>Compelling events, when and why do Companies buy?

>If you are reading this article and you are lucky to own a brand new car, and it is parked nearby. If you were approached by a very professional car tyre salesperson, and he offered to immediately replace one or all your tyres on your car for 50% of the retail price of the tyres, would you take up his offer?

99% of people would decline his offer.

Next time you use your car, you notice there is a big nail in one of the tyres, and the tyre is collapsing! You are now have a ‘compelling event’ to buy a new tyre, to the correct specification and to the best price. You have moved from being a non buyer to a buyer with an imperative compelling event, you wish you had accepted the business card of the tyre salesperson.

If you now switch roles, and you are the tyre salesperson, and you were smart enough to evaluate the buying behaviour before and after the puncture, what would you do differently, regarding sales effort, discounts, proposals, presentations?

Business purchases only ever occur when there is a compelling event, this could be due to change of legislation, the current item you are replacing is about to break or badly out of date, or you are part of a supply chain, and the company higher in the chain has a compelling even, an order to fulfil for example.

The trick is to evaluate what the compelling event. Simply ask ‘open questions’ to the prospective buyer for you to determine ‘if’ there is a compelling event, and if there is one, what are the timescales. In a competitive situation, if you know the compelling event and your competition, has not figured it out, you are at a massive advantage, you know exactly when to link your offer to a date i.e. after this date the discount does not apply, or some other sales factor disappears. When you know the compelling event, maximum effort will lead to maximum reward, so many salespeople waste time speaking to a prospective client when they are not exhibiting buying behaviour. If there is no compelling event, try and create one.

I am self employed and work with other self employed business advisors, and help small business, by providing practical advice. I have discovered that every client which has used our services have a compelling event, obviously discovering what this is requires sales skills, and even if you know the compelling event, the prospective client may have other sales objections which I need to remove before they will engage us.

There are two components to buying behaviour, these are a compelling event and identifying the sole decision maker, there is only ONE decision maker! In another article, I discuss how you identify the sole decision maker.

For a free business check up, please contact me at tim.jenner@sgba.co.uk.