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Agricultural Sales CDE
David Lehman - Coordinator 785/532-2785
[email protected] Eisenhower 211
Monday, May 5, 2014 Registration: 4:00-5:00 p.m.
Contest: 5:00 – 9:30 p.m.
The Agricultural Sales Career Development Event will consist of three parts:
1. Written Test 2. Sales Presentation 3. Team Sales Activity
A. Individual Activities
1. Written Test (100 points) The objective test of the Agricultural Sales Career Development Event is designed to evaluate an individual participant's knowledge of basic selling skills. The exam will be based on THE ATTACHED POWERPOINTS. A twenty-five question multiple choice test will be administered, with four points awarded for each correct answer for a possible score of one hundred (100) points. Old reference materials will NOT be used. All the questions will come from the two powerpoint files which describe two different sales methods.
2. Sales Presentation (100 points) Contestants will participate in an interactive sales presentation with a judge who will be playing the role of a prospective customer. Each contestant will be allowed seven (7) minutes for the sales presentation, with a time warning at six (6) minutes, when only one (1) minute is remaining. The sales presentation will conclude at seven (7) minutes. No team members will be judged by the same judge.
Each participant is required to bring two copies of the participant's project summary sheet (details below). One copy of the Product Summary Sheet will be handed to the sales judge by each contestant just before the sales presentation begins and the other copy should be given to the contest coordinators at the time of registration.
Guidelines for the Product Summary Sheet: One page, single sided, typed. The summary sheet should include the following:
1. Representation (company/chapter) 2. Statement of situation – describes the customer’s role play situation, including
possible needs the customer may have 3. Product to be sold 4. Features of the product 5. Warranty 6. Service availability 7. Demonstration of function 8. Competitors and pertinent information 9. Price 10. Closing method
Note: Please e-mail your Product Summary Sheets to David Lehman ([email protected]) as soon as possible after district contests, so they can be organized for the judges before the day of the state Agricultural Sales CDE.
Product or Service Sold: Each participant will select an agricultural product representing one of the seven instructional areas:
1. Agricultural Mechanics 2. Agricultural Production 3. Agricultural Products and Processing 4. Agricultural Supplies and Services 5. Forestry 6. Natural Resources and Rural Recreation 7. Ornamental Horticulture
Products and Props: Participants are encouraged to bring sample products or props to demonstrate during the sales presentation; however, the size of any products or props must not exceed a reasonable size that can be easily handled by the participant and must be able to fit on the table used during the event. Each participant may also bring additional brochures, photos or other written/visual materials that can be used as part of the sales presentation. A blank invoice may be used by the participant; however, please note that there are no points on the score sheet for filling out an invoice.
Scoring Criteria for Sales Presentation
CATEGORY
POSSIBLE
SCORE
Pre-call Preparation
Product Summary Sheet Anticipating customer needs Product knowledge
15
Approaching the customer
First impression Create customer attention Social conversation
10
Determining customer’s wants and needs
Determine wants and needs Ask good questions Demonstrate good listening skills
15
Demonstration
Product features and benefits relevant to customer’s wants/needs
Allow customer to participate
30
Customer objections
Identify customer objections Handle customer objections
10
Closing
Confirming customer interest Recognize closing opportunities Ask for the order
20
TOTAL POINTS
100
B. Team Activity - 2014
Team Sales Activity (100 points)
The Team Sales Activity will provide the opportunity for teams of up to four contestants from each chapter to work together to demonstrate teamwork, rapport building, need discovery, problem solving, analysis, decision making, ability to handle objections, closing and overall selling and presentation skills. Advisors are not allowed to assist participants during the Team Sales Activity and are not allowed to be in the contest area during this event.
The following information is provided as background information to the teams who will be playing the role of professional salespeople:
Product: Roy-L-Heat Animal Warmer. Please refer to the link shown below the photo for product specifications. The list price of this model is $700 from Valley Vet Supply (see company’s website).
View with top removed and calf inside Outside view of Roy-L-Heat warmer Diagram showing design of the warmer
Sources: Smucker Manufacturing website: http://www.smuckermfg.net/Pages/CalfWarmers.aspx & Valley Vet website:
http://www.valleyvet.com/ct_detail.html?pgguid=30e07c47-7b6a-11d5-a192-00b0d0204ae5&gas=calf%20warmer
Target customer: Cow-calf producer in rural Kansas, in a location of your choice. You may choose your local area as the location for this cow-calf producer if that is easier for you or you can choose another location in Kansas. Your target customer has 100 commercial Angus cows.
Additional facts/key planning assumptions:
1. Your target customer (cow-calf producer) prefers to have calves born in February-March 2. This past winter was especially cold and many areas experienced several heavy snowfalls 3. A newborn calf could be worth $500-$600 just a few days after birth 4. Hypothermia is a major cause of calf loss (death) for calves born in late winter/early spring
The team will sell the product to prospective customer(s) in a face-to-face sales call as follows:
1. Establishing rapport 2. Determining potential customer needs and wants 3. Identifying features and benefits of the product to address the customer’s need and wants 4. Matching product benefits to customer needs 5. Identifying potential customer objections and address these objections or concerns 6. Closing the sale
Teamwork and participation of all team members will be judged in addition to the final presentation. The Team Sales Activity consists of three phases as follows:
Presentation (10 minutes): Each team will have ten (10) minutes to deliver their presentation, with an eight (8) minute warning when two (2) minutes are remaining. If teams use a laptop computer, the presentation must be shown on the laptop screen. Projectors may not be used. Each team will be responsible for providing the power supply for their computer. The 10-minute Team Sales Activity should be interactive between the team members and the prospective customer(s).
Scoring Criteria for Team Sales Activity
CATEGORY
POSSIBLE
SCORE
Teamwork evaluation
Did each team member participate during the presentation and provide input to the proposed solution?
Did team members demonstrate effective communications and listening skills during the presentation?
Did team members respect input of other team members?
20
Product knowledge / Analysis of information
Did team members demonstrate an appropriate level of product knowledge?
Did team members accurately analyze information?
10
Selling skills
Did team members establish rapport with customer?
Did team members identify customer’s needs and wants?
Did team members identify features and benefits of the product to address customer’s need and wants?
Did team members match benefits to buying motives?
Did team members recommend appropriate product based on customer’s needs?
Did team members identify potential customer objections and address these objections or concerns?
Did team members close the sale?
40
Presentation
Was the overall delivery of the presentation professional and well thought out?
Was the presentation clear and persuasive?
Did all team members participate in the presentation?
20
Questions and answers
Did team members correctly answer questions?
Was teamwork evident in responses to questions?
10
TOTAL POINTS
100
Special Notes:
Official Dress is required (non-compliance will result in a 10% deduction off the final team score).
Teams may take the written examination before their scheduled competition times Judges will not be asked to wait for students competing in other CDE Events.
Awards:
Plaques for top 3 teams Certificates for teams 1-5 Top ten individual medals and certificates
FFA Ag Sales CDE
March 27, 2014
Based on 10 years of research by Huthwaite Corporation that analyzed over 35,000 sales transactions, presented in the book Spin Selling by Neil Rackham
Largest-ever investigation of selling success – researched selling in 27 countries
Concluded that traditional selling methods don’t work for high-value sales
Found that top salespeople were using a probing (investigating) strategy called SPIN
Length of selling cycle is longer
Size of customer’s commitment, as reflected
by the price of the product, is greater
Ongoing relationship between buyer and
seller is more likely
Risk of mistakes is higher because the price
of the product or service is higher in major
sales
Opening Investigating Demonstrating
Capability
Obtaining
Commitment
Opening – warming up events, including introductions and how you begin the conversation
Investigating – asking questions is the most important of all selling skills in larger sales
Demonstrating Capability – demonstrate to customers that you have something worthwhile to offer
Obtaining Commitment – larger sales involve a number of intermediate steps called Advances
Situation questions
Problem questions
Implication questions
Need-payoff questions
At the beginning of the call, successful
salespeople ask data-gathering questions,
called Situation Questions, such as:
“How long have you had your present
equipment?”
“Could you tell me more about your growth
plans?”
Don’t overuse these questions
Once sufficient information has been gathered from Situation Questions, then you move to a second type of questions – Problem Questions “Have you had any problems with your current
bank?”
“Are you satisfied with the service you get from your other suppliers?”
Salespeople often don’t ask enough Problem Questions
Successful salespeople also need to ask more complex Implication Questions, such as: “How will this problem affect your future
profitability?”
“What effect does this problem have on your overall customer satisfaction?”
Even experienced salespeople rarely ask good Implication Questions
Successful salespeople ask Need-Payoff Questions that get the customer to tell you the benefits that your solution could provide “Would it be useful to speed up this operation by
10 percent?”
“If we could improve the quality of this process, how would that help you?”
Top performing salespeople ask 10 times as many Need-Payoff Questions compared to the average
Spin Selling
Emphasizes the importance of Closing as the most crucial stage of the sale
Suggests that successful sellers close more often and use more types of closing techniques
In summary, says: Closing techniques are strongly related to sales
You should use many types of closes
You should close frequently during the call
0
10
20
30
40
50
60
70
High
close
calls
Low
close
calls
5.8 closes used percall
1.4 closes used percall
Source: Figure 2.1 in SPIN Selling by Neil Rackham, p. 24 (1988)
Closing Low-value Goods
Average transaction time
Number of closes per transaction
% transactions resulting in a sale
Before training in closing
2 minutes
11 seconds
1.3
72 %
After training in closing
1 minute
47 seconds
1.9
76 %
Source: Figure 2.1 in SPIN Selling by Neil Rackham, p. 24 (1988)
Closing High-value Goods
Average transaction time
Number of closes per transaction
% transactions resulting in a sale
Before training in closing
12 minutes
35 seconds
2.7
42 %
After training in closing
8 minute
40 seconds
4.3
33 %
Source: Figure 2.1 in SPIN Selling by Neil Rackham, p. 24 (1988)
#1 – By forcing the customer into a decision, closing techniques speed up the sales transaction
#2 – Closing techniques may increase the chances of making a sale with low-priced products, but with expensive products or services they reduce the chances of making a sale
Closing is a method of putting pressure on the customer
Psychological effect of pressure seems to be: If someone asks you to make a small decision, it
might be easier to say “yes” than to argue
The bigger the decision, the more negatively people react to pressure
Therefore, the larger the decision, the less effective closing techniques are likely to be
Most professional buyers have an unfavorable view of closing techniques
In a study of professional buyers, when asked the question “If you detect that a seller is using closing techniques on you, what effect (if any) does this have on your likelihood of buying? More likely to buy = 2
Indifferent = 18
Less likely to buy = 34
Ineffective or have a negative effect when: Sale is large, involving high-value goods
Customer is sophisticated, such as a professional buyer
There is a continuing post-sale relationship with the buyer
Order – customer makes a firm commitment to buy
Advance – when an event takes place that moves the customer forward towards a decision
Continuation – discussions may continue, but no specific action has been agreed upon by the customer to move it forward
No-sale – where the customer actively refuses a commitment
SPIN Selling is all about asking the right
questions … in the right order … Situation,
Problem, Implication and Need-Payoff
SPIN Selling focuses on:
Understanding the customer (Situation)
Identifying the customer’s main problem(s) or
pain (Problem)
Asks the customer how significant this problem is
(Implication)
Confirms how important or valuable a solution
would be for the customer (Need-Payoff)
FFA Ag Sales CDE
March 27, 2014
Know the Four Phases of the Customer-
Oriented Sales Call model, including the
specific steps within each phase
Within Phase 4, know what to do when
the customer says yes, maybe or no
Establishing Rapport
Discovering Customer’s
Needs
Making Your Presentation
Closing the
Sale
Phase 1 Phase 2 Phase 3 Phase 4
Introduce yourself and your company Introduce yourself
Introduce your company
Remind customer of circumstances that
led to your visit
Step 1
Initiate social conversation Offer a sincere compliment
Ask about a topic of mutual interest
Mention a referral if you were referred by
another person
Shift attention to topic of business Confirm customer’s interest in specific area
Emphasize the importance of this business topic
Step 2
Step 3
Discovering Customer’s Needs and Situation Factors Ask questions (information, probing or
confirmation)
Listen carefully to responses
Verify each need and situation factor
Note: Situation factors include current practices,
plans, resources, decision-making process and
competitive products used
Step 1
Confirm Customer’s Needs Summarize needs you have discovered
Confirm importance of these needs Step 2
Propose a customer action “Based on your needs that we just discussed,
I recommend product X . . . “
Step 1
Explain how needs are met by this action Convert features to benefits
Match benefits to buying motives (needs)
Focus on most important needs
Verify the proposed customer action Restate proposed customer action and needs met
Confirm that this action will satisfy these needs
Step 2
Step 3
Ask for customer commitment Follow general guidelines for closing the sale
Use an appropriate closing method
Step 1
Ask customer to initiate action
Confirm the sale (3 steps) 1. Thank them for the order
2. Remind them of the benefits
3. Reassure them that they made a good decision
Step 2
Step 3
IF CUSTOMER SAYS YES
Shift attention to topic of business Confirm customer’s interest in specific area
Emphasize the importance of this business topic
Ask for customer commitment Follow general guidelines for closing the sale
Use an appropriate closing method
Step 1
Ask customer to initiate action
Negotiate buyer resistance Follow general strategies for negotiating buyer
resistance
Use specific methods (tactics) for negotiating
resistance
Step 2
Step 3
IF CUSTOMER SAYS MAYBE
Shift attention to topic of business Confirm customer’s interest in specific area
Emphasize the importance of this business topic
Ask for customer commitment Follow general guidelines for closing the sale
Use an appropriate closing method
Step 1
Ask customer to initiate action
Thank them for their time Thank them for taking the time to visit with you
Leave the door open in case something changes
Follow up with a thank you letter if future prospect
Step 2
Step 3
IF CUSTOMER SAYS NO
So … if you as the salesperson ask the right
SPIN Selling questions and get responses from
the customer that suggest an opportunity for
you to solve their problem(s) or pain by
providing the appropriate product or service
… then you have the opportunity to
Demonstrate Capability and hopefully Close
The customer has told you what they need …
and assuming you have a product or service
that satisfies that need and solves their
problem(s) … and you Demonstrated
Capability … closing is now much easier
