- - AGRICULTURAL CORE CURRICULUM - - (CLF1000) Core Area: AGRICULTURAL BUSINESS MANAGEMENT (CLF1550) Unit Title: SALES AND SELLING ____________________________________________________________________________ (CLF1557) Topic: CLOSING A SALE Time Year(s) 2 hours 3 / 4 ____________________________________________________________________________ Topic Objectives: Upon completion of this lesson, the student will be able to: Learning Outcome #: (*-*) - Demonstrate effective closing techniques in a sales presentation. Special Materials and Equipment: National FFA Foundation, FFA Selling and Fundraising Guide; Handout #1 (attached) References: Ditzenberger, R., & Kidney, J. (1986). SELLING: HELPING CUSTOMERS BUY (2nd ed.). Cincinnati, OH: South-Western Publishing. Miller, Larry E. (1979). SELLING IN AGRIBUSINESS. New York: McGraw-Hill. Resources: California Agricultural Teachers Association. (1991). CATA CURRICULA CODE. Available from: Agricultural Education Program, Career-Vocational Education Unit, California Department of Public Instruction, Sacramento, CA 94244 National FFA Foundation. (1991). FFA SELLING AND FUNDRAISING GUIDE (and Transparency Set). Available from: FFA Supply Service, P.O. Box 15160, Alexandria, VA 22309-0160. University of Missouri-Columbia. (1984). AGRICULTURAL BUSINESS SALES AND MARKETING: Instructor's Guide (Unit V: Sales and Selling. Available from: Instructional Materials Laboratory, University of Missouri, 22316 Industrial Drive, Columbia, MO 65202 Evaluation: Quiz (attached) and grading of sales presentation TOPIC PRESENTATION: CLOSING A SALE A. Methods of Getting a Customer to Buy ______________________________________________________ ACTIVITY: Ask students to list key points to remember when helping a customer reach a decision to buy. ______________________________________________________ 1. Show and tell about all of the features of the product or service. a. Don't assume that the customer has any previous knowledge. b. Be very thorough in listing all relevant points. 2. Match specific features of the product to specific needs of the customer. 3. Stress the major benefits of the product if no need is evident. 4. Ask questions to get positive answers; agree with the customer as much as possible. 5. Throughout the sales presentation, watch for buying clues. a. Remember, a sale may be closed at any time during a presentation. b. Buying clues can be words, gestures, or expressions. B. Techniques of Closing a Sale _____________________________________________________ ACTIVITY: Ask students to list various ways to close a sale. Write their answers on the board and leave room to add why these ways are effective. Use Handout #2 to stimulate discussion about closing a sale. _____________________________________________________ 1. Straightforwardly ask for the order. a. This technique is used most often in closing a sale. b. Don't be hesitant about asking for the order. 2. Reduce the choices. a. This technique helps combat confusion. b. Use clues from the customer to narrow choices. 3. Assume it is time to close. a. Watch for a positive clue from the customer. b. Then ask a question that assumes the customer is buying, for example, "Will this be cash or charge?" 4. Summarize the selling points. 5. Suggest an urgency. a. The product is selling fast. b. The price is going up. 6. If applicable, offer a free gift (premium). a. This technique may be used when the customer is not quite sure about buying. b. Offer some bonus, for example, accessories. c. Offer a credit or payment plan. _______________________________________________________ ACTIVITY: Ask students to name reasons why sales sometimes fail. Ask them to suggest ways to evaluate sales presentations and what things can be done to help insure the customer's return. _______________________________________________________ C. Why Some Sales Fail and Why Some Customers Fail to Return 1. Reasons for not closing a sale a. Trying to force the sale b. Assuming the customer is not going to buy c. Hurrying the customer d. Leaving one customer for another e. Stumbling over objections f. Not pointing out the relevant benefits g. Being discourteous 2. Ten questions to use in analyzing a lost sale a. Did I smile and pleasantly greet the customer? b. Was my personal appearance acceptable? c. Did I have confidence in myself? d. Did I show knowledge of the product? e. Did I talk too much? f. Did I overcome objections or did they confuse me? g. Did I correctly demonstrate use of the item. h. Was any question raised that I could not answer? (If this happens, the salesperson should prepare an answer to the question in the event that it comes up again.) i. Did I mention any service available on the product? j. Did I recognize when it was time to close the sale? 3. Reasons why a customer does not return a. Not providing service on a previous sale b. A competitor offers a better buy c. No one convinced the customer to buy the product d. Parts for the product are unavailable e. Use of high-pressure sales tactics f. Unfair or unequal pricing policies g. Salesperson has a poor attitude h. Farm not visited i. Wrong product for the customer's need j. No follow-through after a sale k. No trade-in on machinery l. Lack of demonstration of the product m. Needed item(s) not in stock D. Things to Do After the Close of a Sale ________________________________________________________ ACTIVITY: Ask students for suggestions about what should be done after the sale has been made. (These should be actions which encourage additional sales by keeping the customer satisfied.) ________________________________________________________ 1. Reassure the customer, for example, "You've made the right choice," or "This product will serve you well." 2. Make sure the customer receives a sales receipt. 3. Make necessary arrangements for delivery of the product. 4. Suggest other items that might be related to the purchased item. 5. Contact the customer later to determine the level of satisfaction. a. If there is dissatisfaction, try to correct it. b. If there is satisfaction, make use of positive feedback in future sales presentations. c. Follow-up is one of the best ways to get repeat customers. ________________________________________________________ ACTIVITY: 1. A final sales presentation is recommended as a means to evaluate the students' mastery of the sales process (Handout #1 is attached to assist the students and instructor in determining the level of mastery.) 2. Conduct a local Agriculture Sales Contest using the CATA curricular codes or National FFA contest guidelines. bulletin 4. (See page 1550.2 for complete address.) ________________________________________________________ HANDOUT #1 - SALES PRESENTATION PERFORMANCE CHECKLIST Student's Name _____________________________________ Date _______________________________________________ Product to be sold _________________________________ Directions: Before attempting this task for mastery, the student should carefully review this checklist. Evaluation will be made on the basis of this checklist. Mastery will be evidenced by scoring at least _____ out of _____ points. POINTS POINTS ACTION POSSIBLE RECEIVED _____________________________________________________________________________ APPROACH _______ _______ 1. Was well prepared 2. Method of approach was appropriate for _______ _______ the product and customer type 3. Approach created interest _______ _______ 4. Established favorable impression _______ _______ 5. Determined prospective customer's need or _______ _______ problem PRESENTATION OR DEMONSTRATION 6. Had a well-organized sales presentation _______ _______ 7. Matched the customer's needs to product _______ _______ benefits 8. Pointed out the most obvious benefits first _______ _______ 9. Got the customer involved, appealed to _______ _______ five senses 10. Kept the communication positive _______ _______ 11. Kept the customer motivated _______ _______ 12. Endeavored to close the sale during _______ _______ the presentation OVERCOMING RESISTANCE 13. Established whether it was an objection or _______ _______ an excuse 14. Use the objection to pinpoint needs of the _______ _______ customer 15. Objection was handled with a method _______ _______ appropriate to the situation 16. Endeavored to close the sale while _______ _______ handling objections CLOSE 17. Thorough in explaining all the features _______ _______ 18. Stressed the major benefits _______ _______ 19. Used appropriate techniques to close _______ _______ the sale 20. Reassured the customer after the close _______ _______ 21. Suggested other items after the close _______ _______ 22. Made necessary arrangements for delivery _______ _______ _____________________________________________________________________________ COMMENTS TOTAL POINTS POINTS OR% POSSIBLE RECEIVED MINIMUM MASTERY LEVEL _____________________________ QUIZ - CLOSING A SALE 1. List three of the five key points to remember when helping a customer reach a buying decision. a. b. c. 2. Describe how the following methods can be applied in closing a sale. a. Reduce the choices - b. Suggest an urgency - c. Offer a free gift or premium - 3. List two each of the do's and don'ts of closing a sale. DO DON'T a. c. b. d. 4. List four questions a salesperson can ask to evaluate himself/herself after a lost sale. a. b. c. d. 5. What are four things that might cause an agribusiness to have customers who don't come back? a. b. c. d. 6. Describe how the following procedures can be applied after a sale is closed. a. Reassuring the customer - b. Making contact with the customer after the sale - QUIZ - CLOSING A SALE - INSTRUCTOR'S KEY The performance Checklist (Handout #1) should be used as The evaluation instrument for this lesson. Answers to the optional written evaluation are as follows. 1. Any three of the following or others determined by the instructor. a. Show and tell about the product's features. b. Match features to benefits. c. Stress major benefits. d. Keep the presentation positive. e. Watch for buying clues. 2. Teacher's judgement. Answer should include points from the discussion outline or reference text. 3. Any two as determined by instructor. 4. Any four from the discussion or others as determined by instructor. 5. Any four as determined by the instructor. 6. The following are suggested answers; additional acceptable criteria can be determined by the instructor. a. Tell the customer That they have made the right choice or that the product will serve Their needs well. This reaffirms the customer's judgement. b. Contact after the sale (following up) is one of the best ways to get repeat customers. This gives the salesperson a chance to correct dissatisfaction or to get feedback from a satisfied customer. 12/5/91 JGL/sg