Ten sales mistakes franchisors make ……and how to avoid them
Selling franchises is about helping prospective franchisees with their `needs`. But if you are not aware of your challenges, you are likely to commit the following selling mistakes.
- Uncomfortable as salesman: If you are going to be successful, you must become comfortable in your role as salesman of selling franchisees.
- You and competitor don`t differ: A prospective franchisee while choosing between three companies that sound alike and look alike, will pick the one with whom he can negotiate the lowest price. That`s why you must differentiate yourself from the competition. If not, then you will get new business only when you are the lowest bidder.
- You give away your expertise: If you disclose to your prospective franchisees how much you cost, how much you know, how you can solve his problems, and how wonderful your company is, you are just giving free consultation. The prospect knows that you are trying to get him to agree on the deal. Besides handing over secret information you have accomplished nothing in the deal.
- Failure to clinch long-term contact: Talking about the weather, the scene outside the window or the office furniture will not lead to long-term contact. To succeed at bonding skills you must be able to get your prospects to warm up to you and trust in your ability to solve their problems. People like to do business with people they like.
- Failure to recognize ties with existing supplier: Your prospective client is comfortable with his present vendor. So after your visit he goes back to the vendor and tells him about the new proposal but does not have the nerve to tell him he is opting for the new business. When there is an existing vendor relationship, talk about it frankly. Help your prospect build up the nerve to get out of the relationship.
- Failure to explain what he would be missing: Your job is to help people recognise the pains associated with not having your service or expertise, or not having it done correctly (on an emotional level, not an intellectual one).
- Stating a price too early: Pressured by the prospect to quote a fee, most people will do so. And they will usually regret it. Tell him it should cost somewhere between Rs x to y lakh. Tell him that it is an estimate and after he gets started there would be other things he may need which would cost more. It`s not about losing money because a client pressured you for a price.
- Failure to tell about the payments and the time: Collections is a touchy topic in most new businesses. Tell him that he will need to pay Rs x lakh on the first of the month. If that is a problem, both should reach an understanding on it now, otherwise it may not make sense getting started together.
- & 10. Failure on referrals and introductions from existing clients: This mistake is so big that it counts as two mistakes! Your most valuable resource as a business owner is your client base! And yet, you may be very uncomfortable going out to clients and asking for referrals and introductions. Of course, if you are really new in business, you may not have existing customers, but there are many other business owners who you can go to and ask for introductions.