Hello from Club Industry in the Big Apple!
I was the moderator today for a panel entitled "How to Compete Against Low Cost Competitors." It was a great group of operators who are all faced with the situation many of you are--that competitors are popping up all around you that are 50-75% less expensive than you are. Club operators are freaking out, asking themselves, "What do I do?" Some wonder if they should also drop their price to be competitive while others consider selling out in one way or another.
What the salespeople want to know, of course, is how do you literally sell against a low cost competitor. Although it is a complex answer, let me try and give you the overview here.
1. Know who you are and how you are different.
Let's face it, although the consumer may not know the difference between two fitness boxes (it all looks like torture to them), your club should be different than a low cost competitor. It it's not, you certainly are in trouble! But here's the question, "do you know with certainty and clarity how you are different?" This is key to succeeding in a hyper competitive as well as low cost market place.
2. Educate your staff on your differences.
It is one thing for you the owner/operator to know how your club is different than the LCC but does your staff know what those differences are? More importantly to they believe in those differences! Everyone from the sales staff down to the janitor needs to be clear on this and believe in what you are offering.
3. Train your staff to "tell the story."
Once you staff knows the story about how you are different the next step is training them on how to clearly communicate that story to prospects and members. This is crititcal because if the consumer isn't being told the story from the employees and then the members in turn tell that story to their friends, it will be an uphill battle.
4. Educate consumers with your marketing.
The final step is to make sure that all your marketing efforts are telling the "difference" story. Every ad, every press release, every sign,--everything to do with marketing must be in alignment with this goal.
Of course, this is not some simple process, but then nothing is. The reality is that the face of the health club industry as we know it has changed. Low cost competitors bring more people into our market that may eventually come to your club. They are NOT going away and if you think so then you are in denial and should go seek professional help. Don't waste time bad mouthing your competitors--use that time and energy to put together a plan for differentiating yourself. If you do that you will not only retain your market share but may find that you can increase it in the process.
In good health,
Casey
Friday, April 18, 2008
Monday, April 14, 2008
Hard vs. Soft Selling
Jeffrey asked the following question:
“As a Club Manager, how do you teach your Membership Sales Staff the difference between a ‘hard sell’ and a ‘soft sell’?”
This is a very interesting question given the current climate of consumer expectations. On one hand consumers expect more for their money; on the other hand consumers belief in getting “good customer service” is almost non-existent, with the number of consumer complaints at an all time high. Let’s face it, whether it’s the endless loop of pre-recorded phone messages that don’t allow you to talk to a human being or the inability to find an associate while shopping in a store, as a consumer it can be pretty frustrating when you’re trying to buy something.
Of course, not being able to talk to someone is different than dealing with some slick, fast talking salesperson that has come out of the “Tin Men” mold. (If you never saw this hilarious movie with, if I remember correctly, Danny DiVito you should.) Today’s consumer won’t put up with “What’s it going to take to get you into this car today” statements.
So, first, what is the difference between a hard sell and a soft sell? In order to answer that let me go into the archives of my law school days and utilize a quote by Supreme Court Justice Stewart in 1964 when trying to define obscenity said, “It’s like pornography; I can’t define it but I’ll know it when I see it.”
I know, I know, more of my smart a$$ humor but it really is a perfect quote for a couple of reasons. For one, what is a hard sell to one person may be seen as good salesmanship to another. For another, each person’s experience with a salesperson will be based on their perception of the situation in context.
Because perception is reality to the customer, your top salesperson may endear themselves to many but piss off a few in the process. On the other extreme you may have a salesperson that everyone loves but can’t sell a thirsty person a glass of water at a discount. So, instead of saying “this is hard selling” and “this is soft selling,” (because I don’t think either is accurate), let’s talk about approaches.
For me the right selling approach is what I refer to as “pull selling,” versus push selling. Nobody likes to be pushed into buying something. You want to feel as though you made the decision and it was of your own free will. And this is what I mean by “pull selling.” You actually pull the customer in your direction, NOT push them. This takes a special kind of leadership.
The only way you can lead an individual to want to buy is by asking them questions. Lots and lots of questions because when someone answers a question they are basically selling themselves. Where most salespeople get into trouble in their presentations and come across as pushy is when they begin to “tell” the customer, “This is what you want in this product,” or “You should buy this one because,” etc.
By taking the time to ask the customer lots and lots of questions, the customer almost leads themselves to the right buying decision. Where salespeople have a hard time is in conditioning themselves to ask questions throughout the sales process—not just in the qualifying stage. In fact, a good salesperson will have pre-designed questions in all the following stages:
Pre-Qualifying
Qualifying
Touring
Membership Presentation
Overcoming objections
If you came into this industry like most salespeople—i.e. without any formal training—take some time now to sit down and write out all the questions you can ask a prospect during your time together. If you train yourself to stop telling and start asking effective, empowering questions, pretty soon you will have a fabulous closing percentage without the need for any “hard” selling techniques along the way.
Let me close by saying this, “If you have to close hard, you haven’t done your job up front.” You are in the profession of helping people realize that they need to modify their lifestyle so they can enjoy the many benefits of regular exercise; if you approach each sale with the goal of motivating someone to want to exercise for their reasons, not yours, you will rarely come across as a pushy salesperson.
In good health, Casey
“As a Club Manager, how do you teach your Membership Sales Staff the difference between a ‘hard sell’ and a ‘soft sell’?”
This is a very interesting question given the current climate of consumer expectations. On one hand consumers expect more for their money; on the other hand consumers belief in getting “good customer service” is almost non-existent, with the number of consumer complaints at an all time high. Let’s face it, whether it’s the endless loop of pre-recorded phone messages that don’t allow you to talk to a human being or the inability to find an associate while shopping in a store, as a consumer it can be pretty frustrating when you’re trying to buy something.
Of course, not being able to talk to someone is different than dealing with some slick, fast talking salesperson that has come out of the “Tin Men” mold. (If you never saw this hilarious movie with, if I remember correctly, Danny DiVito you should.) Today’s consumer won’t put up with “What’s it going to take to get you into this car today” statements.
So, first, what is the difference between a hard sell and a soft sell? In order to answer that let me go into the archives of my law school days and utilize a quote by Supreme Court Justice Stewart in 1964 when trying to define obscenity said, “It’s like pornography; I can’t define it but I’ll know it when I see it.”
I know, I know, more of my smart a$$ humor but it really is a perfect quote for a couple of reasons. For one, what is a hard sell to one person may be seen as good salesmanship to another. For another, each person’s experience with a salesperson will be based on their perception of the situation in context.
Because perception is reality to the customer, your top salesperson may endear themselves to many but piss off a few in the process. On the other extreme you may have a salesperson that everyone loves but can’t sell a thirsty person a glass of water at a discount. So, instead of saying “this is hard selling” and “this is soft selling,” (because I don’t think either is accurate), let’s talk about approaches.
For me the right selling approach is what I refer to as “pull selling,” versus push selling. Nobody likes to be pushed into buying something. You want to feel as though you made the decision and it was of your own free will. And this is what I mean by “pull selling.” You actually pull the customer in your direction, NOT push them. This takes a special kind of leadership.
The only way you can lead an individual to want to buy is by asking them questions. Lots and lots of questions because when someone answers a question they are basically selling themselves. Where most salespeople get into trouble in their presentations and come across as pushy is when they begin to “tell” the customer, “This is what you want in this product,” or “You should buy this one because,” etc.
By taking the time to ask the customer lots and lots of questions, the customer almost leads themselves to the right buying decision. Where salespeople have a hard time is in conditioning themselves to ask questions throughout the sales process—not just in the qualifying stage. In fact, a good salesperson will have pre-designed questions in all the following stages:
Pre-Qualifying
Qualifying
Touring
Membership Presentation
Overcoming objections
If you came into this industry like most salespeople—i.e. without any formal training—take some time now to sit down and write out all the questions you can ask a prospect during your time together. If you train yourself to stop telling and start asking effective, empowering questions, pretty soon you will have a fabulous closing percentage without the need for any “hard” selling techniques along the way.
Let me close by saying this, “If you have to close hard, you haven’t done your job up front.” You are in the profession of helping people realize that they need to modify their lifestyle so they can enjoy the many benefits of regular exercise; if you approach each sale with the goal of motivating someone to want to exercise for their reasons, not yours, you will rarely come across as a pushy salesperson.
In good health, Casey
Thursday, April 10, 2008
Enrollment Fees or Not?
Wendy asks the following questions:
"We're considering the complete elimination of our enrollment structure. What are your thoughts on enrollment and are we making a smart decision?"
My immediate response is "It depends," but that is the kind of smart a$$ response you probably don't want. LOL. So, let me answer in a bit greater details but still starting out by telling you that I can only discuss general strategy with you, as I don't know the specifics of your situation. With that disclaimer stated, let me get to it.
There are both pros and cons to enrollment fees. The pro is that it acts as a qualifier for new members. That is, you are more likely to get a serious buyer because someone who is concerned about "sticking with it," may not want to pay the fee, hence won't join. (We'll talk about how that can also be a con in a minute.)
Another pro to enrollment fees is that there is a ton of research that shows undeniably that members who pay more up front stay longer.
Yet another pro to enrollment fees is that it brings the club valuable, and often necessary, revenue that helps to keep the club in good working order and helps to pay commission structures for the sales staff.
Now, let's play devil's advocate. One con to an enrollment fee is that it creates some level of barrier for the customer. Let's face it, people don't understand enrollment fees--"What is this for," and most salespeople can't give them a good explanation, often saying such horrendous things as, "The club needs to make some money too." These kinds of "no-thought given to what falls out of my mouth" comments make me want to be sick! But, I'm digressing here; back to the cons.
Another con can be if you have competitors in your marketplace that don't charge an enrollment fee and they use it against you with prospects.
A third con (and there may be more but these are the ones that come to my mind immediately) is that an enrollment fee can create a barrier for the salesperson--i.e. some salespeople don't perceive the value of the enrollment fee themselves and it literally creates a mental block for them, which is transferred (even unconsciously) to the prospect. This can kill a sale.
When you are considering eliminating your enrollment fee what you really need to ask yourself is a lot more than the simple pros and cons. You need to ask yourself what you want to accomplish with the elimination and then analyze your market to determine if in fact you will gain an advantage.
Personally, I love enrollment fees. I believe in my product and I know from an economic standpoint that the revenues I take in from enrollment help me maintain the quality of the club that my members enjoy. It also gives me some wiggle room for times when I do want to run a promotion and/or discount.
That said, the health club business is entering a stage of its' lifecycle where it is "commoditized." What that means is that more and more clubs are strictly selling on price and this is driving down membership dues. Unless your model is lots and lots of members with little service, most clubs cannot win in a price war with a competitor. In fact, no one wins because the operators often put themselves out of business and the members don't get the service or experience they want.
My last word on the subject for now is remember this: Once you remove your enrollment fee you will be hard pressed to get it back so think very, very carefully before doing it.
Hope this helps. Casey
"We're considering the complete elimination of our enrollment structure. What are your thoughts on enrollment and are we making a smart decision?"
My immediate response is "It depends," but that is the kind of smart a$$ response you probably don't want. LOL. So, let me answer in a bit greater details but still starting out by telling you that I can only discuss general strategy with you, as I don't know the specifics of your situation. With that disclaimer stated, let me get to it.
There are both pros and cons to enrollment fees. The pro is that it acts as a qualifier for new members. That is, you are more likely to get a serious buyer because someone who is concerned about "sticking with it," may not want to pay the fee, hence won't join. (We'll talk about how that can also be a con in a minute.)
Another pro to enrollment fees is that there is a ton of research that shows undeniably that members who pay more up front stay longer.
Yet another pro to enrollment fees is that it brings the club valuable, and often necessary, revenue that helps to keep the club in good working order and helps to pay commission structures for the sales staff.
Now, let's play devil's advocate. One con to an enrollment fee is that it creates some level of barrier for the customer. Let's face it, people don't understand enrollment fees--"What is this for," and most salespeople can't give them a good explanation, often saying such horrendous things as, "The club needs to make some money too." These kinds of "no-thought given to what falls out of my mouth" comments make me want to be sick! But, I'm digressing here; back to the cons.
Another con can be if you have competitors in your marketplace that don't charge an enrollment fee and they use it against you with prospects.
A third con (and there may be more but these are the ones that come to my mind immediately) is that an enrollment fee can create a barrier for the salesperson--i.e. some salespeople don't perceive the value of the enrollment fee themselves and it literally creates a mental block for them, which is transferred (even unconsciously) to the prospect. This can kill a sale.
When you are considering eliminating your enrollment fee what you really need to ask yourself is a lot more than the simple pros and cons. You need to ask yourself what you want to accomplish with the elimination and then analyze your market to determine if in fact you will gain an advantage.
Personally, I love enrollment fees. I believe in my product and I know from an economic standpoint that the revenues I take in from enrollment help me maintain the quality of the club that my members enjoy. It also gives me some wiggle room for times when I do want to run a promotion and/or discount.
That said, the health club business is entering a stage of its' lifecycle where it is "commoditized." What that means is that more and more clubs are strictly selling on price and this is driving down membership dues. Unless your model is lots and lots of members with little service, most clubs cannot win in a price war with a competitor. In fact, no one wins because the operators often put themselves out of business and the members don't get the service or experience they want.
My last word on the subject for now is remember this: Once you remove your enrollment fee you will be hard pressed to get it back so think very, very carefully before doing it.
Hope this helps. Casey
Ask Casey A Question
After a brief absence to get the new website up (www.HealthClubSalesTraining.com), I'm back on-line with the blog. The good news is that you can now ask me a question by simply going to the health club training site and clikcing on the "Ask Casey" question, or you can click on the following link: http://www.askdatabase.com/campaigns/?af=40156
I'll be posting your questions and answers on a regular basis. Thanks for blogging! Casey
I'll be posting your questions and answers on a regular basis. Thanks for blogging! Casey
Subscribe to:
Posts (Atom)
