The Home Service Expert Podcast - Practicing Sales Differentiation to Overtake the Competition

Episode Date: April 15, 2022

Lee Salz is the CEO at Revenue Accelerator, and a featured columnist at Business Journal. Lee is also the author of best-selling books including "Sell Different!", "Sales Differentiation", and "Hire R...ight, Higher Profits.” In this episode, we talked about sales differentiation, competitive advantage, customer service & experience, hiring...

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Starting point is 00:00:00 people don't know how to buy what you're selling. They don't know how to buy garage doors. The worst thing we tell salespeople is you're selling to educated buyers. It's not true. They have access to information, no question. But we know more about the world of potential solutions in our industry than they do. And that's one of my favorite questions to ask salespeople. Who knows more about the world of potential solutions in your industry? And I've never had one individual say, oh, the people I sell to know much more about the world of potential solutions in my industry. It's never happened. And so that gives us, in my opinion, an obligation and an opportunity.
Starting point is 00:00:38 The obligation is to help people make an informed buying decision. The opportunity is to shape buyer decision criteria because they don't know how to buy what you're selling. Now, that doesn't mean we get to lecture them. The idea is we ask them questions, lead them down a path so they see what we're seeing. Welcome to the Home Service Expert, where each week, Tommy chats with world-class entrepreneurs and experts in various fields like marketing, sales, hiring, and leadership to find out what's really behind their success in business. Now, your host, the home service millionaire, Tommy Mello.
Starting point is 00:01:18 Hey guys, welcome back to the Home Service Expert. I've got a little cold today, so apologize. I've got a very awesome guest watch him speak on stage. Actually, a couple of years ago when I was there with Cody, Lee Saltz here and came out with a book. I want to say it's been, I don't know, sell different came out. What? Six months ago. Came out in September, September. So yeah, right right around six months. You sent me a copy. Well, let's go over some of your accolades here. Lee is an expert at sales management, entrepreneurship, social media, marketing, strategic planning, sales operations, leadership training, new business development.
Starting point is 00:01:59 A lot of things. He's a sales architect, sales management strategist. Started that in 97. Revenue accelerator, chief executive officer started that in 2011 or present business journal featured columnist 2014 or present lots of other things lots of advisory boards he has authored five best-selling books including sales differentiation 19 powerful strategies to win more deals and prices oh look Authored five bestselling books, including Sales Differentiation, 19 Powerful Strategies to Win More Deals and Prices. Oh, look at that. There you go.
Starting point is 00:02:31 A columnist with Business Journal, serves on an editorial advisory board of Sales and Marketing Management Magazine, and is program advisor to Kansas State University Strategic Selling Institute. Both the largest LinkedIn sales management group, sales management executives with over 300,000 executive members. We're over 350 now. 350,000. Also been quoted and featured on the Wall Street Journal, CNN, New York Times, Dallas Morning News, Selling Power, Sales and Marketing Management, ABC News, MSNBC, and many more. We've done a podcast in the past, but since then you've come up with a new book.
Starting point is 00:03:12 You're a speaker, I think, all around the world. Let's just dive in. Why don't you tell us, you know, you signed this book for me and you put, Tommy, Energize Your Deals. And I just, after reading it, I felt like that might be the next name of your next book. Well,
Starting point is 00:03:32 I am about to sign with Harper Collins for a new one, but that is not the title. Okay. Maybe I was wrong. So energize your deals. So talk to me a little bit about what you've been doing here. Tell me a little bit about this book. Tell me why this book is different. Tell me about some of your latest speaking gigs, everything like that. You got it. So sell different is entirely based on, has nothing to do with what
Starting point is 00:03:56 you're selling and everything about the way that you go about selling. And I find that so many salespeople, so many executives, so many business owners are hypersensitive about differentiating the product, the service, the technology that they're selling. And don't spend enough time thinking about the way that they go about selling. And I'll tell you, Tommy, my experience, how you sell trumps what you sell all day long. The experience that you create in every step of the process, as a matter of fact, I challenge salespeople all the time to look at every touch point, every interaction that they have with a prospect and client and ask themselves this question. What is it that I can do different than the competition that my buyers will find meaningful?
Starting point is 00:04:45 So it's not different for the sake of different, right? I can be wearing a pink shirt and a pink hat. It would definitely be a different interview. But would any of our listeners find that meaningful to them? And of course, the answer is no. So the key is meaningfully different. And the other lens to look at this through, and this is where sell different really comes in, is we look at the competitive landscape out there. And I have this client in the steel industry, and the CEO refuses to use the word competitor.
Starting point is 00:05:17 I thought this was fascinating, his rationale. He said, why am I going to elevate the competition and say that they play on the same level that I do? We refer to them as other players. So I thought that was a very interesting mindset for the salespeople to have. And the idea is when you look at those other players out there and the way that they go about selling their products, services, and technology. You look at their process and say, I'll bet you there is something I can do all along that journey that will allow me to outsmart, outmaneuver, and outsell them all day long. I'm working with a group now, and they sell technology for restaurants and for grocers. And we looked at a competitor, I'm going to use that word, a competitor proposal.
Starting point is 00:06:10 And what was interesting, we really jumped off the page was the email address. It was an AOL address, Tommy. Nobody has an AOL address anymore other than our grandma and grandpa. Exactly. So what that said was was we're dealing with buyers
Starting point is 00:06:27 that are not overly sophisticated so what the competitors were basically saying here's a price list here's a menu pick what you want and we said we've got an opportunity here in how we communicate our solution in writing and put together a proposal in layman's terms. So it's understandable for someone that is not technology-minded. So you take this price list, I have no idea what any of these things are, why I need them, what they even do. And here's a thoughtful narrative that says, here's where you are today. Here's where we're going to migrate you to. Here's why we're going to do that, and here are the results that you can expect. And so that's what I mean when I talk about
Starting point is 00:07:09 doing something different than the competition to outsmart, outmaneuver, and outsell them. So I read this, it's been probably four months, and the way that I do it is I circle and put a lot of stuff in here. Right in the beginning, you talk about three sales takeaways. Price is not the primary decision factor when people are making a buying decision.
Starting point is 00:07:31 Number two, know your audience. Number three, identify your business. Your business is meaningful. Differentiators. So yesterday, I was scrambling, and I found another book without my notes. And I couldn't find this book anywhere because it book without my notes and I couldn't find this book anywhere because it was under my desk because I had it there for this exact interview.
Starting point is 00:07:51 And so I'm scrambling, going through it, just looking through it and trying to get notes again. And I open up this new book and I'm going through right from the beginning. And instead of circling it, I put check marks. You can seeling it i put check marks you can see i just put check yeah yeah and i happened to walk into luke's office yesterday and he had a meeting going with all of our door salesmen and i hear this guy from tucson his name is leonard great
Starting point is 00:08:18 guy he might be watching he goes customers will not pay some of our prices they're just not used to these price hikes. They got competitors selling it sometimes half the price. Sometimes we're literally double the price. And I stayed in there and just listened. No one knew I was in the room. And I walked back in there with your book. And I said, guys, I want you to read this book.
Starting point is 00:08:40 Number one. Number two is I read the three things I just read you. And I said, I will come up with a, I want to call it an investor special. And we are going to sell oranges when everyone sells apples to apples. I said, we are going to put the best spring. We're going to put a better rollers, a second strut, an operator bracket and say, we will not sell that door. We have trademark things that we put out, but we made it affordable for you. We've got an investor special that won't fall apart in two years. And if you want to do that, we can get competitive on the
Starting point is 00:09:16 price. But I will never make this about price. And it's so hard. It's so hard to try to drill this into salespeople's minds is i have customers that call me every day i have technicians that call me we have 180 technicians not to mention the installers and the salesmen they call me up and they go we were a thousand dollars more than our competitor but they went with us and i'm like well did we show up the same day did we have better parts did we give a better warranty? And I just wanted to really dissect this for you since you've got way, way, way more experience than I have. I'm a garage door company.
Starting point is 00:09:56 We service 10,000 customers a month. That's all I know. You do differentiation. You do different sales tactics for so many companies what do you say to a guy and listen this is preaching to the choir here all these guys out here that have home service companies that say we got to compete on price we've got to be within a certain margin some people say this believe that they go let's go out and get 20 estimates and try to be right in the middle and just try to make sure
Starting point is 00:10:25 we're keeping up with the joneses basically and i think that's bullshit and i want to hear your answer to it so the first thing that that i would do with that one salesperson that you referenced yeah put my arm around him and say let's take a walk out to the parking lot which car is yours i guarantee you it's not the cheapest one in the lot how come you could certainly buy a cheap car that has four wheels a steering wheel has heat probably even has a radio for a fraction of what that salesperson paid for the car that he's driving and then he's going to go on to explain all the differences, all the reasons why he bought that car instead of a Hyundai or a Yugo, whatever the cheaper options are out there. And what he's really saying to you is, I don't see the meaningful value in what I'm selling. As a matter of fact, I tell salespeople that all the time.
Starting point is 00:11:22 When someone pushes back on your price, they're not objecting to you. They're giving you constructive criticism, right? If you think of two sides of a scale, you have price on one side, value on the other. You've not demonstrated enough meaningful value to support the price you put in front of me. Value. And so in his mind, he goes, well, they're quoting the same door. He goes, they're quoting the same door he goes they're quoting the same door for the difference is what i always tell people and you know you familiar with a guy named howard
Starting point is 00:11:51 partridge i know the name yep you know he puts on a little seminar i was at last week i happen to be in houston and he said did you talk about your reputation did you talk about your experience the history of your company the training that you guys provide of 60? Did you talk about your experience, the history of your company, the training that you guys provide of 60 days before you're allowed to touch the door? Did you talk about the systems you have in place to ensure quality that you're going to be there on Christmas Eve? If they break down,
Starting point is 00:12:15 did you talk about your guarantees? Unlike any other, that's where I get into the apples. And my question for you is he'd say, listen, we're looking at two BMW samew same year one's white one's black right you really can't tell me there's a different value here because they're the same vehicles unless you tell me there's a better warranty with one and somebody might say i'll
Starting point is 00:12:37 take my chances so realistically there's a lot of guys commenting here what do we do what are we going to differentiate yes the process the process, the product. Where's the biggest things that we could do? Like a list that you say, here's what you teach salespeople. Number one, do you have like that broken down? Absolutely. So I'm going to give you a website address. It's going to be hard for our listeners to remember. You ready? Yes. Targetclientprofile.com. And there's a worksheet there, targetclientprofile.com. And you may say, oh, you mean an ideal client, and I don't. If you think of what an ideal client profile says to salespeople, it says, if all the stars were to align, this is the kind of business we'd love to have. It's like buying a lottery ticket.
Starting point is 00:13:31 A target client profile says this is who will perceive meaningful value in what we're offering. So some bad news for your listeners, not every prospect is right for your business. And so the idea is gain clarity. And if you download this worksheet, there's nine components to it that will help you have clarity on who will perceive meaningful value in what you're selling. And that's where every sales and business development minute should be invested in the pursuit of those opportunities. I share this story in the book where I got this inspiration, this passion, if you will, for differentiation. The baseball? No, not baseball. No, 1986, I'm a junior in high school, and I need a summer job. And a family friend has this idea, revolutionary idea,
Starting point is 00:14:21 for a pick-up-and-delivery dry cleaning. Remember that that's in the- Yeah, that's later on in it, yeah. Yes, pick-up-and-del delivery dry cleaning. Remember that that's in the- Yeah, that's later on in it. Yeah. Yes. Pick up and delivery dry cleaning. And I got hired as a driver slash part-time salesperson. And so I really hope people would be willing to pay more for this service because the guy that started the business didn't own a dry cleaning store. He said, I think it's a hardship for people to take their dirty clothes to the dry cleaner and then return there to pick them up when they're clean. So this was a cost on top of cleaning your clothes.
Starting point is 00:14:50 And Tommy, you read the book, so you know the answer. And for our listeners, think about this. Would people be willing to pay more for that service? And some of you are saying, absolutely. Some of you are saying, no way. And the answer was, some people. See, where I lived at the time is Marlborough, New Jersey. And if you're not familiar with New Jersey, it's central New Jersey. You drew on a map, north, south, and put a midpoint, east, west, put a midpoint. That's where Marlborough is. About an hour and a half from Philadelphia, about an hour and a half from Manhattan. And in 1986, when people went to work in those cities, they wore business attire. They wore suits, not like Tommy and I are dressed today. And those people that were commuting
Starting point is 00:15:33 all that way, so at three hours a day, wore business suits and didn't have someone at home that could help take the cleaning to and fro, thought the idea was brilliant. They wished they'd come up with it. But those who work locally, didn't dress for work, or had someone that could help out, thought we were nuts. Why would I ever pay more to have my clothes cleaned? And very quickly, we learned the importance of knowing who the right audience is for what you're selling. And a lot of times, the reason the price issue comes up is we're going after the wrong opportunities. They don't have the needs, the interests, the desires where our meaningful value resides to justify it. And so that's where that target client profile comes in, is to have the
Starting point is 00:16:23 true clarity of where you fit and pursue those opportunities and cast the other ones aside. You know, Lee, it's interesting you mentioned this because a lot of people go on these Facebook forums, especially like drives versus North America and these ones in my industry. And they go go i can't get clients to buy springs at 300 now my costs for my best spring my cost is 145 okay so of course you know a gross profit a good one is 65 a decent one is 55 i mean people don't understand gross profit they don't understand financials so i don't want to dig into that right now, but they literally, a lot of companies go, I just double my cost. You'll never have a good infrastructure. You'll never have a business if that's what you're doing. There's no way
Starting point is 00:17:13 that you could do that with your fixed overhead, unless your wife's working and you're working out of your house and you're not paying her anything. So I always tell people, where are you marketing? A lot of times I always tell people, if you're looking for a McDonald's customer, you got it. But if you want that high-end steakhouse customer that's willing to spend $100 per one meal with a glass of wine, you got to know where they're hanging out. And I think that's what this target client profile is going to help people with. Absolutely. And then, you know, people say, listen, i don't want to spend a lot of money in marketing well if you don't want to spend a lot of money you're not going to get a lot of people
Starting point is 00:17:49 that want to spend money with you and it's not a lot of money but it's it's like you only want to be on a group on and living social and a little bit of facebook marketplace and you want to get leads for free but you also want these customers to spend a fortune with you. Right. I think that I found is Google has the best clientele for my industry. People, they're called demand clients. They call up and they say, you know, I just need it done right now. I don't really care. You know, my dad always said three things, right?
Starting point is 00:18:20 You want it done now on your timeline. You want it done right. And you want it done for cheap. You can't get all three, pick two out of the three. We'll never get all three that's right you know i liked in the book when you talked about and i'm going to dig into some other stuff but you said the baseball story too your son was uh had an opportunity to go to a different school and you had a couple people trying to recruit him and this is crazy because i'm working on a book with recruiting. So right before this, I was talking about your stories.
Starting point is 00:18:51 And, you know, none of them were bad. But the one guy actually had a parking spot for you. And they made you feel special. They let you meet future people. It was a relationship. It was like you felt like part of the family. Absolutely. So tell me a little bit about what that meant to you and what the difference was and why that was such a deciding
Starting point is 00:19:10 factor. Because we all talk about sales and forget this. I'm going to tell you right now, I get one top guy. If I recruit one top guy, he will bury four other guys and he'll do it effortlessly. He's born with it. He knows how to eye contact. He knows how to profile people like no other. He doesn't know he's doing it. She doesn't know she's doing it, but they do it. And I think so often we go, I need more clients. I need more clients.
Starting point is 00:19:34 I'm not a big person of firing. I'm a big person of coaching. But some people are just born with talent. Why not do the unfair advantage? And this is what I'm talking about. Everybody should think about sell different to your internal customers absolutely so the story of reference thing is in chapter one so i have two sons so i have a daughter as well who recently graduated from college and my older son when he
Starting point is 00:19:59 was in high school had aspirations of playing college baseball. And my wife, Shanna, and I kept saying, hey, Stephen, you got to set up college visits. And he was a little slow in doing so. And that summer, he was asked to play on our city's American Legion baseball team. And if you're not familiar with American Legion, this is where all the college scouts come out looking for a top talent. And during a one-week tournament, Stephen hit four home runs and three doubles. No longer were we saying, hey, Stephen set up college visits. The colleges were coming to us.
Starting point is 00:20:29 And if you think about college coaches and recruiting, they can't differentiate what they're selling. And it is a sale. They're trying to sell you on their institution. But they can't add a major. They can't move a campus. They can't build a dorm. Gosh, they can't even change the meal plan. But they do have an opportunity to differentiate the way that they sell, the way they recruit,
Starting point is 00:20:52 if you will. And some coaches are absolutely fantastic at it, and some not so good, we'll say. And the story, Tommy, that you were alluding to, you know, when you first go and visit a college campus, as soon as you cross the border onto the campus, your blood pressure jumps 30 points. It's not the tuition. It's that you can't find a place to park. Every single parking lot on a college campus says, park here, and we're going to tell you what we're looking for a fine institution. Well, this one school we visited, we pulled into the parking lot, and there's a spot with Stephen's name on it. Stopped us dead
Starting point is 00:21:25 in our tracks. We go inside. There's an agenda for the day printed Stephen's name right at the top. And what did it cost this university to do these two things? A penny for the paper and ink? But think about how they made us feel. They made us feel like Stephen was the only athlete they're recruiting anywhere on the planet for any sport that they offered. Of course, that wasn't the case, but that's how they made us feel. And every one of you that's watching this podcast has this same opportunity. And there's something that we're guilty of. See, all day long, we're talking to prospects and clients and it becomes robotic it becomes wrote it's just another call it's just another meeting it's just another garage door
Starting point is 00:22:11 we forget to make people feel special and with that college coaching there were a few that did very very well made us feel special and that comes back to what we talked about earlier. In every touch point, every interaction you have while you're selling garage doors, what is it you can do different than the competition that your buyers will find meaningful? That's the question that you need to ask yourself. And I can't answer that for you. And I'm guessing, Tommy, that a 10-minute meeting with the team, they'd come up with a bunch of ideas, things that they could do that would create a completely different impression. I'll give you a recent story. My wife and I just this week celebrated our 25-year wedding anniversary. Oh, good job. So thank you. Thank you. And I wanted to get her a new ring to celebrate
Starting point is 00:23:07 her anniversary. And here in town, there's a nice ring designer. We met with him multiple times. The way he handled the process was so robotic. He was a ring designer. It wasn't just buying off the shelf. And the last straw was, remember, married 25 years years i was there for these meetings he sends my wife a text asking if she's made a decision and what her friend thought of it i'm the friend i mean he didn't come across like he cared he didn't come across in a way that my wife found helpful because she came in saying, I don't know what I want. I have no idea what I want.
Starting point is 00:23:53 And the reason we went to a ring designer was here's someone that could create anything. And he had no way to go through the process and narrow it down. Then we went to this other store in town and they're a blend of doing some custom work as well as called off the shelf. And I don't believe their jewelry was any better, but we bought from them. It was the experience that this woman created. A, she came across genuine. She cared. She took the time to get to know Sharon, her likes or dislikes, showed her different opportunities.
Starting point is 00:24:23 And we bought from her. It had nothing to do with the price. It had nothing to do with the product itself. It was the process that we went through. Now with the baseball story, I mentioned I have two sons. My younger son, who's on a bus right now to Kansas, he's playing college baseball as well. There was a school that had recruited Steven that made him feel like a number. Now, this was the school that Stephen had said, this is where I'm going before the process began. And there were seven schools that were recruiting him. This school was the last on the list. They were number seven. They didn't get rid of a major. They didn't get rid of a dorm. It was the way that they sold.
Starting point is 00:25:00 And David, my younger son, he saw this whole experience that his brother went through. That school wasn't even on his list to consider because of the recruiting experience. So when you make someone feel like a number, you don't just blow this one deal. It's like the old shampoo commercial. They told two friends, and they told two friends, and so on and so on. It negatively impacts your brand. Yeah, you're right. You know, last night, we had an upset customer I heard Luke dealing with, and they demanded that they only pay a certain price because of all the mishaps. And I listened to it, and it was like, how could we make that many mistakes? And of course, I want to say, supply chain,
Starting point is 00:25:42 there's a virus coming around, there's all kinds of things. But the lack of communication on our end was just dumbfounded. And I'm the type of guy that says, and Lee, I love your perspective on this. A lot of people say we need to slow down our growth. We need to get things right first. Whenever I've slowed down, people go, finally, time to relax, time to chill, finally a break, time to take a vacation. I've never been a fan of letting off the gas because nothing gets done. Either you're going forward or you're working in reverse. That's it. And I feel like it's more about, I wrote something yesterday on my whiteboard, literally at 11 o'clock at night. And I just said, I wrote it for
Starting point is 00:26:26 myself. I said, if you're going to grow at 80 to 100% a year and be able to step out, you need a new design. Design the life you want with grace, happiness, and joy, and slow down. To do that, you're going to need to hire the right people motivate them show them appreciation and watch them meaning step back because they're going to do things better than me and so i'm not the type of person that i'm going to slow down i'm just going to make sure we're ready for some of the obstacles headed our way and i make a lot of mistakes and that customer that was a mistake but it really hit me kind of hard on like 10 000 customers that's one that hit me like and i'm like but i'm only one person i gotta change the system i gotta change the automations i gotta change the the personal relationships but i want to solve it
Starting point is 00:27:18 all sometimes what do you say and i know i can't that's impossible right and there's a lot of people here that are doing five million seven million three million what do you say to people that are just they're kind of running around here trying to figure things out and it's scary our prices went up 140 last year literally it went from a hundred dollars to 240 like a bit more than that i mean it went from 5 000 to 12 000 it's crazy so what do you tell these guys that are guys and gals and businesses that are just scrambling? Yeah. The word is driving. You got to keep driving the business and you have to have a team that you hire that can help support the growth, that can put the processes in place, the technology in place, the systems in place.
Starting point is 00:28:03 But like you said, you're either growing or you're dying. There's no standing still. There's no floating. No. It was funny. I remember as a kid, when I'd look at a business and you could name any business and I just thought, okay, so you get the business going and then you just have it forever. That's what I thought as a young kid come to find out. And there's a great line from Mark Cuban work, work like someone is working just as hard to take it all away from you. If you let off the gas, you're just inviting others to clean your clock.
Starting point is 00:28:36 And I'm not saying it isn't painful. I don't say that at all. It is painful. It is hard. It is challenging, but you really don't have a choice you know there's a book that i literally picked up just i was going through looking at books i could i couldn't read that what is that it says how's the culture in your kingdom it's about a
Starting point is 00:29:00 guy that was at 28 years at mcdonald's or disney world geez okay that's a little different than mcdonald's i'm always quoting ray crock you know back in the day mcdonald's was something super special i'm not going to say it's not anymore they own more real estate than anybody in the world except for the catholic church but it says with traditional management training we measure productivity revenue cost, cost, growth, and other key performance indicators or KPIs. The truth is that KPIs are simply results or lagging indicators of running a successful business. It is people who deliver these results and in order for them to perform at their best level, they need to be in an environment where they feel supported
Starting point is 00:29:42 and encouraged along the way. This is called organizational culture. Culture is an all-encompassing environment within which we all live, work, and play. It's the factor that will most influence on our mood, attitude, and motivation. You will see your KPIs improve faster as your team members become more engaged in their jobs. And what I'm realizing is, as the CEO, president, owner of this business, I'm really, I'm so tactical still. And I need to just, I'm looking for the perfect system that I can reach out to 30 people a day. And I don't want to ever criticize, tell anybody anything they need to do. I just want to say, I want to catch them doing something right. I want to say, aha, happy birthday. I want to say, you just set a record. I want to catch them doing something right. I want to say, aha, happy birthday. I want to say you just set a record.
Starting point is 00:30:26 I want to spend an hour a day making videos and just saying, dude, did I ever tell you that you're important, that you're phenomenal, that you mean a lot to me? You know, there's 400 people in this organization and I haven't had a chance to tell you. And I got to tell you today that you impress me. You make me feel so much better about everything I do. I fight the war. I feel sick today. I didn't want to come in, but there's never a day that I feel sick unless that, you know, and I don't want to put anybody in exposure, but I've got a cold. That's all it is. But I feel like I got to be this. Now my purpose in life is to be a cheerleader it's crazy but i want to be kissing babies
Starting point is 00:31:07 and just giving speeches and motivating and i'm getting the right people on the bus as jim collins would say yes what is your take on some of this so a couple things um i'll start at the end yeah the right seats on the bus and that's evolutionary based on where your business is the right person today may not be the right person tomorrow. And evaluating your needs relative to the team that you have, that's certainly a big part of it. And I mentioned before about making clients feel special as a part of sell different. Same thing with your employees. You know, what do they call it? The great resignation or something like that right now where people are actively looking to be elsewhere. You know, Lee, real quick, I just
Starting point is 00:31:50 got this yesterday. Let me read this to you. It says, you're asking a pretty high salary with someone with no experience. And the guy says, well, this job is going to be super hard since I don't know what I'm doing. That's awesome. You got to send that to me. I love it. So you need to make your employees feel special. You know, there's nothing worse. And we've all had that in our personal relationships and business where you don't feel valued. And when you're not valued, you want to be someplace else. And so when you look at today and people picking their heads up going, oh, should I be doing something else? If you're not treating your people well, and I'm not just talking about how you're paying them, how you treat them,
Starting point is 00:32:39 they're going to look to be elsewhere. I tell executives all the time, they'll say, oh, so-and-so resigned. And they focus on what the other opportunity is that they're moving to. My question for them is, why were they looking? Or why did they take the call from the recruiter? Something was deficient in the relationship that they have with your organization and maybe with you personally that allowed that to happen, that led them to look on the job boards or to take that call from the recruiter? What was it? Because once they've resigned, the game's already over. I mean, you can throw some money at it and get them to stick around. They'll only quit again in a few months when they find something else for a few more bucks.
Starting point is 00:33:21 Why are they looking to be elsewhere? A lot of people hate the word HR, human resources. It's because someone says a bad word or sexual harassment, and we go straight to this negative stuff. But they're involved with payroll culture. They're involved with hiring. They're involved with exit interviews and understanding. They're involved with net promoter scores internally. And you can do a lot by understanding and surveying a blind survey within a company. And I got to tell you, you're so good at sales. And I'm really switching this whole interview on just internal customers instead of regular clients. And one of the greatest things in this book is you talk about the first steps to develop a sell-diver strategy
Starting point is 00:34:00 is to create a list of 10 clients. Jamie, you have been a client of ours for a number of years, so you're familiar with what we offer and the quality of what we offer. May I ask you a few questions? If you were me, what associations would you be active in? What conferences would you attend? What events would you go to? What would you be reading to meet more people like you?
Starting point is 00:34:22 A lot of this book, you really go after asking customers for referrals. I mean, one of the things you say in the book too here is think of getting referrals as a campaign, not merely an answer to a question. Can you elaborate on what you're talking about with some of this? Yeah. So the, if you were me, I actually don't look at as a referral program. I look at that as getting Intel. You think of how hard it is to bring in a client. And now that they're with you, they've seen the value that you represent. Again, coming back to that target client profile, they bought, we know, they know some people, they know lots of
Starting point is 00:35:02 people. And what we're trying to get, you know, Tommy, you said before you were talking about some operators and where they advertise. I'd love to know if this is someone that fits my target client criteria, where are they hanging out that I should be to meet more people like them? That's the gist of it. And it could certainly turn into a referral conversation but the intent is to get some intel from them where would you be so for example i have a client in the garbage space in minnesota every homeowner every business contracts for their own trash removal so if you want to get more of these homeowners buying from you, where are they? Is there an association that they're in? Are there events that I should be present at? And I'll tell you a great story from this, and I share it in the book. I had this one coaching client,
Starting point is 00:35:55 and the task was to have 10 of these conversations over two weeks, and he got seven done. In one of these conversations, he found out about a technology council in his own backyard that he didn't even know existed. The members of that council were CIOs that he had been cold calling unsuccessfully. He'd never been able to reach any of them. And his client says, you know, I could bring you as my guest if you'd like. Yeah, of course. And then a couple of months ago, he had the opportunity to present at this council that he didn't know existed until he asked the if you were me question with a group of CIOs. He had been trying to reach through traditional prospecting and had failed, been unable to reach them. And the beauty of that question is, what are we asking the viewers to spend to put this into practice? Nothing.
Starting point is 00:36:47 Nothing. And so as a business operator, when I look at my target client profile, I'm just thinking of this sequentially. I now have clarity. Who's going to perceive meaningful value in what I offer? And then I've sold my products, my services, my technology, whatever it is that you might be selling. I've sold it to my target client. I want to know where more of them are. And if we ask them, you're going to find they're very gracious. There's been studies that have been done. People love to help, but they have to be asked. If you aren't posing that question, same thing with referrals. If you're not asking for referrals you'll get the active ones which are because you did a nice job and someone had a need and they'd send them your
Starting point is 00:37:31 way the passive ones where you ask for them you're not going to get them very often because people need to be asked if they're going to provide i gotta do is ask it's my favorite thing whenever i get any successful guy to the front of newer guys so what'd you do he said all i had to do was ask you ask your kids how'd you get a prom date i had to ask what a concept it's crazy it's crazy there's a good book called no bs about marketing to the affluent and he talks about just like getting into boat magazines and like high-end people read about their private planes and if that's your client there's no better spot and it's such a small group absolutely and you know i have 10 000 clients i could probably have a hundred the dream 100 list is a dream 100 um all through the chat homes talks about your dream 100 right 100 clients
Starting point is 00:38:25 will pay enough for 10 000 customers will do it's something that i'm looking to kind of switch to just big clients you know i thought this was really interesting the myth of closing problems chapter seven yeah my sales people tell me about deals they are pursuing and how confident they feel about winning them then they get to the final stage of the new client acquisition process and the deals unravel. Some decision influencers stop responding to them. Others develop a litany of concerns, objections, and the stalls of deals go nowhere. For the deals we were able to win, we have to drop the prices to unacceptable levels. All that becomes summed up as we have a closing problem. And here, I wrote this in the back. I always write in the back of the books. I wrote this as gold.
Starting point is 00:39:09 After hearing this, I thank the executives for sharing this information with me and proceed to disagree with their assessment of the problem. Based on what you shared with me, you don't have a closing problem, I tell them. Closing is a symptom of the actual issue you are experiencing. Puzzled by response, they ask, what is the actual issue my salespeople are experiencing? This leads to a lengthy conversation about the foundational issue across the sales profession. The root cause isn't at the finish line. It's about winning the deal. Rather, the problem resides at the starting line, at the handling of the discovery phase
Starting point is 00:39:42 of the client acquisition process. A discovery, sell, client acquisition process a discovery so different strategy is a solution to the problem and then you go into a lot more and literally i got examples include frustration about the cleanliness of their carpeting you know i've got a lot of stuff underlined in the whole thing but awesome the people listening now i'm sure go i just don't have the right closers. I mean, you hear that every day. It's a close and close, close. And there are people that talk themselves out of the close.
Starting point is 00:40:11 They ask for the sale, they get it, and they talk themselves out of it. There are things that happen at the end. Yes. But for the most part, you're seeing it start to the start line, not the finish line. Explain that. So when you talk about that initial consultation that you have the discovery meeting you mentioned before a conference that you went to last week and you gave some examples did you tell them about our experience did you tell them about this did
Starting point is 00:40:36 you tell them about that and the challenge with that is it's not a conversation it's a lecture so we're in that discovery meeting yeah Yeah, I told them this. I told them that they didn't care. But if we ask thought-provoking questions during discovery, help them to think through it. So for example, how long do you plan to be in the home? I plan to be here for the rest of my life. And then you can lead them down a path of the way they want that garage door to function. What are your expectations of the provider that you work with for this door installation? What background do you expect them to have to do this type of work? I'm ad-libbing, obviously you can be much more
Starting point is 00:41:15 specific in your world, but I want them to be in conversation with me rather than me lecturing them on how wonderful my company is because everybody's going to come in saying, oh, we're the best at putting in garage doors. But if we ask some thoughtful, insightful questions, all of a sudden we start to set ourselves apart. I'll give you a great example. A few years ago, I replaced all the lighting in my home, all the recessed lighting with LED bulbs. Have you done that, Tommy tommy yeah yeah we've done that at a couple even the building and why did you do it right to reduce costs right and reduce the light forever and the tax write-off yeah there you go and did you know the city of denver did that with
Starting point is 00:41:58 their traffic lights and now they're getting sued i didn't know that. Yeah. And the reason is Denver gets a lot of snow and the incandescent bulb serves two purposes to communicate a traffic signal and melt the snow. And the LED bulbs don't get hot enough to melt the snow. So now there's accidents and drivers are suing the city for making a bad decision. Wow. People don't know how to buy what you're selling. They don't know how to buy garage doors. The worst thing we tell salespeople is you're selling to educated buyers. It's not true. They have access to information, no question. But we know more about the world of potential solutions in our industry than they do. And that's one of my favorite questions to ask salespeople. Who knows more about the world of potential solutions in your industry?
Starting point is 00:42:49 And I've never had one individual say, oh, the people I sell to know much more about the world of potential solutions in my industry. It's never happened. And so that gives us, in my opinion, an obligation and an opportunity. The obligation is to help people make an informed buying decision. The opportunity is to shape buyer decision criteria because they don't know how to buy what you're selling. Now, that doesn't mean we get to lecture them. The idea is we ask them questions, lead them down a path so they see what we're seeing. So, for example, if you've ever been to court, you watch court television. By the way, best news I've
Starting point is 00:43:21 received, best part of the Super Bowl, Tommy, is that the original law and order is coming back. I didn't like the other brands as much. That original one, that's the magic for me. And if you think about what an attorney does so well, they ask questions in a specialized way because they can't testify to paint a picture for the decision-making jury. So they see exactly what the attorney wants them to see. If you've ever gone to a psychiatrist or a psychologist, you know they don't give you the answers. They ask you questions, lead you down a path until you see exactly what they see. And that's what we have to do so well when we're selling for the company. Ask thoughtful, insightful questions. I hadn't thought of that.
Starting point is 00:44:06 That's a really good point. And that was communicated through a question rather than lecture. One of the things I try to do, I was at an event six years ago, and there was a sales coach up top there speaking, and Rodney Webb is a big basketball player. Okay. And one of the things I learned a long time ago is always try to answer a question with a question. So if you were to ask me something like, how much is something like this?
Starting point is 00:44:37 I can say something like, well, Lee, I'm just curious. What makes you ask a question like that? Because we do have. So practice questions on questions. Yes. And one of the things I've got this gold chain that I'm getting for all my trainees when they hear you wear it. Each one of them say something. So one of them says, use my name 15 times.
Starting point is 00:45:02 Either Mr. Saltz or Lee. Yeah. Whatever you allow me to call you. I'll start either Mr. Saltz or Lee, whatever you allow me to call you. I'll start with Mr. Saltz. And then one of them is going to say, always use yes sir and no sir. One of them says, make me feel special. But ultimately our goal is to have a conversation. And in 2008, I had the top guy of ValPak, the whole country. He came in. I don't know how we met, but he said, we have a competition.
Starting point is 00:45:31 Me and another guy, we go out together a lot. He goes, we see how much we get the customer talking. We do one-hour sessions. He goes, if we get them talking over 50 minutes, we've never not made a sale. Absolutely. He goes, 40 to 50 minutes, We're about 70% close rate. If it's 30, 30, just because they're not very,
Starting point is 00:45:48 you know, maybe they're a D type person. They're like, Hey guys, I'm busy. It's tough. And it's interesting because you're asking questions the whole time and allowing them.
Starting point is 00:45:57 But one of the things you do is the nonverbal cues. So Lee, you want your house to be safe. Can you tell me about the safety that you're considering but while making this choice and it's funny because I've already asked you a couple we want to make sure to get this door safe make sure you don't have any problems in the future and you're nodding your head as you're saying that and those things they start to just sure yeah let's go ahead and get that done and you just kind of you follow you
Starting point is 00:46:26 can't help yourself it's like but you got to practice these little things and they're so often we're building a new training center 8300 square feet and i got dogs that look exactly like dogs with the names of the dogs and they're just stuffed animals but i want to learn the names and say max oh my god i love max and the you get to know the dog you go ask about the harley and you got to genuinely be interested in these things i love dogs i love talking about motorcycles but i'm like listen guys every single great pastime is in a man and woman's garage it's very easy to find commonalities in fact i came up with a new line lee how slow can you go okay because a lot of us try to get to the point oh you got a broken spring here let me go through some options yes my secret sauce is
Starting point is 00:47:22 let's try to take two to three hours at that call. I know I could do it in a half an hour if I really wanted to. If you give me eight jobs in a day, I got to have windshield time. So I want to give two to three jobs and say this, Lee, tell me a little bit about the history of this garage. When's the last time you had a look at? And here's the secret question. What's going on with the garage door? I see you got a broken spring, but I'm not going to go out. I'm just going to say what's going on with it. I've seen customers tell me this, Lee.
Starting point is 00:47:52 The store is a piece of junk. We've talked about replacing it for the last three years. I think I just want one of those more modern window-looking doors. If I would have said it's a broken spring, not a big deal. I got the springs on the truck. You might have said, well, you know, money is kind of tight. Maybe we can give it another year. But if you let the customer just, Hey, listen, Timmy sleeps upstairs. The door is noisy. It wakes him up every day. I don't know what the issues are, but I definitely want to get it quiet.
Starting point is 00:48:18 They'll tell you everything you need to know. And you're right. It needs to be a conversation. And when you're going through, I want to ask you, this is really, really, really important. Probably the most important question I've asked on the podcast is what's some of the things you look for when you're hiring? What are the questions you ask? What are you checking references? What kind of personality profiling do you do? Because I could spend 10 years changing a behavior or i could find somebody and just teach
Starting point is 00:48:45 them what to say and do and they've got goals yeah so i can't be starbucks and try to change and psychologists and get them through like i'm sorry but at the rate i'm trying to grow i can't save people's lives i want to try to find them up a 90 get them to 100 yeah so there's a couple of criteria. One is, and we've just touched upon it, insatiably inquisitive. That's one big one that I'm looking for. Related to that, a commitment to continuous self-improvement, always looking for ways to improve. So how do you, how do you demonstrate that? I mean, inquisitive is easy, but do you ask questions like, what are your hobbies? Do you go to the gym? Do you read? What's the last course you completed? Are those the kind of questions you're looking for? I would ask them a question like, I'm assuming you visited my website, and then you may see some deer in the headlights. No, I didn't. Okay, that's a strike against you. What's one thing you would change
Starting point is 00:49:45 on our website and why? Everything. And then what I would look for that person to say, Tommy, I was just curious before I make a statement, I'm going to ask a question. Tommy, I noticed on your webpage that you have this particular aspect. What was the thought behind that? I want a question not a statement well that's like sell me a pen a lot of people go well it's a beautiful red pen it could actually turn into a pen so the question is well what are you looking how often are you going to use the pen do you lose the pen a lot you write underwater one of the things i realized when a guy took me down this question 15 years ago is he goes,
Starting point is 00:50:26 you know, ask me the question. And I said, what kind of pen are you looking for? He goes, I work for NASA. He goes, no, you go from there. I said, oh, so do you plan on being an outer space student? He goes, yes. I goes, you're going to need an anti-gravitational pen to write upside down or a pencil.
Starting point is 00:50:41 Remember the Seinfeld episode with that? Oh, he did it in Seinfeld?. Remember the Seinfeld episode with that? Oh, he did it in Seinfeld? It was a Seinfeld episode with the pen and one of the neighbors had this pen that you could write upside down. Oh, well, I didn't see. So they must have took it from that. I'll bet you
Starting point is 00:50:57 they did. So I've got this little thing that my buddy brought me yesterday. I played this through. You brought Seinfeld. You've heard of The Office? Of of course so there's a scene where he goes we got to do role play and he goes all right he goes so there's dwight and there's the other guy and then there's michael and he goes all right the ring he goes dwight Hey there, sir. I'm selling paper product. What can I help you with? And he goes, well, my name is Bill Buttlicker.
Starting point is 00:51:32 And he goes, I can't hear you. He goes, Buttlicker, our prices have never been lower. Have you seen that scene? No. Oh, my gosh. I'm going to send you this scene. You're going to die. But OK, I want to go back to this.
Starting point is 00:51:44 So you asked about the website. One of the things I always recommend is how do you identify winners? And for me, they've had to be losers in the past, meaning they've been competitive. And for me, they've had to have practice. I used to work two days in football. I worked out twice a day and practiced twice a day to play one game a week. So I was used to practicing. Practice makes perfect.
Starting point is 00:52:07 We didn't call it role play, but we'd scrimmage. And so there's one thing. I don't have any kids, but when I do have, I hope I have a boy, and I hope I have a girl too. But I'm going to tell my son, you lost today. That's not good. I love you no matter what. But we are winners, and we're going to focus on playing the best we can play. And if you're like your dad, you hate being a sore loser and blaming
Starting point is 00:52:32 other people. So we'll play wrestling. We'll shoot pool. We'll go bowling and we'll, we'll play golf because you can't blame anybody else on those sports. Absolutely. Mindset is super important when i was coaching gosh i think the boys were probably seven years old i said i'm gonna put skill aside for the moment because you know you're trying to teach some baseball you know hands here feet there all this stuff this isn't a baseball anymore and they looked at me like i was nuts i said this is is a tomato. And here's what I want you to do. I want you to splatter it all over the place. And they went from swinging what looked like a wet noodle with the back kind of like this, all of a sudden their eyes would light up. We started with that. And that mindset really works when we talk about salespeople and making sure that they're excited and motivated to be selling.
Starting point is 00:53:27 Yes, skill is important. No question. But also that they're excited to be representing the brand. And I'll tell you, it works. It counts. You know, I want to ask a few more questions about this. So one of the things that an ultimate salesman, Chet Holmes used to challenge his people before he passed away, you'd go interview for him and he'd go, you know, Lee, here's the thing about you. Let's be honest with each other.
Starting point is 00:53:54 You're not really cut out for this job. You don't have what it takes. Obviously. I mean, look at some of your answers, your composure. It's just, you seem nervous. You're just probably not the right guy for this. It's a sales job. It's performance pay. And I think you're just, you're probably going to burn out during the third month.
Starting point is 00:54:10 And if the person backed down and they said, well, I guess it's not for me. But if somebody said, what do you mean? Tommy, I'm the top performer in every company I've ever worked at. If you even call my references, I'll tell you, what are you looking for?
Starting point is 00:54:26 Because I believe I hit every single one of the things you're looking for. And you want to get that adversity up front. You want to see some fight in there. Absolutely. Yep, I agree. 100%. I think this is so important. The reason I'm asking this is because
Starting point is 00:54:41 you know why people really love this podcast? It's because I ask questions that I'm having problems with in my business all the time. And they like a guy came in here and he goes, Tommy, he goes, I remember when your business went from 15 million to 50 million, you listen to the first 40 episodes.
Starting point is 00:54:57 We get exactly what we need to do that. He's like, and now we're working on getting from a hundred to 150 million, but these are the core questions because I'm literally asking you questions. Being greedy. Free consulting. Why not? Yeah.
Starting point is 00:55:14 Well, it's great. We work together. Did I give you a copy of my book, Higher Right, Higher Profits? Yeah. Tell me a little bit about that. You can go on. I got it right here somewhere. That's my sales hiring and onboarding methodology.
Starting point is 00:55:29 Yeah, no, I actually bought a second copy of it. I've got so many books here, but tell me a little bit about it real quick. Yeah, so it walks you through the steps. I'm a big believer there's no such thing as a great salesperson. And I can prove it. How many of these so-called great salespeople have you hired and they failed in your company? So if you believe in great salespeople, you also must subscribe to one or two of the following. Either the person showed up on your doorstep and completely forgot how to sell, or your company is the worst company
Starting point is 00:56:02 on the planet to sell for. What else could it be if you believe in great salespeople? And the concept that I teach is we need to find the right salespeople who can be great selling for us. That's the goal. And so in the book, I go through the steps to first understand your own selling environment. What would cause someone to succeed, fail, or underperform in it? And you put together what I call a performance factor portfolio and said, okay, this is what it takes to be successful
Starting point is 00:56:32 here. This is what causes people to fail. Now I'm going to evaluate candidates, not to see if I can find a great salesperson, someone that meets this criteria. The things that we know cause them to fail, we're going to stay away from those. The key factors that lead to success, that's what I'm going after. The steps of the evaluation process are tied to evaluating not great salesperson, but the match or lack thereof between the candidate and each of those factors. If you can't find it, Tommy, let me know and I'll send it to you.
Starting point is 00:57:07 I have two copies of it, and I'll tell you this. I have read it, and all the notes are in the back of it. And I'll tell you, sometimes I probably read too many books, but the difference is we have three full-time recruiters. Okay. And I have a lot of knowledge. I've probably seen over a thousand guys work for me over the last 15 years. I'll tell you the biggest problem right now in this hiring environment,
Starting point is 00:57:32 recruiting, you go out and get it. It's not hiring. You go out and get a number one, just like if you're in the army or if you're a sports recruiter, number one. Number two is the best recruiters are your employees. I told my CSR manager, and I don't want to call it CSR. I want to call it sales associate because that's a higher paying job. I said, I want my people to make $70,000 in that role. She goes, $70,000? She goes, you know how much I make? And I'm like, well, she makes more than that.
Starting point is 00:57:59 But I said, if they recruit two people a month, that's $3,000. That's $36,000 a year. That means they only need to make $35,000 at their main job. That's $71,000. She said, oh, I didn't know you were talking about recruiting. I said, of course. There are internal recruiters. Absolutely.
Starting point is 00:58:16 It all connects, right? I mean, if you take great care of your people, they're telling everybody, hey, you need to be working here. How do people find you, Lee? We'll end here so we can get you to your next appointment. Yeah. My website is salesarchitects.com. If you're intrigued by what we talked about with Sell Different, it's available on Amazon, in hardcover, Kindle, and audiobook. And I narrated the audiobook. And if you go to selldifferencebook.com, you can download the first chapter either in print or in audio
Starting point is 00:58:46 and there's a video series that goes with it. If you buy a copy of the book, wherever you do, come back to selldifferentbook.com, sign up for that video series and you'll get a link to a video every week for a year to help you implement those strategies.
Starting point is 00:59:02 I love it. I love it. You're such a genius when it comes to these marketing things. Okay. And lastly, we had a lot of things, Lee, and I appreciate you coming on. I'll let you end it here. Just, is there something that the listeners should go do today?
Starting point is 00:59:16 Yeah, I would say the best thing you can do is invest time improving your handling of discovery. You do a better job of discovery. The finish line takes care of itself. Discovery. I love that word. Well, Lee, I appreciate you very much. Thank you for coming on again. I'll catch up with you soon. Thank you. Hey guys, I just wanted to thank you real quick for listening to the podcast from the bottom of my heart means a lot to me. And I hope you're getting as much as I am out of this podcast. Our goal is to enrich your lives and enrich your businesses and your internal customers, which is your staff. And if you get a chance, please, please, please
Starting point is 00:59:57 subscribe. You're going to find out all the new podcasts. You're going to be able to ask me questions to ask the next guest coming on and do me a quick favor, leave a quick review. It really helps us out when you like the podcast and you leave a review. Make it four or five sentences, tell us how we're doing. And I just wanted to mention real quick, we started a membership. It's homeservicemillionaire.com forward slash club.
Starting point is 01:00:18 You get a ton of inside look at what we're gonna do to become a billion dollar company. And we're just, we're telling everybody our secrets basically. And people say, why do you give your secrets away all the time? And I'm like, you know, the hardest part about giving away my secrets is actually trying to get people to do them. So we also create a lot of accountability within this program. So check it out. It's homeservicemillionaire.com forward slash club. It's cheap. It's a monthly payment. I'm not making any money on it
Starting point is 01:00:45 to be completely frank with you guys, but I think it will enrich your lives even further. So thank you once again for listening to the podcast. I really appreciate it.

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