How To Close The Deal

This episode of Four Minute Fixation is packed with actionable information.   If you want to develop deep relationships with your clients you can’t think about “closing” things. You have to think about opening doors.

The closing process in the Valtimax Selling System is about gaining agreement.

There are three steps to the closing process in the Valtimax Selling System.

After you understand what the client wants, what he needs and what he’s trying to avoid you offer him options to work with you to achieve those goals.

Then you verify the value you will be delivering him and the value he will be providing you.

Finally, you confirm his commitment to your relationship.

If you’d like to watch the other videos in the sales series on Four Minute Fixation you can find them here:

Seven Steps to Selling Success – This is the introduction to the Valtimax Selling System

How To Eliminate Cold Calls Forever – This is the introduction to the two-step selling process that eliminates cold calling.

How to Start A Sales Conversation – Want to start a relationship? This episode of Four Minute Fixation will help you.

How To Build Better Relationships With WNABE – Discover the methodology that will make your prospective client your best friend and your biggest fan.

If you want to read the transcript of this episode of Four Minute Fixation it is right here:

How To Close The Deal

Shouldn’t we always be closing? I’ll answer that question and more right now. Come on with me. Today, we’re fixated on closing the deal. People have asked me ever since I introduced the Valtimax selling system, how I know when a deal is closed, because in the Valtimax selling system, there is no specific step that says “close the deal.”

We like to teach people that the close of the deal really comes when you come to agreement with the client on the value you’re going to provide and the value he’s going to give you in exchange. This is essentially steps four, five and six and the Valtimax selling system.

Step four is offering choices of options. Step five is the value agreement and step six is that verification of value. Let’s take each of these steps and demonstrate how they lead to a closed deal.

In step number four of the Valtimax selling system, and by the way, if you haven’t familiarized yourself with the Valtimax selling system, I’m going to include a link to the Valtimax selling system video in the information that’s right below this video.

That video is titled “Seven Steps to Sales Success.” I wanted to make sure I got that right because it’s kind of a Dr. Seuss rhyme. “Seven Steps to Sales Success.” Look for that video and it will explain the whole Valtimax selling system and there are other videos, along with that one, that explain step-by-step the parts of the system that proceed this.

Step number four is offering options. Whenever you come to an agreement with someone you don’t want it to be a take it or leave it. Take it or leave leaves yourself open to a lot of negotiation and it makes the client feel kind of bad. They feel like something is getting crammed down their throat. You always want to offer people options and you should have discovered what their budget is prior to making them an offer and you should always offer them an option within their budget range.

You also want to offer them two other options that meet their needs and introduce them to things that they’re going to need in the future.

For example, if you were selling cars, what you would is you would say, “Mr. Smith, I know you have a budget of $40,000 for a car. Here’s basic car A, which is priced at $39,500 and here is an upgraded version of basic car A, which includes leather seats, air conditioning and a whole host of other things that you say you didn’t need, but you live in Phoenix, Arizona and it’s 100 degrees five months of the year in Phoenix, so you really need air conditioning and you need leather seats, so that when you spill something on the seats, you can just wipe them off because you said you have four kids. You also need automatic transmission, because you live downtown and there’s a lot of traffic lights.

Option A doesn’t come with those things. Option B comes with those things and you really do need it. It’s $45,000, whereas Option A is $40,000. Then we have option C, which is a completely different car, but it says a lot about you. You said that you use your car for work a lot. You say that you transport your clients a lot. Option C is a total luxury vehicle and it presents you in a way that your clients will really respect and will appreciate that you’re a man of success, style and elegance. Option C is $65,000.

We have option A, which is exactly what you budgeted. Option B, which is a little bit more than what you budgeted, but really is what you need and then Option C, which is a statement about you, which you might want to consider.”

You’re offering him three options of “Yes” versus a simple “Yes” or “No.” We do this all the time in sales businesses. I do this with lawyers. We do this with the practice of law. The practice of law, option A, would be just covering exactly what you asked for and it would exactly meet your budget. Option B would be covering what you asked for and also three things you didn’t ask for that you really do need and then Option C is covering what you asked for, three things you didn’t ask for but you really do need and five other things that will prevent this from ever happening again. Option A, Option B, Option C. Choices of yes.

That’s the first part of the close and it’s step four in the Valtimax selling system. Step five and the second part of the close is the value agreement. Mr. Smith discusses it with you. He picks one of the cars. Let’s say he picks the one in the middle. He picks option two. It’s $45,000.

You sit down with him and you say, “Okay, Mr. Smith. Based on our conversation, I’ve written up exactly what we’ve discussed. You said you wanted Option B because the leather seats were important to you because you have four kids and they’re always spilling stuff. You said you wanted air conditioning because you live in Phoenix and it’s hot as heck 52 weeks of the year. You said you wanted automatic transmission because you live downtown and there are lots of traffic lights. I provided that for you. That’s the value you’re going to to receive. You’re going to be driving around, not only in comfort, but also in style. You’ve agreed to pay us $45,000 in cash right now. As a result, that’s the agreement. Are we set on that?” “Yes, we’re set.”

You shake hands and then after you shake hands, the paperwork is signed and everything is good. That’s the value agreement. You’re simply restating the option that he picked, the reasons that he picked it and the fact that he agreed on it.

The third step in the closing process and step six in the Valtimax selling system is the verification of value. Everything is signed. The money is presented right there. You leave the money sitting right in the middle of the table. Put your pen down.

You sit back and say, “Mr. Smith, I know this was a huge decision for you. I’m grateful that you’ve chosen us. I just want to ask you a couple of questions. I know option two is not what you said you wanted when you came in here. I know you wanted option one. You wanted just to go with the budget that was maximum $40,000. This is $5,000 more than that. I know you said you wanted the gold car and the only one that we had was a beige. I know you said you wanted that. I want to make sure you’re okay with everything before I have you sign the agreement or before I take the agreement that you’ve signed and before I take your money. I want to make sure you’re okay with it. There’s nothing that would prevent you from fulfilling the terms of this agreement. Is there?” Then you wait.

Obviously, in the purchase of a car, if he paid upfront, you’re not going to use the line, “There’s nothing that would prevent you from fulfilling the terms of this agreement.” In the service business, we use that all of the time. Here’s the thing. This step, step number six, the verification of value is really important.

The reason it’s so important is because it cements the agreement in the mind of the client. It really holds it together like glue, because you’re giving him the opportunity to back out. If he doesn’t do it in front of you, he will never, ever do it. Here’s the reason why. Let’s say he gets home and he hates the car and his wife is pounding away at him. “You shouldn’t have gotten that car. You wanted the gold and they gave you the beige. You wanted the gold. They gave you the beige.” He hates it. He had the opportunity to say no before the deal was done. He had the opportunity to say no after he signed the agreement and before you took the money. Once you gave him those two opportunities, that choice is cemented in his mind.

The psychological principal of consistency has set him for life, or at least the life of that vehicle. Whatever you do, don’t be afraid to give the person the opportunity to back out by saying, “Is there anything that would prevent you from fulfilling the terms of this agreement?” A better way to say it, to leave yourself even more vulnerable, and I cover my belly when I say that because that’s where I feel most vulnerable is to say, “What might prevent you from fulfilling the terms of this agreement? What might keep you from fulfilling the terms of this agreement?”

Then wait for an answer. Nine times out of ten, the answer will be nothing. If they say something that will prevent them from fulfilling the terms of the agreement, you say, “On a scale of one to ten with the ten being absolutely, one being never, how likely is that to happen?” Most of the time, they’ll say never. If they say anything else other than a one meaning never, you say, “Let’s talk about it. What would possibly prevent you from fulfilling this agreement? When do you think that would happen? How would that happen?”

Let them talk it all through. Occasionally, one time out of a hundred, you will have somebody say, “You know what? This isn’t right for me,” and I will tell you, you’re better off. The reason why, that person would be a headache for you in the long term. They would file some sort of complaint with the Better Business Bureau or, God forbid, the State’s Attorney General and you’d have a real issue on your hands, or they might just try and come and return the product or ask for their money back from the service.

Better to know that upfront than to try and deal with it right at the closing table than it is to try and resolve the issue afterward. Those are the three steps in closing the deal for the Valtimax selling system. Options. Always offer three options. That’s step number four in the first part of the close. Step number five in the second part of the close is the value agreement. The client gets this. You get this. That’s the value.

Step six, verification of value. Understanding what might happen or what could potentially happen and preventing it. This has been the Four Minute Fixation on Closing The Deal. I’m Dave Lorenzo and I look forward to seeing you next time at Four Minute Fixation.

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