25. How do you use the higher authority strategy?
A good lesson learned a while back was from a sales person in Twin Falls, Idaho. A friend of his sold a service station to someone from another country that didn’t understand how we do business. The new owner would order a part from the auto supply store and then try to negotiate the price with the driver.
You may be thinking how anyone could do something that dumb. However, if we go into a customer's business and are not talking to the decision maker, we are doing the same thing.
Another perfect example of this strategy in action was demonstrated while checking into a hotel in North Platte, Nebraska. I asked the clerk at the front desk for a discount. She said she had to check with the manager and went back into the office. When she returned she said she was sorry but the manager said that was the best they could do. I walked over to the elevator and while waiting another person came in and asked for a discount. The clerk did the same thing only this time I could see the entire office. It was empty. She simply walked into the office, stood there for about five seconds and returned.
Sometimes a decision maker will use a “higher authority” to hide the fact that they are the decision maker. For example: "This agreement looks good, but I will have to run it by my committee (or wife or any other higher authority).”
Using the higher authority is when the customer or prospect does not have responsibility for making the buying decision. It is usually a "buying committee" that has the final say.
The next time you buy a house or car watch carefully how the sales person will remove this roadblock. The sales person will say, “If we find the house (or car) that you really like, is there any reason you could not make the purchase today?” Once they get the green light, the sales person will spend whatever time it takes to find you the right product. If you say your husband or wife has to give the final approval, the sales person will try and set up an appointment when both of you can be present.
To avoid being the victim of the higher authority, be sure all parties necessary to make an agreement when you are making your presentation. For example, if one of the buyers is not present, it is best to postpone the meeting until everyone can be there. If one of the critical parties is not there, that person can veto everything that was agreed upon.
If you are the one making the presentation and the presence of someone important is impossible, set a short one or two day time limit for his or her higher authority approval.
You can use this same strategy. You can start your presentation with the same question. "If I show you a program that will not only save you money on your operating expenses, but also lower your labor cost as well as increase your sales, is there any reason why you would not want to give it the go-ahead?" If the buyer has to get approval from a higher authority you will know how to tailor your presentation.
If you are making a presentation to a person who does not have authority to make the decision, the best strategy is to build up the person you are presenting. Suggest to the person that the committee is surely influenced by what he or she says. If you can get them to commit to making a "sale" to the committee, it can be embarrassing if he or she is not able to get it through for you.
Another strategy if you are selling to a buyer who has to "run it by the committee" is to ask about the possibility of making a presentation to the committee yourself. This can either call their bluff or it may present you with an opportunity to actually make a presentation to the buying committee.
When making YOUR presentation it is to your advantage to present a higher authority from which you must get approval. Even if you do have complete authority over the selling price, you may want the buyer to believe you have to get approval.
If both buyer and seller could say to the other, 'I know what I am doing and I have the power to make the best deal possible’ it seems as though the selling process would be much easier. This is not always the case. When you have the authority to make the final decision the buyer knows that he or she only has to convince you and does not have to work quite as hard if you are the final authority. Once you have given your okay, the sale is done.
Not so with the person who has to answer to a higher authority. When you have to have approval from your department manager, sales manager, purchasing manager, marketing manager, or even the president of the company, then the customer must do much more than convince you, he or she must present a reason you can take to your higher authority for approval.
This is only a tool you should be aware of and use when the situation calls for it. There are many times that it is not necessary and you can be the final authority without any problem.
Comments:
When addressing this issue, you need to determine what type of buyer you are dealing with. Everyday I pitch someone that can say "no" but they cant say 'yes". It is extremely important to sell from the bottom up. You sometimes just don't know the "pecking order".
Gary Caudill
I’ve used the higher authority strategy myself and sometimes it works very well. However when it’s been used on me by someone else when I’m trying to make a deal with someone I often ask “Is there any way we can talk to your boss today so I can keep the price where it is right now?" I know so often that if this "schmo" is going to talk to the boss for me he is likely not going to present the offer correctly and screw the whole thing up.
Cary McAfee
Very good point to remember. I’ve actually made sales presentations to the “wrong person” before, a person with little or no influence the on the buying practices of the company. It’s even more gut wrenching than being turned away at the door. Going through all the preparation, overcoming objections and knowing you hit one out of the park only to find you were in the wrong park!
Chris Chase
Every salesperson should know how important it is to have the key players in the room before you pitch your product or service. The logic behind this is that whoever you pitch to is going to go to the decision maker and try explaining what you told them and who knows what there going to say or how they are going to make your product or service look. Nobody should know your product or service better that yourself, so don’t you think you need to be the one selling it and not some schmo sent there just to make you think your doing your job!
A good question I learned a long time ago is “Other than “_______”, is there any other reason we can’t do business today. If its Price, Other than the price, is there any other reason we can’t do business today? This is a great question to ask to find out exactly what you need to fix or change, to make the sale today!
David Bradley
Unfortunately for high dollar services there is a Higher Authority or Two or Three……The best case scenario to ask about making your presentation to everyone at once. I don’t seem to live in that magical little world. Sometimes you have to overcome the objections one at a time- one level at a time. One thing I have found helpful as you get buy in at each level; ask what objections you think the next level will have. This helps you be a little more prepared and the more buy in you have the better.
Hey, if life was easy- what fun would it be?
Teresa Cloninger
I think this is a very interesting concept. I have often used this, without having truly thought about it and the process. One thing I do realize from this lesson is that, by offering to make your presentation to the committee or decision maker, it takes some of the pressure off of the non-decision maker. I have seen relief in a front office person’s face, when I asked to speak directly with the decision maker. Not only have you gotten to the person you really need to speak to, you have also forged a more comfortable relationship with the person who can get you there.
Tonya Sauer
There are many uses of the higher authority strategy and you should understand how it works so that you can respond effectively when they are used against you. One of the most common uses is to obtain a delay without directly asking for one. In this way, the absent authority provides an opportunity for the salesperson to go back, think through the positions of each side, and evaluate the proposed agreement. It works for me!
Yessie Narvaez
I knew a guy that owned a communications company and had vice president as his title on his business card. Even though he owned the company, he always had an “out” to use the higher authority whether he was selling his product or someone was making a presentation to him. It is definitely a good idea to build up the person who is not the decision maker. Making them feel they are part of the process for a major decision is great way to get them on your side.
Gregg Nixon
Every salesperson should know how important it is to have the key players in the room before you pitch your product or service. The logic behind this is that whoever you pitch to is going to go to the decision maker and try explaining what you told them and who knows what there going to say or how they are going to make your product or service look. Nobody should know your product or service better that yourself, so don’t you think you need to be the one selling it and not some schmo sent there just to make you think your doing your job! A good question I learned a long time ago is “Other than “_______”, is there any other reason we can’t do business today. If it is price, Other than the price, is there any other reason we can’t do business today? This is a great question to ask to find out exactly what you need to fix or change, to make the sell today!
David Bradley
Many times I might say to an individual “I know you don’t want to hear all of this twice. Is there anyone else who will need to hear my information today?” You would be surprised how many times the prospect will say “ Let me see if Joe is busy” or “Maybe Sherrie can meet with us, too.”
I also might say “This is a lot to remember. Would you like anyone else present so you don’t have to ………
Lynn Mosely
"When making YOUR presentation it is to your advantage to present a higher authority from which you must get approval."