little changes equal big business - wasabi

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26 WATER QUALITY PRODUCTS S ometimes we focus on big things and fail to grasp the importance of smaller ones that can make an impact on our sales. This article discusses a few of the small changes that could make big improvements in your sales. Add-On Products Add Dollars Many dealers tell us they are strug- gling against low-priced competitors and big-box stores. A great way to dif- ferentiate oneself from competitors— even those who sell the exact same products—is add-on products. Goodwater Warehouse, for example, adds the Aquagate Leak Controller to all of its applicable products. The leak con- troller constantly monitors for leaks, sets off an alarm and, if need be, shuts off the water. It is fairly inexpensive but tells your customers a great deal. It says you care and that you carry the latest products and supply the best solution. If your products all came with this leak detection system, it would differen- tiate you from your competitors. How much does it add to the value in the customer’s mind? Much more than its cost. Savvy dealers do not sell this as an accessory; they simply add it to the sys- tem as if it was a built-in feature of their superior products. In turn, they use that feature to justify a full-price sale. This is also the kind of feature that gives you an edge in recruiting salespeo- ple. By telling a potential employee that you sell a product with features no one else has, you have created a salesperson’s dream scenario—a fact that will help attract great candidates. Another example of an add-on is a built-in set of lights that tests total dissolved solids (TDS) in reverse osmosis (RO) water. These are available from several sources and are usually built into the faucet. They show a green light if TDS is low or a red light if it is high. Compared to a competitor’s low-priced RO systems, this type of product would add a high customer-perceived value. What would it be worth to cus- tomers to be assured that their RO sys- tems were working every time they took a drink? How does the customer know the process actually lowers TDS without this add-on? Adding such a feature allows you to truthfully state that your system tests water 43,200 times a day to ensure better quality. One Foot in the Door There are many exciting products that can add significantly to your income while providing benefits to customers. A good example of this is Rust Out, made by Pro Products. You can purchase this chemical in small envelopes for a very low investment and offer a resin cleaning to every contacted customer. In the process, you can remind them that resin eventual- ly gets coated with iron and other materi- als, causing it to work less efficiently. On average, dealers sell resin cleaning for about $60. The cost of the chemical is about $1, and it takes just a few min- utes to do the work. If you did five resin cleanings a day for salt and water deliv- ery customers, it would add $72,000 per year to sales—and most of that is profit. Some dealers even have their sales staff get appointments by offering to do a free resin cleaning as a reason to come by. It is a great door-opener for a very small investment. Another door-opener is a faucet from Liquid Soap that saves water by mixing in air. This low-cost item provides sales staff with a reason to call on prospects, see how much water they are wasting and give them a showerhead that will save significant amounts of water and money throughout the year. Stopping the Shopping Another use of add-ons that we teach in our seminars is to use add-ons to sell something in every home. We suggest your staff never leave a home without a sale. Have small, impulse-type fallback items such as carbon and KDF shower- heads and drinking water filters on hand. To see how this works, let’s first assume the customer has said no. As a salesperson, you can pack up and leave, or you can offer an inexpensive solution that improves their kitchen tap or shower for only $59.95 or $99.95. If they accept, you have received multiple benefits. First, it turns rejection and company cost into a measure of success and rev- enue when the salesperson leaves with a sale instead of a “no.” Second, this approach stops cus- tomers from shopping elsewhere. Why would they call a competitor when you have solved their problems? Plus, you can call back in a month or so to move them to the next level. The third benefit is significant income. If a salesperson does 600 demos per year and sells 200 times, that leaves 400 unsold. If he or she can sell 200 of those unsold filter solutions at $99 each, that is an additional $20,000 in income for the company per salesperson—not to mention the addition of a customer and replacement filter income. More Sales, More Revenue As you can see, the skillful use of add-ons can add revenue, allow for additional services, justify higher prices and much more. Call your suppliers and ask about products that will differentiate you from your competi- tors and provide the solutions that your customers want. wqp sales column Little Changes Equal Big Business By Carl Davidson & Ric Harry LearnMore! For more information related to this article, go to www.wqpmag.com/lm.cfm/wq100708 For more information on this subject, write in 1018 on the reader service card. About the Authors Carl Davidson and Ric Harry are directors of Sales and Management Solutions, Inc., a consulting firm specializing in sales and management video training, recruiting and live seminars exclusively for the water equipment industry. A free demonstration video and list of products and topics is available at 800.941.0068. Send comments on this article to them at [email protected]; www.carldavidson.com. Carl Davidson Ric Harry Sales strategies for gaining and retaining customers 26_Sales_1007.qxd 10/1/07 1:53 PM Page 26

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Page 1: Little Changes Equal Big Business - Wasabi

26 WATER QUALITY PRODUCTS

S ometimes we focus on big

things and fail to grasp the

importance of smaller ones that

can make an impact on our sales.

This article discusses a few of the

small changes that could make

big improvements in your sales.

Add-On Products Add DollarsMany dealers tell us they are strug-

gling against low-priced competitorsand big-box stores. A great way to dif-ferentiate oneself from competitors—even those who sell the exact same products—is add-on products.

Goodwater Warehouse, for example,adds the Aquagate Leak Controller to allof its applicable products. The leak con-troller constantly monitors for leaks, setsoff an alarm and, if need be, shuts offthe water. It is fairly inexpensive buttells your customers a great deal. It saysyou care and that you carry the latestproducts and supply the best solution.

If your products all came with thisleak detection system, it would differen-tiate you from your competitors. Howmuch does it add to the value in thecustomer’s mind? Much more than itscost. Savvy dealers do not sell this as anaccessory; they simply add it to the sys-tem as if it was a built-in feature of theirsuperior products. In turn, they use thatfeature to justify a full-price sale.

This is also the kind of feature thatgives you an edge in recruiting salespeo-ple. By telling a potential employee thatyou sell a product with features no oneelse has, you have created a salesperson’sdream scenario—a fact that will helpattract great candidates.

Another example of an add-on is a built-in set of lights that tests totaldissolved solids (TDS) in reverse osmosis(RO) water. These are available from

several sources and are usually built intothe faucet. They show a green light ifTDS is low or a red light if it is high.Compared to a competitor’s low-pricedRO systems, this type of product wouldadd a high customer-perceived value.

What would it be worth to cus-tomers to be assured that their RO sys-tems were working every time they tooka drink? How does the customer knowthe process actually lowers TDS withoutthis add-on? Adding such a featureallows you to truthfully state that yoursystem tests water 43,200 times a day to ensure better quality.

One Foot in the DoorThere are many exciting products

that can add significantly to your incomewhile providing benefits to customers. Agood example of this is Rust Out, madeby Pro Products. You can purchase thischemical in small envelopes for a very lowinvestment and offer a resin cleaning toevery contacted customer. In the process,you can remind them that resin eventual-ly gets coated with iron and other materi-als, causing it to work less efficiently.

On average, dealers sell resin cleaningfor about $60. The cost of the chemicalis about $1, and it takes just a few min-utes to do the work. If you did five resincleanings a day for salt and water deliv-ery customers, it would add $72,000per year to sales—and most of that isprofit. Some dealers even have theirsales staff get appointments by offeringto do a free resin cleaning as a reason tocome by. It is a great door-opener for avery small investment.

Another door-opener is a faucet fromLiquid Soap that saves water by mixingin air. This low-cost item provides salesstaff with a reason to call on prospects,see how much water they are wasting andgive them a showerhead that will savesignificant amounts of water and moneythroughout the year.

Stopping the ShoppingAnother use of add-ons that we teach

in our seminars is to use add-ons to sellsomething in every home. We suggestyour staff never leave a home without asale. Have small, impulse-type fallbackitems such as carbon and KDF shower-heads and drinking water filters on hand.

To see how this works, let’s firstassume the customer has said no. As asalesperson, you can pack up and leave,or you can offer an inexpensive solutionthat improves their kitchen tap or showerfor only $59.95 or $99.95. If they accept,you have received multiple benefits.

First, it turns rejection and companycost into a measure of success and rev-enue when the salesperson leaves with a sale instead of a “no.”

Second, this approach stops cus-tomers from shopping elsewhere. Whywould they call a competitor when youhave solved their problems? Plus, youcan call back in a month or so to movethem to the next level.

The third benefit is significantincome. If a salesperson does 600 demosper year and sells 200 times, that leaves400 unsold. If he or she can sell 200 ofthose unsold filter solutions at $99 each,that is an additional $20,000 in incomefor the company per salesperson—notto mention the addition of a customerand replacement filter income.

More Sales, More RevenueAs you can see, the skillful use of

add-ons can add revenue, allow foradditional services, justify higher pricesand much more. Call your suppliersand ask about products that will differentiate you from your competi-tors and provide the solutions thatyour customers want. wqp

salescolumn

Little Changes Equal Big Business

By Carl Davidson & Ric Harry

LearnMore! For more informationrelated to this article, go to www.wqpmag.com/lm.cfm/wq100708

For more information on this subject, write in 1018 on the reader service card.

About the AuthorsCarl Davidson and Ric Harry are directors of Sales and ManagementSolutions, Inc., a consulting firm specializing in sales and managementvideo training, recruiting and live seminars exclusively for the waterequipment industry. A free demonstration video and list of products andtopics is available at 800.941.0068. Send comments on this article tothem at [email protected]; www.carldavidson.com.

Carl Davidson

Ric Harry

Sales strategies for gaining and

retaining customers

26_Sales_1007.qxd 10/1/07 1:53 PM Page 26