10 simple strategies to close more business deals

A new book by Tom Searcy, examining the extraordinary deal making-prowess of legendary investor Warren Buffett, identifies ten principles to help any salesperson improve their deal-closing skills. The techniques helped Searcy to build four highly successful, fast-growth businesses over his remarkable career, and he believes they can be applied with great advantage to any type of business transaction. In today’s fiercely cut-throat online market, where geographical barriers no longer exist and customers have almost unlimited choice, knowledge of Buffett’s winning strategies could offer a keen competitive edge.

We’ve examined how Searcy’s ‘Buffett Principles’ can be applied to help you attract more customers and close more business deals:

1. Be selective

If you think you’d end up spending more time and money meeting a client’s needs than you’ll make on the transaction, simply don’t take it on. This is doubly important if you want to stand out as a specialist supplier of a particular product or service or as the market leader in a specific niche. You need to have parameters and stick to them – only take on projects which meet your criteria and you believe you can complete in a reasonable timeframe. Never undersell yourself just to secure a job unless there is some tangible additional benefit such as an opportunity to earn a recommendation from a person or business of influence in your market.

2. Offer something extra

If you want to stand out in the sea of products or services available to online customers you need to offer and promote something unique and appealing. Offering the lowest price might attract some customers, but it is likely devalue your brand and make people regard you as a lower-quality option. It will also encourage them to focus on price and continue to search for even cheaper options. Offering a more personal service, becoming a respected source of relevant information, or focusing on the aspects of your product which make it distinctive and superior, are far better long term strategies.

3. Do your homework

Closing deals is all about knowing your market. Keep an eye on what your competitors are doing and make sure you know everything there is to know about what’s going on in your sector or area. Take the time to find out what your customers are looking for and don’t waste time offering products or services which don’t meet those needs. If there are changes in legal, tax or regulatory rules relating to your product, make sure you know what they are and keep customers informed of anything which will affect them.

4. Look for the love

It’s a lot easier to sell to people who care about what you do, and people are far likely to buy a product or use a service if it’s recommended by someone they know. Using social media to build a strong following of people who support your business is an excellent way to gain popularity and a ‘tribe’ of customers who will spread the word for you. Remember that social networks are all about genuine interaction and are not just another channel for traditional marketing.

5. People are important

Most people make their purchasing decisions based on how they feel about what they are buying. Decide exactly who you want to attract as customers and speak directly to them. Seek them out on the forums they frequent, use language they will understand, attract their attention with incentives or information downloads which will appeal to their tastes and deliver a product or service which will actually meet their particular needs.

6. Talk money early

Many online customers are put off by sites which give no indication of prices. They prefer to do their basic research before they open a channel of communication. Giving at least an initial indication of costs is important, so that you don’t waste time – yours or theirs – following up with customers who aren’t prepared to pay your prices. You can of course use every opportunity to upsell once you attracted the attention of your customer, especially once they have had an opportunity to form an emotional attachment to the product.

7. Use a schedule

Setting a timetable and a building a sense of urgency can be a deciding factor in closing a deal. If you provide a quote for services, make sure you set a time limit. Maintaining momentum, for example by including a countdown to expiry on a checkout page, can be very effective. Allowing customers to pay a deposit to hold a product at certain price may also help ensure they come back to complete the transaction.

8. Build in off-ramps

Once a deal has been made you need to monitor progress right up until the transaction is completed. Know what, if any, leverage you have and be ready to renegotiate to try and save the deal if the customer appears to be losing interest. If you are providing an ongoing service it can be important to have an exit clause – with agreed penalties – in case it becomes unprofitable to continue offering the service (remember that market conditions can change very quickly), or either party needs to pull out at some stage.

9. When it’s time to make the deal, don’t blink
If there is room for movement in your prices, then once negotiations are open it’s important to be swift and decisive. The art of deal making lies in knowing exactly how much ground you are willing to give, but actually giving as little of that as possible, while allowing the buyer to believe they have made progress. Act quickly and don’t allow the negotiations to falter.

10. Aim high

Don’t limit yourself. There are almost no restrictions on who you can reach out to in the online marketplace. With the right research and attention you can win and close far bigger deals than you may have tried before. The principles are the same no matter the size of the transaction.