How To Close With Executives By Demonstrating A Reduction Of Costs Of Sales

When it costs less to acquire new business, an executive can grow their business faster than they have in the past. When you demonstrate how what you offer contributes to lower costs of sales, executives are more likely to close with your organization.

This motivating factor can influence executives both in the selling and marketing process. Take the following steps to close with executives by demonstrating your solution reductions the costs of sales:

1. Map their sales process. A brief overview of the sales process is necessary to make real expenses related to acquiring a single customer. Ask the executive to walk you through the purchase to the point of receiving a payment.
2. Connect expenses to steps. Ask how much they invest in the sales process for the number of customers they have attracted this year. Identify marketing costs, overhead, and other areas that contribute to the acquisition of customers. If they are unsure of marketing and sales related expenses, use a general estimate of expenses.
3. Determine cost per sale (CPS). Many executives don't know how to calculate their cost per sale directly. For a fast and simple calculation, show them how to their total expense by number of sales over the same period is a good estimate. Whatever number you use, make sure the executive feels it's a realistic estimate to them.
4. Identify number of desired sales. How many sales does the executive want next year? Most executives want more sales next year than they are creating this year, ask for a percentage increase or a specific number from their planning efforts.
5. Show total expense at current CPS. If expenses stay the same, how much will it cost to generate the new business? Often this number is more than the executive has budgeted to spend.
6. Create discomfort is new expense verse existing. This is easy when the cost of their desired sales level is more than they budgeted, but if not, create pain by talking about other necessary expenses competing for this same money.
7. Demonstrate reduction in CPS. Here is where you provide some options that help reduce the cost per sale with specific examples relevant to the executive. Show them how your offer reduces this cost along a range based on what you've seen with existing clients.
8. Show how much more they get. Help executives see how to get the number of sales they desire for much less. If possible, show them how your reduced CPS lets them handle more sales for what they are paying today.
9. Identify what they will do with savings. If the executive chooses to save the difference, then directly address their pain points when this extra cash is available. Give executives something to look forward to as an extra benefit of doing business with you.
10. Tie savings to second motivating factor. Before you ask for the sale, connect this savings to one other motivating factor that helps executives to buy. This secures your position and can be as easy as asking, "How else to you see this savings help your company?"

It's important to be consistent with periods used, and expenses selected to develop projected sales. Ask questions that give you accurate numbers because working with accurate and believable projected sales helps executives see the growth opportunity available in your offer.

Often savings will show their projected growth for what it cost for existing sales. When you position yourself this way, they will frequently think about the possibility of even greater growth. These thoughts lock in your business over any other provider.

Warning: Present savings as an estimate of value, not a promised or absolute guaranteed result. Show each position as a likely result of doing business with your organization, but always under promise.

However presented, quantify any reduction in cost per sale into another motivating factor to solidify value to the executive. When you reduce costs per sale, you help executives get more for less, and that's what closes the business opportunity in your favor. Make a list of ten ways your product reduces an executives cost per sale.

© 2005 Justin Hitt, All rights reserved.
/ executive-relations | motivating-factors /

Justin Hitt, a copywriter and executive relations advisor for Hitt Publishing Direct. To contact him, or learn more strategies for selling and marketing to executives, visit http://hittpublishingdirect.com/

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Table of Contents

Seven Motivating Factors That Help Executive Decide To Buy From You

1. Three Ways To Demonstrate How Your Solution Increases Revenues,
2. Why Decreasing Employee Turnover Motivates Executives To Buy Now,
3. Why Is Customer Retention So Important To Executives In Business-To-Business Firms,
4. How Demonstrating You Can Improve Response Time Will Motivate Executives To Buy,
5. If You Can Decrease An Executives Operating Expenses They'll Have No Reason Not To Buy,
6. How To Close With Executives By Demonstrating A Reduction Of Costs Of Sales,
7. Are You Minimizing An Executives Risk By Purchasing With You?,
8. How You Can Help Every Executive Feel Appreciated,