Money Is No Object (Business Tip of the Month: January 2016)
January 2016’s Business Tip of the Month for our Krav Maga Alliance affiliates is written by KMA President and Founder, John Whitman…Gym owners, sales people, and instructors…enjoy!
In sales, money is often cited as one of the main objections the salesperson must overcome. This isn’t true. Money is not an objection.
If a member truly cannot afford your membership, that is an unfortunate circumstance, and that person is not a viable prospect. But that person probably never walked into your gym in the first place.
I already know that I want to own my own private island, I just can’t afford one (yet). That’s a circumstance. And it’s the reason that I don’t visit the “Private Island For Sale” shop around the corner.
But the odds are that every single person who tours your gym or tries your class has enough money to pay for a membership. They are just trying to decide whether or not to spend their money on you, or on something else.
So stop thinking of money as an objection. Instead, approach the presentation of price with a few simple, straightforward tactics:
- Build Value First — this should already be part of your strategy. People ask for price, but what they need to understand is value. Don’t disclose pricing until you’ve built value through a tour, introductory class, and explanation of benefits. If your prospective member insists on pricing, give a range and use that statement to lead right into the value. For example: “Our memberships run from $99 a month up to $200 a month, depending on your interest. For instance, a lot of our members choose Option A because you get all the benefits of…”
- Explain Savings. Assuming you have a discount to offer upfront (either a special you are running or a standard discount if the prospect signs up now or pays in full), explain it immediately after you’ve stated the price. The flow of information should be Value——>Price——>Savings
- Have Confidence (But Don’t Be A Jerk). Many sales people, especially newer sales people, are nervous to state prices because it sounds expensive to them personally. Put that aside. The membership is worth the price, so state your pricing clearly and confidently. Look the prospective member in the eye. In a bar, pick up lines don’t work. Confidence works. State your case with confidence. At the same, don’t be too challenging or arrogant. In that singles bar scenario, the confident guy gets the girl. The douche bag doesn’t.
- Create Urgency. You need to establish some reason why the member should sign up now. The urgency can be monetary, such as a special rate or a discount on the enrollment fee. Or the urgency can be their own internal drive, especially right after taking class: “I’m glad you liked the class; let’s get started so you can get back in there…”
Remember, money is a circumstance, not an objection. The prospective member talking to you can afford your membership, so money isn’t the issue. The real “selling” is done when you build value through your tour and introductory presentations.
Keep at it. Build value. Close deals. I will keep working on it, too. Then we can both buy our own private islands.