The Power Lunch is Back!

The Power Lunch is Back!

For the Power Lender lunchtime is prime work time. Meeting new prospects, building the all mighty broker relationships, or just re-connecting with current contacts over a meal can be powerful. Here's a few things you might find helpful.

Go to them

Go to where the action is. If your lunch guest has an office downtown then go downtown. If they are in an office park in the burbs then go to the burbs. Make it easy. When setting up a lunch appointment in someone else’s neck of the woods you might want to ask if there is a new place that they haven’t tried yet.  You get to share a new experience with them and keep them on even ground. The last thing you want to do is go to lunch and have the server or manager at your table talking about Labradors or weekend soccer games.

Always get the daily special

Always order the daily special. This allows you to not spend precious time thinking about what you’re going to eat. You will come across as confident and look like you can make decisions quick. You don’t want waste time waffling in front of your guest.

Only eat 1/2 of your meal

With portion sizes out of control its difficult sometimes to stay in shape. Eating out can be a disaster to your physique, especially if you are having dinner out again the same day. For many Power Lenders especially when just in town for a couple of days the meal meetings are non-stop. Breakfast meeting with a banker, lunch meeting with prospect, maybe a dinner meeting with a new broker group, and somewhere in there is the mid-afternoon coffeehouse debrief with you and your laptop.

The calories add up quickly. Eating only half your meal also allows for you to engage better with your guest. Make sure you aren’t talking the whole time and eating a cold lunch at the end of your conversation. Watch your pace. The last thing you want to do is to be sitting there with an empty plate while your guest has barely touched theirs because they’ve been talking about this year’s numbers and next year’s forecast. They will shut down if they think they are talking too much.

(This one is free. STAY AWAY FROM the FRENCH ONION SOUP. There is little worse than stringy melted cheese stretched from your bowl to your mouth.)

Wait for it…

Often times, when meeting with a new prospect or prospective broker the best thing to do is to listen and be attentive. Wait until they are ready to hear what you have to say. Jumping into your pre-cooked pitch is the worst thing you can do when meeting with someone new over a meal. Be patient and learn as much as you can about what they do and who they do it with.  Everyone wants to be heard. Don’t be needy. Wait to your turn.

 It’s about the connection

For some it’s all about selling and getting the deal. My thought is that connecting on a human level is more important than pushing products and services. It is when people can connect on this human level that real opportunities are born. You want to conduct yourself in a way that will convey to your guest that you are reliable and can be trusted with their business. You want to be sharp with information that is useful and share the side of you that is refined and confident while at the same time remaining humble and authentic. Now that is a heavy order. Power Lenders know how to earn the right to do business with others.

Get out of Dodge

Be sure to leave before all the work is done and all the talk fades. Leave them wanting more. Having another engagement and cutting things short is a good thing. Stick to the allotted amount of time that you and your guest agreed upon. You don't want them to think you are overly chatty. Don’t overdo it when trying to build the relationship. Slow and steady wins the race.

Want To, Want To, Want To

Want To Want To Want To

It was over 25 years ago. I was young and enthusiastic about life. There was nothing in this world that would get in my way of being a success. I had no clue that someday I would get tired and bored and settle for just OK.

I had been with a small company selling to strangers door-to-door. I was pretty good at it from the start. You could even say I was a natural.  No matter what I did though, I just couldn't get my name at the top of the All Powerful Wall Chart. One evening, I was filling out my daily report and talking to one of my managers, Carlos Ortecho. Carlos was always upbeat and ready to engage. I asked him, "How do you get up there?" as I pointed to the wall chart. His reply was simple. "You got to want to! want to! want to!" he was so excited in his answer that spit sprayed from his lips and hit me on my shirt as I sat across the desk from him

He went on to tell me if you want to be the best at anything you have to want it more than anything and do whatever it takes to develop the skills and increase your knowledge in order to be successful. This was revolutionary to me. I look back now and realize how simple his advice was. Anyway, I took it to heart.

I became a self educator and learned how to overcome every rebuttal imaginable. I went to work on learning how people would react to what I would say and how to say things in such a way as to win their approval. This was huge. I spent nights in front of my mirror at home rehearsing my script and practiced looking myself in the eye when I did it. I bet my hard earned money against those guys at the top of the wall chart that I would out sell them on the day and on the week. I lost a weeks' pay once doing this. It didn't matter. I wanted to be the best.

As you can guess, I soon become the number one guy on the All Powerful Wall Chart to beat. I dedicated myself to growing and learning. I started reading sales books and leadership books (everything I could find). I did everything I could to be great. I even started working out like crazy and running to stay in shape and increase my energies. I had so much swagger.

I still remember my first week at being number one. I felt like I had arrived. I was high on life and there was nothing better than what I felt at that moment in time. Over the years though I have noticed that the enthusiasm and drive of being number one has waned some. I became OK with just being really good and a solid salesman with great closing skills. I was confident and delivered a reasonable amount of sales. There wasn't anyone who wouldn't want me on their sales team. I was seasoned and delivered.

I had lost my edge though. I became satisfied with doing a "good" job. Raising a family and spending time doing other things became the focus of my energies. There is nothing wrong with this at all. Life was good and I had become a success if it was measured by having a great family and earning enough to take care of everyone, get ahead, and be esteemed by my fellow man.

I was walking with my wife one evening after dinner and mentioned to her that I felt that I had lost a little bit of swagger. That my edge was not there like it used to be. I used to be so energetic and enthusiastic and convinced about about myself. Not arrogant but convinced. Selling had become repetitious and boring. I wasn't driven like I had been before. She, being honest had told me that she saw this as well.

This getting soft if you will is not just my phenomenon but is realized by many great sales people. Time and energy gets directed elsewhere. The excitement wanes and the passion dwindles for many who were once at the top of their game. It almost seems like part of the journey. But the great thing is that we can change paths and actualize different realities.



I challenge you to become your best again. It takes energy and drive. You know and have felt the ecstasy of being the best and you know what it feels like to be the one who sets the bar the highest. But do you want it? Do you really want it? Being one's best self is not for everyone. If you are happy being less than your best that's OK, for you. It's not OK for the Power Lenders out there.

If you want it, go get it. Upgrade your skill set. Leaders are readers! Read, if not for any reason but to increase your knowledge of the modern business speak. Start working out again. Really work out. I am not talking about 30 minutes on the treadmill. Get fired up and go be the best.

The only difference between those people who will do this and those who won't is this: the people who decide to be the best go and do it. You have to want to, want to, want to. Say it with me. Say it loud with spit flying from your lips.

 "I WANT IT! I WANT TO! WANT TO! WANT TO!"

For more information about taking you or your team to the next level in sales contact Joe Kiefer Top Gun Sales Performance jkiefer@topgunhq.com

Sales Beast Tool: The Need-Payoff Question

The Need-Payoff Question is a powerful tool. It gives you  the leverage.

There are many sales styles out there. Personally, I like the Miller Heiman Strategic selling system. It gives great framework for getting complex deals over the line. But the most powerful sales lever I have actually seen bring grown men to tears and motivate them to buy is Neil Rackam's Need-Payoff Question. Need-Payoff questions are questions in the sales process that ask ask about the value, importance or usefulness of the solutions. This lever will have a large influence on how much the prospect is willing pay. If you can show that there is a very high probability of a high payout by purchasing the product or service, the prospect will be willing to pay a lot for your product or service.

  

It goes something like this. “Mrs. Smith, How would increasing your cash flow and accessing more working capital make a difference for the people who work for you, your company’ future, and lastly your personal relationships?

Mrs. Smith might just smile and nod. But a little push to get her to actually answer the question will be a huge lever in pushing her over to the buying position. Once she starts answering the question, she's selling herself on why your solution is right for her. I have used this question or similar questions to get deals to move forward for years. It works!

Neil’s book SPIN Selling is enlightening but the Need-Payoff Question is the biggest takeaway. It’s powerful. There is no salesman or woman who can’t benefit from this style of questioning to move a deal closer to the finish line.

For those of us who sell money it can be difficult to get the prospect to see what we are selling as anything more than a commodity. The right question at the right time can turn the commodity to something so much more. I asked a business owner this question. He was big burly man and very proud. Once he started answering the question it became obvious that he was having an emotional moment.

This business owner told me that his staff would feel more secure and that he could buy the new equipment that he needed to get more contracts. He mentioned how his company that had been in the family for 3 generations would be elevated back to where it was in its hay day. He took a deep breath and as tears ran down his face he said “Money is so tight at home Joe. We pay our staff before we pay ourselves and my son is getting ready to go to college and it looks like he is going to have to take out loans. My relationship with my wife has been difficult. We fight all the time about money and the company. Having access to more capital would change my life.”

Of course I was able to close the deal having this new information. Not only was I able to help make the transfer from selling a commodity to providing a solution that would change his life but I became his confidant. He trusted me to hear his story. Today that company owner is doing great. After years of struggling and not being able to afford the opportunities presenting themselves he now has huge contracts and his relationships with his family are strong and they are thriving.

The Need-Payoff Question is powerful. If you are not using it then you might want to ask yourself how having a tool like this can affect your sales quota, your relationships at work, and how closing more deals and bringing home more money would affect the lives of the people you love?

For more information about taking your sales skills to the next level or increasing the productivity of your sales team contact Joe Kiefer at www.topgunsps.com or jkiefer@topgunhq.com 513-400-6475

Factoring Brokers are Getting Ripped Off

 

New factoring brokers are popping up everywhere. It’s like a jiffy pop bag blew up and there are brokers all over the place. These new brokers seem to be coming out of the woodwork. It’s great don’t get me wrong. I love getting calls on Sunday afternoon asking me to help them get this deal or that deal funded.  However many of these new brokers are not making as much on deals as they should be. No one has educated them on some of the basics of choosing a good factoring firm to place deals with.

One of the things that stands out to me is that many brokers seem satisfied with whatever pricing the factor decides to charge. These brokers are partnering with factoring firms that have horrible sales people who really only take orders and price deals on the cheap.

Factoring firms that sell on the cheap and don’t have at least a 2 year contract with the customer are not good for brokers. These firms sell at the lowest price possible and the broker makes squat. Brokers who send deals to lenders who do not have good sales people will always see less commissions. My  suggestion is to set your own minimums on what kind of pricing the factoring firm has to sell the deal at or take the deal to someone else. It’s your deal and you should consider making as much on it as you can.

Factoring firms that have open ended contracts are again selling on the cheap. How can you as a broker build wealth if the firms you are placing deals with can’t keep the customer? Also, where have all the minimums gone in the factoring world? Without minimums how can a broker budget what’s going to be deposited in their accounts each month? Factors who have open ended contracts, sell on the cheap, with no minimums should be dropped from the brokers playbook.

Other factoring firms are taking brokers for a ride. They are funding deals but take money off the top before calculating the broker commissions. Let’s say that as a broker you expect to get paid 10% -15% on a deal. many factoring firms are paying out commissions on net profits after the funding company covers some “overhead” costs first. This really adds up.

On 1 million dollars of invoices purchased at let’s say just 2% for 30 days the broker who is getting paid on the straight percentage  with no “overhead” deductions at 15% makes 3k. Job well done. But factoring firms that  take the “overhead” cut off the top are paying brokers closer to 2k on the same deal. That can be 30% or more out of the brokers’ pocket. So that 15% really is more like 10% and if you are working with a firm that only pays 10% and does that it’s closer to 5% actually. Don’t stand for that kind of arrangement. It is not in your best interest. (pun on interest)

Now consider that as a broker you send 10 million dollars in deals to you favorite factoring firm next year. If that firm skims off the top you could be losing as much as 10k. Not only are you hunting deals for them but you are also expected to chip in and pay their light bills. If that firm also sells on price with open ended contracts with no minimums you are losing a great deal of money.

As a broker you have your own overhead and don’t have the base salaries that your sales partners are collecting. Taking control of your deals is in your best interest. Give yourself an immediate pay raise. My suggestion is to partner with lenders who:

1. Have great sales people that will price deals that make real money.
2. Get paid off the gross percentages not after “overhead” percentages.
3. Inform the sales agent or factoring firm that you are working with that you have minimum expectations that will need to be met or you will take your deal to factoring firms that can actually sell deals at pricing that makes sense for you.
4. Know who you are dealing with.

For more information about factoring firms that will work with you and get you the highest commissions possible contact Joe Kiefer at kiefer.joe@gmail.com. I’d really like to connect and share information with you. and learn from you best practices in our industry.  Let’s make money together and let’s make as much as we can on each deal.

Are You Fracking Kidding Me?

Below is an article for review. My guess is that if you are a Power Lender that you are already on top of this.  Power lenders are looking into New York for fracking opportunities.

When you find that you need a really nimble and creative invoice factoring firm that knows the fracking and oil  industry click here. Equipment leasing and financing solutions available as well as out of pocket start-up cash for trucking companies in the area.

New York State close to deciding on fracking

By  Jeff Glor

A natural gas extraction well in Pennsylvania (CBS News)

(CBS News) The method of extracting natural gas from deep in the earth known as "fracking" has dramatically changed the U.S. energy industry, but as more wells are drilled, protests have continued.

The latest flashpoint is New York State, which has been a fracking holdout. CBS News has learned that New York is close to making a decision about fracking and is expected to roll out guidelines after Labor Day

As the public awaits the decision, the debate continues.

The days are long and grueling for upstate New York dairy farmers John and Teresa Lyons.

Lyons Hill Farm -- in the family for over 150 years -- is struggling. A 2009 barn fire put the family into debt, and recently milk prices have sunk. The Lyons say they are losing $7000 per month

"The way the economy is there would be a great chance to lose the entire farm," Teresa said.

The Lyons are relying on one hope: that New York State makes a decision soon that would allow gas drilling on their farm.

"The money would be a great blessing," John Lyons said.

Fracking boon could boost Obama in Ohio
Fed report: Fracking not likely to cause quakes
Ohio probe: Gas-drilling waste behind quakes

The Lyons' farm sits on top of the Marcellus Shale Formation containing natural gas deep underground that stretches from Tennessee to New York.

The gas is extracted by way of hydraulic fracturing or "fracking", which involves millions of gallons of sand, water and potentially toxic chemicals blasted deep into the earth, shattering underground shale and freeing natural gas for collection.

On the Pennsylvania side, property owners are expected to make more than $2 billion this year leasing land to the gas drilling companies. But in New York, fracking has been on hold for four years.

"When I think about the money I'm standing on, it would be like someone standing on the bank knowing they have million dollars in it and no access to it," Teresa Lyons said.

Environmental concerns have led to closer scrutiny of fracking. In Albany, New York's Department of Environmental Conservation -- responsible for writing the regulations - says if high-volume hydraulic fracturing moves forward in New York, it will do so with the strictest standards in the nation.

Many New Yorkers, however, are saying not-so-fast.

Sandra Steingraber, an environmental scientist, said that anyone -- even the Energy Secretary, the president and the EPA -- who says fracking can be done safely is wrong.

"When you shatter the bedrock, it's not only full of methane, it's full of benzene, it's full of tylulene, its full of a lot of poisonous hydrocarbons. You blow that up and you put cocktail straws down into the ground to try to get the methane up, you create portals of contamination for other chemicals to come up into our ground water, aquifers and into air," Steingraber said.

But the Lyons said they've seen safe drilling across the border and they'll take their chances to save the farm.

"I drive to Pennsylvania and do not see a difference in the hay crop or the corn crop growing over there, just that they have a new tractor," John Lyons said.

© 2012 CBS Interactive Inc.. All Rights Reserved.

On Drinking Coffee

One of the favorite Sales Beast  movie quotes is "Coffee is for closers"! It's from the movie Glengarry Glen Ross. The movie has a an all star cast. Alec Baldwin, Al Pacino, Kevin Spacey, and the great Jack Lemmon   If you haven't seen it then I question whether or not you are a Power Lender or not.

Here is a little clip to get us going. The movie is streaming on Netflix. Don't be a loser go watch the movie.If you haven't seen it. http://www.youtube.com/watch?v=t_axtPsymWg

What are your thoughts about the video clip? Are you always closing?