The Penalty Close
The Penalty Close is a technique that is used by almost every salesperson throughout the years. The idea behind the penalty close is letting the customer know that if they do not make their purchase now that there will be some sort of penalty to making the purchase at a later date. Another type of penalty may be that the product or service may not be available to them again. Some common types of penalty closes are listed below.
- This is the last one we have in stock.
- The half-price sale ends today.
- I have another couple coming over to look at this ______ this afternoon.
- This is a limited time offer.
A vital aspect to using the penalty close is to only use this technique when the penalty attached to not making a purchase is absolutely true. We have discussed repeatedly about building relationships with your customers and the quickest way to lose that relationship is not being honest with them. Do not risk losing the relationship and trust that you have worked so hard to gain by using a penalty close that is not completely true.
I would like to briefly touch on one other technique. This technique has been a topic of discussion forever and it is, “he who speaks first loses.” It is called the close and wait technique. First, I believe that there is always plenty to be gained with a complete sales presentation, but I do believe in the concept and strategy of close and wait. The technique is simple, once you have delivered your closing statement; it is time to stop talking. Wait for your prospect to respond to the close. Whether it is five seconds or five-minutes, let them respond. If you speak again before the customer, you run the risk of buying back the product or service that you have just sold. The time between your closing statement and the customer’s response may feel like an eternity, but wait it out. If the time between your closing statement and their response starts to become painful, then just start writing up the order. I assure you they will give you a response.
This concludes our review of closing techniques. I hope that you have found the information useful and that all of your closes end with, “I’ll take it!”
FINAO - Brad Huisken - President, IAS Training
