Overview of the General Steps for Handling Hinges

An overview of the four steps for handling hinges is show in Exhibit 8-2.

Exhibit 8-2: Overview of the four steps.

Case Study

John Peters's sales call with Brian Walters now encounters unexpected twists and hinges. These examples demonstrate how to apply the strategies and tactics for handling hinges inside the Measurable Phases.

Review the following steps for active questioning to see how they are applied in the case study.

1. Follow the Customers' Lead. Relate all clarifying questions to customers' last responses on how their hinges affect their goals and filters.

2. Ask Specific but Open-Ended Questions. Do not use yes-or-no questions unless you need to verify a point.

3. No Loose Ends. Verify that a goal or filter is measurable before pursuing another.

4. Don't Shoot Yourself. Never confirm a negative statement.

5. Think Positively. Never make a negative assumption.

6. No Echoes. Rephrase the customers' responses; do not repeat them verbatim.

Type I: Pulse Check—No Interest in Any Goals in MP 1 (Leveraged)

John: Mr. Walters, we have helped some homeowners to reduce utility costs, sometimes by as much as one third, and other homeowners to increase hot water capacity by 50 percent. Are either of these areas of interest to you or are there any other ones more pertinent? (Uses spark interest statement to generate and verify interest.)

Brian: I am not interested at this time. (Disregards spark interest statement.)

(See Exhibit 8-3.)

Exhibit 8-3: Pulse check scenario.

Type II: Iceberg Ahead—Unfavorable Filter Surfaces in MP 2 (Natural)

Brian: I don't want to exceed my budget. (A vague response that needs clarifying.)

John: Mr. Walters, what price range have you set? (Clarifying question.)

Brian: I really don't want to exceed $500. (An unfavorable filter—product lines start at $750.)

(See Exhibit 8-4.)

Exhibit 8-4: Iceberg ahead scenario.

Type III: Gutter Ball—Unfulfilled Commitment in MP 3 (Leveraged)

John: Brian, can you see how the XLX 9000 meets all your hotwater requirements of capacity and efficiency? In addition, it saves you more than $800 over the next three years and exceeds your payback schedule with its $750 price. It also includes a five-year warranty.

Brian: John, I don't see how the XLX 9000 meets all my requirements. (Unfulfilled conditional commitment.)

(See Exhibit 8-5.)

Exhibit 8-5: Gutter ball scenario.

Type IV: Rip-Off—Views Price as Excessive in MP 4 (Leveraged)

John: So, Brian, can you see how the XLX 9000 meets all your hot-water requirements of capacity and efficiency? In addition, it saves you more than $800 over the next three years and exceeds your payback schedule based on its price of $750. It also includes a five-year full warranty. (Rephrases to focus on the benefits, not the features. John also makes price what it should be—just another function of the requirements of the conditional commitment and not a stand-alone issue.)

Brian: Yes, I can see where it can benefit my situation, but the price is a lot higher than I thought it should be. (Perceives price as excessive.)

(See Exhibit 8-6.)

Exhibit 8-6: Rip-off scenario.

How to Handle Type I: Pulse Check

Exhibit 8-7 and Exhibit 8-8 demonstrate how to handle the pulse check hinge.

Type I: Pulse Check
Synopsis: This hinge occurs when customers show no interest in the broad array of goals, benefits, or potential rewards you described in MP 1: Spark Interest. It is the most difficult hinge to handle because it occurs so early. You do not have a lot of information to clarify to determine your next step.
Category of Hinge: Leveraged
Surfaces: MP 1: Spark Interest Re-enter Sale At : MP 1: Spark Interest
Result: You cannot obtain MPC 1: Interest Confirmed.
Causes:	Remedies:
Customers show no interest or cannot identify with the goals you suggested.	Suggest more goals from your Market Profile sheet. Review accuracy of organizational characteristics and positions and how they should affect potential goals; adjust accordingly. Review similar market segment customers you do business with. See if your selected goals fit them. If not, replace the ones you selected with their goals. Offer to end call, try again later, and start with references. Provide a specific product description, send a sample, or make a demonstration.
Customers do not feel the expected benefits are worth the effort or are not aware your suggested goals are achievable.	Share references and success stories. If possible, point out higher returns, consequences, or costs of doing nothing in their current situation.
Customers are not a member of your targeted market segment or you contacted wrong position.	Create a new Market Profile sheet to accurately reflect this type of customer. Review your existing Market Profile sheet to see if other customers should be in this new segment.
A potential benefit statement is hard to relate to or believe.	Check the Spark Interest steps against its rules to follow from Chapter 6. Also, review rules of a good explanation from Chapter 7. Reconfirm validity of evidence of research or references. Provide a specific product description, send a sample, or make a demonstration.
Unknown filters prevent interest at this time.	Follow up later date to see if an interest exists at that time.
Wrong contact level.	Go one position higher with broader goals.

Exhibit 8-7: Type I— Pulse check.

Exhibit 8-8: How to handle the pulse check hinge.

How to Handle Type II: Iceberg Ahead

Exhibit 8-9 and Exhibit 8-10 demonstrate how to handle the iceberg ahead hinge.

Type II: Iceberg Ahead
Synopsis: This hinge occurs when customers disclose goals, filters, or conditional commitments that impede their or your ability to achieve or satisfy them. In addition, this hinge occurs when price or delivery become customers' goals.
Category of Hinge: Natural or Leveraged
Surfaces: Usually occurs in MP 2: Measure Potential as a natural hinge. It also arises in MP 3: Cement Solution as a leveraged hinge. Anytime a hinge is leveraged, it is much more difficult to handle. Reenter Sale at: MP 2: Measure Potential or MP 3: Cement Solution
Result: Salesperson cannot obtain MPC 2: Potential Confirmed
Causes:	Remedies:
You did not ask about or obtain the specifics of all the filters during MP 2: Measure Potential.	Review and practice the use of effective qualifying, clarifying, and verifying questioning skills (Chapter 5).
You did not have a strong enough customer goal commitment from MP 1: Spark Interest against which to reference questions.	Better verification of stated goal during beginning of MP 2: Measure Potential. See Safety Zone strategy from Chapter 5.
You did not obtain a measurable MPC 2: Potential Confirmed.	Make sure MPC 2: Potential Confirmed is not vague or too general. It needs to be specific enough to define value.
Customer did not feel comfortable enough to disclose specific filters.	Review principles of active questioning in Chapter 5. You need to reaffirm customer's interest in achieving their goals or suggest stronger ones.
Customer did not know specifics of filters.	Confirm customer is the final decision maker by validating his or her ability to release funds and establish or approve the attainment measurements. Ask customer how best to obtain unknown specifics.
Filters of funding or start or complete date (i.e., price or delivery) become the stated goals.	Provide a system of evaluation favorable to measuring goals that connect to your unique strengths. Determine if your unique strengths match up to these two filters; if not, continue to the next remedy. Ask customer how these two filters impact any of the other goal(s) from MP 1: Spark Interest, and which one is more important; then try to define and create value other than these two filters.

Exhibit 8-9: Type II— Iceberg ahead.

Exhibit 8-10: How to handle the iceberg ahead hinge.

How to Handle Type III: Gutter Ball

Exhibit 8-11 and Exhibit 8-12 demonstrate how to handle the gutter ball hinge.

Type III: Gutter Ball
Synopsis: This hinge occurs when customers perceive your products as not fulfilling their goals, measurable benefits, or conditional commitments.
Category of Hinge: Leveraged
Surfaces: MP 3: Cement Solution Reenter Sale at: MP 3: Cement Solution
Result: You cannot obtain MPC 3: Solution Confirmed.
Causes:	Remedies:
Your explanation does not adequately describe how the features of the solution achieve the benefits of the customer's goals.	Review the concept of explaining in Chapter 7 with special emphasis on simplifying technical solutions.
The customer has doubts about whether your products achieve his or her goals.	Have references from similar market segments available. Be prepared to offer forms of assurance or guarantees. Be prepared to explain in detail direct or indirect cost-justification numbers. Redefine value with a different SOE.
Previously verified filters change unexpectedly and adversely affect your products' ability to achieve customer's goals.	Reassess with customer whether goals are still realistic in light of these new filters. If they still are achievable, determine: If you can offer any new product selections to achieve goals. If you can modify the system of evaluation to produce additional value from goals. If it is time to walk away because the new filters restrict your ability to help the customer achieve goals, a create-and-wait strategy might be appropriate.

Exhibit 8-11: Type III— Gutter ball.

Exhibit 8-12: How to handle the gutter ball hinge.

How to Handle Type IV: Rip-Off

Exhibit 8-13 and Exhibit 8-14 demonstrate how to handle the ripoff hinge.

Type IV: Rip-Off
Synopsis: This hinge occurs when you disclose the price of your products. Customers consider your price excessive although it meets their conditional commitments. Three factors influence what customers expect the price level to be: (1) What they guess it costs to manufacture the product or provide the service multiplied by a reasonable markup. (2) The total value of the perceived and measurable benefits. (3) The price levels of what customers consider similar products.
Category of Hinge: Leveraged
Surfaces: MP 4: Implement Agreement Reenter Sale at: MP 3: Cement Solution or MP 4: Implement Agreement
Result: Salesperson cannot obtain MPC 4: Agreement Confirmed
Causes:	Remedies:
The price of the proposed solution seems excessive compared with their guesstimates of costs.	Be ready to explain costs customers do not associate with the products. These are items such as special manufacturing processes, extensive testing procedures, strict tolerances, expensive materials, included warranties, and the likes.
The price of the products seems excessive compared to fair market value.	Be ready to explain significant quality differences between your products and other "similar, but definitely not the same" competitors' products. Acknowledge that your unique strengths do add costs to your products in order to achieve the customer's measurable goals and benefits.
The price of the proposed products is marked up beyond a reasonable expectation even when accounting for all your investments.	Best of luck, our sincerest wishes, and let us know how it worked out for you.

Exhibit 8-13: Type IV— Rip-off.

Exhibit 8-14: How to handle the rip-off hinge.