Selling Against Goliath (TM) How to Take Great Guys and WinBy Dave Stein, Author of How Winners SellIf can sell for a small company competing against the big, old-fashioned story of David and Goliath is probably arise in the mind. In this story, the giant, Goliath, was beaten in a fight with a young child, David (later King David), because of the ability of youth to outsmart a giant. However, in today’s hypercompetitive market, avoiding the risk, buyers, often Goliath with a pro. If you are the David in this situation, read on. (By the way, if you’re Goliath, you might want to see what is planned to David …) When the sales team to lose, if they sell to small companies or larger, for it is important, it is for one or two reasons: They do not properly qualify the opportunity, or they outsold by the competition. There is no third alternative.Let ‘s look at two specific outcomes and explore how to improve your effectiveness when selling against larger competitor.Qualis
Qualifying term share roots, qualis, with the words quality. Qualification is the process by which we determine whether it is worth the time and effort to continue to pursue our sales opportunities. Qualification is a process not a one time event. This determines the quality of the opportunity. That means you do not deserve your sales prospects only once, when first contact was made. You will need to meet the requirements of accuracy and unendingly. The reason? Lot. Buyers have been known to mislead the seller when they lose. It changed during the examination. In fact, these days, things have changed a lot, often. Budget disappears. Influencers take more responsibility. Consumers who say they would buy from a smaller company – no problem – please tomorrow.Every different companies should have a variety of eligibility criteria which they know (1) whether or not to pursue the business and (2) how to pursue it. For most companies, these criteria are somewhat different for each product or service to offer them as well as by geography, competition and your market.When qualifying your prospects, you ask their own and many of the same questions again and again, such as: Who are the real consumers , people who will make the final decision? When are they going to buy? What are they going to buy? Why are they going to buy? Order in which their company is going to sign? sure our products fit their needs? How the decision-making process? Who is the competition? How do they pay for what I’m selling? What unique value me? Why would they buy from me? And many moreQualification standards for small companies to compete with the big guys must contain questions about the prospect of buying preferences. For example, you have to ask yourself, “What evidence do I have that potential customers will do, or even more importantly, have done business with a company like ours?” Also need to know what rules they must follow in terms of size supplier companies, profit or financial feasibility. (You may think your company is in good shape, because you have a smart team of venture capitalists invested not only your company, but also sits on the board of directors. Was able of any value to the CFO of a manufacturing company conservatively. Indeed can harm your cause.) You can read more about the qualifications of Article 9 & 10 in my book How Winners Sell.Does Size Matter? It is good to ask this question, but not be responsible for not. You want to make sure that if you meet or exceed all requirements of prospects, size – for the sake of size – no problem. You may have the best product, service implementation of innovative, committed people, the level of customer satisfaction, product quality, the most respected investors or whatever you consider the value, but if size matters, little else will measure up. And if the size of this thing, and you can not convince your prospect should not fast enough, you’re out of there – and fast to another opportunity.You will need to be careful here. Sometimes the problem is more prominent size. For example, your prospect may have a requirement that the vendor to install and implement demand chain management system in the twenty-five plants within a year. They may not have a particular problem with the size of the seller, but does not have a legitimate business requirement that is directly related to your size. And if you are a smaller suppliers, with no pre-established partnerships with service companies with the ability to provide the level of service required for the size of the deal, your chances of winning are remote.What All of this means that there are some cases where you do not have to compete , because you can not win them. Sorry, but that’s a fact. If you spend time trying to win business that you can not win because your company is too small, you will waste time and resources of the time you can qualify and this win.So quality. Now What Do You Do? This is where competitive worthwhile comes into play.
You would need to influence your prospects decision criteria, so that the perceived value of the size of your competitors as well as the ability-related measures are diluted, neutralized or, at best case, be seen as a disadvantage. Many salespeople are trained to highlight the weaknesses of competitors. In a situation where you’re competing against big companies, you (professional and smooth) strength.Here their attack is simple, good used example. I say sell it for a small software company and my company against the major players. Based on the tastes and needs of consumers, can I decide to use the “small-fish-in-a-big-pool” approach.
It goes like this:. “Ms. Prospect There are some people who are not impressed with the size of my competitors, global reach and financial and human resources I am sure they are proud to refer several customers who are very well known, however, maybe you .. Consider a project like you, although it is quite important to you, you may very well not have the same level of importance to them and therefore can not generate continuous attention in their corporate executive level for major customer projects they do. reasonable … “
From that point, you’ll explore how to meet the technical requirements and build future business relations, emphasizes attention will be paid to progress through your executive. Did you convince them that your company’s success will directly depend on their success, not the other way around. You describe them as a big fish in a small pond, with the message that driving matter how their business is for you.If you have an effective approach, you move on to the importance of the size and brightness of the list of their customers and the importance of attention paid to them by your executives and the interests of your company at their success.Here some ways bigger competitors can take advantage of the size and potential considerations for dealing with objections to the coaches and allies account: Challenge: Competition questions your prospects of survival. “What happened to you, Mr. Prospect, if they go out of business or recover?” Your strategy: Do not wait for it to happen, because it will most likely be. Provide security. Using the first card size salesreps most sell for big companies to play against the little guys. You need a solid story, prepared in advance – easy to understand and interesting – to be credible and sincere first delivered by you, then echoed by the majority of your senior executives. Mitigate the perceived risk is on the critical path for success when competing with larger rivals. Is wait.It it is important to know about the history of your prospects to do business with small companies. It may mean nothing to them, because they do it all the time. If not, you could be the first and could have a long, bumpy road ahead.Challenge:Competition trying to expand the scope of analysis in the areas where you do not have a strategy solution.Your:Again , pretty standard skills for big people. Warn your prospects before it can happen. Praised their efforts in identifying their needs, and they have. Ask them if they are ready to have the scope of their project initiatives, or substantial investments enlarged. If they say no, remind them that other vendors can use this “sales” approach to differentiate themselves and increase the size of their contracts.Please understand that I do not promote negative worth, mud throwing or “beating the competition. “On the other hand, when you have a relationship that is built into your account with influential people willing to help you, you must provide them with the message – sound bites – to position your company profitable. Challenges: Competition prospects try to impress you with hordes of resources to demonstrate their courage and convey the “safety in numbers” approach message.Your:Once again, prepare your prospects before it could happen. Suggest that large companies have additional resources on the board just to impress prospects to make a sale. If you know your competitors will bid came in much higher than you, you may want to subtly indicate that the use of resources to win business may be the reason that they are so high overhead. And, remind the prospect that if they go to your competitor, the meter starts running.
This approach is required when you are competing with companies that squander prospects in toys, gifts, free trips and other goodies to try to influence their decision.Challenge:Competition , because larger, is willing to guarantee the results in a way that can not be done.
Your strategy: They may be able to guarantee that their product can be installed (or services delivered) within a certain time, but what they did not do? Customers may not need to pay vendors in cash, but what about lost business opportunities, reduced levels of customer satisfaction and employee morale if things go wrong? “Prospects of Fire” and Improve Your Competitive IQIn my situation described above, you may be wondering how this can possibly know in advance what your competition is going to do? I call it a competitive boost your IQ. It will need a “shot” of one or more non-qualifying prospects and investment is wasted time they want to collect, then analyze the information about past wins and losses against some important competitors. Once you do, you will begin to see patterns of behavior that the company and the people who sell them to be used against you. Large companies tend to produce a standard strategy that they used to fight all the small competitors.I agree it is difficult to find the time to get such information. But you really do not have a choice. If you do not, you’ll constantly be surprised at what your competitors are doing and therefore are in a defensive position. Press another sales agent in your company, customers and business partners to learn how one or two major positions against your competitors and how their individual sales reps campaign. I talked all about what you need to know and where to get it in chapter 17 of How Winners Sell.Learning to develop a sales strategy based on accurate, up-to-date competitive information will allow you to begin to set out the transactions you can not win and sell outweigh your competitors are consistent with your can.Remember Two Components. You’ll Be Did.Tough good qualifications combined with precious works strategically competitive. After confirming that size does not matter in the face-to-face meeting with the president of the division of a company $ 5000000000, my client, the CEO of a small software company ordered his team to pursue a $ 2,000,000 contract to compete against rival $ 750 million. Now there are trained sales team of David and Goliath scenario.I during the nine month sales cycle. Among other things, we diluted the strength of competition and clearly illustrated the large size as a liability, which in this case the client team was.My actually outsold the competition and win the business. And get more business after that, because they deliver what they promise to their customers. As a CEO has to do with me, happy with a five times greater than anything her team has managed up to that point, “The most important thing for me is that this process is repeated. “