Closing (sales)
Encyclopedia
Closing is a sales
term which refers to the process of making a sale. The sales sense springs from real estate, where closing
is the final step of a transaction. In sales, it is used more generally to mean achievement of the desired outcome, which may be an exchange of money
or acquiring a signature
. Salespeople are often taught to think of targets not as strangers, but rather as prospective customers who already want or need what is being sold. Such prospects need only be "closed."
"Closing" is distinguished from ordinary practices such as explaining a product's benefits or justifying an expense. It is reserved for more artful means of persuasion, which some compare with confidence trick
s. For example, a salesman might mention that his product is popular with a person's neighbours, knowing that people tend to follow perceived trends. This is known as the Jones Theory.
In automobile dealerships, a "closer" is often a senior salesman experienced in closing difficult deals.
This is most commonly used in cold calling after impulsing a customer
Making the assumption the customer has made the decision to buy. The sales person will tell them what they are going to do to complete the sale. "Just pass me your credit card and I'll start the paper work for you, thanks"
Direct Close: Simply ask for the order
"Do I have your authority to proceed with this order?" / "When would you like delivery?" / "Would you sign this order form please?" / "May I confirm your delivery and invoice addresses are correct for this order?"
The Either/Or Choice Close:
"Would you like red or green?" / "Would you like the standard or enhanced package?"
The Half Nelson hold
Close: Used to 'strong arm' a prospect after s/he requests something. "Will you go ahead if we can provide that?"
Duke Of Wellington Close: In the Duke Of Wellington close you make a list or table of positive and negative points, then take each negative in turn and convert it:
"Yes, it does look expensive, I agree, but if you take into account the durability/reliability/performance, then over time this is actually a much cheaper option than taking the cheap and cheerful rubbish, that only......"
Ben Franklin Close: Similar to the Duke Of Wellington close, but the prospect lists feelings vs. thoughts: In one column they write what they feel the benefits would be of owning the product. In the other column they write what they think could be a reason not to own the product. Very often the list of benefits is somewhat longer than the list of cautions. The combination of personally writing the list, and the psychological element of comparing feelings vs. thoughts will often help the prospect see the true value in owning the product.
Sales
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....
term which refers to the process of making a sale. The sales sense springs from real estate, where closing
Closing (real estate)
Closing is the final step in executing a real estate transaction.The closing date is set during the negotiation phase, and is usually several weeks after the offer is formally accepted. On the closing date, the parties consummate the purchase contract, and ownership of the property is transferred...
is the final step of a transaction. In sales, it is used more generally to mean achievement of the desired outcome, which may be an exchange of money
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
or acquiring a signature
Signature
A signature is a handwritten depiction of someone's name, nickname, or even a simple "X" that a person writes on documents as a proof of identity and intent. The writer of a signature is a signatory. Similar to a handwritten signature, a signature work describes the work as readily identifying...
. Salespeople are often taught to think of targets not as strangers, but rather as prospective customers who already want or need what is being sold. Such prospects need only be "closed."
"Closing" is distinguished from ordinary practices such as explaining a product's benefits or justifying an expense. It is reserved for more artful means of persuasion, which some compare with confidence trick
Confidence trick
A confidence trick is an attempt to defraud a person or group by gaining their confidence. A confidence artist is an individual working alone or in concert with others who exploits characteristics of the human psyche such as dishonesty and honesty, vanity, compassion, credulity, irresponsibility,...
s. For example, a salesman might mention that his product is popular with a person's neighbours, knowing that people tend to follow perceived trends. This is known as the Jones Theory.
In automobile dealerships, a "closer" is often a senior salesman experienced in closing difficult deals.
Most common techniques
Assumptive ClosingThis is most commonly used in cold calling after impulsing a customer
Making the assumption the customer has made the decision to buy. The sales person will tell them what they are going to do to complete the sale. "Just pass me your credit card and I'll start the paper work for you, thanks"
Direct Close: Simply ask for the order
"Do I have your authority to proceed with this order?" / "When would you like delivery?" / "Would you sign this order form please?" / "May I confirm your delivery and invoice addresses are correct for this order?"
The Either/Or Choice Close:
"Would you like red or green?" / "Would you like the standard or enhanced package?"
The Half Nelson hold
Nelson hold
A nelson hold is a grappling hold which is executed from the backside of the opponent. One or both arms are used to encircle the opponent's arm under the armpit, and secured at the opponent's neck...
Close: Used to 'strong arm' a prospect after s/he requests something. "Will you go ahead if we can provide that?"
Duke Of Wellington Close: In the Duke Of Wellington close you make a list or table of positive and negative points, then take each negative in turn and convert it:
"Yes, it does look expensive, I agree, but if you take into account the durability/reliability/performance, then over time this is actually a much cheaper option than taking the cheap and cheerful rubbish, that only......"
Ben Franklin Close: Similar to the Duke Of Wellington close, but the prospect lists feelings vs. thoughts: In one column they write what they feel the benefits would be of owning the product. In the other column they write what they think could be a reason not to own the product. Very often the list of benefits is somewhat longer than the list of cautions. The combination of personally writing the list, and the psychological element of comparing feelings vs. thoughts will often help the prospect see the true value in owning the product.