How To Close Everyone Downselling like a Pro Ep 201

In a dynamic conversation, Speaker A discusses the art of downselling, emphasizing the importance of reciprocity and ethical sales techniques. They explain the process of offering a primary program and then providing downsell options, such as reducing the price in exchange for a testimonial or a commitment. They stress that downselling should not appear desperate but rather as a collaborative effort to find a solution that benefits both parties. Speaker A illustrates this with examples, like offering a program at a reduced rate with a commitment or even without one, and then further reducing the price in exchange for a testimonial or a friend's referral. Throughout the conversation, the speakers use phrases like "Fair enough?" to create a sense of agreement and urgency, steering the conversation towards a sale.

• Everyone possesses some amount of money and faces common problems.
• It is important to find ways to assist everyone to some extent.
• Selling should aim to address these universal needs and problems.

"Everyone buys something. What I mean by that is that everyone has some money, right? No matter what. And everyone has this problem, and we should find a way to help everyone to a certain degree."

This quote emphasizes the universality of commerce and the notion that everyone is a potential customer because everyone has money and common problems that need solutions.

• Downselling effectively can significantly increase sales close rates.
• Poor downselling can appear desperate and damage the seller's credibility.
• Successful downselling involves a step-down approach with a set of options prepared in advance.

"So in the real world of sales, understanding how to downsell like a champ is one of the reasons that you'll be able to massively increase your close rate."

This quote highlights the importance of mastering downselling as a strategy to improve sales success rates.

"Now, doing it properly is one of the key points here, all right? So when you do it poorly, it sounds like begging, and it sounds like you totally lose your frame in the sale."

This quote explains that downselling must be executed with finesse to avoid appearing desperate and losing the sales dynamic.

• Human psychology is heavily influenced by the principle of reciprocity.
• Reciprocity can be leveraged in sales by setting the terms after providing something of value.
• People struggle with gauging the fairness of an exchange, often feeling obliged to reciprocate regardless of the equivalence of the initial favor.

"So one of the other powerful influences in human psychology in general is reciprocity."

This quote introduces the concept of reciprocity as a significant factor in human interactions, including sales.

"We have a very hard time if someone gives you something, not giving something back."

This quote explains the natural human tendency to want to return favors, which can be used in sales strategies.

"And so if you do a small favor for someone and after you do the small favor, then make a big ask, it's still very hard for people to say no, all right?"

This quote illustrates how the principle of reciprocity can be applied in sales; even a small favor can lead to a customer feeling obliged to agree to a larger request.

• Reciprocity is a powerful motivator in persuasive situations.
• People are inclined to say yes due to the psychological principle of reciprocity.
• Utilizing reciprocity can be particularly effective in a downselling context.

"thing is that with reciprocity, people will say yes to things because of just underlying human psychology."

This quote highlights the fundamental psychological principle that drives the effectiveness of reciprocity in persuasion. It suggests that there's a natural human tendency to reciprocate when something is offered or given, which can be leveraged in sales and negotiations.

• Downselling involves offering a lower-priced alternative when the original offer is declined.
• The technique includes asking the customer to do something additional in exchange for a reduced price.
• Testimonials, reviews, or bringing a friend are examples of additional actions requested.

"So after, let's say, you offer your primary program, you're like, hey, it's x, right? And they're like, I just can't afford that. So what you say is this, you say, tell you what, I'll do it for this if you XYZ, right? If you leave me a testimonial."

This quote explains the downselling process where the seller offers a reduced price in exchange for the customer providing something of value, such as a testimonial. It's a strategic move to maintain the sale by adjusting the terms to fit the customer's budget or perceived value.

• Adjusting prices can be a strategic move to close a sale.
• The adjustment is presented as a consideration of the customer's situation.
• Repeatedly hearing adjusted offers makes it difficult for people to refuse.

"And when you say that, it's like they asked you to make some sort of adjustment. You take that in consideration, you make the adjustment and you make the offer again and you say, does that sound fair?"

This quote emphasizes the importance of showing flexibility and willingness to adjust the offer based on the customer's feedback. It portrays the seller as considerate and fair, which can be persuasive in getting the customer to agree to the new terms.

• Commitment length and bonuses can be variables in adjusting offers.
• Ethically lowering the price can be justified by asking for additional actions from the customer.
• It's preferable to add value rather than remove it to maintain the integrity of the offer.

"And so what we're doing is that you always have these cards that you can play. So in a fitness example, you have the term, so how long they're committing to, that's number one. Number two, you can ask them to give you a testimonial, you can ask them to give you reviews, you can ask them to bring a friend."

This quote outlines different strategies for altering the offer to make it more appealing without devaluing the service or product. It suggests that by varying the terms of commitment and asking for value-adding actions, the seller can provide a more flexible and attractive offer.

• Different prices for similar programs can be justified by different terms of agreement.
• Additional actions taken by customers can be used to explain price variations.
• This approach avoids the issue of unfair pricing and maintains transparency.

"And that way, if someone else is like, why is she paying x and I'm paying z? You can say, well, she's doing some extra things for me that you're not."

The quote explains how to justify price differences to customers by highlighting the additional actions or commitments made by some customers. This maintains the perceived fairness and prevents dissatisfaction due to unequal pricing.

• The step down strategy involves progressively lowering the price and commitment required.
• It can sometimes appear ridiculous but leverages the psychological pull to say yes.
• The strategy includes multiple reductions in price and commitment to entice the customer.

"Okay, so we've already done two drop downs. We did half price with commitment, then we removed commitment, $49. All right, we're 49 and we eliminate commitment. That's two step downs."

This quote describes a specific step down selling strategy where the price and commitment are gradually reduced to make the offer more appealing. It acknowledges the strategy's intention to create an irresistible offer by making it seem increasingly advantageous for the customer.

• Acknowledging the increasing absurdity of offers can be done in a light tone.
• This approach can still trigger the internal mechanism that motivates people to take action.
• The goal is to create a sense of urgency or opportunity that prompts a positive response.

"They say no. You say, all right, and you have to acknowledge that it gets kind of increasing ridiculous as you make more and more offers, right? In a light tone, because it's still going to pull on that internal mechanism inside of people to take action and say yes."

This quote suggests that even when the offers become seemingly absurd, presenting them in a light-hearted manner can still tap into the customer's desire to reciprocate or seize a perceived opportunity, ultimately leading to a yes.

• The speaker highlights the benefits of visual learning through video content.
• They mention that their YouTube channel offers videos with additional effects, visuals, and graphs to enhance understanding.

"video version of this, which usually has more effects, more visuals, more graphs, drawn out stuff, sometimes it can help hit the brain centers in different ways."

This quote emphasizes the use of visual aids in video content to cater to different learning styles and enhance comprehension.

• Speaker A discusses the strategy of downselling while implying promised results through testimonials.
• Downselling is presented as a method to make a sale by offering lower-priced options.
• Testimonials serve as a persuasive element, suggesting that others have achieved results.

"And also, when you have the testimonial, you're also putting another implication that they're going to get results. So you're selling while you're downselling at the same time."

The quote underscores the dual function of testimonials in downselling, both as a sales tactic and as a reassurance of potential outcomes.

• Speaker A introduces a flexible pricing strategy to accommodate customer hesitance.
• The strategy involves a gradual reduction in price and commitment level.
• The aim is to cover costs and encourage the customer to agree to the service.

"Let's just get you kicked off at $29 a week, pay as you go, don't worry about it. And just bring a friend in the first 30 days."

This quote details a specific offer that lowers the barrier to entry for the customer, making the service more accessible.

• Speaker A emphasizes the significance of using clear and direct calls to action when downselling.
• The phrase "fair enough" is preferred as it sets a low threshold for agreement.
• The speaker suggests transitioning smoothly to the next steps in the sales process.

"The call to action when you're downselling. I mean, I really like this in general, when I'm selling is fair enough. Sound fair?"

The quote illustrates the use of a specific phrase as a call to action to facilitate customer agreement and move forward with the sale.

• Speaker A stresses the importance of tonality and the manner of speaking in sales, especially over the phone.
• Non-verbal communication plays a significant role in conveying the message.
• The speaker suggests that enthusiasm and a desire for a positive response are crucial.

"You have to ask it like you're actually asking them to say yes. I know this sounds minor, but it's everything over the phone when you don't have your body to make so that they can see."

This quote highlights the critical nature of vocal tone and inflection in sales communication, especially in the absence of visual cues.

• Speaker A presents a sales technique that involves reducing the level of commitment to alleviate customer fears.
• The approach includes offering a "pay as you go" option and using relatable metaphors to ease the customer's mind.
• The speaker portrays sales as a collaborative process, working together with the customer.

"Sometimes commitment can be scary. How about this? I'll just let you get started for day pays. You go, I'll prove myself."

This quote demonstrates a strategy to address customer apprehension by minimizing commitment and using colloquial language to establish rapport.

• Establishing a good relationship with the client is crucial throughout the sales process.
• Rapport leads to trust and willingness to collaborate on making the sale work.
• A strong rapport can prevent aggression and facilitate negotiation.

Because if you have built the rapport throughout the sale, you've dug the pain, right? So they know that this is something that they need to do, and they know they need to do it with you.

This quote emphasizes the importance of building rapport throughout the sales process to ensure the client recognizes the need for the product and the necessity of taking action with the salesperson.

• Offering discounts can be a strategy to close a sale.
• Presenting a discount as a final offer can make it hard for the client to refuse.
• Discounts can be tied to conditions, such as leaving a testimonial or referring a friend.

I'll do it for 39 a week. All right, so it's 25% off of my already 50% off, right? If you just leave me a testimonial at the end.

This quote shows an example of how a salesperson can offer a significant discount in exchange for a testimonial, using it as an incentive to close the deal.

• If a client continues to refuse after multiple discounts, the issue may not be financial.
• A disengaged client may have lost interest earlier in the sale.
• Salespeople need to identify and address the real objections during the conversation.

If they say no at this point, then in my opinion, it's not a money thing. You lost them earlier on in the sale, and they're trying to get off.

The quote suggests that persistent refusal after several price reductions likely indicates a deeper objection than price, which should have been addressed earlier in the sale.

• It's important to confront obstacles and engage with the client's real issues.
• Salespeople should be honest and direct, presenting pain points that the product or service can alleviate.
• The approach should be empathetic, allowing the truth to be delivered in a helpful rather than hurtful manner.

Instead of nice to you? And then you deliver the pain. You're like, hey, I'm not saying that to make you feel bad, all right? I'm saying that so I can help, right?

This quote demonstrates how a salesperson can tactfully present the client's pain points with the intention of helping, not hurting, thus maintaining rapport and trust.

• Knowing how to downsell effectively can significantly increase the close rate.
• Downselling should be done ethically without sounding desperate or pushy.
• The goal is to get the client to engage with the product or service, building trust and setting the stage for future full-price purchases.

Knowing how to downsell will massively increase your crows rate. And by adding these little cards that you have that you can trade with people on, allows you to have flexibility in the deal.

This quote explains that downselling, when done properly, can improve the likelihood of closing a sale by offering the client flexible terms that make them feel accommodated.

• Ethical sales practices are essential for successful downselling.
• The sales approach should avoid desperation and pushiness.
• The ultimate aim is to provide value to the client and foster a long-term relationship.

You need to know how to downsell, and you need to know how to do it ethically without sounding like you're begging or being pushy.

The quote highlights the importance of ethical considerations when downselling, ensuring that the salesperson remains respectful and focused on providing value rather than simply making a sale.