Chapter 12
OBTAINING COMMITMENT

Outline of Chapter

I.          Obtaining commitment today

• Part of the Process
• Importance of securing commitment

II.         Financial terms and conditions
A.  Discounts
B.   Credit terms
C.   Shipping costs
D.  Presenting price
III.       When to attempt to obtain commitment

• Buyer’s comments
• Buyer questions
• Requirements
• Benefit Statements
• Responses to trial closes

B.   Nonverbal cues
IV.       How to successfully obtain commitment
A.  Maintain a positive attitude
B.   Let the customer set the pace
C.   Be assertive, not aggressive
D.  Sell the right items in the right amounts
V.        Effective methods
A.  Direct request
B.   Benefit summary
C.   Balance sheet method
D.  Probing method
E.   Alternative choice
F.   Other methods
VI.       If commitment is obtained

• No surprises
• Confirm the customer’s choice

C.   Get the signature
D.  Show appreciation

• Cultivate for future calls
• Review the actions to be taken

VII.      If commitment is not obtained
A.  Some reasons for failure
1.   Wrong attitudes
2.   Poor presentation

• Poor habit and skills

            B.   Discovering the cause
C.   Suggestions for dealing with rejection
1.   Maintain the proper perspective
2.   Recommend other sources
3.   Good manners are important
VIII.     Bringing the interview to a close

Teaching Suggestions

1.         First, try to get the students’ perceptions about closing. Do they think it is necessary? Devious? Manipulative? You might accomplish this by asking each student to share the first thing that comes to mind when you say the word “closing” (see Slide 12-2). Record these comments on the board. If comments are slow in coming, ask them to think about the tackiest closing used on them and how it made them feel or review the first Thinking It Through in the chapter. A few horror stories will get the ball rolling and lead well into Slide 2-3, a look at the traditional view of “Always Be Closing.”
Then, provide an overview of professionally obtaining commitment. Note that salespeople don’t just have one goal (get the business!) on every call. Rather, they attempt to obtain commitment on the objective of the call (Slide 12-4 — note the similarity with Exhibit 8-2 in the book). Have students share what they learned from Exercise 12-1.
Discuss why obtaining commitment is important. State that the goal is still to help the buyer solve real problems, not just to sell your merchandise. Have the students name some products/service that they recently really needed to purchase (to show that buyers do have real needs), Slide 12-5.
3.         Talk about when to attempt to obtain commitment. Note that there is no one psychological moment that you can not miss! Go back to the examples they provided about products/services they recently really needed — was there only one right time to close?
You may want to use Case 12-3 (which involves watching Video Sales Call #6) so students can learn to spot cues that the buyer is ready to commit.
4.         Spend time talking about how to successfully obtain commitment (attitude, customer sets pace, assertive not aggressive, right item in right amounts). Go back to any horror stories (from suggestion #1) and use those to illustrate the difference between assertiveness and aggressiveness.
Bring up the point that many sales trainers emphasize the importance of the seller maintaining complete control including the pace of the interview. Do your students agree? How could that help you gain commitment more easily? How could it hinder your attempts?
In reality, control should not be an issue. In a win-lose or parent-child or teacher-student relationship, control can often be important. But in a sales situation the buyer and seller are attempting to become partners through a win-win relationship (more like partners in a relay race or one-legged race).
5.         Discuss the effective methods listed in the text. After you describe a method, have the students provide a clear example. You may want to use something like question 11 at the end of the chapter to elicit these examples (Slides 12-8 and 12-9).
6.         After discussing the four methods, ask students if they appear devious, manipulative, etc. If so, ask why? How would they suggest obtaining commitment? What method do they like someone else to use on them?
Video Sales Call #12 is especially applicable in this chapter.
7.         Mention that there are literally thousands of other closing methods – Slides 12-10 through 12-16 describe six of the more common. Ask students how they feel about each method.
8.         Talk about what to do if the buyer says “yes.” Although this would seem easy, many salespeople make serious mistakes here (e.g. not thanking for the order, acting cocky, acting surprised). Use Slide 12-21.
9.         Talk about what to do if the buyer says “no.” It is important for students to learn to deal with rejection. Ask them if they have ever told a salesperson “no.” Then help them see that they weren’t trying to be mean to the salesperson. They didn’t say “no” because they didn’t like the salesperson (at least sometimes). You may want to use the second Thinking It Through here, where the student is asked what to do if the buyer’s reason for saying no seems that they don’t trust the seller, or Slide 12-23.
11.       Summarize what was covered:

• Obtaining commitment is necessary.
• Timing of obtaining commitment.
• How to successfully obtain commitment.
• What methods to use to obtain commitment.
• What to do if the buyer says “yes” or “no.”

Suggested Answers to Questions and Problems

• Review the closing methods in Exhibit 12.3 and write a nonmanipulative and a manipulative version of each. What is the difference?

            In many regards, the language of each version may not vary. For example, a standing room only close is appropriate when the customer truly faces losing out because of high demand. One difference is specificity.  An SRO close like “Better move quick because these won’t last long” is vague.  But to say something like, “At the rate these are going, I don’t expect to have any after the end of this week” is specific, and if factual, gives the buyer a realistic time frame in which to make a decision.  But the emotional close should not be used at all, so don’t count off if the student doesn’t have this one in the answer!
2.         “The ABCs of closing are ‘Always Be Closing.’” What is your reaction to this time-honored statement?
You should obtain commitment only when it is appropriate. Also, you won’t always just be trying to have the buyer sign an order (See Exhibit 11-1 for examples of things a seller might seek agreement on).
3.         Harold Bumpurs, a professional purchasing agent, says he’s never noticed any tricky closes. His perception is not due to the smooth closing skills of the salespeople who call on him but due to the total skill set they have developed. Prioritize a list of selling skills from most important to least. How much time should be spent improving commitment-gaining skills as opposed to developing other skills? Why?
The other three primary skills are listening, questioning and presenting, although students may also add objection handling and others. Priority will vary from student to student, but listening and questioning should each be first or second. Most students will say that if those two sets of skills are strong, then less time can be spent on closing techniques.
4.         You are selling institutional refrigerators for use in school cafeterias, restaurants, etc.. After making a presentation you think went rather well, you request the order and get this reply: “What you say sounds interesting, but I want some time to think it over. We’ll probably go along with you, but I need some time to think about it.” Your answer is “Well, OK. Would next Tuesday be a good day for me to come back?” Can you improve on the answer? How?
Yes, it could be improved. How about asking: “How does it sound to you right now? What concerns do you have? Is there some information I can get for you that would help you in your decision making process?” You might also use the probing method described in the text.
5.         One sales manager who worked for a refrigeration equipment company taught his salespeople the following close: Ask questions that allow you to fill out the contract. Assume the sale is made and hand the contract to the buyer along with a pen. If the buyer doesn’t immediately take the pen, drop it and make the buyer pick it up. Once the buyer has the pen in hand, he or she is more likely to sign the contract, so just wait silently until they do.
a.   Would you label this seller as assertive or aggressive?
Probably aggressive. The seller seems to have the notion that he is the best judge of the customer’s needs.
b.   Is this trick or merely dramatization?
It sounds like a trick.
c.   How would you respond to this behavior if you were the buyer?
Probably negatively. No one likes to feel pressured into buying.
6.             The buyer says "No!" and you suspect it is because she doesn't trust you.  You have a lot riding on this sale, and you also believe that you have the best solution for the buyer.  What do you do?
One option is to probe to determine the lack of trust.  You could say something like, "Buyer, I believe this is the best solution for you.  Can you share with me where I've failed to earn your business?"
Another option, if you have some method of building trust like a warranty, is to offer the benefit and then probe.  For example, "Buyer, this product comes with a money-back guarantee. If you use it for thirty days and it doesn't do what I say, you'll get all of your money back.  Is there any specific reason holding you back?"  If you don't have anything like that, then you can use a case analogy, such as "You know, I had a situation just like yours at First Trust.  What do you say we call them and find out how they view our company and product after having used us for the last few months?"
Another option is to ask what the buyer intends to do, then probe reasons for doing so.
7.         What makes a Lexus worth more than a Honda? How would you convince someone that it is worth more if they knew nothing about the various brands of cars? How would their lack of knowledge influence how you try to gain commitment?
While some might argue that the difference is all perception, one would hope that there are quality differences between the two vehicles. Demonstrating the quality difference would depend on the buyers’ needs, but the point here is that commitment would be gained by understanding those needs, presenting to those needs, and gaining agreement that each need is met. This assures the seller that the buyer understands the value and is making an informed choice, not one based on response to pressure.
8.         A sales manager once told his salesperson, “You know that when Mrs. Jacobs told you no, she was saying no to your proposal—she was not rejecting you personally.”
Why is understanding that statement vital to all salespeople?
It helps them deal with the rejection they will encounter. People always feel worse if it is them that the buyer doesn’t like instead of the proposal.
9.         One buyer stated: “All closing methods are devious and self-serving. How can a salesperson use a technique but still keep my needs totally in mind?” Comment.
The methods described in detail in the chapter (i.e. direct request, benefit summary, balance sheet method, probing method and alternative choice) are designed to keep the buyer’s needs paramount. The statement made might be true of many other methods, like those used to handle objections or to identify needs. Closing methods are like all selling techniques; they can be used deviously and in a self-serving manner. It is up to the salesperson to remember that the customer’s needs must be most important.
10.       Most of us have a natural fear of asking someone else to do something. What can you as a student do now to reduce such fear?
You can get involved in clubs and organizations and take a leadership role. That will give you lots of practice in asking people to help you.
You could also take a part time sales job or telemarketing job. A telemarketing job, in particular, will give you a great deal of experience in asking for commitment, as well as lots of experience in handling “no.”
11.       What would you say to a friend in order to gain your friend’s commitment to go on a spring break trip?. Describe exactly what you would say to your friend, using each of the following methods (make any assumptions necessary):
a.   Alternative choice
Which would you rather do - go to Daytona Beach or Destin?
b.   Direct request.
“Will you go with me on the trip?”
c.   Benefit summary.
“You agreed that you wanted to get away. Also, that you wanted to see a totally different area of the country. You also said you couldn’t spend more than $200. This trip meets all of those needs. Will you go with me?”
d.   Balance sheet.
“Listen, I know it’s a big decision for you. Why don’t we list the pros and cons. Now, on the pro side, the trip will help you get away. It will also allow you to see a totally different area of the country . . . . Now, what do you see as the bad points?”
e.   Probing.
“There must be some reason why you’re hesitating. Do you mind if I ask what it is? Any other reasons? If I can solve those issues will you come? Then, there must be some other reason.”
12.       What laws govern this portion (obtaining commitment) of a sales presentation (Refer back to Chapter 3 if needed)? How can a salesperson keep them in mind while attempting to gain commitment?

• The Uniform Commercial Code would be an important one.

      Issues include:
Does the rep have authority to act as an agent for the firm and legally obligate the firm?
What is an offer? What is binding?
Is title and risk of loss spelled out?
Oral versus written contracts?
Ability to perform, in good faith, the contract specifics?
Warranties explained?

• Sherman Antitrust Act, Clayton Act, Federal Trade Commission, Robinson-Patman Act are also important.

      Issues include:
Reciprocity
Tying agreements
Illegally interfering with competitors
Price discrimination
A salesperson needs to be fully trained to spot potential difficulties with these laws. Smart reps could keep a list of these issues and review them before making a call. Finally, reps need to use the firm’s legal staff in developing proposals and contracts.
13.       A customer is willing to order 100 cases listed at $20 per case in order to get a 15% quantity discount. Terms are 2/10, n30. The customer pays 5 days after receiving the invoice. How much did the customer pay?
The customer paid a quantity-discounted price of $17, from which the cash discount is calculated. The payment was $1666, or $16.66 per case.

Suggested Answers to Case Problems

Case 12-1: Ericsson

1.         What form of closing did Mats use to gain Renita’s commitment to the idea? Was that appropriate? Why or why not?
Mats uses the direct approach with “Will I have your endorsement at the meeting?” Some students may also point out that he uses an assumptive approach with “But we’ll probably also need someone there from marketing right?” These approaches are effective; Renita appears to appreciate his straightforwardness (with her need for data and no-nonsense approach, she seems to be a driver; if she is an analytical, then these may not be appropriate).

2.         List how you would attempt to obtain commitment using three other methods of your choice. Write out exactly what you would say for each method (and be sure to identify the method).
Student responses will vary depending on the methods used.

3.         Although you have been shown only a portion of the conversation, evaluate Mats’ performance in terms of the following:

a.   Selling benefits, not features
From the portion we have, there isn’t much reference to what the increase in demand means to Renita. Perhaps it is too obvious to require comment, hut there are not many benefits in this presentation

b.   Using trial closes
Mats does a good job of asking questions and getting Renita’s perceptions. While not necessarily trial closes per se, these questions do a good job of letting him know where she stands. When he asks “How does that sound?” he is gaining agreement on the fact that bicontinental use is at a level where Renita needs to take action, which is also a form of a trial close.

c.   Using communication aids to strengthen the presentation
Mats’ lack of documentation appears to really slow things down. We don’t know if he pulls them out in response to her request at the end, but while he has good stats, he doesn’t have the communication aids to make the most of them.

d.   Responding to objections
Renita ask questions that really represent objections, such as how much demand is there. Mats’ response is to provide data, and data from a third party. This approach fits Renita’s social style well, but as mentioned earlier, he needs a visual aid to support it.

e.   Attempting to gain commitment at the proper time
Judging from her response, it may have been too early. I would have preferred to ask what she meant by “we’re not the same as others.”

Case 12-2: Closing Styles at Emerald Cloud

1.         Assess the styles of Jacque, Claudine, and Jean.  Identify each style.  What evidence supports your claim?
Jacque is certainly assertive, and perhaps aggressive.  He used the continuous yes close, and assumed the buyer would buy.  (Caution students about reading too much into his gloating over the sale.)   It seems that Claudine is too aggressive, although we don't know what was said before she handed over the contract.  Jean is too passive.  The buyer had to ask to buy.
2.         What would you suggest Jean do?  Be as specific as possible and explain your recommendation.
Jean needs to develop a way to ask for the sale where he feels comfortable.  Then he needs to practice it so the close is normal and feels natural.

Case 12-3: Obtaining Commitment—A Pre-Video Exercise

1.         Outline how you would attempt to obtain commitment assuming that you use the following methods (add any assumptions necessary in order to develop the outline):
a.   Direct request method
So, do you think you will be able to set up a formal meeting to discuss our offering with your board?
b.   Benefit summary method
You said you were looking for a company that allows investors the ability to choose a fund that meets their investment criteria. Our company has 15 different funds . . . . You also said you wanted a fund that had pension experience in order to provide information to ease pensioners' transition into retirement. As we discussed, our firm has 40 years of pension experience . . . Would you be willing to set up a formal meeting to discuss our offering with your board?
c.   Balance sheet method
You know, sometimes it helps to list out the pros and cons of alternative action plans. Shall we do that now? . . . You said you liked the fact that we had 40 years of pension experience . . . . On the other hand, switching to our firm will take time from your staff . . . . On balance, do you feel our proposal makes sense? . . . Can we set up a formal meeting?
d.   Probing method
Can we set up a formal meeting?
There must be some reason you don't want to. Do you mind if I ask what it is?
Is there any other reason?
If I can resolve your concern about . . . will you set up a meeting?
2.         Based on the limited information you have which method do you think would be most appropriate?
I would recommend the balance sheet method. Johnson sounds like an analytical who needs to have all the facts before making a decision.

EXERCISE 12-1  OBTAINING COMMITMENT: A REPORT ON BUYER'S REACTIONS

EXERCISE 12-2  OBTAINING COMMITMENT IN THE JOB INTERVIEW

EXERCISE 12-3  OBTAINING COMMITMENT: A REVIEW OF THE LITERATURE

EXERCISE 12-4  (VIDEO) OBTAINING COMMITMENT—A VIDEO EXERCISE

Carefully watch the video segment provided by your professor. Use the following to take notes about what you observe.

EXERCISE 12-5  GAINING AGREEMENT--A CD-ROM EXERCISE

Using the “Sell to Needs” CD-ROM, complete the following: Lesson Three (the parts that have to do with closing).
1.  Use the space given to take notes on what you learn.
a.  Either-or approach

b.  Summing approach

c.  Next-step approach

2.  How effective would each of the three assumptive approaches be for the different personality types (drivers, analyticals, amiables, and expressives)?

3.  Compare and contrast the three assumptive approaches described in the CD-ROM with the approaches described in the textbook.