Chapter Sales 101 adapted from APICS Leadership Institute

1. 1 Chapter Sales 101 (adapted from APICS Leadership Institute) Ellen Kane San Fernando Valley August 9, 2008 This presentation focuses on sales, not marketing. Sales is the art of convincing someone to purchase something from you. This presentation focuses on sales, not marketing. Sales is the art of convincing someone to purchase something from you.

2. The Way It Is at Work Most operations and SCM professionals� Do not relate to salespeople Look down on salespeople Think salespeople lie Do not think of themselves as a salesperson Most operations professionals (APICS members) spend most of their work lives �fighting� with sales departments in their organizations. We think they are not above board; we see them as the enemy. We think that they should take SCM courses so they understand. Mostly correct! However, if we could learn what and how they sell, we could be a lot more effective at selling APICS courses, philosophies, membership, and products.Most operations professionals (APICS members) spend most of their work lives �fighting� with sales departments in their organizations. We think they are not above board; we see them as the enemy. We think that they should take SCM courses so they understand. Mostly correct! However, if we could learn what and how they sell, we could be a lot more effective at selling APICS courses, philosophies, membership, and products.

3. The Way It Is in APICS Chapters I am in Education, and I don�t know how to �sell�! I am in Membership, it is not my job to �sell�! I cannot lie! So I cannot sell! �Selling� is APICS� job. APICS BODs and instructors tend to think selling is someone else�s job. Not true. It is everyone�s job to sell. Sell membership. Sell being on the BOD. Sell PDMs. Sell being a company coordinator. Sell classes. Sell exams. Etc.APICS BODs and instructors tend to think selling is someone else�s job. Not true. It is everyone�s job to sell. Sell membership. Sell being on the BOD. Sell PDMs. Sell being a company coordinator. Sell classes. Sell exams. Etc.

4. Why are WE Uncomfortable Selling? Not our nature/not trained No incentive ($) We want to be liked Someone else is better at it than I am Can�t differentiate between offerings clearly Too much work BOTTOM LINE: IF WE DON�T SELL, WHO WILL? Again, get ideas from audience first, then show these bullets. After showing bullets, then talk about personal growth opportunities of being in APICS Personal benefits earned by being an officer Opportunity for personal/professional growth Chance to try out new things Opportunity to mentor others Chance to make a difference For the opportunity to develop these skills, as chapter officers, comes the responsibility of selling to others. But we need to have the tools to do it successfully!! We are the DIRECT connection to the customers � WE ARE THE FACE OF APICS. Again, get ideas from audience first, then show these bullets. After showing bullets, then talk about personal growth opportunities of being in APICS Personal benefits earned by being an officer Opportunity for personal/professional growth Chance to try out new things Opportunity to mentor others Chance to make a difference For the opportunity to develop these skills, as chapter officers, comes the responsibility of selling to others. But we need to have the tools to do it successfully!! We are the DIRECT connection to the customers � WE ARE THE FACE OF APICS.

5. The Way It Really Is We are ALL in sales! We sell to our parents. We sell to our teachers. We sell to our friends. We sell to our significant others. We sell to our employers. We sell to the IRS. We sell to our prospects and customers!!!!! Not only are we all in sales, we always need to be on the lookout for prospective buyers. We need to really think about how much we really do know how to sell in our everyday lives.Not only are we all in sales, we always need to be on the lookout for prospective buyers. We need to really think about how much we really do know how to sell in our everyday lives.

6. Marketing vs. Sales We have spent a lot of time on marketing Marketing: The method of introducing the market to goods and services using mailings, promotions, telemarketing, advertising, etc. We must market continuously. Now it is time to explore sales Sales: To persuade or influence to a course of action or acceptance of something. Match products and services to specific customers and needs. We must sell continuously. Read the definitions. APICS has mostly talked about marketing in the past. We even have a C Manual on it. Marketing is telling the market about our product�kind of like the planning part of our ERP system. Sales is the execution part of our ERP system. This is where we convince someone to buy. We must work on this all the time. It does no good for the market to know who we are and what we are about if they do not buy. Selling is getting the contract, the agreement, and the check.Read the definitions. APICS has mostly talked about marketing in the past. We even have a C Manual on it. Marketing is telling the market about our product�kind of like the planning part of our ERP system. Sales is the execution part of our ERP system. This is where we convince someone to buy. We must work on this all the time. It does no good for the market to know who we are and what we are about if they do not buy. Selling is getting the contract, the agreement, and the check.

7. Push vs. Pull Sales �Push� (Marketing): We offer lots of information and �push� it out to anyone who will listen or receive our notices. 1-way dialogue �Pull� (Selling): Find out (�pull�) what they need, then match offerings/benefits to their needs. 2-way dialogue Marketing and Selling can be related to our concepts of �Push� vs. Pull methods. Push=Marketing: One way dialogue, providing information to anyone who will listen without knowing what their needs are. Pull=Selling: Matching the needs to the offerings, and establishing the relationship with the person in a 2-way dialogue.Marketing and Selling can be related to our concepts of �Push� vs. Pull methods. Push=Marketing: One way dialogue, providing information to anyone who will listen without knowing what their needs are. Pull=Selling: Matching the needs to the offerings, and establishing the relationship with the person in a 2-way dialogue.

8. Why Do We Need to Sell? Hunters vs. Gatherers In today�s world, you must �find� customers Most low-hanging fruit has already been picked You must be a �hunter� The �gatherers� have already gathered up the easy sales. People who know about APICS have already taken courses and exams and are members. WE need to be �hunters� and find the prospective buyers that can use our product; then we have to sell to them.The �gatherers� have already gathered up the easy sales. People who know about APICS have already taken courses and exams and are members. WE need to be �hunters� and find the prospective buyers that can use our product; then we have to sell to them.

9. Believe in What You Sell! What do we sell? CPIM/CSCP/Fundamentals Education Lean Manufacturing, ERP Seminars Networking opportunities PDMs Membership Etc. Sell with enthusiasm!!!! What other �products� do we offer? Input from audience?? From Professional Membership brochure from the Volunteers website, additional products/services include: International Conference, APICS Webinars APICS Magazine, Dictionary, E-News Ask APICS, APICS Bookstore, Publications and Industry News database APICS Career Center, APICS Learning Communities Member discount with APICS Partners like Credit card: MBNA America Platinum Plus MasterCard, Alamo car rental, DHL Express shipping We all have experiences with salespeople that know nothing about the product they are selling. We can tell when they are just doing a job. We usually do not buy from them. - Give an example from your experience�. You MUST be enthusiastic about your products. You MUST believe in your products. You must speak with emotion about the products you are selling! Sales are usually based on emotion and logic (sometimes).What other �products� do we offer? Input from audience?? From Professional Membership brochure from the Volunteers website, additional products/services include: International Conference, APICS Webinars APICS Magazine, Dictionary, E-News Ask APICS, APICS Bookstore, Publications and Industry News database APICS Career Center, APICS Learning Communities Member discount with APICS Partners like Credit card: MBNA America Platinum Plus MasterCard, Alamo car rental, DHL Express shipping We all have experiences with salespeople that know nothing about the product they are selling. We can tell when they are just doing a job. We usually do not buy from them. - Give an example from your experience�. You MUST be enthusiastic about your products. You MUST believe in your products. You must speak with emotion about the products you are selling! Sales are usually based on emotion and logic (sometimes).

10. Know Your Product Features�CPIM/CSCP specific modules Functions�Who should have it and why Benefits�Because it can help reduce inventory while increasing customer service Availability�What is the availability of instructors or courses Competition�Who, what, and at what price Again, you have to know your product�features, functions, benefits, and availability. Be ready to answer most questions. Remember, you are at the plate and usually get only one strike. Make it a good swing! Competition: How do you win the game if you don�t know who you are playing and how good they are and what strategies they employ? You have to understand the competition�s weaknesses as well as your strengths to win the game of sales.Again, you have to know your product�features, functions, benefits, and availability. Be ready to answer most questions. Remember, you are at the plate and usually get only one strike. Make it a good swing! Competition: How do you win the game if you don�t know who you are playing and how good they are and what strategies they employ? You have to understand the competition�s weaknesses as well as your strengths to win the game of sales.

11. Grid to Develop Purpose of this type of grid would be to make selling easier: Data would be available for all your chapter�s offerings One page that you could provide to potential customers to explain the offerings/compare them Let�s do an exercise to develop this grid for several different products by breaking into groups to work.Purpose of this type of grid would be to make selling easier: Data would be available for all your chapter�s offerings One page that you could provide to potential customers to explain the offerings/compare them Let�s do an exercise to develop this grid for several different products by breaking into groups to work.

12. Characteristics of SuccessfulSales People Product Knowledge Honesty Professionalism Enthusiastic Good Listener Speaks my language Doesn�t waste my time Understands my business/needs Others? Use flipchart to get audience participation of what are the characteristics of Successful Sales people? Then show slide to see if we missed any characteristics. 3 major categories/characteristics: Product knowledge Interpersonal skills Understands how to apply product to my situationUse flipchart to get audience participation of what are the characteristics of Successful Sales people? Then show slide to see if we missed any characteristics. 3 major categories/characteristics: Product knowledge Interpersonal skills Understands how to apply product to my situation

13. Sales Leads�Where Do I Get �Em? Newspapers and business journals Networking Signs and buildings along the interstate Students BOD members Manufacturing directories Other APICS meetings Word of mouth Always be on the lookout for leads! Hunting is tough work. We have to find prospects for what we are selling. There are a variety of places to look. All are good at times, some are better than others for specific purposes. One certainty, we always have to be listening for the chance to sell our products. For example, today I was in the airport train and making small talk with someone next to me and he said he was traveling to work on the organization of a new distribution center for his company. Lights and sirens went off in my head, and I began to tell him about APICS! You never know where you will find your next customer.Hunting is tough work. We have to find prospects for what we are selling. There are a variety of places to look. All are good at times, some are better than others for specific purposes. One certainty, we always have to be listening for the chance to sell our products. For example, today I was in the airport train and making small talk with someone next to me and he said he was traveling to work on the organization of a new distribution center for his company. Lights and sirens went off in my head, and I began to tell him about APICS! You never know where you will find your next customer.

14. Get Their Attention Have a 30-second introduction (an elevator speech) Benefits that your chapter and APICS offer Use words like: good, money, easy, new, proven, guaranteed, results, safe, save, best, and complimentary A one- or two-line summary of your products and service offerings Your name and APICS chapter Have this elevator speech prepared and practiced. Remember, you only get one swing. The elevator is a short ride, so make each word count. In fact, we did this in the past in Feb/July 2005 to answer the question �What is APICS?�. Examples: APICS makes businesses run better. We do this by teaching new people entering the business, important basics associated with the manufacturing process, and fine tune the skills of those who are already associated with the industry to help them contribute to their firms and advance their level of value. In the chaos of today�s business we all feel the frustration of constant fire fighting. APICS is an association of operations management professions that propagate best practices across industries. These professionals come from a multitude of professional disciplines that hold P & L responsibilities. This Body of Knowledge smoothes out operations and increases bottom line profits. Have this elevator speech prepared and practiced. Remember, you only get one swing. The elevator is a short ride, so make each word count. In fact, we did this in the past in Feb/July 2005 to answer the question �What is APICS?�. Examples: APICS makes businesses run better. We do this by teaching new people entering the business, important basics associated with the manufacturing process, and fine tune the skills of those who are already associated with the industry to help them contribute to their firms and advance their level of value. In the chaos of today�s business we all feel the frustration of constant fire fighting. APICS is an association of operations management professions that propagate best practices across industries. These professionals come from a multitude of professional disciplines that hold P & L responsibilities. This Body of Knowledge smoothes out operations and increases bottom line profits.

15. Will the Real Decision Maker Please Stand Up? Must sell to VITO Very Important Top Officers You must fish where there are big fish! Consumers want to look at functions Managers want to look at advantages BUT VITOs are interested in BENEFITS VITO will give us an appointment if you show benefits Remember�VITOs approve checks! Very Important Top Officers You must sell to VITO because VITO makes the final decision. VITO is the �c� level person�.CFO, CTO, COO, CIO CEO. I once made an APICS presentation to a group of VITOs and the company continued to buy APICS courses for 7 years! VITOs have a lot of power, influence, and money. You must show VITOs the benefits to them! Very Important Top Officers You must sell to VITO because VITO makes the final decision. VITO is the �c� level person�.CFO, CTO, COO, CIO CEO. I once made an APICS presentation to a group of VITOs and the company continued to buy APICS courses for 7 years! VITOs have a lot of power, influence, and money. You must show VITOs the benefits to them!

16. Words Not to Use with VITO I, fear, failure, fearful, frightened, disappointed, impatient, insecure, anxious, irritated, reject, stress, stupid, maybe, overwhelmed, overloaded, perhaps We could�(instead say: Would you like to�) We think�(instead say what you know and what you can prove) Be careful of your words and choose them carefully. Here are some to avoid. VITOs are very confident people. You must let them know you are confident too without being arrogant. VITOs are usually very results-oriented. Be careful of your words and choose them carefully. Here are some to avoid. VITOs are very confident people. You must let them know you are confident too without being arrogant. VITOs are usually very results-oriented.

17. Words to Use with VITO Energized, superb, unstoppable, excited, fabulous, excellent, captivating, passionate, compelling, perfect, focused, extraordinary, brilliant, confident, empowered, driven, discover, good, our team, winners, results Since VITOs are very results-oriented, you have to use positive words. Make true, believable, and achievable statements about your product. Point out the benefits and VITO will listen.Since VITOs are very results-oriented, you have to use positive words. Make true, believable, and achievable statements about your product. Point out the benefits and VITO will listen.

18. Research the Prospect Remember in school how you used to research topics for your term paper? ALWAYS research your prospective customer! Find out the details of their business Find out their competition Find out why they need APICS Strategize how you can help them succeed! You have to know your product, your competition, and your prospective buyer. Look them up on Dunn & Bradstreet, the Web, catalogs, etc. The more you know the better. Be sure not to appear to know everything when you are talking to them. You do not have to disclose all you know about their company, but use the information to present your product and show the benefits!You have to know your product, your competition, and your prospective buyer. Look them up on Dunn & Bradstreet, the Web, catalogs, etc. The more you know the better. Be sure not to appear to know everything when you are talking to them. You do not have to disclose all you know about their company, but use the information to present your product and show the benefits!

19. Build Rapport No rapport = NO sales Build long-term partnerships People buy from people they like People love to talk about themselves People love to buy but hate to be sold You can learn personal likeness to start relationships Send thank you cards, notes, etc. Simple� People buy from people they like. We are selling a body of knowledge (BOK), a way of professionalism at APICS. People will buy from those they like and trust. Prospects develop trust as we develop a relationship with them. Don�t underestimate the value of developing your relationship. Your competition just may give away the advantage here.Simple� People buy from people they like. We are selling a body of knowledge (BOK), a way of professionalism at APICS. People will buy from those they like and trust. Prospects develop trust as we develop a relationship with them. Don�t underestimate the value of developing your relationship. Your competition just may give away the advantage here.

20. Stamp Out Competition Don�t dance with the competition Some are truly ok Some will cooperate Some are ethical Some like competition Some will truly like you Some will trade business with you Some will help you MOST WON�T. MOST DON�T LIKE YOU! Most of the time the competition would love to take this sale away from you. Don�t believe you are in it together. Play to win the deal. You do not have to run down your competition; just play to win.Most of the time the competition would love to take this sale away from you. Don�t believe you are in it together. Play to win the deal. You do not have to run down your competition; just play to win.

21. Contacts In some industries, for every 20 leads you can expect 1 sale. That�s why Sales is so hard!! And why you have to have a healthy ego to be in sales! For each new lead, it takes 7-10 times of contacting them before that 1 of 20 says �Yes�. Existing customers will stay if satisfied. If NOT satisfied, they will very quickly taint the pool. Example: bad PDM � what do you do to keep the customers coming? Example: Complaints about an Instructor � what do you do? How do you talk to the customer? We have to work to get 7-10 contacts. See next page.In some industries, for every 20 leads you can expect 1 sale. That�s why Sales is so hard!! And why you have to have a healthy ego to be in sales! For each new lead, it takes 7-10 times of contacting them before that 1 of 20 says �Yes�. Existing customers will stay if satisfied. If NOT satisfied, they will very quickly taint the pool. Example: bad PDM � what do you do to keep the customers coming? Example: Complaints about an Instructor � what do you do? How do you talk to the customer? We have to work to get 7-10 contacts. See next page.

22. How to Keep an Existing Customer Appreciate them! Show them you appreciate them! Tools: CDC Marketing Tool Kit Letters to new members E-mail thank you�s after events Others? Other ideas for appreciating/keeping existing customers/members from the audience?Other ideas for appreciating/keeping existing customers/members from the audience?

23. Ways to Make Impressions 10 ways to get in front of your customers Thank you notes for orders, referrals, continued business Short note about a positive meeting Article from magazine or newspaper Something about their competition Joke, cartoon, etc. Product announcement An APICS newsletter Notice of a seminar that might be of interest Special sale or offer A reminder of a pending order This should be an ongoing effort Do as many of these as you can to keep your name, your chapter�s name, and APICS products in front of your prospective buyer. Find reasons to send them something meaningful and valuable to THEM. They will appreciate it and know you are interested in their success.Do as many of these as you can to keep your name, your chapter�s name, and APICS products in front of your prospective buyer. Find reasons to send them something meaningful and valuable to THEM. They will appreciate it and know you are interested in their success.

24. Rules to Remember for Success Establish a positive attitude Believe in yourself Keep learning how to sell better Understand the customer Sell to help Establish long-term relationships Believe in your products and organization Be prepared! Follow these rules.Follow these rules.

25. Rules to Remember for Success (continued) Be sincere Qualify the buyer Look professional Use humor Sell benefits not features Tell the truth Don�t put down the competition Use testimonials Follow these rules.Follow these rules.

26. Rules to Remember for Success (continued) Listen for buying signals Anticipate objections Follow up, follow up Use the power of persistence Sell with passion and enthusiasm! Dare to be dumb�ask questions If you do not ask, you do not get the order��ASK FOR THE SALE!!! Always follow up on everything you promised. Return calls and e-mails as soon as possible. Make sure you are asking the questions you need answered. You usually do not get the order if you do not ask for it!Always follow up on everything you promised. Return calls and e-mails as soon as possible. Make sure you are asking the questions you need answered. You usually do not get the order if you do not ask for it!

27. What the Master Salespeople Say Idlers do not last long Strive for a specific goal Make them come back Believe in your product and love it Sell yourself first Honesty is the best policy Ideas from successful sales folks.Ideas from successful sales folks.

28. What the Master Salespeople Say (continued) Nothing happens until somebody sells something Pack your todays with effort�and extra effort Neglected customers never buy; they just fade away People don�t like to be sold�but they love to buy

29. We Were All Great Salespeople as Children! Remember when you were 7 and asked your mom for a candy bar in the store and she said �no� (#1). PLEASE��no� (#2 is now out of the way). Aw come on�.�Absolutely NO� (#3 and mom is put off by now) But why can�t I have one? �N O� �because it will spoil your dinner� (#4 is now finished) Move in for the kill�� No it won�t because I will eat it after dinner. She is on the ropes now and ready to cave in. �Well, I don�t know� she weakly states (#5). PLEASE (in a whiny voice). �Well ok but you cannot eat it before dinner!� VICTORY!!!!!! You only got 5 no�s and you were prepared to go at least 10! You probably had a 90% closing percentage when you were a kid. If you achieve this with your current sales, you will have all the sales you want!! We have all been in sales since we were children! We had a great close rate as children. Develop those skills; use them; win with them.We have all been in sales since we were children! We had a great close rate as children. Develop those skills; use them; win with them.

30. Available References The Sales Bible: Jeffrey Gitomer Selling to VITO: Anthony Parinello Execute to WIN! Robert Riefstahl Everyone is a Customer: Shuman/Twombly and Rottenberg Sales Rules of Roger Harris: rharris@msstech.com

31. Thank You and Good Selling!!!

32. Acknowledgments Presentation Author Roger W. Harris, CFPIM, CIRM, C.P.M., APP, PMP, has been a member of APICS since 1981. He joined APICS as a student member of the Northern Colorado Chapter while attending CSU and has been a member of the Colorado (Denver) Chapter since 1983. He is currently the General Manager for MSS Technologies in Colorado. MSS Technologies is an ERP Solutions partner that implements enterprise management software. He has over twenty years experience utilizing and implementing ERP systems for manufacturing and materials management in the defense and weapons, electronics, telecommunications, pharmaceutical, apparel, food, industrial products, and commercial aerospace industries. Harris instructs a wide variety of manufacturing and materials courses for APICS and is a member of the University of Denver�s adjunct faculty in the Daniels College of Business. Harris holds five professional certifications in Production and Inventory Management (CFPIM), Integrated Resource Management (CIRM), Purchasing Professional (APP), Purchasing Management (C.P.M.), and Project Management Professional (PMP). He received his bachelor�s degree from Colorado State University concentrating in production and operations management and his master�s degree from the University of Colorado majoring in transportation and organizational management. Harris has held several APICS Board of Director positions including director of classes, vice president of professional development, president elect, as well as four terms as president. He is currently on the Region VI staff and is vice president of education for the Colorado APICS Chapter. This slide acknowledges the contributions of the session�s author with a short bio.This slide acknowledges the contributions of the session�s author with a short bio.