If you are able to solve the problems that arise better than the clients could have expected, they will be loyal to you for life.
Richard Branson
Table of Contents
Built-in protection
Each of us has an built-in defense system against bad news. It helps us maintain a good mood, prevents our nerve cells from dying for no reason, and generally keeps us on the right wavelength. The main sorrows of unhappy people are often linked to the disruption of this system.
Do you want to see how it works? Write on any moderately popular photo blog that Canon equipment is better than Nikon, and you’ll see how fiercely the owners of cameras from either brand will argue for the superiority of their gear. The truth is, in the photos taken, it’s often hard to tell which specific equipment was used to capture the shot. It’s just like in Karel Čapek’s story “The Man and the Camera”:
“Buy an Alpha,” one will confidently advise. “I have an Alpha. It shoots beautifully.”
“I wouldn’t take an Alpha even for free,” another one will declare indignantly. “If you want a good camera, only buy a Dürer-Schmidt. I have a Dürer-Schmidt. Now that’s what you call photos!”
“You’re going to get lost with the Dürreschmidt,” warns the third one. “You’d be better off getting a mirrorless camera. A DSLR is more reliable than anything.”
“Why a DSLR?” the fourth one objects. “I’ve been shooting with my old Koppel for twenty years—there’s no other camera that can take pictures like these.”
“Come on! What can you do with that old box? Just buy the Elka. I have an Elka, and I’m telling you…”
“Don’t listen to anyone,” grumbles the sixth one. “No device will give you pictures like Arco. At least I have Arco.”
Similarly, any political propaganda is primarily needed by the supporters of a particular politician — they are the ones who will listen, scrutinize, and delve into this information, searching for and finding confirmations of the correctness of their choice. Even opponents manage to use “enemy” propaganda to validate their own stance and rally their ranks — the machinations of a common enemy compel them to double down on convincing themselves that the truth is on their side.
Try asking people for their opinions on a particular brand of televisions. Try explaining to the owner of a new car that they are mistaken in their choice. Everything in the trunk will quickly come flying into your head — the first aid kit, fire extinguisher, emergency stop sign, and jack.
Once, psychologists conducted an experiment in which they asked a car dealer to give customers the option to choose another car within a week if they were not satisfied with the one they purchased.
It turned out that the very possibility of choice makes people unhappy! The feeling of happiness a week after making a purchase was twice as low among those with the “option to choose” compared to those who were not offered such an option. It was interesting to see the adjectives that buyers in similar positions used to describe their feelings about buying a roadster. Those without a choice said that the seat “embraced” them and they felt like pilots in a cockpit, while those with a choice complained about… the cabin being too cramped.
Built-in protection is perhaps the only obstacle that sellers need to learn to overcome. First and foremost, within themselves. Everyone considers themselves to be entirely rational. And even if someone admits they are not, it often sounds like a useful or attractive trait: “I’m so mysterious and unpredictable…” No matter what we do or what we are engaged in, if we are asked “why,” “for what purpose,” or “with what goal,” we will always find an answer. Even aimless activities we will rationalize by saying that we are “relaxing” or “it’s easier for us to think this way.”
When you ask a salesperson about how their meeting with a client went, they almost always find something positive to say. This only fails when they have been treated quite rudely. In all other cases, the response is usually, “The meeting went well.” And when you ask what they achieved, the salesperson replies, “Well, we got to know each other.” If you then inquire about the purpose of the meeting, it turns out that the salesperson’s goal was simply to “get to know each other.” However, a goal cannot be so vague and irrelevant. In reality, it should either be about closing a deal or making progress toward it. Unfortunately, “we got to know each other” does not constitute progress, as it does not bring the salesperson and the client any closer to a deal. Moreover, the client may not understand why they needed to meet someone from whom they derive no benefit. This outcome is hard to call good, and if we’re being honest, it can’t even be called a result. However, the rationalization machine kicks in and protects the salesperson from bad news. To overcome or outsmart this built-in defense, the salesperson simply needs to write down 2-3 acceptable goals for the meeting in advance. These should be specific, measurable, time-bound, achievable, and relevant. This way, during the meeting, it will be clear what they should be striving for, and afterward, they can evaluate the outcome by simply checking off whether the goal was achieved in their notebook.
Secondly, salespeople must be able to overcome the client’s defense mechanisms. The client, of course, is rational and only takes carefully considered actions. You come to them with your product and start insisting that they simply can’t live without it. Whether that’s true or not is not so important. The “guns” are already aimed at you, loaded with fresh rounds of explosive ammunition. One more word from you, and the client’s internal defense system will take you down. The client has been managing just fine without your product—are they a fool? Have they been living incorrectly all this time? Do you really think all of the client’s problems will be solved with your product? Who are you to teach them? Do you know what the client is thinking while you show them beautiful slides highlighting the advantages and features of your product? Their mind is busy trying to convince themselves that they don’t need it: most of the features are unnecessary, and the ones that are needed don’t meet their requirements. The advantages are also quite questionable and can easily be addressed with existing alternatives, and the effectiveness of your product doesn’t justify the costs at this scale of business. Was the client really so foolish that when they set their budget a few months ago, they didn’t account for the expenses related to your product? No, the client was wise. Why didn’t they account for it? Because it’s not beneficial, not rational, doesn’t align with their goals, and they simply don’t have the budget for it right now, etc.
Just as endorphins protect us from unnecessary pain in our bodies, this built-in system shields us from a multitude of troubles that are actually happening to us, but that we either overlook or rationalize. Often, we pretend that everything is fine, or even that something very good is happening.
Many sales textbooks compare a client’s problems to pain. Salespeople are taught to identify what “hurts” the client, to dig deeper into it, and to develop the identified issues. But if every person is literally “high” on self-rationalization, then exploring their problems is nothing more than an attempt to bring the “pain” to the surface, dulled by the drug of their built-in defense system. But will a person whose wounds you are rubbing salt into be inclined to favor you?
This defense system can be compared to the Maginot Line with its fortifications, bunkers, machine guns, and underground communication systems. There’s no point in charging in headfirst. Fighting is not the method of the White Sales. On the contrary, they teach how to bypass this “Maginot Line,” get behind enemy lines, and turn it into a defense that protects you rather than against you. Typically, salespeople approach the “Maginot Line” fully armed. They come in a tank of competence, with armor made of arguments and shells of special conditions. Is this wise? Perhaps it’s better to approach on foot, without disturbing the sentries? To go unarmed and in civilian clothes, so as not to be shot on sight as an enemy? And to bring along a little food to offer the soldiers on duty? After all, they are not our enemies; they are clients. So, we should love them, not fight against them.
Backwards
There’s an old joke about husbands discussing how to sneak into their wives’ bedrooms at four in the morning without being noticed. One of the suggestions was to strip completely in the hallway and walk into the bedroom backward. If the wife wakes up, just pretend that you’ve just gotten up and are heading to the kitchen for a glass of water.
However, how can we actually find ourselves on the other side of the defense line? The solution to any such problem becomes clear if we plan it from the end, that is, from the goal we are striving for. In simple children’s puzzles like “help the bunny find the carrot,” the path is easily found if you draw with a pencil from the carrot rather than from the bunny. If we want to get somewhere, we need to look for the path from there, not the path to there.
Let’s consider a simple task: you need to be in Ensk on April 13th. What do you do? Buy a ticket and fly? Not quite! Actually, you start by planning, and you plan “backwards.” Here’s your reasoning: the flight is at 6:50 AM on Tuesday, so you need to be at the airport by 4:50 AM. Consequently, you should get into a taxi by 4:00 AM. This means you need to a) wake up at 3:00 AM, b) pack your suitcase the night before, and c) order a taxi the night before. Since you’re flying, you’re limited by the size of your toiletries, like toothpaste, deodorant, and cologne. So, on Monday morning, you need to check if you have everything in your “travel kit,” and if something is missing, you should buy it on your way home. And so on (or rather, “and so earlier”). In other words, you manage your time by allocating the necessary amount for each task that needs to be addressed, so that you end up in Ensk on April 13th. Note that if you go to a bakery (because it smells like fresh bread) instead of a supermarket (or pharmacy) on Monday evening, you won’t be able to fly (assuming that toothpaste is critically important for you).
However, in the “battle for sales,” the opposite happens! Salespeople, when asking the customer a question or telling them something, only think about the “taste of the buns,” the immediate impression, rather than the final question that will be asked: “Where would you like us to arrange the delivery?” or “How soon can we expect payment for the goods?” In response to what phrase from the client will this question arise? Huh? This is precisely why “closing” is such a complex science for salespeople. They don’t just “fear” or “feel shy” about closing; they do nothing to create an opportunity to close the deal.
Once, while I was invited to observe the sales process, I watched how the salespeople worked in a car dealership. One was fighting hard and taking hits, while the other was on the same side of the defense line as the client. Here’s the dialogue of the first salesperson:
— Good afternoon! Thank you for visiting the Audi showroom, home of the best cars in the world!
— Thank you, Audi cars do look really good, but I prefer Mercedes.
“Could you tell me why you prefer Mercedes?”
—I like his 8-cylinder engine.
— But Audi also has an 8-cylinder engine, which even won the top prize in 2009 for the quality of its injection system!
— The injection system isn’t the most important thing.
— Why?
— (irritated) Because all the components are important as a whole!
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In such a dialogue, it’s impossible to understand how it can lead to closing a deal. Dozens of sales books teach sellers to ask the question “Why?” After all, it’s an “open question,” which means, by definition, it’s useful. The idea is that after asking it, the client will reveal what truly interests them and share what touches their emotional strings. However, by asking this “why,” the seller fails to see the end goal and doesn’t plan from the end. It’s somewhat like reading a 10-page book titled “Everything About Chess” and learning about the advantages of castling, only to try to execute it even when it could lead to checkmate in a couple of moves.
The following dialogue, which took place with a similar visitor but with a different seller, is intentionally presented “backwards” to illustrate how such conversations should actually be planned. So, let’s roll the film “in reverse”:
— Please, turn left at the end of the corridor!
— Where is your cash register?
“If you can pay for the car today, we will arrange for its registration within a day, and you will be able to pick it up the day after tomorrow.”
— How soon will I be able to pick up the car after payment?
— Almost 150 Nm at 3000 RPM. What other questions do you have?
— What can I say, this little red A3 is clearly perfect for my needs. She will really like it. It has a wonderful interior, good warranty, and great features. It has a quiet and economical engine, which, as you mentioned, provides what kind of torque?
— Let’s go take a look. (after the tour and presentation) So, can you tell me what you like about this car now, so I can answer your questions or discuss other models?
— No, come on, she needs a small car, like that little red one over there!
— You’re right, this is Audi’s pride today. Can you imagine a car with such an engine for your wife?
— Yes, for example, the sensational V8 model with its unique award-winning injection system!
— You said “in general,” so for you, is there something in Audi that you would like to have in your Mercedes?
— Well, I thought the Audi was more feminine than the Mercedes, although overall I prefer Mercedes.
— But excuse me, why Audi?
— A car for my wife.
— I noticed you arrived in a Mercedes. Are you looking for something in the Audi showroom?
If you find it difficult to read “backwards,” you can certainly read this dialogue in the normal order, starting from the first, bottom phrase. Notice the difference. In the first case, the seller claimed that Audi is the best car in the world, which met with resistance from the visitor. In the second case, he made the visitor justify himself, and the defense mechanisms were now working for the seller rather than against him. This is the essence of White Selling: to let the client convince themselves. White Selling also loves the word “why,” but only at the right moment and, importantly, along the “chain” of events leading to the checkout. By asking this question correctly, the seller made the visitor sell themselves on the Audi, rather than rambling on and trying to fend off objections.
What should you learn in sales? While the client is speaking, quickly and clearly formulate the next step in the “chain” that leads to the checkout, in case your conversation strays from the planned script. The next thing that comes out of your mouth should help to reestablish that chain, rather than just fill the air. Respect the client’s time and guide them along the shortest path. After all, they are paying you for this.
Supercompetence
Human relationships are reciprocal. Let’s remember the cartoon “Little Racoon”: if you approach someone with a drawn sword, you will encounter not a friendly “One who sits in the pond,” but an opponent armed to the teeth, defending themselves or even attacking you. Leave the stick, sword, shield, and helmet behind. You don’t need to be super competent or perfectly prepared for the trickiest questions from a client. If you are bringing something new to them, you already know more than they do. And if you are presenting something to a well-prepared client, you won’t even need to sell, as the demand is already established. When meeting with a decision-maker, it’s likely that this person has too many important things on their mind to be distracted by anything that takes up more than one A4 page. So, you don’t need to know more either.
One day, my friend was trying to sell his motorcycle. For some reason, he just couldn’t manage to do it, even though he was an expert on the subject, a biker himself, and spoke the same language as his “colleagues.” When potential buyers came to him and asked questions, he answered them professionally, demonstrating a deep understanding of the finer points. The buyers would leave deep in thought.
At that point, I offered my help, but with one condition — my friend wouldn’t say a word. Even though I knew just enough about motorcycles to get by with my general engineering background, the owner agreed. Besides, he already had a “very likely” buyer who was “about to bring a deposit.” And those guys he had a meeting with were just a formality. They probably wouldn’t buy it anyway.
I really didn’t understand much about motorcycles, but I knew a thing or two about sales. I knew the main thing: the seller should be the one asking questions, not the buyer. And I also knew that being overly competent could work against the seller.
When the potential buyers arrived, the owner introduced himself, rolled the motorcycle out of the garage into the sunlight, and started to say something. I interrupted him, looking him straight in the eyes, and asked what seemed to be the most ridiculous question for a seller: “Guys, sorry, I don’t know much about bikes. Is this one really so good that you came all the way across town just to take a look at it?” The buyers, of course, had a reaction; they turned their metaphorical guns, loaded with explosive rounds (after all, they’re not fools), and replied:
— For this class of bikes, this is the most suitable option.
— Really? I heard that BMW is better…
— Maybe he’s better, but not for that kind of money. This one is just right. — Turning to the owner: — Can you open the seat?
“Please,” he opens.
— Oh, the battery is easy to remove…
I’m asking a “stupid” question again:
— And why is that good?
— Well, it’s important to have access to the battery while on the road. You never know.
— Really?! Does this necessity often turn out to be justified? I think a trunk under the seat is better than a battery.
At that moment, my friend the seller put his hands on his head and walked away, thinking that he was just wasting his time and that it was a mistake to trust a novice with the sale of his motorcycle. But I was already on the other side of the “Maginot Line,” and the machine guns were firing in the direction I needed:
— Rarely, but effectively. It’s worse if you have to fiddle with the keys while on the road. Especially in the cold. And if needed, you can always get a saddlebag for the trunk. By the way, it’s more convenient.
— Where are you planning to go riding in this cold?
— Well, we’re planning to go to the Caucasus in winter, mapping out a route in the highlands.
— So, do you think this motorcycle can handle it?
— He must. By the way, he has a steel frame.
— Hmm, I always thought aluminum was better. Are you going to the mountains? Won’t it be too heavy?
— What does it have to do with being heavy? We’re not going to push it by hand. And if something happens, a steel frame is easy to repair on the road; you just need to find a welder. But aluminum, once it breaks, is only good for the scrap heap.
— What else do you like about this motorcycle?
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The motorcycle was sold to the buyer who answered the “silly” questions, even though it took him another week to borrow money for the purchase. Interestingly, another buyer, who supposedly was ready to put down a deposit, changed his mind.
For sellers, it often becomes a real problem that they cannot collect payment on the spot. A number of products, such as financial services, do not involve the transfer of cash, and the client, after purchasing the service, must make their way to the bank to pay the bill. Naturally, along the way, they will encounter an electronics store, a pub, and a buddy who will roll his eyes and suggest a more interesting investment, in his opinion. All of this keeps the seller awake at night, worrying whether the client will make it to the bank. Instead of addressing the problem, sellers end up tackling the symptoms; they feel compelled to literally lead the client to the bank by the hand, to call them twice a day to check if they’ve paid the bill, and to essentially demonstrate their distrust of the client. By the way, this distrust is always mutual. It’s like “The One Who Sits in the Pond.” The issue isn’t whether the client will “back out” or not, but rather how confident they are in what they are doing. Will they be able to convince their buddy to go to the bank with them instead of the pub?
If you noticed, in the case of the motorcycle, the buyer was selling the motorcycle to himself. All those wonderful qualities and characteristics that the seller should have mentioned were expressed by the buyer himself, and importantly, with genuine belief in his words. Would he have received a similar presentation from the seller with the same level of conviction?
I subtly asked the customer leading questions, instilling in them the belief that there were no other options and that “they had to buy it!” What would such questions look like from a professional’s perspective? Amateurish. Honestly ask yourself, what’s better: standing there and talking about the advantages of the motorcycle, showcasing your exceptional expertise, or asking questions that lead to closing the deal? It turns out that even when we play the role of a pro, we are not capable of asking the customer questions that would prompt them to sell the product to themselves. A pro knows what they are selling and does the worst thing a seller can do — takes away the customer’s voice and says what the customer should be saying themselves.
If you have to choose whom to send to serious negotiations — a technical novice with superficial knowledge and the ability to ask the right questions, or a highly competent technical specialist who knows nothing but how to give a “presentation,” your choice will be obvious.
The excessive competence of salespeople can play tricks on them. Such a salesperson starts communicating with the customer in their own “bird language.” In addition to familiar words, there is an abundance of specialized terms and jargon. This will put the customer on edge. They will lose track of the conversation, and what was once a clear choice will become vague and unclear.
It often happens that a seller is more knowledgeable than a buyer, and in a corporate environment, this can provoke aggression from someone whose job requires them to be well-informed about the topic at hand. The official will do everything possible to avoid losing face and will try to mask their incompetence with attacks and criticism.
Overcompetence also leads to the seller promoting the product by listing all its features and benefits. As a result, the customer, comparing one thing to another and getting lost in the abundance of options, starts to come up with their own “ideal” solution. It will be everything the seller offered, but with additional options from competitors. Consequently, they end up not buying the “imperfect” product at all.
When companies look for salespeople with experience in a specific industry, they want to find competent salespeople. Yes, competence increases with experience (along with all its drawbacks). However, sales skills do not improve with experience: if a person does not know how to sell properly, they are also incapable of critically evaluating their actions. Thanks to their internal defense system, they always believe they are selling perfectly well. A great presentation, a wonderful business card, a new tie… What else do they need? If sales are poor, it means they need to enhance the presentation even more, offer special conditions and promotions. Still not selling? Well, then it must be the market, stubborn clients, a crisis at hand, or a non-competitive product. What else should be done? More cold calls, more meetings, more kickbacks. After all, no one ever admits that they simply don’t know how to sell, and all the deals they made in the past were the result of client demand, a process that the salesperson does not control. Such salespeople are very much like a fly that persistently bangs against a window. It’s quite possible that it has solid experience in this endeavor. It knows that all it needs to do is keep banging against the glass, and eventually, it will break free. Few flies will fly away from the glass to orient themselves, find an open window, and finally escape. White sales are that very open window that offers freedom.
On the other hand, a good salesperson can meet with clients without having any knowledge of the product at all. If they are not competent, they will take note of all the client’s questions and by the third meeting, they will be well-prepared. However, this lack of knowledge won’t hinder their ability to sell. Instead of presenting, they will be asking what the client needs, what they are used to, and what they expect as the ideal solution. It is precisely these questions, which show care for the client and genuine interest in them, rather than a flashy presentation, that drive sales. When companies make efforts to train their salespeople on their products, they are often wasting their time. Salespeople, not knowing why they need certain information, won’t make room for it in their memory. Knowledge that isn’t tied to needs cannot be retained by the human brain. The need for knowledge can only arise after meetings and conversations with clients. Then, the salesperson will naturally start reading, studying, asking questions, and showing interest. In other words, let the salesperson go to meetings. They will have plenty of them. And it’s not a big deal if they are just learning during the first three. The important thing is that they won’t ruin those meetings if they are taught from the very beginning how to ask the right questions.
Kickbacks
White sales and kickbacks are incompatible. We are not naive enough to refuse to acknowledge the existence of this phenomenon. After all, in Ukraine… published The magazine “Corruptor of Ukraine” (subscription index 99181) and books titled “Negotiations on Kickbacks” (ISBN 978-5-9626-0446-6; 2008) are actively sold. At the same time, the essence of White Sales is to create a need for the client. In such a situation, a kickback is simply absurd. Additionally, White Sales, aiming for the highest level of negotiations, simply bypass the bribe-takers who have settled at the lower levels of client companies.
The first and most important characteristic of a kickback is that it is personalized. In other words, we pay someone to “open the gates” for our business. It’s fine if this action is a one-time thing. For example, we pay the “guard” at the hospital gate to let us onto the premises. However, very few businesses are one-time affairs, and by finding ourselves a “paid accomplice” on the client’s side, we put ourselves in a constant dependency on a specific individual. Yes, business is a social phenomenon, but this concerns the interests of groups, not specific people. It’s quite unpleasant when you, as the director or owner of your business, find yourself dependent on some shady character with a hairy hand.
First of all, he is not incorruptible and can be “poached,” and the greed of such people is significant.Shara, my son, has no volume.The text for translation: »)..
Secondly, he is an employee hired by someone. If he is the director, then he is hired by the shareholders (there’s no point for the owner to take a kickback), so he can be fired.
Thirdly, he might just start blackmailing you at the most inconvenient moment.
Fourthly, competitors may find out that you have “trustees” either on the client side or on the government side, and they could exploit this information to undermine your business.
Let’s assume you are a landlord of office spaces negotiating with a tenant’s manager about a deal where 10% of the rent will go directly into this employee’s pocket. Once a year, you will inevitably receive comments like, “We want to move because your rent is too high,” hinting that kickbacks are more generous elsewhere. You will face an unexpected blow when this person is removed from their position, but the kickback agreement, somehow legally formalized in the name of the niece of your mother-in-law’s sister, must still be honored. By the way, another “effective manager” will appear on the scene, eager to get a kickback as well. Additionally, you will become a criminal. Even if you don’t end up in jail, your reputation will be, to put it mildly, tarnished, leading shareholders of other tenants to either demand “discounts” or change landlords, suspecting their managers of kickbacks. You should not put yourself at such risk. Your “paid ally” might realize the consequences you would face if information about your “collaboration” were to come to light, and you would have to persuade them to keep quiet.
The second problem is reputation. There is a fairly recent story about how Daimler-Chrysler had to admit that it was paying kickbacks to Russian officials. This shows that even if you have a history of paying off, you can still be cornered. In that case, after paying the necessary fines and turning in your “partners,” you lose the ability to grow your business. On one hand, people fear you just as officials feared Kozlevich in the book “The Golden Calf”: no one wanted to take a “taxi,” as it would imply having extra money and, consequently, arrest and confiscation. Even if there is no kickback, it’s hard to prove that there wasn’t one. On the other hand, everyone who knows that your company is capable of paying kickbacks will demand them, even if you stop this practice. Moreover, a criminal offense always remains a criminal offense. When thinking about how to ease your business, don’t forget about your peaceful sleep at night and the ability to see your children. Honestly, nothing is worth sacrificing your everyday human happiness.
The third very unpleasant characteristic of kickbacks is the swamp into which your business can sink. It’s very easy to start a damaging practice, but nearly impossible to stop. If you are, say, the director of the Ukrainian office of an international leasing company and your business practice involves paying kickbacks to your clients through “shadow” individual entrepreneurs with cash withdrawals (and most of your clients are already dependent on such kickbacks), the decision to simply stop paying them is akin to deciding to shut down the office and leaving resignation letters for all employees on the desk. And your shareholders might demand that you “just stop” after reviewing the company’s history.
Kickbacks are unacceptable if your business is closely tied to or part of a large international corporation. When a local bank “motivates” a local financial manager to place their company’s deposit in that bank, it’s all fine. However, the same story can be recounted differently: International Bank A is bribing employees of International Holding B. This could be enough not only to tarnish the company’s reputation but also to lead it to global isolation following the “Kozlevich scenario,” and even to crash its stock prices.
It’s interesting to look at kickbacks from the client’s perspective as well. If your company has a practice of employees receiving kickbacks or even just a suspicion of such “traditions,” you face a whole range of problems related to conflicts of interest. You can no longer be sure that your purchasing manager is choosing the best option at the lowest price. They might opt for a more expensive choice but with a more compliant seller.
Once, I was on a plane with a hired director from a foreign company. This person was completely out of touch with reality, just breathing the “kickback” style of business and fundamentally disbelieving in the honest motives behind purchasing his product. He said the following:
— By the way, we’re moving to a new office!
— Oh, congratulations!
— Gorgeous office. We paid 200,000 dollars just for the design.
— Apparently, a good designer?
— Yes, of course. This is my wife. She is an excellent designer.
The manager didn’t even realize how it sounded from the outside.
Paying kickbacks is equivalent to using cheat codes in a game. IDDQD. [6]. — And onward! However, if your client’s need for the product is expressed only as a desire for a kickback, you face an unpleasant situation — a lack of business development. You won’t get referrals — they can’t provide them. The person who decided to choose you did so not because their company needs something, but because they want to “make some extra money.”
Your portfolio of non-kickback clients also stops growing because your product appears expensive. Its objective value is less than its price since the kickback is already included in the cost. The ultimate payer of the kickback is always the buyer of the product or service, not the supplier. The recipient of the kickback is essentially robbing their employer. And if the recipient is a government official, they are robbing the entire country and each individual taxpayer. The fight against kickbacks is not a battle that benefits suppliers who want to “earn more”; they will still make their profits regardless. In every business, there is a threshold of earnings below which no entrepreneur will go. If their costs are rising, it means their clients’ expenses are increasing as well.
Of course, a uncompromising position on this issue is impossible in our society. However, if your practice does not involve paying kickbacks, your business is more resilient and less dependent on external factors. The objective decision of your client to work with you is much stronger and more beneficial than any subjective arrangements. When considering the appropriateness of a kickback, think about whether the recipient is providing you with added value. If they are, then they are simply an agent earning a commission. But if they are just a bribe-taker, it’s not worth getting involved with them. Not sure how a kickback recipient can provide you with added value? For example, they might bring you a stream of new clients by strongly recommending your services to them.
What is this for?
Every business is successful only when it sets its priorities correctly. And every business needs certain purchases that are necessary for producing its products. The formula “goods — money — goods” works and will continue to work. This is the essence of any business — to create added value. To add something unique in the process of transforming raw materials into a product used by the end consumer. And even if a business provides services, it still has raw materials — things that are purchased to deliver those services, from paper and coffee to internet access and office space.
When you present your solution to a client, they can only consider your proposal if they clearly see how your product will impact their business results. Are they willing to use you as a source of raw materials for themselves? What exactly will they gain from collaborating with you? And are you ready to answer these questions clearly for yourself? Do you understand your clients’ businesses well enough to provide them with sound advice?
In other words, a White seller should be more of a businessman than a salesperson. Perhaps this is the paradox behind the small number of truly good salespeople. Anyone who reaches such a level already possesses sufficient skills and competence either for serious managerial work, for running their own business, or for business consulting.
For example, you are selling American hooded trucks in Ukraine. How will the White seller proceed? He certainly won’t start calling “cold” contacts at all the transport companies to set up meetings. First, he will get up to speed.
Firstly, it seems strange that there are so few hooded trucks in Ukraine; most are cab-over designs. Is it really just a matter of taste? Hooded trucks are considered more stable on the road due to their longer wheelbase. They have better off-road capability and handle descents, ascents, and snow more confidently. Their engines are less finicky, designed for 2 or even 4 million kilometers of operation. Serious breakdowns in American trucks can often be fixed in the field. They are safer in head-on collisions: having two meters of crumple zone in front is never a bad thing. They are more comfortable for the driver, and importantly, the cabin can be a place to rest or take shelter from bad weather while the engine is being repaired. Do you like the product? Can you go sell it?
But on the other hand, there’s the maximum size of trucks and articulated vehicles that exists in EEC countries, which effectively determines the dominance of cab-over trucks in Europe. Additionally, American diesel engines do not meet European environmental standards. Cab-over trucks are more maneuverable, which is important on narrow streets. In Europe, where service stations are around every corner, the ability for “field” repairs and the super durability of components are not as necessary. The famous comfort of American trucks is not as sought after in Europe, where the duration of a single trip is much shorter, and there are many more places to spend the night comfortably. Driving safety is ensured more by timely tire changes and constant brake checks than by the presence of a hood. After all, 99% of accidents are not head-on collisions between trucks, but rather incidents involving passenger cars, and often not head-on. The high-mounted cab of a cab-over truck protects the driver from such occurrences. So, do you like the product now?
It’s worth noting that White Sales are not focused on what everyone likes, but rather on what appeals to a specific group. There are two strategies in the market: offering the same products as everyone else and, due to competition, not making any economic profit, or selling something that only 5% of people need, but being a monopoly for them. In today’s flat and transparent world, there’s no need to fear that those 5% won’t find you. It’s much more concerning that you might not find your niche and fail to understand who your 5% are.
So, why would anyone buy hood trucks? When a rabbi was asked why Jews perform circumcision, he replied, “First of all, it’s beautiful.” Yes, hood trucks are beautiful. Let’s move on: should these vehicles be sold to companies that only transport goods to/from Europe? No. They should be sold to those who transport something to/from Russia. Russia is a country where there are no narrow streets, no service stations on every corner, and not universally good roads with motels.
But for a company’s transport department to decide to purchase a hooded vehicle, it’s essential to understand the business of that organization. You need to speak their language. They will share all the instances when their vehicle got stuck on the road. You just have to ask them about it. It’s also important to inquire about what exactly these stops lead to. A superficial problem, expressed in just a couple of words, is not a problem; it’s a wardrobe that needs to be opened to enter Narnia. [7]. Текст для перевода: ..
The comfort of hooded trucks is not just about “better working conditions for the driver.” Our capitalists couldn’t care less about that. But what do they care about? How about a schedule with stops chosen to be near a motel? What would the schedule look like if the driver could sleep comfortably right in the truck? Not like in a cab-over truck, where they sleep on the second level, on a shelf. But in a separate “cabin” where they can stand up straight. An optimal schedule means a reduced need for a fleet or, looking at it from another angle, greater protection of the transportation schedule from disruptions. Speaking of disruptions, have there been accidents likely caused by driver fatigue? By what percentage, in the interlocutor’s opinion, would accident rates decrease with improved comfort? And how much would that translate into monetary savings? And if it’s not an accident but just a breakdown, especially in winter, which truck would be repaired faster? The one that is fixed in the cold with an overturned cab, or the one that is also repaired in the cold but periodically warmed up in a cozy cabin? And what does repair speed mean? Yes, the schedule. What happens if it is not adhered to? Is there a risk of supply disruptions? How is this issue usually resolved? With excess inventory? What can money be spent on if it doesn’t have to be thrown away on a constantly stagnant emergency stock in the warehouse? And is it easy to find a good driver? Difficult? Which truck would drivers prefer to work with for the same salary? Would having hooded trucks in the fleet help attract valuable employees from other companies? How will driving comfort affect staff turnover? How much time and money is spent on recruiting and training employees? What is it like to work with an understaffed team or with insufficiently qualified personnel? How does this affect adherence to the schedule, accident rates, and discipline? How much does it cost to own a truck for one day (especially a leased one)? Money keeps flowing in regardless of whether the truck is on the road or parked. With a driver or without. In repair or on the road.
Here we only touched on comfort — we opened just one door to Narnia. We also have, for example, the high stability of the tractor, its durability, and its “field” repairability. Each of these topics can be explored in a similar way. There are many questions and answers for each of them. Don’t be afraid to forget to touch on every aspect; just engage the business owner in a conversation about their business. You can always demonstrate that the problems they face can be solved with your product. It’s just a game of associations: if the entrepreneur mentions that they have high employee turnover in their company, you already have a solution!
Or he said that his son is getting married, so there’s no money for a new truck. But even here, a solution can be found: the client is very careful with his money when he knows its value. Yes, he won’t buy today. But right now, you have a serious opportunity to demonstrate the economic efficiency of your product. And when the businessman needs to purchase new equipment, he will think about the hooded truck. Simply because you talked to him and opened the wardrobe to Narnia. He saw for himself and shared a sea of new opportunities to improve his business, which he will definitely take advantage of. Yes, there’s no need to sell the product; it’s better to think together with the entrepreneur about his business.
When is this needed?
Cyril Northcote Parkinson, in his book “Parkinson’s Laws,” wrote that a Chinese person buys a dog and fences in his house when these expenses become less than the losses from theft. Thus, it is easy to understand who lives better than the others in the village. The same is asserted by classical economic theory: a buyer agrees to a deal if the costs of not making the deal are higher than the costs of making the purchase.
An important skill for any salesperson is the ability to demonstrate the value of their offer. A salesperson must understand their customers’ businesses well enough to identify and translate into financial terms the perceived or unperceived costs that the client will incur if they decide to forgo the proposed product.
Once, I consulted a company that was promoting an innovative solution in the agricultural market of Ukraine — storing grain harvests in bag sleeves instead of in silos. This method of grain storage uses large plastic sleeves that are two meters in diameter and 60-100 meters long. A special machine, attached to a tractor, fills these sleeves with grain coming from the field.
Farmers prefer to store grain rather than sell it “straight from the combine” because the prices during the harvest season are too low, and they only reach their peak in winter. Prices could continue to rise until the new harvest, but usually by spring, farmers need cash, so they start selling off their stocks, thereby flooding the market with last year’s grain.
Before the advent of bags, farmers had only three options for handling their grain: sell it straight from the combine, deliver it to an elevator, or store it in their own facilities. Farmers always sell a portion of their grain immediately; they need to pay for fuel, settle wages for their workers, and cover some essential expenses like grain drying, equipment rental, and so on. Own storage facilities are a luxury for the wealthy. Every farmer has a small barn, but storage capacities for the harvest were only accessible to those who were close to the leadership of the collective farms and managed to “privatize” the warehouses in time, or to those who were heavily involved in grain trading.
Building your own warehouse is quite costly. It’s a significant investment that is simply out of reach for a farmer living from harvest to harvest. Moreover, a small warehouse would take a long time to pay off—about 20 years—while a large one would take “only” 10 years. Wealthy farmers who found themselves in the right place at the right time during the Perestroika period not only became increasingly richer by owning their own warehouses and selling grain at better prices, but they could also afford to build new warehouses and elevators. Consequently, they were able to rent more land and store other people’s harvests.
It turned out that storing grain in bags gave poor farmers hope of breaking free from the vicious cycle of poverty: selling grain straight from the combine because they lacked the financial cushion to sell it at the best price, and they also didn’t have the money to build their own storage facilities to hold the grain until prices improved.
However, when comparing the cost of storing grain at an elevator with the cost of packaging grain in bags, it turns out that using bags only becomes interesting if the grain is stored for more than six months. Storage at the elevator is charged monthly, while packaging in bags incurs costs twice: once for renting the packaging machinery and buying the bags, and a second time for renting an extractor (a machine that removes the grain from the bags). The machines can also be purchased, but this makes sense only if the farmer has a large number of bags. There are also some minor expenses for securing the bags lying on the ground and for losses due to accidental punctures or flooding.
It turns out that a direct comparison of bags with elevators did not show any clear advantages, and conservative farmers were hesitant to rush into purchasing bags and the equipment for them.
The guys selling these bags knew something about agribusiness, but they didn’t really understand the life of a farmer from the inside. To be honest, I wasn’t exactly an expert on the subject either. But one thing was clear: farmers don’t just have regular bullets; they also have armor-piercing ones. So a direct attack would only reinforce the farmers’ belief in the uselessness of the bags. Sometimes I would encounter farmers who had already been “processed” by aggressive salespeople and had fortified their defense system with new arguments and rationalizations of the current situation.
But a farmer, like anyone else, wants to be understood. He enjoys talking about himself and his problems. And if you give him the chance to express himself, you might learn that storing grain at an elevator isn’t such an ideal solution after all. When a farmer loads his good grain, he often ends up receiving someone else’s, usually of lower quality, in return. Yes, it may look the same on paper, but in reality, it’s different. The farmer will also tell you that the elevator intentionally inflates the moisture content of the grain to charge farmers more money. He’ll mention the long lines at the elevators and how it’s impossible to continue harvesting when all the machines are stuck waiting in those lines. Finding transportation during this time is also difficult—everyone needs to harvest their crops. By the way, one day of downtime for a combine harvester also costs money. Not to mention the weather: it can change, and a good ear of grain can fall to the ground after a heavy downpour. And a downpour is definitely coming, since harvesting takes place in hot, dry weather—just before the next cyclone. Furthermore, the farmer will recall that the price at the elevator is unpredictable and changes from year to year. Even if it’s fixed by the government, you still have to pay extra to be allowed in: if you don’t fill the elevator with your grain, it will be filled with grain from other farmers, and you’ll have to take yours to another, more distant elevator. This means extra fuel costs. Unfortunately, elevator staff sometimes collude with grain traders, refusing to accept grain from farmers, forcing them to sell their harvest right off the combine at rock-bottom prices—just enough to cover fuel and wages. Sometimes, it even happens that it’s not worth harvesting the crop at all, and cornfields remain unharvested all the way until winter.
Another matter is the bags. The farmer will explain why he needs them and how they will help him. Give him the opportunity to express himself and assist in calculating the losses from the problems he regularly faces. In the end, it will turn out that bags are more reliable and predictable. Most importantly, they provide a way to break free from the shackles of poverty. When you calculate everything, it will become clear that storing at the elevator is a bad idea, just like having your own warehouse.
In economics, there is the concept of net present value. Using this, one can assess the benefits of a project not just in monetary terms, but in terms of money adjusted for its value over time. When comparing a warehouse and bags, it may initially seem that the warehouse is the better option since it doesn’t charge for storing each kilogram of grain. However, when considering the value of money, it turns out that the amount planned for the construction of the warehouse could be deposited in a savings account, generating passive income that exceeds the costs of the bags by more than double.
To communicate with a farmer, you need to speak his language, understand his values, and address his problems. If you let him talk, he will realize that it’s better to pay a little bit over time rather than a large sum all at once. He just needs some help with the calculations. However, he has to want that help from you. This means you should approach him not with a sales pitch, but with assistance. Only then will he trust you and your calculations. In one of the books about sales, the author claimed that the worst thing a salesperson can do is act like they really want to make a sale. It seems this statement should be expanded: a salesperson should stop selling altogether. They should focus on helping. Then the customer will make the purchase on their own.
He will do this when he can no longer do without what you are selling. Imagine a company. It is operating, implementing its business plan, and then suddenly—there’s an urgent need for your product. Can you picture that? Ask yourself: why did this necessity arise, what caused it? Often, finding the right sales channel lies in answering this question. If you are a company selling powerful server equipment, your client will be one who is ready for ERP systems. These systems require robust hardware to function. Therefore, your company should engage with ERP system providers: they can recommend you to their clients and, importantly, will be eager to do so. After all, they cannot deploy their system “in thin air.” They need the client to have the necessary equipment.
What can this be replaced with?
Competition is so disliked by sellers and so welcomed by consumers. It’s nice to have a choice, and it’s good when sellers have an incentive to lower prices. But the sellers themselves often don’t realize that if competition didn’t exist, they wouldn’t be needed at all. Competition takes on various forms: different sellers of the same product compete; sellers of different but similar products compete; sellers of solutions that are completely different from one another but address the same customer problem compete; and even sellers of entirely different goods compete simply for the consumer’s wallet.
A can of Coca-Cola can be replaced with exactly the same can bought at another store, it can be swapped for a can of Pepsi, a can of beer, ice cream, and ultimately, you could spend that money on a subway ride.
In a situation like this, a salesperson focused on developing customer needs has to start from the very basics. Let’s take an air conditioner salesperson as an example. First, they need to demonstrate to the client that spending money on improving the office environment is more worthwhile than, say, on advertising. Next, they must work with the client to understand that a water cooler and a fan won’t solve the problem, and that without an air conditioner, they will end up wasting water and electricity. After that, they need to settle on a specific brand of air conditioner and choose a model. Finally, the client should make the purchase from you. It’s a thankless job: after guiding the client through one or two levels of decision-making, we risk losing them at other levels. It’s especially frustrating when we create demand for them, only to “hand” them over to our competitor.
Ultimately, everything can be replaced. The client chooses how and with whom to spend their money. But there is one irreplaceable thing — the seller themselves. If the decision-making process starts not with how to allocate funds, but with which seller to work with, the client is unlikely to jump to a competitor. After all, they are not you. However, a person can only be irreplaceable if they are unique. Notice, it’s not about being “the best” or “suitable for everyone,” but truly unique. The world is full of different people. Some will connect with you as a person, while others won’t. There’s no need to try to harvest on “someone else’s territory” before you’ve harvested on your own. You will always be a good fit for those with whom you can build a relationship, and not so great (or even artificial) for the rest. Understand who your people are, and work only with them. Good sellers are the freest people. They are the only ones who truly choose who they enjoy working with.
Once, while making my regular trip to the regional offices of an insurance company, I arrived in a small town in Western Ukraine, not far from the border, where a group of agents was working successfully. However, one thing raised my suspicions — 80% of the sales were made by one person. This often indicates that the agents are collectively attributing the results to one of them in order to receive bonuses for exceeding individual targets. This phenomenon can also occur when the head of the agency group sells themselves and records all the sales under “their” agent, effectively taking business away from the others. I was determined to expose the fraudsters.
When all the agents gathered for the meeting, there was a woman of a certain age among them, dressed quite provocatively and clearly demonstrating a complete lack of understanding of how a respectable insurance agent should look according to corporate standards. She had a wild hairstyle with hair dyed in shades of raspberry and green. Her face was adorned with a coarse, garish makeup that bordered on tacky, and her ample bosom spilled out of a deep neckline, while her curvy figure was barely covered by a ridiculous mini skirt made of some shiny vinyl. To top it all off, there was a suffocating scent of her perfume: a sickly sweet yet pungent, concentrated aroma that instantly made one want to air out the room before getting a headache. I whispered to the team leader why he kept this “misunderstanding” around. He whispered back that this “misunderstanding” actually brought in 80% of all sales.
Incredible. I immediately decided to see how it works and asked to arrange a joint visit to her potential client. It wasn’t a problem: in the evenings, the lady goes to the border, where she sells life insurance. What, right at the border?! According to the rules, insurance should be sold within the family circle. I became even more skeptical about the truth of these stories.
At the border, I saw the following. A lady, completely unashamed, approached the first truck driver she saw, who was smoking while waiting in line at customs, leaned against him, and in a soft, almost drunken voice asked:
— Tell me, are you a bad boy?
“Y-yes,” the driver replied, still not understanding which answer was correct.
— Hmm, I see. You’re a bad boy! But when you come home, you’re good, right? — she continued, breathlessly.
— Yeah… — the driver was already grinning foolishly, completely lost in the cleavage of the super seller.
“All good boys have life insurance. Do you have insurance?”
— No way, — replied the truck driver from the depths of his low-cut shirt, already quite tired of standing in line at customs and longing for a change.
“Here, fill out this form and sign it,” the lady handed him the form and walked over to the next truck driver.
On the way back, she would simply collect the completed forms and arrange when she could meet the guys next to hand over the policy and collect the money. She managed to sell up to 10 policies a day!
Why did clients love her? It certainly wasn’t because she walked around in a business suit with a serious expression and a folder under her arm, engaging in standard sales conversations.
Being in close relationships with clients allows you to dig deep into their problems. You will have access to doors that will never open to outsiders. Often, the issues a salesperson encounters are presented in the form of template phrases—summaries from meetings. These contain neither depth nor the root causes of difficulties, only their names and symptoms. Once, I had to sell non-state pension plans for corporate clients. It was a very unpleasant product, despite its low cost. The unpleasantness stemmed from the imperfect legislative framework, which made it extremely complicated for corporate clients to acquire this product. Moreover, the effect of implementing non-state pension plans was an increase in employee loyalty. Consequently, it could only be applied in companies with a well-developed corporate culture and low employee turnover, which narrowed the pool of potential clients in Ukraine at the beginning of the crisis.
Any conversation about sales is built on identifying a problem that needs to be addressed. While speaking with the head of the HR department, I learned that she spends most of her time recruiting for supervisor positions—leaders of sales representative teams. It turns out that there is a relatively high turnover rate among these employees; competitors often poach them, sometimes even entire teams. It’s frustrating that the salary offers are almost the same. People simply crave change and are willing to leave for those who pay them more attention. In theory, one could suggest pension programs as a means to retain supervisors. However, this was clearly a superficial problem, the very template summary: “high turnover of supervisors.”
So, I decided to dig deeper. After discussing it further, the head of the HR department and I calculated exactly how much this issue was costing us. This included both direct expenses for recruitment, selection, and onboarding of staff, as well as indirect costs related to the fact that, in the absence of a supervisor, the team was working less efficiently. In other words, sales were noticeably declining. We could probably already compare the cost of the pension program with the expenses resulting from high turnover. But we delved even deeper.
As a result, it turned out that the company, going through a crisis, is suffering from a decline in sales. This depresses the employees and instills uncertainty in them. Staff members are inclined to think about changing jobs before they are all laid off. And they have no tools that guarantee them long-term loyalty from their employer. Is it already possible to sell the product? Not yet.
How will the company respond to a decrease in sales? Naturally, by cutting expenses. But how does the head of the HR department view these cuts? It turns out that, in her opinion, the first to be reduced will be the HR department itself. Additionally, it became clear that her subordinate—a very capable young woman—would be able to do the same work for less money. And even deeper, at the core of the issue, was the personal problem of the HR manager—she was a single mother with a daughter finishing school. Therefore, the risk of losing her job was out of the question.
And it was then that the non-state pension program emerged as a solution to all the mentioned problems—ranging from corporate to personal. The head of the HR department became an ally of the salesperson and promoted the idea of pension insurance within the company, advocating for and inspiring its implementation.
It goes without saying that you can’t get to the root of the problem if the seller hasn’t become “one of their own”—the kind of person who is irreplaceable.
Chapter Summary
Main ideas
Every person has an inherent rationalization system. Any statement is instantly “scanned” for truthfulness, which is why the initial reaction is usually resistance. Don’t assert anything. Ask questions.
· There is never enough money. Refusing to make a purchase due to a lack of funds is essentially a refusal based on the fact that your product is not a priority in their spending.
Don’t fight with the client. Stand on their side, and they will buy from you what you want to sell.
– Plan from the end. If you want to share something with a client, structure the meeting in a way that allows them to tell you about it themselves.
· Overcompetence harms sales. Knowing everything about the product is not the seller’s responsibility. The seller’s responsibility is to know everything about their customers.
· Kickbacks are incompatible with the long-term business strategy of any company. If you have a reputation as a trustworthy seller, you will have trustworthy clients. Your portfolio will be sufficient.
You can’t sell a client something they don’t need or that harms them. Understand your client’s business and help them, rather than just trying to sell.
For any product or service in the market, there should be a moment when that product becomes essential for the customer. Be there in their office at that time.
To avoid losing a client and guide them through the decision-making process from needing a product to needing your services, you must be confident in advance that, all else being equal, the client will choose you.
Exercises
– For your business, outline the key distinguishing features of the product. Then think about what advantages this provides to customers. Write 1-2 dialogues in which the customer mentions these advantages themselves.
· Take a look at your clients’ portfolio. What industries do they work in? Try to describe your product in their language. For example, insurance for builders is a reliable foundation, wireless internet for teachers is the freedom to access information, and climate control for doctors is a healthy environment.
– Try to answer the following questions regarding your product: what is its purpose, who needs it, in what situations is it necessary, why is it indispensable, what can it be replaced with, and how does it differ from others? Based on your answers, plan your customer search and engagement, as well as negotiations with potential partners and sales channels.
Where to start?
Before each meeting, write down its goal in SMART terms: specific, measurable, achievable, relevant (aligned with a larger goal), and time-bound.
Before each meeting, write an agenda that includes questions for the client that lead them to identify the advantages of your product as important for themselves.
Avoid situations and, accordingly, questions where the client responds with a simple “yes” or “no.”
[6].Cheat codes — also known as “hacker codes” — are a way to gain “infinite life” or “infinite ammo” in video games. IDDQD is a cheat code from the iconic video game Doom that grants the player “god mode.”
[7].Narnia is a magical land that the heroes of the series “The Chronicles of Narnia” could enter through a wardrobe.