Here’s what we will cover:

2. Here’s what we will cover: • SPIN Selling’s relationship to PSS • SPIN Selling’s overall objective • SPIN Selling’s Four Phases • SPIN Selling’s Four Questions • SPIN Selling’s relation to success Read it !

3. The PsychologyofMajor-sale Selling by Bob Scullin July 13, 2014

4. How SPIN Selling relates to • SPIN Selling is what successful brokers use to be successful. • If you are already successful, SPIN Selling could help you be even more successful. • If you are still chasing success, SPIN Selling can be your road map to success. • In any event, it makes sense to do what successful brokers do. Success

5. How SPIN Selling relates to • What is SPIN Selling and how do you use it to achieve success in real estate? • Today you will learn what SPIN Selling is and how to use it. • Today we are going to take apart the process of SPIN Selling. • On Monday it will be up to you to put to work what you will learn today. • So let’s get started…. Success

7. Just do what successful brokers do...

8. SPIN Selling Overview • SPIN Selling demonstrates how to conduct major-sale transactions. • There is a difference between selling small-ticket items and big-tickets items. • The difference is that small-ticket items are sold on the spot • big-ticket items require many sales calls over a prolonged cycle.

9. PSS Compared to Spin • Xerox’s Professional Selling Skills training is excellent background for sales in general. • It looks for on-the-spot decision making. • SPIN Selling prepares the sales professional for engaging in long-term sales relationship. • It seeks to create a sales ally who internalizes what the broker is proposing, • makes it his own and • enables him to sell the proposal in the interval between sales calls.

10. Relationship Creates Understanding • Basically, SPIN Selling is the process of building a relationship with the client… • The client grows to trust the broker. • The client understands the solution proposed by the broker to solve the client’s problem. • This element of understanding is critical because it allows the client to internalize the value of the proposed solution. • The client is helped to arrive at the solution himself with the guidance of the broker over the sales cycle.

11. Key concept: Advance • Each sales call must achieve the objective set by the broker before the sales call. • The immediate objective will not usually be the signing of a proposal to buy or lease. • The objective will be to move one more step closer to long-term goal, to “advance” the process toward the ultimate objective. • The broker must determine what “advance” she expects to achieve with each sales call.

12. Career Counseling • If the broker understands this process, then a cause of career frustration can be eliminated. • The big-ticket sales process will not permit a sale to close quickly. • The process will require multiple sales calls. • The broker’s job is to make each call advance toward the objective and to accomplish the goal in as few sales calls as possible. • The broker must know what the ultimate objective is and how each sales call contributes to achieving the objective.

13. The Long View • The objective of SPIN Selling is to accomplish a long-term objective • not to “close” an immediate sale, as contemplated by Xerox’s Professional Selling Skills • The salesperson’s objective is determined in advance • The entire cycle seeks to validate the proposed solution • SPIN Selling requires patience and maturity, while PSS requires enthusiasm and aggressiveness.

14. Preparation is crucial • The importance of preparation cannot be understated. • The broker must work backwards in preparing for each sales call so that each meeting advances towards the objective. • He must think through how each sales call will lead the client ultimately to trust the broker and accept the proposed solution. • He must build client-confidence by demonstrating his competence in each meeting.

15. Climb into the Trenches • If the broker does his or her job well… • the client will climb into the trench next to the broker • the client will fight side by side with the broker to accomplish the proposed objective. • The client will climb into the trench because the broker’s proposed solution solves the client’s problems. • The process of SPIN Selling has helped… • the client to understand the value of the proposed solution as being in the client’s best interest • the broker achieve the ultimate objective of collecting the commission.

16. Demonstrating Capabilities Obtaining Commitment Preliminaries Investigating 4 Phases of Spin Selling

17. 4 Phases of Spin Selling Preliminaries

18. Investigating Demonstrating Capability Obtaining Commitment Preliminaries 1. Preliminaries • Warm-up events at the start of the call. • There is no one best way to open a sales call. • Successful brokers rarely open two calls in the same way. • Be careful of the time-worn practice of commenting on client’s personal interests.

19. Investigating Demonstrating Capability Obtaining Commitment Preliminaries 1. Preliminaries • Since large-ticket sale involves multiple sales calls, the importance of preliminaries is minimized. • The purpose of preliminaries is to have the client agree that it is legitimate for you to ask questions. • In order to do this you must establish: • Who you are. • Why you are there. • Your right to ask questions.

20. Investigating Demonstrating Capability Obtaining Commitment Preliminaries 1. Preliminaries • Don’t worry about appearing smooth and polished. • Some of the best salespeople appear nervous, self-conscious or hesitant in the early minutes of a call. • The prime stages of preliminaries are the following: • Get down to business quickly. • Don’t talk too soon about solutions. • Concentrate on questions.

21. Preliminaries Investigating 4 Phases of Spin Selling SPIN QUESTIONS: Situation Questions Problem Questions Implication Questions Need-payoff Questions

22. Investigating Demonstrating Capability Obtaining Commitment Preliminaries 2. Investigating • Finding out facts, information and needs. • Use the SPIN Question sequence: • Situation Questions • Probes facts, background and what the client is doing now. • Asking too many questions bores or irritates the client. • Make sure that each question serves a specific purpose.

23. Investigating Demonstrating Capability Obtaining Commitment Preliminaries 2. Investigating • Problem Questions • Probes client problems, difficulties or dissatisfactions. • Not very powerful in major-sale situations. • Should be used sparingly. • Implication Questions • Probes the consequences or effects of the problems. • Major-sale situations contain a high level of these questions. • Crucial element of SPIN Selling process. • Increases the client’s perception of value in the solution you offer.

24. Investigating Demonstrating Capability Obtaining Commitment Preliminaries 2. Investigating • Need-payoff Questions • Probes the value, usefulness or utility that the client perceives in a solution. • Strongly linked to success in major-sale situations. • The SPIN Selling process is flexible and not rigid. • The elements may be used sequentially. • Don’t be reluctant to interweave the use of various elements. • All elements work toward obtaining of the appropriate level of commitment.

25. Investigating Demonstrating Capability Obtaining Commitment Preliminaries 2. Investigating • Before the call, write down at least three potential problems of the client. • Then write down examples of actual questions about these potential problems. • Then write down implication questions to uncover implied problems embedded in the preliminary problems uncovered. • The purpose of questions is to undercover implied needs and to develop them into explicit needs.

26. Investigating Demonstrating Capability Obtaining Commitment Preliminaries 2. Investigating The central purpose of Implication Questions is to identify a problem that the buyer perceives to be small and build it up into a problem large enough to justify action.

27. Demonstrating Capabilities Preliminaries Investigating 4 Phases of Spin Selling

28. Investigating Demonstrating Capability Obtaining Commitment Preliminaries 3. Demonstrating Capability • Showing that you have something worthwhile to offer. • Make Benefits showing how you meet Explicit Needs that have been expressed. • A Benefit is a statement that shows how your solution can help the client. • Benefits decline in value as the size of the transaction escalates. • The most effective Benefit shows your solution meets an Explicit Need.

29. Investigating Demonstrating Capability Obtaining Commitment Preliminaries 3. Demonstrating Capability • The cost of the solution must outweigh the seriousness of the problem. • this emphasizes the important of questioning in the investigating stage. • Make sure that the solutions proposed are in relation to explicit needs so that the solution has greater impact with the client. • The cost and hassle to implement the solution must be counter-balanced by the value the seller has created through the use of implication and need payoff questions.

30. Investigating Demonstrating Capability Obtaining Commitment Preliminaries 3. Demonstrating Capability • Which is better… • to implement Objection Prevention • or to be skilled in Objection Handling? • If you can build the value of your solutions, then you are much less likely to face objections. • The solution lies in better “needs development” rather than in “objection handling.”

31. Demonstrating Capabilities Obtaining Commitment Preliminaries Investigating 4 Phases of Spin Selling

32. Investigating Demonstrating Capability Obtaining Commitment Preliminaries 4. Obtaining Commitment • Gaining agreement to proceed to further stage of the process. • Check that you have covered key concerns. • Summarize the Benefits. • Propose an appropriate level of client commitment.

33. Investigating Demonstrating Capability Obtaining Commitment Preliminaries 4. Obtaining Commitment • As we said earlier, each sales call must achieve the objective set by the broker before the sales call. • The immediate objective will not usually be the signing of a proposal to buy or lease. • The objective will be to move one more step closer to long-term goal, to “advance” the process toward the ultimate objective. • The broker must determine what “advance” she expects to achieve with each sales call.

34. How SPIN Selling relates to Success

35. Running like crazy… Reality Going nowhere fast.

36. How SPIN Selling relates to Success

37. Non-SPIN Selling: a Parable

38. Non-SPIN Selling: a Parable SPIN QUESTIONS: Situation Questions Problem Questions Implication Questions Need-payoff Questions “Hi, I’m Bob Scullin. I am interested in buying a new Mercedes, but my wife wants me to buy the Lexus. I think that the Mercedes would be a benefit in my business, but my wife likes the design of the Lexus better. “I don’t have time for a test drive today, but I want my wife to know a little more about the Mercedes so that I can talk her into agreeing with my choice for my the car. “By the way, I know your cousin.” What did he learn?

39. Non-SPIN Selling: a Parable SPIN QUESTIONS: Situation Questions Problem Questions Implication Questions Need-payoff Questions • What did he learn? • I want to buy a Mercedes. • I use my car in my business. • My wife does not want me to buy the Mercedes. • My wife needs to be sold on buying the Mercedes. • I need help in selling her on purchase of the Mercedes. • I have a personal relationship with his cousin.

40. Non-SPIN Selling: a Parable SPIN QUESTIONS: Situation Questions Problem Questions Implication Questions Need-payoff Questions • How did he approach the sale opportunity? • He never asked what business I was in. • He never asked how a high-image car could help in my business. • He literally ignored my wife’s presence. • He never asked what model I might want to buy. • He gave me 30 minutes of features as his sales pitch. • He never asked how I knew his cousin.

41. Demonstrating Capabilities Obtaining Commitment Preliminaries Investigating 4 Phases of Spin Selling SPIN QUESTIONS: Situation Questions Problem Questions Implication Questions Need-payoff Questions

42. Just do what successful brokers do!

43. Here’s what we covered so far: • SPIN Selling’s relationship to PSS • SPIN Selling’s overall objective • SPIN Selling’s Four Phases • SPIN Selling’s Four Questions • SPIN Selling’s relation to success Read it !

44. Here’s what we covered so far: • SPIN Selling’s relationship to PSS • SPIN Selling’s overall objective • SPIN Selling’s Four Phases • SPIN Selling’s Four Questions • SPIN Selling’s relation to success Read it !