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How To Deal With Survivor Guilt Preventing Your Salesperson To Sell

survivor

I received this email the other day, “Bob, my staff is going through your Sales Rx training. During one of the training sessions, we revealed a barrier that we need to address -guilt – of all things!

As we discussed barriers, one employee admitted that she sometimes feels guilty selling high-end items when she doesn’t think the customer can afford it.  Yikes!!

Another said that she can relate to that. One employee’s husband was laid off by GM, another owned a store that closed a year ago, and we all have friends, neighbors and family facing financial hardship.

This was unexpected because these are both very friendly, social people and I would have expected them to breeze through the 5 step sales process.  I don’t want my staff to feel guilty about helping customers buy high-end items, I don’t want customers to feel guilty about spending, and I don’t want anyone to feel guilty about us staying in business!  Do you have any words of wisdom on how to slay the guilt monster?”

WOW! What a great topic and one that requires a lengthy answer.

Traditionally, “Survivor guilt” is the term used to describe the feelings of those who, fortunately, emerge from a disaster which mortally engulfs others. Could be as a result of an airplane crash like Nando Prado in the Andes, a downsizing of a company like GM or even the closing of a competitor on Main Street.

This business owner is from Michigan where the AP reported unemployment rates ranged from a low of 10.6 percent in Ann Arbor to a high of 17.4 percent in Flint. Of course people are scared.

Survivor’s guilt plays out by projecting our worries onto our customers. It’s like the salesperson adopts a losers limp. On an irrational level, these individuals wince at their privileged escape from death’s clutches or worry they are next. I think there are 2 types of survivor guilt that affects sales:
1) “I caused it.” They think they contributed to the death of their business before and so are risk averse where they once were fearless.
2) “If only.” If only they had done something differently, they personally wouldn’t be in the mess they are personally in or if they had been able to predict the future, their siblings, friends, etc. would still have jobs.

But there’s one more that’s more insidious: self-image.

Do you remember the film Ruthless People where Judge Reinhold was trying to take advantage of a customer ? Here’s the clip:  http://www.youtube.com/watch?v=19CvEO3Riy0. He reneges when he sees the guy’s wife is pregnant. He felt sales was a win-lose situation, that he was getting a whole pile of money for the little value customers received. It is a common trait in retail if we were all to be honest but even more so in places like Michigan and Vegas.

I was pitching a huge  casino in Las Vegas recently for  a business makeover. They asked me if I knew what challenges they had, “Revenues are down, so you’re probably offering promotions to get people into the restaurants and bars on your property -loss leaders in the hopes of increasing sales. But your servers are only selling the discounted products, and you’re not making up the profits.” The president asked, “How do you know that?” “Because your servers are thinking, ‘ I wouldn’t pay 12 bucks for that drink or 30 bucks for that dinner, I couldn’t afford it I’m sure they can’t either.”

When we prejudge what people can and can’t afford we’re shooting ourselves in the foot.

I had an employee named Stewart who, when a frumpy dressed customer picked up a beaded leather vest and asked, “How much is this?” Stewart replied, “More than you can afford.” She hastily replied, “How do you know how much I can afford?” Stewart tried to cover-up  and said, “Because I saw all those shopping bags you were caring and figured you probably were maxed out.”

Your employees gave you a gift by acknowledging they had “survivor’s guilt.”  But the heart of the problem is how they feel like a sham selling at retail. Clerking is what they are comfortable with because their self-image doesnt’ allow them to put themselves out there to risk rejection.

Your opportunity is to show how selling is a win — win situation. That we are helping the customer buy what they already want. But you’re not manipulating people, taking advantage, or making them into some kind of at a sucker for purchasing the premium items. That we are all grownups and no one knows what another can afford. Maybe they’ve switched to generics in all of their grocery staples to afford the $100 LEGO Death Star for their daughter’s birthday. There’s no way of knowing.

I think the sales training is an absolute. You may  have to make the point you can’t stand still because you want your livelihood, your business to survive. That may have been why the other businesses folded, they thought they could just keep doing what they’d done and they’d be fine. The trick is showing change is good. That you are trying new things. That you are moving forward with your business and increasing sales is the key.

But you also need to show them how their own preconceived ideas, biases and fears could very easily be pouring a bucket of water on a customer’s interest in the higher-priced items and causing the customer to question the purchase.

If they can’t get past this, you have to ask yourself, “How much do I want to be their psychologist and deal with their self image?” and “Is there anybody else out there who can help me sell at a profit?”  If not, it may be time to move on without them.

Learn how to sell your merch with Sales RX: Five Parts To A Successful Sale

Small Business Don't Whine Or Cry, Change or Die

images-1There is a new report on MSNBC today Main Street’s Sour Loans Sour courtesy of the Associated Press that says, “the government last year was left holding a record $2.1 billion in write offs for small-business loans they had guaranteed. There were over 2500 restaurant charge-offs making it the largest number of defaulted loans. More than 150 of those loans were made by Quizno’s franchisees worth nearly $15.5 million.” It also highlights the difference between the banks that were “too big to fail” to the mom and pops not making it now.  Maybe what worked before doesn’t work anymore.

Instead of saying, “Where’s our handout,” where are the stories of people who realized they have to change or die?

I get there’s a lot of pain out there. I understand business for many is down. But when are you going to do something about it?

You have to radically change your business if you are not making it and want to survive.

I had lunch last week with Roger Leithead, the former CEO of Arrow shirts who told me a story about how Arrow survived the Great Depression. A bit of back-story.

arrow collar 140px-Jcl_arrow_teensThe Arrow shirt concept came about in the 1800’s because men only wore white dress shirts and they all went to work in a suit. Even the blacksmith would work in that white shirt. Well this one guy was a singer and his wife didn’t like him coming home and changing into a clean shirt just to go out – especially since they only bathed on Saturday nights.  The idea of a detachable collar and cuffs made it easy to look presentable without all that washing.

This is the way Arrow built an empire of over 450 warehouses across the US filled with detachable collars and cuffs. It was a recipe for success: find out what the customer wanted and then give it to them.

A competitor, the Manhattan shirt company, had a shirt you could buy with an attached collar and cuffs but it was built like a tent with yards of fabric to tuck in. Also, the sleeve length was a 37.  That’s why guys wore armbands, so their sleeves wouldn’t reach over their fingers – like you see in barbershop quartets. At the time that was based on need, not looks.armband

Sales were dropping off and the Arrow CEO saw the trend was changing to a complete shirt.  He announced to his board of directors in 1930, “We will never get there doing what we’re doing now.”   That’s when something truly remarkable happened.

CLUETTHe went downstairs and gave instructions to open the doors of their main warehouse on River Street in Troy, New York, which bordered on the Hudson River. “Clear out the warehouse.” Using pitchforks, the warehouse men threw all of the existing collars and cuffs into the river.

Forget the environmental consequences of such an act of over 1 million dozen collars and cuffs floating down the Hudson. He threw out their entire inventory in order to make the changes needed.

They came up with 64 combinations of neck and sleeve lengths so that Arrow shirt fit you properly, not like a sack. They changed from natural ocean pearl buttons that broke easily, to plastic and invented Sanfordizing, which meant a shirt wouldn’t shrink. They again became the leader in men’s shirts because of the CEO realizing they had to change or die.

You think it’s tough to compete now? Imagine going into a retailer in the Depression telling them they needed all this inventory to serve their customers; where three models could capture the market, now they needed 64.

The CEO then had marketing come up with the “Arrow Shirt Man.”  Splashy ads in the best magazines touted how well an Arrow shirt fit.  It created a need for the women who purchased their husbands’ shirts to go into retailers and ask for that “Arrow Shirt.”  Retailers had no choice but to carry them and the rest is history.

When I speak across the country I hear many people quick to tell the story of how business is off, but they themselves are reluctant to change.  It might be like going to the emphysema ward of a hospital seeing people smoking while they’re under their oxygen tents.  The will to change can seem too much even when what you’re doing is killing you.

If things aren’t going your way, what radical change do you need to do to ensure your success?  Are things bad enough to change? Do you have the guts to throw out what you’ve been doing and start over?

Many businesses didn’t make a profit in the past when the money was easy – don’t blame the banks, Obama or someone else. It is your responsibility to make a profit. If you can’t, that’s capitalism.

And no, there is no level playing field – Wal-Mart will always be able to undercut your price, Starbucks will always be able to get a better location, etc.

My message to small businesses today? It’s not whine and cry but change or die. The choice is yours, but the time to act is now!

Learn the essentials of getting a retail business back in shape here

Sales Management: Assumptions Kill Sales

images-5I was lying in a bright yellow inner tube floating in the “La-Z-River” at the JW Marriott resort Tuesday afternoon after my event.  While looking up at the clear blue sky I heard a young woman behind me,“Yeah, I don’t know why we can’t just be spontaneous.”  I turned around to find a very attractive, blond woman in her late teens.  She continued, “But we have to ask, ‘Is your chicken pesto OK?’ or ‘How’s that maple walnut cookie?’ or ‘Want some dessert?’”

Her companion, a young man swam past me telling her, “Yeah, I mean, if they wanted it they’d ask.”

The young woman added “Yeah, they just don’t get it, no one wants to hear, “Do you want some muffins to go?’ They just want to pay and leave.”

Boy if this wasn’t telling.

Could this have been your employee? The one you thought was great?

Her sticking points seemed to be her assumptions no one would appreciate someone checking in to make sure the food was good, could possibly want something else and why her trainer provided scripts to help her.

After finishing up at the pool, I changed and went to the restaurant which was dead. I pulled up at the bar and a young man introduced himself, got me a menu and chatted with me before suggesting “his favorite” item.  After learning I was a Yankees fan, he changed the channel to the Yankees game as we won.  He put the order in and after delivering it, asked how I liked it.  After I finished, he asked if I saved room for their famous banana cream pie.  It was a great experience – that’s why he got a 20% tip.  He got it. It’s about serving others and engaging them.

That is what separates those who genuinely want to help, from those who just want to be done with it.

Without mentors to help teach this concept and mirror it, we end up with my swimming buddies questioning why they have to do something.  The assumptions they make translate into thinking the minimum is what customers want. It isn’t and employees like this can kill a business.

Michael Jackson Reminds Us: It's About the Work

The election in Iran, the improving economy, the GM bankruptcy, even iconic 70′s model Farrah Fawcett all took a back seat to the passing of Michael Jackson today. And for good reason. To paraphrase that old movie line, “We felt better about ourselves watching him.”

Forget the easy, over-hyped digs about his personal life. At the heart of why he was such an icon was the work. It was dazzling, fun, top-of-his game. During my speeches, I often play the Jackson 5′s “I Want You Back,” after a break. One time a woman said to me as it started, “I can’t believe you are playing something by Michael Jackson.” Another woman jumped in before I could respond, “Why wouldn’t he? I love his music!” Exactly. It was about the work, not the personality.

For your business and employees, it isn’t about what a nice guy you or your crew are.  It’s about the work.

I’m constantly amazed after a speech when people come up and tell me they’ve had someone on payroll for five, six, eight years and they aren’t cutting it. “But they’re so nice.”  It’s about the work.

Forget the personal traits. Heck, I had a guy who I had nothing in common with, the only reason we continued to work together is he got the sales. At full price. To 70% of the people he spoke to. With a smile and a repeat base we were all jealous of. Because of that, we could talk about business, how to do the sale better, what the next trend would be, how to close a hard sale. That’s what consumed his mind when he was on the clock.

He had moved out from Arkansas to southern California. He couldn’t find construction work and was sleeping in a gal’s back office at night; one step up from when he was sleeping on the street. He had used that address on my application.  He’d shower at the YMCA and walk to the mall.  He’d do his laundry at the local laundromat – he never looked out of place. He did this for about a month until he could afford an apartment.  I never knew until much later, he was strictly business.  It could have been easy to take his hard-luck story and make excuses if he hadn’t been able to sell. Could that be your crew?

My message today, in the wake of such an icon as Michael Jackson passing is to remember the work. His work; leave the personality out of it.  Is your employees’ performance memorable? Is yours?

Shuttered Chrysler Dealers' Lesson For Small Business

chryslerThe Chrysler bankruptcy passed with thousands of dealers closing their doors forever as of Tuesday night.  An interesting sidebar to the story was how some Chysler dealers sued to avoid being terminated. Chrysler had said in court documents, “Dealerships located in the markets at issue lack the operational, market, facility and [brand] characteristics necessary to best contribute to the ongoing dealer network under current or future ownership.”

Instead of addressing the fact they were not apparently very profitable businesses and prioritizing what they needed to do to survive, they chose to waste a month of time suing to stay with a company about to close all of its plants for a minimum of three months.  Be careful what you wish for.  What if they had remained open with sagging demand and old products?

A few years ago a southern California deli called me in for a consultation. Sales were slipping, they’d invested thousands in a renovation and the owners were worried. After we got a cup of coffee and sat down in one of the booths the owner took a sip and started to speak. I figured he would be asking where to look first or a spreadsheet would be bought out to show details of the sales collapse. He began, “We’ve contacted our attorney with a cease and desist order for a similar concept stealing our ‘look.’” I couldn’t believe my ears.

The owner went on at length to say how they were stealing his logo and concept and how he was prepared to fight them in court.  Meanwhile, I had to keep bringing him back to reality – he was losing money with this concept he wanted to protect so badly.

Like some wronged hero in an action movie, sometimes small business owners or managers get so personally vested at being wronged that they lose sight of their priorities. Many times that is because it is easier to get worked up about someone else than taking responsiblity to change.

The lesson? Keep your eyes on the big picture, don’t get caught up in the vendettas with vendors or competitors.