ERC Selling – Socratic Selling Skills

R Reference
Steps for a Successful Sales Dialogue 3

Support the Socratic Approach 4

Plan your Sales Call 6

The Socratic Opener 8

Active Listening 9

Play Back Facts and Feelings 12

Socratic Probes 14

Surfacing Motivators 16

Subdecision Probes 18

Present your Proposal 20

Handling Questions 22

Handling Objections 23

Closing 25

Contact 26
 Steps for a Successful Sales Dialogue
Planning and Preparation
You know you must plan for a successful call. You need to prepare by
finding out basic information about the customer, the company, and the
industry. But you should also plan how you will conduct your sales
discussions.

The Sales Communication Process

When you plan your discussions and use the Sales Communication
Process, you create a road map for your sales success.
The steps of the process will support accurate communication AND help
you build long-term, collaborative business relationships. As we move
through this course, we'll look at the steps in detail and the skills you'll
need for each.
Step 1: Open the dialogue
Step 2: Uncover needs
Step 3: Offer your solution
Step 4: Handle objections
Step 5: Resolve the issues
Step 6: Close and document next steps

Think of these steps as your roadmap to a successful sale. As you complete

each step, check the map. Make sure you are moving in the right direction
to achieve your goal.
You would not begin a journey without planning your route from start to
finish. Navigating through a sales discussion from the opening to the close
is just as complex.
For best results, use these steps in order.
If you miss a step, you'll need to go back and complete it to keep from
getting off track or finding yourself where you would rather not be...in a
place full of surprises. Focus on where you are in the process and use the
steps to move your sale forward.
Certain steps—such as step 5, resolve the issues—may send you back to a
previous step if something needs to be clarified.
The Sales Communication Process is the main focus of this training.

Follow-up
The last critical step in any sale is follow-up. Follow-up can cover
everything from paperwork to the actual shipping of the product. When
done appropriately, it leads directly to the next sale.
ERC Consultants, Inc. • 3
Support the Socratic Approach
What is the Socratic Approach?
“A method of teaching or discussion, as used by Socrates, in which one
asks a series of easily answered questions that inevitably lead the answerer
to a logical conclusion.”
—Webster's Unabridged Dictionary
Socratic Selling is a discipline that:
• Uses the power of active listening and effective questioning to thoroughly
understand a customer's needs
• Fosters relationships that allow the salesperson and the customer to work
together to find the ideal solution
Why does the Socratic Approach work?
Why should you use the Socratic Approach to selling? Because it builds
long-term relationships and helps you overcome many of the common
obstacles associated with selling—including the top problem.
We surveyed both salespeople and buyers as to the No. 1 problem with
salespeople. The results:

Survey: What's the No. 1 problem with salespeople?

Salespeople Buyers
Talk too much 41% 49%
Fail to follow through on delivery 30% 27%
Over-promise on product performance 16% 20%
Other 13% 4%

Simply put, salespeople talk too much in client meetings, and much of what
they say isn't necessarily tied to the client's needs, wants, and concerns.
The client and what the client needs—not the product or its features—
should be the focus of the sales dialogue. The salesperson should question
and listen to deepen that focus until there is a clear picture of the entire
situation. A salesperson can propose the right solution only when he truly
understands—and can clearly state— a client's needs. The Socratic
Approach guarantees that this will happen.

4 • Socratic Selling Skills

 How to use the Socratic Approach
As you move the sale through the Sales Communication Process, you must
see the situation from the client's viewpoint. Your job is to understand that
perspective completely.
Meet clients where they are. Then you can help them see the possibilities
of where they can go.
This might take a few minutes or many weeks. But when you've
demonstrated to your customer that you've put his needs first, and that you
understand what he values, you will have created a life-long customer.
Create productive discussions with your client: prepare, listen, question,
and respond to what you uncover.
Although all these skills are necessary for a successful sales discussion, the
most critical are listening and questioning. They are the skills that let you
gather client information and understand the issues and needs.

Socratic Approach: Concepts to Remember

It takes awareness and practice to do it well. To listen, question,

Socratic Selling is a discipline
and not talk, you must completely focus on your client.

Start with the client's interests first Before you can think about a solution, you must listen and
thoroughly understand the customer.

Socrates taught, not by telling his students, but by asking

The more you know, the more you them questions and listening to them. By engaging your
can collaborate on an ideal solution client in a Socratic dialogue, you uncover your client's
buying needs, requirements, and rationale.

By building relationships and demonstrating that you

Take the time up-front to get to understood, you can actually speed up the buying
know and engage your client process, both in the current transaction and when doing
business in the future.

ERC Consultants, Inc. • 5

 Plan your Sales Call
Set Realistic Goals for Sales Calls
Before you start any journey, you determine the travel segments and the
stops you will make to reach your destination.
As you plan your path to a sale, use the same method: focus on the goals
and out- comes you want for each call, not just what you want for the final
sale. Think through every sales interaction you have, via phone or face-to-
face, by asking yourself:
• “What can I realistically achieve in this call?”
• “What can I realistically expect?”

Obviously, “realistically” is a key word in planning your call. You must keep
in mind what you would like to accomplish, time constraints, place in the
sales process, and any other issues, as well as your client's own agenda
items, concerns, emotional state, etc.
Examples of goals:
• Get an order • Respond to a request for further information
• Receive a referral • Submit a proposal
• Advance your proposal • Advance your idea in the organization
• Provide information • Follow-up meeting to solidify final details
• Get the prospect to try a sample • Present a demo of your product/service

Your job is to continually move the sales process forward.

While gathering information before the call or even when you're in the
middle of a call, you may uncover something that will cause you to adjust
your goals. Just keep the sales process moving forward!

Gather Information before the Call

Generally, the more work you do up-front, the more knowledge and
confidence you'll have. You'll avoid some surprises, wrong turns, and dead
ends. And the more you know, the easier it is to focus on the customer and
any additional information that surfaces during the call.
Research: Gathering the most current information before the call lets you
address the customer's needs, questions, and concerns more quickly. It
also shows professionalism and demonstrates your credibility.
Think of pre-call planning as gathering the basic maps and travel
information before you actually start the journey to your sales goal.
What do you need to know? Any and all relevant background information
on the individual, the company, and the industry. In other words, find out
anything that may impact your prospect's needs and choices.
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 Avoid “winging it”: Your past experience can provide important insights,
but don't rely on it exclusive- ly. “Winging it” is not a good idea. The most
effective salespeople use their experi- ence along with their research to
achieve their goals.
Where to get information: As a sales professional, pre-call research and
planning are critical to your success. Determine what you need to know
and then where to go for the information.
Generally, there are three source areas available to you:
• Your company's records
• The customer's company
• Market/public domain

Occasionally, there may be other sources that can be helpful as well.

ERC Consultants, Inc. • 7

 The Socratic Opener
Start Socratically—Invite Your Prospect or Client to Speak
Open your sales dialogue Socratically to encourage your prospect or customer
to share information. You are letting the customer drive the discussion. You
are the navigator; the customer is the driver. Your goal is to understand your
customer’s situation, to guide your customer towards the sale.
Opening Socratically will do several things:
• Set a positive tone for the conversation
• Show the prospect that you are prepared to meet her needs by listening to the issues
• Create a structure for the conversation
• Help establish a comfortable environment for both of you

Plan and Practice Your Socratic Opener

The Socratic opener is an invitation for the client to talk. You're face-to-
face with your customer, how do you open the dialogue?
Each time you prepare an opener, practice aloud until you can
comfortably deliver all three parts of the opener in language and phrases
that sound like you and that fit the situation and the customer.
We recommend using a Socratic Opener with these components:
Preparation: You, the salesperson, are prepared
Invitation: The prospect is invited to share thoughts first
Benefits: The benefits will address what is important to the prospect

Example 1
Preparation I'm ready to discuss __________ but you may want to talk about other subjects as well…
Invitation …If you could begin with what's most important to you…
Benefits …We can address that first.
Example 2
Preparation l’m prepared to talk about __________ which we discussed on the phone…
Invitation …but first, I'd like to know a bit more about where you're coming from…
Benefits …that way, we can focus on what's important to you.
Example 3
Preparation I have come prepared to talk about ________ but I know your point of view is what matters most…
Invitation …if you could give me the picture as you see it,…
Benefits … our meeting can address what's important to you.

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 Active Listening
Confirm Your Understanding
For the first part of your sales journey, you should let the customer lead
you to a full understanding of the situation and needs. So, you need to
listen well. But how do you do that?
In a sales meeting, active listening is more than merely paying attention.
To listen actively is to work, mentally and verbally, to ensure the
customer’s meaning is understood.
First, you need to understand what happens when you listen. Listening is
actually a process — a series of physical and cognitive steps that have to
be completed accurately.
Good listening, however, requires more work than just taking in sounds.
Your goal is to understand your prospects and clients—even when they
are not being clear or do not offer you enough information. Good
listening requires that you focus, process, question, verify, and take notes
on what you hear.
That assurance must come from the prospect. To be sure you have
understood, you should play back what you have heard. Playbacks are
naturally led into with phrases like:
• If understand you correctly… • I hear you saying…
• Let me see if I have this… • So, what you're saying is…
• As I understand it… • In other words, what you're telling me is…

There are three reasons for playback:

• Demonstrate that you're truly attentive
• Trigger more information
• Confirm understanding of what has been said

Playbacks synthesize details or conclude discussions of important topics

before the dialogue continues.

What are the benefits of Playbacks?

• Prospects realize you take them seriously
• You are seen as an attentive listener
• Playback through rephrasing is proof of listening
• Unlike parroting back the same words, rephrasing requires that the listener grasp the concept
• When prospects hear their own concepts played back, they know you've listened

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 Active Listening
What happens when you play back facts? Your prospect or client will often
respond to the playback in one of these three ways:
• Corrects/Modifies: No/Yes, but...
• Adds information: Yes, and...
• Confirms: Yes

Examples
If the salesperson's playback is not accurate, clients will correct or modify it.
They welcome the opportunity to make sure their thoughts are understood.

Client Salesperson
We've had serious delays in production because of (Plays back) If I understand you correctly, your
delivery problems with our current suppliers. It costs us production costs increased because of late
a lot every time it happens. deliveries from your suppliers.

Client
(Corrects) Not late deliveries. They don't supply
exactly what we ask. They assure us we're
getting, the equivalent, but it doesn't always
work out that way. By the time we get what we
want from the supplier, we are behind schedule
in production.

Here's a playback that induces the prospect to add valuable information:

Salesperson
What are our long range growth plans?

Client Salesperson
We are currently in production at only one site. (Plays back) So, I hear you saying you are
We'd like to service our customers from facilities interested in opening some new plants.
that are closer to their locations.

Client
(Adds information) Yes, as many as five new
plants over the next two years. But our main
concern is choosing the right equipment.

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 If the playback elicits simple agreement — a Yes, that's right! or silence, the
client has nothing to add at the moment:

Client Salesperson
Our volume was up 20% in the last year, but we still (Plays back) In other words, you're running out
have only 100,000 square feet of warehouse space. of space.

Client
(Agrees) That's right.

The prospect's simple agreement is a cue for the salesperson to continue.

Note how the salesperson led into the playback in the examples:
• If I understand you correctly…
• So, I hear you saying…
• In other words…

Non-Verbal Signs of Attention

Welcome Signs: When you enter your client’s office, smile and shake hands.
Don’t sit until you’re invited to — you’re in their space, it’s a sign of respect.
Visual Signs of Attention: Make sure your client sees that you’re paying
attention. Create eye contact, sit comfortably, lean forward flexibly, and
nod to signal your understanding.
Oral Signs of Attention: Offer verbal cues to indicate to your client that
you’re listening.

Taking Notes
Taking notes is an integral part of your sales success. It ensures that you
have a record of what was said and can follow up appropriately. Some tips:
• Look down – Take quick notes without making eye contact, re-establish it quickly
• Use verbal cues (uh-huh, I understand, good) to encourage your client to speak
• Pay attention to the exact words a client uses to describe a need – It will help for future quoting,
which will confirm your understanding
• Keep notes brief

Listening Leads to Listening

If you listen with patience and discipline, the prospect will be more likely
to listen to you. By modeling positive, collaborative communication, you
foster it. And THAT builds great business relationships.
Remember, as long as you're gathering valuable information, you are
moving the sale forward by pinpointing the customer's needs. The only
way to sell intelligently is to listen actively.

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 Play Back Facts and Feelings
So far you have worked to be quiet and listen. But good listening also
involves interaction. It involves playback and questioning.
Playback, also known as paraphrasing, is one of the most important
communication skills—and one of the least used. It allows you to make sure
that you heard accurately and interpreted correctly. It also verifies that the
speaker actually said what he meant.
Also, paraphrasing shows the other person that you really were listening
and that you care enough to get it right.
Remember, playing back does not mean you are agreeing with something.
It simply shows that you have accurately heard what was said.
Play back facts Play back feelings
Paraphrase what was said to ensure People talk to each other for five reasons:
accurate interpretation. Use your words
• To connect or socialize
to check the meaning.
• To vent or share feelings
• To share information
• To persuade
• To entertain

People's feelings often drive what they say and how they act. It's important to
pay attention not only to what they are saying, but how they are saying it.
If a prospect displays a strong emotion—positive or negative—acknowledge
those emotions. State that you recognize that he is excited, happy,
frustrated, upset, concerned, etc. Expressing emotions is one of the reasons
people communicate, so acknowledge any emotions you hear.
You are building the relationship by demonstrating that you are listening
to the prospect as a person, not just to the facts he is giving you.

The benefits of playback

When you play back, one of three things will happen, and all are good:
• If you play back what the prospect has said, the prospect may correct or modify your playback:
“No, that's not it.” Or, “Yes, but...”
• The prospect may add information: “Yes, and...”
• Or, the prospect may confirm the accuracy of your playback: “Yes”
In each case, productive dialogue advances. And as the dialogue advances,
so does the relationship.

12 • Socratic Selling Skills

 Playing Back
Facts Feelings
• Use a lead-in statement Use lead-in statements to acknowledge
any strong emotions that surface.
• Then, re-cap what was said.
Lead-ins for playing back feelings:
Lead-ins for playing back facts:
• “You sound...”
• “If I understand you correctly...”
• “You look...”
• “Let's see if I have this...”
• “You seem...”
• “I hear you saying that...”
• “I can see that...”
• “In other words...”
• “I get the feeling that you're...”

Remember:
Don't “parrot” the same words, use your own. Verbatim repetition can be
annoying and doesn't check meaning. When prospects hear their concepts
played back, they know you've really listened.
Numbers, names, dates, and “quotes” are important to focus on when
listening. Let your prospects know you've heard the facts accurately by
playing them back.
If you hear complaints or disagreements, don't argue or try to discuss
them at this point. Focus on listening and understanding the speaker.
When you play back, you are not agreeing. It simply shows that you
heard what was said.

Verify
After playing back, use a yes/no question to verify that your playback is accurate.
A speaker only knows you've understood when you demonstrate it. Saying
"I understand" doesn't prove that you do. That's why playback is so
important. Clarify and confirm to guarantee understanding. If you don't,
you're making assumptions that can create misunderstandings.
Examples:
• “Is that right?”
• “Did I get it?”
• “Is that what you meant?”
• “Do I have that accurately?”

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 Socratic Probes
There are five tools for probing: Closed, Sub-decision, Qualifying, Open
and Socratic Probes.
Closed Probes
Closed probes target information you need to make a proposal or close a sale
• How much? • Where?
• How many? • When?
• How often? • What kind?
• Who? • Questions answered by Yes or No

Open Probes
These probes invite prospects to speak at length. The most commonly used
probes of this kind are: What...? Why...? How...?
Though questions beginning with these words can be productive, the
salesperson has to find the words to complete the question. Not so with
Socratic Probes.

Socratic Probes
Socratic Probes, such as Tell me more, are easy to remember and apply to
most situations.
Here are five very productive Socratic Probes:
• Tell me more…
• What else should I know… ?
• Why do you say that… ?
• Echo
• For example?

These probes are difficult to answer with a word or two, they:

• Invite explanation
• Lead the prospect to stop and think
• Help prospects reach deeper into their experiences
• Encourage clients to share vital information that might not be revealed through closed questions

14 • Socratic Selling Skills

 Client Salesperson
Our present system is inadequate for tracing lost Please, tell me more about that
deliveries.

Client
(Elaborates) We can trace a package if we lose
it on one of our own carriers. But if they’re not
available, we put it into any air cargo space
available. So, if that carrier makes a routing
error, it’s difficult to assure a customer—who is
already upset—that we are on top of the
situation. We have no idea where the package
is. So we get into a really tough spot.

In response to Tell me more, the prospect supplies key facts about a

business problem and communicates a sense of urgency about solving it.
This information ultimately can lead to greater understanding and a
successful close.
You can also select a particular point by echoing a word or phrase.

Client Salesperson
I don't have time to start over with a bank officer. Start over?

Client
In the past, several bank managers handling
our company's business were moved to other
functions. I don't want to repeat that
experience with your bank I'm looking for
continuity.

The echo is a probing device often used in ordinary conversation. Don't

overlook its usefulness as a probe in the sales situation. Another selector of
key facts is the phrase For example? With Just two words you induce the
speaker to be more specific about a point just mentioned. Therefore, For
example? is effective when you receive general information from a
prospect and you want more.

ERC Consultants, Inc. • 15

 Surfacing Motivators
A sales dialogue is influenced by human feelings. Though the discussion of
needs revolves solely around the many facts that describe the needs, a
current of feeling runs through the dialogue.
The prospect has varying degrees of emotional response to the needs. They may
have a strong, positive desire to satisfy the needs, or may simply dislike having to
cope with an unresolved problem. Either way, the needs are connected to feelings.
These feelings drive the sale. Needs can remain at a low level of priority
until a prospect feels strongly enough about the needs to do something.
In any business discussion, feelings often remain unspoken. Just the facts,
please. If the discussion is between a salesperson and a prospect, they may be
more reticent than usual. The prospect or client may not know you very well.
If you are a familiar face or a current supplier, the prospect may not want
to appear eager to buy. At least during the initial part of the dialogue, the
prospect's feelings are hidden from you, the salesperson.

Probing Feelings
To surface motivators, use one of these motivator probes:
• How does this affect you? • What bothers you most about this?
• Why is this important right now? • I sense this means a lot to you
• I sense frustration

In response to these probes, you may get emotional statements:

• I've been stuck with this for so long now… • I've been trying to get this done…
• How much longer can they just sit on this… • There's a lot riding on this…
• Our backs are up against the wall… • What kills me about this is…
• If I could get senior management to see… • It drives me crazy that…

Recognizing these personal motivators is relatively easy, but how you react
to them is more difficult. Your general inclination may be to ignore them
instead of acknowledging them.
As you listen, read the signals — both the verbal (what is said) and non-
verbal (how it is said: facial expression, body language, tone of voice).
Acknowledge any signals you pick up. Use statements like:
• “I can see how important ________ is to you.”
• “It seems that ________ will really affect you individually.”
• “That sounds like a critical issue for you.”
• “It looks like you're under some pressure to______.”

16 • Socratic Selling Skills

Choose your phrases carefully based on the situation and on the signals
that you pick up. Keep the conversation “real.”
Sometimes the prospect's concern shows in a tense facial expression. The
prospect leans forward to introduce a key point. Sometimes you can hear
agitation or urgency in the tone of voice.
If the prospect begins to express feelings that are behind the need. Encourage
further discussion. Stay with those feelings. You are partner to a valuable revelation.
Show that you are tuned into feelings by saying, I sense concern or I sense
frustration.
Sometimes the prospect's motivation may be spread through several layers
of feeling. One of those lavers may be personal. For example, Bill may be in
over his head and fear for his job. You may be the person to help him to
dry ground. Bill is unlikely to share this with you, an outsider, at the outset
of his meeting with you. Instead, he will hide this strong motivator. He
wants to assess whether or not you can help him.
Another prospect, Florence, has had little opportunity to display her
problem-solving ability. You, as an alert supplier of a fresh and new
product/service, can make this prospect a star in her organization. Call it
burning ambition or smoldering, frustration, Florence's feeling is real.
Bill and Florence are motivated by personal, individual needs needs that
are distinct from the needs of their companies.

Summary
If the relationship of trust has indeed been building throughout the dialogue,
the prospect is likely to reveal the hidden motivator. And once the prospect
has shared that concern — anxiety, worry, frustration, disappointment, desire -
you are an ally! The prospect's confidence in you becomes even greater.
This positive element in your relationship with the prospect makes you
unique among your competitors.
The prospect's confidence ultimately may be the strongest factor in the
decision to buy.
It can be the tiebreaker when there is product parity.

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 Subdecision Probes
A sale is closed when the prospect agrees to buy the salesperson's product or
service and both prospect and salesperson agree on steps to put the sale into
action. For example, it would be important to agree on a date for the
product to be del delivered or a service to begin. Other decisions concerning
the sale are also necessary, e.g., a determination of volume, frequency, or
method of delivery. Decisions on these matters, taken together, confirm the
fundamental agreement between prospect and salesperson. We refer to
these decisions as subdecisions.

Subdecisions
Usually, the subdecisions have to do with the specification of persons,
places, quantities, and dates involved — or, in short, the answers to closed-
ended questions such as:

• “What kind?” • “Who?”

• “When?” • “How many?”
• “Where?” • How often?”

Some of the subdecisions may be easy for the prospect to talk about.
The prospect may express a firm commitment to having the product/
service delivered at a certain location (”Where?”). The prospect may talk
at length about the persons in his company who will use the product/
service ("Who?”). And if the prospect's needs and your recommendation
have been discussed, then "What kind" of product/service has been
specified. Yet the prospect may still be hesitant about the fundamental
decision to buy.
If indeed the prospect is hesitant, two of the subdecisions are more difficult
for the prospect to talk about: quantity ("How many?") and time ("When?"). If
the salesperson asks, "How many do you want and when do you want them?"
the prospect will feel pressured. In this case, "How many?" and "When?" are
often questions the salesperson should not ask directly.
The Socratic close Is a series of questions planned before the call which,
when asked without pressure, result in the prospect thinking out loud
about the close.

A subdecision probe:
• Begins with a hypothesis ("if you were to...") about the fundamental decision
• Asks a conditional question about a subdecision
• Avoids pressure on the prospect
• Does not presume the buyer has bought

18 • Socratic Selling Skills

 Example:
"If you were to lease a fleet of vans, how many would you be considering?" Note the hypothesis
"If you were to" about the fundamental decision to "lease." Note the question about the
subdecision "how many.," the conditional mode "would…"
Another example:
"If you were to go ahead with training, when might it take place

Note that the fundamental decision to proceed with training is hypothetical

("If you were to…”) and the subdecision is specific (“when…?"), To the point,
yes, but no pressure.
To better understand the mechanics of the subdecision probe, understand
that a conditional lead-in focuses the prospect on a subdecision:

Lead-in Subdecision
Begins with "If you were to…” Asks one closed-ended question, e.g.,
"When?" or “How many?”
Avoids "I" or "we" Avoids "I" or "we"

The use of "I" or "we" creates pressure and should be avoided. The use of
"you" or "might you" is softer "you" and more effective. It extends an open
hand to the prospect. Avoid using your product or company name as well.
Do not say, "If you were to buy my training…"; do say, "If you were to conduct
some training…” The latter doesn't presume the person will buy from you. It
will elicit an answer more predictably.

The benefits of a subdecision probe:

• The prospect visualizes the aftermath of the sale — and begins to see it happen.
• The prospect begins to think out loud, providing you with valuable information.
• The prospect makes key decisions which facilitate the final close.

ERC Consultants, Inc. • 19

 Present your Proposal
Here’s the moment to present your product or service. Given the fact that
businesses vary in their approach, you would do this one of two ways:
• Through an initial recommendation
• Through a formal proposal

Initial Recommendation
Up to this point, you have opened the conversation socratically, listened
actively and probed. Your client has done most of the talking. You have
been guiding the conversation and acquiring information, which includes:
• Current Situation
• Desired Situation
• Obstacles/Challenges
• Motivators
• Resources, Authority, Probability (and other critical details)
• Past Solutions

After you have fully played back the situation as you understand it and the
client agrees, you’re ready to present an initial recommendation. This will be
targeted to the needs you discovered during the first part of the dialogue.
Choose your information and support material carefully. Make sure your
information, strategy and benefits are relevant to the needs and concerns
your client expressed.
Deliver your recommendation confidently. Quote the clients words back
to them, where its advantageous.

Sales Recommendation Format

1. Summarize Needs
2. Find opportunities to quote back client “As you were saying…”
3. Recommend your product/service
4. Sell features and benefits
5. Relate each benefit to a need the client mentioned, another benefit of good notes and quoting

Your client will either agree and close, modify or set a new meeting, because:
• They’re not ready to buy
• Questions and objections come up that require further internal discussion and strategy

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 Presenting a “No Surprises” Proposal
By the time you make a proposal:
• You should know exactly what your buyer needs.
• Your prospect should have a very good idea of what to expect. No surprises.

The proposal step is not the time for surprises! You should not be coming
in with a $200,000 package if the budget is $100,000; your delivery should
not be six months away if the need is immediate. A proposal must be
responsive to what has been discussed and agreed to.

Keep the proposal format simple:

1. Summarize the agreed-upon needs and motivators.
2. Summarize the subdecisions
3. Elicit confirmation of your summary
4. Position your company by reviewing its credentials
5. Make your specific recommendation.
6. State the benefits and tie back benefits to agreed-upon needs and motivators
7. Identify the next steps to close the sale.

Some points to remember:

• If you plan to bring a resource person to the next meeting, let the prospect know.
• Try to have all decision-makers on the prospect's side attend the meeting
• Know the ground rules:
• exactly how much time you'll have
• whether or not there will be a question-and-answer period
• What visual aids you will be able to use
• whether or not anything needs to be furnished in writing, either in advance or during the meeting

ERC Consultants, Inc. • 21

 Handling Questions
When a prospect asks a question about some area of your business, we
recommend that you:
• supply a short answer, then add
• "Why do you ask?"

If the prospect's answer doesn't give You enough information, probe

further with Socratic probes such as "Tell me more."
Hastening to answer before you're sure of what is behind the question can
lead to a over-eager response.
In this example the prospect is seeking to stock consumer goods:

Client Salesperson
“Do you accept returns?" "It's not our policy. Over the years we have
found that if we accept returns, our customers
will not commit to moving the goods. That works
to our mutual disadvantage. So we've
established a firm policy of working out all the
arrangements beforehand. So that once a
customer buys, he owns the goods. I'm sorry
about that, but that's the way it is."

Client
"Well, I've been stuck with an inventory of torn
labels and crushed cartons. To my customers,
that means damaged goods inside. There's no
way I'm going through that again."

And with that dialogue, the relationship is set back. A short open-ended
answer and a "Why do you ask?" would put the salesperson in a better
position.
Client Salesperson
“Do you accept returns?" "It's not our general policy, but why do you ask?"

Client Salesperson
"I've been stuck with an inventory of torn labels "Now I'm clear on what you mean. Should the
and crushed cartons. To my customers, that label or carton be damaged, what we can do is…”
means damaged goods inside. There's no way
I'm going through that again."'

Even if the salesperson's management policy is restrictive, the salesperson

can have a useful, productive answer.
22 • Socratic Selling Skills
 Handling Objections
The procedure for negotiating objections has three steps:
• Socratic probing to make the objection specific
• Isolating the objection
• Offering options

Probe to Make the Objection Specific

The procedure goes like this:
A. Play back the objection. It's critical that you let the prospect know that you heard the objection.
B. Ask for clarification. After playing back the objection, ask, "Why do you say that?" – Most
objections are stated in general terms. Unless you know exactly what the specific objection is,
you can't possibly answer it.

Client Salesperson
"You're too expensive." (Plays back) "You find us too expensive. (Probes)
Why do you say that?"

Client
"Your competition is ten percent cheaper."

Now the salesperson knows what was specifically meant by the objection,
"You're too expensive." The prospect's answer could also have been:
• "Our cash flow won't permit a lump sum payment," or
• "Add the cost of hiring someone to operate the equipment to your price and you're talking
about a fortune," or
• “Your quote puts us a little over budget."

Each of these answers reveals a different reason for the objection, "You're
too expensive." By failing to pursue the specific point of the objection, the
salesperson risks missing the whole point of the objection. Each specific
objection could elicit a different response from the salesperson, and a
different solution. So you have to probe for specificity.

ERC Consultants, Inc. • 23

 Isolate the Objection
Once you get specificity, isolate that objection. The formula goes like this:
"Suppose we could resolve that issue (and I know it's not resolved right now, but just suppose we
could), are there any other issues standing in the way of our doing business?"

The prospect may say there are no other objections. In that case you can
focus on the one you have identified.
If your prospect mentions additional issues, follow the same procedure to
make sure you understand exactly what each objection is specifically. First
make the objection specific, then isolate the objection.

Offer an Option
To overcome a specific, isolated objection, offer an option as a possible
solution. The procedure goes like this:
1. " You said (plays back the objection) your cash flow wouldn't permit a lump sum payment of that
size at this time."
2. (Offers options) —" What if we could arrange for a spread of payments over a six-month period?
Would that possibly meet your cash flow?"

If the prospect's response to any options you offer is positive, confirm the
sale. If not, try another.

24 • Socratic Selling Skills

 Closing
The Socratic close requires these steps.
1. Summarize the subdecisions.
2. Reaffirm agreements on subdecisions.
3. Close by calendaring the next steps.
4. Nail down specifics on the calendar (date, time, location).

Summarize the subdecisions. Use a lead-in that indicates that the prospect
had indeed made the subdecisions:
"As I understand it, you want to involve 20 of your managers in this process. Los Angeles is the desired
location, and we should begin in the second half of next month. Is that right?"
It's a good idea to have the prospect confirm agreement. The question
"Is that right?" can be effective. Another useful question is. "How does
that sound?" or "How am I doing?"
If your summary is on target, the prospect will agree.
The whole process revolves around accomplishing what the prospect said
he or she wanted. So we recommend the phrase:
"In order for us to accomplish this for you, let's get out our calendars and schedule the next steps."

Alternative phrases for "schedule the next steps" might be:

• "map out a schedule"
• "work out the next steps"
• “look at possible timing"

The real close revolves around timing.

The close takes place when the prospect commits on the calendar. In some
cases the close completes the sale; in others it is a commitment to next steps.
The timing has to be specific. Sometimes the close will be an arrangement
to meet with the prospect's boss. That's acceptable so long as It's specific
(next Friday, 10 a.m., at this location).

ERC Consultants, Inc. • 25

 Contact
David Charner, your trainer and the President of ERC Consultants, can be
reached at:
david@erc-consultants.com

ERC Consultants, Inc. - Business Communication Training in English,

Spanish and Portuguese.
• erc-consultants.com
• facebook.com/ercconsultants
• twitter.com/ercconsultants

26 • Socratic Selling Skills