year ago. A recession is no time (for most households and organizations, anyway) to make a big investment geared towards the future. Instead, they’re worried about finding ways to keep what they have now. Show them that you understand their needs, and are working on their side, by presenting them with solutions that are more defensive in nature.

Remember, playing the waiting game doesn’t do you any good. But more than that, it’s not helpful to your clients and customers, either. The people you serve still need products and services to keep their lives and careers running. The only difference is, they don’t need the same ones as they did before. So, sell what you can sell a recession, and show your clients that you can give them the answers they need. You might even make a little bit of money, you’ll probably strengthen your customer relationships, and you’ll definitely feel better than you would if you just sat around waiting for things to change.

Working for Free?

British Airways set a new benchmark low for money-saving recession tactics today when it asked several thousand of its employees to take a month of unpaid leave — or just keep working for free:

http://www.cnn.com/2009/WORLD/europe/06/16/british.airways.work.free/index.html

Having spent a few weeks here and there across the pond myself, I’m having a hard time envisioning the British (or anyone else in the free world for that matter) choosing to show up without the promise of a paycheck. I’m a firm believer that everyone should love their job, but this really seems like a bit of a stretch.

The point of today’s post isn’t to slam BA’s poor management move, however. When I saw the headline, the first thing I actually thought of was the great number of salespeople that there are out there right now who are working for free, or something close to it. Being in charge of selling things and finding new business, salespeople are on the frontline of a recession. They’re the first to face the firing squad. And I know that in a lot of industries, especially those where the average sale runs into the tens or hundreds of thousands, there are a lot of men and women who are hurting pretty badly.

If you fall into that category, my advice to you is this: don’t work for free. There are few things as demoralizing as showing up day after day and not earning any money. I should know; I’ve definitely been there. Instead of bemoaning your lack of sales, and watching your savings account trickle down the drain, concentrate on what you can do today.

In almost every sales job on the planet there is some kind of small sale that you can make without an enormous effort. As an example, I once had a job selling furniture. In an economic climate like this one, not a lot of people are looking at investing in a new sofa. Many of them, though, could be persuaded to spend a few dollars on a cleaner or sealant that will help them get more mileage out of the couch they’ve already bought. Most of the world is focused right now on finding ways to save money and put off purchases, so why not keep your paychecks coming in by helping them find a way to do it?

Granted, this kind of strategy probably isn’t going to make you wealthy overnight. But then again, it does pay something, and it gives you the chance to keep adding to your client list while things are slow. The same people and companies that place small orders with you today might be in a much better position a few months or a year down the road, so go ahead and get your foot in the door now.

And if those reasons aren’t enough to keep you going with small sales, think about things this way: making sales is contagious. The longer you go without one, the worst you’re going to fail. Even a small sale, one that brings in just a few dollars, can make all the difference and put you in a better mood. So go see what you can find, and see if putting some money in your pocket doesn’t change the way you feel about this economy. Nobody wants to work for free, and luckily for us, no salesperson has to.:

The Summer Slowdown

In most of the businesses I have ever worked in, the summer was kind of a slow time. I suspect it’s like that for most industries, at least in the United States. As the temperatures rise, many of our minds (not to mention those of our customers) start to drift. The big plans and initiatives we had at New Year’s have either worked out or gone away, and many of our prospects won’t be thinking about buying anything too significant until the fall comes.

Does that mean you can’t make sales over the summer? Of course not. Readers of my book will know that I believe any time is a great time to be looking for new customers. Still, though, if you feel like there aren’t any blockbuster deals coming your way for the next month or two, then why not take advantage?

The summer lull — just like a recession — can offer a great opportunity for a little bit of rest and reflection. Maybe things haven’t been as great as they could have, and you’re a bit leery about taking a long summer vacation. Instead of springing for a huge getaway, why not use a few weeks to get away from home (maybe to see a relative or friend) and take some reading material with you?

Most adults, reading for a couple of hours a day, can easily finish two or three books a week. A quick trip to your local bookstore can give you ideas for dozens of sales books (like mine) that can help you attack your sales career with a new passion and energy. Pick a couple of them up, set aside a few open weeks, and get to work on your selling skills.

The summer, just like the recession, won’t last forever. If you’re having a hard time making sales in either one, why not use the time to become a stronger producer Sue you can hit the ground running when customers are buying again?

A Slow Economic Recovery, or None at All?

Ben Bernanke, our economist in chief, went on the record again today saying that he expects things to look up in the second half of 2009, albeit slowly. At the same time, many in the media are quick to point out that the actual heart economic numbers aren’t telling us specifically uplifting story:

http://money.cnn.com/2009/06/03/news/economy/bernanke_housebudget_testimony/index.htm?postversion=2009060314

As an armchair economist and professional salesperson, there’s not a whole lot that I can add to that analysis. For all the talk about things getting better, there doesn’t seem to be a time of optimism floating around Main Street in board rooms in this country — and indeed, throughout most of the world.

With that in mind, I urge you all to do what I’ve been recommending all along: keep selling through this recession, use the strategies in the book to put your competitors out of business, keep your ear to the ground. Things are going to look up sooner or later, but your time is much better spent making money than it is worrying about things that are beyond your control.

Prospecting in a Recession

True or false: an economic recession is a terrible time for a salesperson to be making cold calls, sending direct mail letters, posting flyers, and so on? Surprisingly enough, the answer is both.

That’s because, like most things, prospecting is one of those activities where you’re sure to get out what you put in. In other words, if you expect this to be a terrible time, it’s probably going to be. On the other hand, if you can see the bright side of things — that your competitors might be going out of business, but more clients than ever are looking for new money-saving solutions, and that you’re facing a whole lot less competition than you probably were a year ago — then you might start to feel like now is the perfect time to be looking for new clients.

I’m going to keep this post short because my advice to all of you is simple: use this recession to your advantage. Go out there and keep finding new business. If you take the attitude that you can use this economic shakeup to increase your client list, then you’re probably going to be able to. My inbox is full of messages from men and women around the country who are using strong recession selling skills to generate more commissions than they ever have before. It’s not hard to follow their example, but the first step is deciding to do something about it.

A Worse Economy, But a Better Sales Environment

There’s an interesting dynamic taking place in the American economy right now. On the one hand, things are as tough as they’ve ever been — record numbers of people are filing for unemployment, and the once mighty automakers are boarding up and heading for bankruptcy protection — but at the same time, more and more polls are showing an optimism towards the future. So what should we make of this?

As salespeople, we should see the terrain for what it is. Most of the current data, despite some minor improvements, points to the idea that the economy is still backsliding. Job losses are continuing, and spending is still down amongst businesses and consumers alike. An important shift is taking place, though. People are starting to adjust to the idea of the recession and realize that the sky isn’t falling.

What this means to you and me is that the buyers are coming back. They might not necessarily have the kind of budgets that they have had in the past few years, but they’re no longer mortally afraid of spending. With the right product and the right presentation — one that helps them profit from this economy rather than ignoring it — you can start to see your commission checks picking up from regular clients again.

Unfortunately, the recession is still with us. But rather than hide under a rock and wait for it to be over, the best salespeople are out there making things happen. And when the good times do come around again, they’re going to be the ones with more clients and sales than ever before.

Dealing With Price Objections in a Recession

Most experienced salespeople will tell you the price objections are usually less than genuine. That is, they’re a prospective client’s way of covering up the real reason they don’t want to buy from you. And for the most part, I think they’re right — saying that your price is too high or that you charge too much is often a smokescreen to hide bigger doubts about your product or service.

In a recession, though, that’s not necessarily the case. Regardless of whether you sell to businesses, households, or just individuals, the plain truth is that people are hurting. Budgets are being slashed, as are paychecks and brokerage account balances. Your customers don’t have as much money to spend as they used to, and you can be sure they’re scrutinizing costs more closely than they were in the past.

So, with that in mind, how should we deal with price objections in a tough market? Should we treat them as we always have — as minor roadblocks on the way to the sale — or learn to give out bigger discounts for the time being?

Naturally, the answers to these questions are going to depend a great deal upon your product and industry. But, I think I can offer a few guidelines that can keep you pointed in the right direction. First off, it’s important to realize that most price objections, and especially those that pertain to products and services that are staples to businesses and homes, are still usually backed by other issues. In most cases, there simply a signal that you haven’t built enough value in your customer’s mind. Convince Mr. or Mrs. Prospect that you can solve their problem, put more money in their hands, or make their lives easier, and the price objection will likely disappear.

Other times, you’re simply dealing with a savvy buyer. They want what you are selling, but also know that times are tough and you might be anxious to make a sale. So, they introduce price objections to see how easy it’s going to be to get a discount from you. In fact, I’ve found that this is a fairly common tactic in any economy, so be on the lookout for it.
That being said, it’s important to recognize that in a recession, some of your prospects are going to tell you that your price is too high and mean it. They simply can’t afford what you selling at the price you selling it at. So what to do?

Well, one option is to simply make the sale at a lower margin. Sometimes making a sale is better than not making one, and as long as you are not giving away the farm, your sales manager shouldn’t have too much of a problem with it. Besides, giving a break to a long-term client can be a decent way to strengthen your relationship with them and show them that you’re invested in their success.

Conversely, you could just stick to your guns. Depending on what you sell, and how well you sell it, it’s likely that many of your current customers will remain with their orders intact. And in the long run, you might even come out ahead. That’s because holding onto your prices shows that you value the products and services you provide. It teaches customers that you believe in what you do, and won’t give it away at the drop of a hat.

Besides, you’ll want to be careful of handing out discounts like candy. Prices have a way of sticking; the discount you give today is likely to be asked for — or even demanded upon — again tomorrow. So if you are going to start selling for less, make sure you attach a very special reason to it, and let your client know what that is. If your “once in a century” sale ends up coming around every month, your customers will start waiting for those times to buy from you.

In short, the answer here is that there is no easy answer. Dealing with price objections is tricky in any economy, and during a recession you’re going to want to be sure to handle them the right way. Whether you should give discounts or not depends a lot on your situation. But if you do, make sure the deal you make now isn’t going to come back and bite you later.

Swine Flu and Economic Recovery

Several polls released this week indicated that Americans are becoming more optimistic about the economy. While there is certainly still a good deal of bad news out there, leaving the majority of us to expect a rough second half to 2009, a sizable percentage of people are actually starting to think things may look up sooner rather than later. On the other hand, fears about an outbreak of swine flu are leading businesses and governments to take drastic steps toward containment. Obviously, these precautions aren’t great for productivity. In fact, a widespread flu pandemic — even one that only sickens a few thousand people — could further depress the global economy by another 5 to 10% or more through canceled travel, import and export restrictions, and so on.

So which is it? Should we be encouraged by the enormous government efforts to strangle the recession? Can we look forward to an economic recovery in the near future? Or, should we be bracing ourselves for an even tougher market?

The best answer, even though it sounds like a contradiction, is both. The economy, much like the current swine flu outbreak, is a fluid thing. No one knows exactly what will happen next, and where it will lead us economically. As salespeople, however, we are paid to bring in new business in every market. In other words, we have to play the hand we’re dealt — not worry about what the next set of cards will bring. The fact of the matter is that right now people and businesses are hurting. It’s our job to help them, and ourselves, by bringing the best products and services we can offer to suit their situation.

This means working today and being ready for tomorrow, regardless of what it might bring. Readers of my book already know that recessions or great time to find new clients. By taking the extra time to get to know each one personally, identify their real needs, and help them find the best way to get it, we are just doing the right thing; we’re also finding a way to keep making sales in a tough economy, and just as importantly, we’re finding new customers that we can keep working with when the economy turns around.

To Sell in a Recession, Think Small (Excerpt)

*note: this post is excerpted from Selling in a Recession, copyright 2009

In the earlier chapters, we made much of the fact that a recession means an economic slowdown, not a complete stop. In other words, most of the decreased spending comes in the nonessentials – the luxury cars, flat screen televisions, and five-star vacations – not in the everyday purchases and investments that go on regardless of what the economy is doing.

This applies whether you sell to households or businesses. Most companies, as well as families, will look to put off major investments during a recession. At the same time, they’ll continue making the hundreds of small purchases that keep their businesses and households going. By recognizing this and changing their focus, the astute salesperson can put aside their proposals with the longest odds and focus on the small deals that are right in front of them.

In a practical sense, this usually means looking for a number of smaller sales instead of one really big one. A software dealer, for example, might look to sell upgrades instead of completely new packages. Or a medical equipment account executive might send proposals for remanufactured machines, instead of brand-new models fresh off the line.

In both cases, the point is to replace your larger sales with smaller ones. That’s because, generally speaking, you’re going to have a hard time convincing people to undergo a major purchase. For one thing, they’ve probably got less cash to go around. It’s also likely they’re concerned about the impact that any short or long-term financing will have on their future cash flow. But most of all, they’re probably just afraid. Recessions amount to a shortage of confidence as much as they do a shortage of actual cash. That means that any large proposal is likely to meet with a number of objections, and you’ll never be able to overcome the biggest one, which is insecurity about future income.

Looking for smaller sales sounds easy enough, but what if you deal in those luxury goods that people are going to put off buying? Is there any way out of the recession trap? Actually, there is. The trick isn’t in trying to continue to make the big sales – that’s likely to be an uphill battle – but in moving product accessories to existing customers. Plenty of cars, yachts, and other big-ticket items are sold in a normal economy. And most of those folks don’t stop owning their favorite toys just because incomes have dipped. So, while they might put off buying the next big thing, they’re still going to need tires, maintenance and warranties for the things they already own.

If you’re thinking that it’s going to be a lot harder making a good living selling tires than German cars, you’re right. To get by on a strategy like this requires that you increase your activity a great deal. And as a matter of fact, we’re going to take a look at ways to do that in just a moment. But looking on the bright side, while shooting for smaller sales might mean more calls and proposals, it also generally means less haggling and a much higher closing percentage. People who stress out about spending tens or hundreds of thousands of dollars, whether it’s their company’s money or their own, feel a lot more comfortable writing small checks. So, even though you might have to find more new customers, you’ll probably devote a lot less time to each one. And, as an added bonus, you’ll come out of the recession with a much larger customer base. So when the economy – and all those large purchases – come back in full force, who do you think they’ll turn to when they’re ready to buy?

Smart salespeople adjust to a sour economy by giving their customers what they want, and what they can afford. It’s a lot easier to find five small clients in a recession than it is to get one big one. So go looking where the money is – in the small sales – and you won’t just survive a recession, you’ll come out the other side with a longer client list.