Tip: Click the blue text above to follow "FMCG Distributor Professional Consulting" for more marketing and distributor internal management content.
Salespeople often think: "The product was finally sold, but collecting payment is difficult. Pressuring the customer too much will affect the relationship, so payment collection should be handled by another department, not the salesperson." But if you deliver the goods and don't take responsibility for the payment, why does the company need salespeople? I could sell at a price several times higher than yours, as long as I don't ask for payment.
So, what salespeople need to do is: sell the company's products and collect payment as quickly as possible.
So how should salespeople do it?
Strategy 1: Focus on the problem, not the person
In a US Open match, French female player Pierce often took time to treat injuries on court, and after restarting, she often turned defeat into victory. You might think: "How can there be such a person? Playing like that is not fair!"
But good players know that only one thing determines the outcome of the match: the movement of the ball over the net. What the opponent does doesn't affect the outcome as long as you know what the ball is doing.
So, good players concentrate on the ball, not the person playing. In negotiation, the ball is the movement of goals on both sides of the table compromising—that's the only thing that affects the negotiation outcome. But it's too easily influenced by others, isn't it?
[Case]
Liu Wei, a salesperson at A Building Materials Company, patiently looked at Yan Song and repeated the sentence he had already said many times: "Excuse me, when will you pay the outstanding amount to our company?"
From the moment he entered Yan Song's office, Liu Wei barely had a chance to speak. Yan Song found one problem after another with Company A: poor product quality, untimely delivery, bad after-sales service—all to justify "I'm not paying now because it's your company's problem."
But Liu Wei knew the goods were of good quality and delivered on time per the contract; there was no problem on their side.
Liu Wei thought: "Shout, yell, curse, you can't hit me. I know what I want. You can perform all you want; I remain unmoved."
Yan Song took a sip of water; his mouth was a bit dry from talking so long. In the past, when he complained and grumbled like this, the collector would have backed off already, and he wouldn't have to work so hard. Today he was unlucky to meet someone stubborn. To be honest, Company A had no real problems, but he only had enough money to pay one company's bill, and Company B's payment was also due. "No, I need to put more pressure on him and try to delay."
Liu Wei had already observed Yan Song's actions and judged that his persistence had created some pressure on the other party.
Yan Song spoke: "Did you understand what I just said? Go back and resolve it first."
Liu Wei continued: "I understand your feelings. If I were in your position, I would also consider protecting my company's interests and make suggestions to suppliers. But we have found that these problems do not exist. In fact, our company supplied the goods on time, with quality and quantity as per the contract. The issue now is when your company plans to arrange payment. We need your support."
When Yan Song heard this request again, he was about to go crazy. He just wanted to end the conversation now. Negotiating with such a stubborn person was torture. He was also an employee, and suffering such torment for a payment that should be made was not pleasant. As long as he could get the other party to leave, anything was fine.
"Alright, I'll pay 40% today, and for the rest, I'll write a repayment plan and pay within a month."
[Remember]
☆ If the other party shows dissatisfaction with you, focus on your goal, not the person's personality.
☆ Treat any emotional display from the other party as a negotiation tactic.
☆ All you need to do is repeatedly confirm with the other party when they will pay.
☆ Don't be intimidated by the other party's emotions; keep reminding yourself: Why am I here?
☆ In the most difficult times, persist, persist, and persist again.
Strategy 2: Feign surprise
Many of us drive and know that our beloved car needs an interior cleaning (i.e., car beauty) about once a year. Once, a new car beauty shop opened in my community. I hadn't cleaned my car in a year and a half, so I decided to go.
I didn't know the current market price. I asked the store manager how much it cost, and he said 550 yuan. I let out an "Ah!" of surprise and turned to leave. Then I heard his voice from behind: "300 yuan." I turned around, thinking that a turn had dropped the price by 250 yuan, so I should be even tougher. So I widened my eyes, opened my mouth, shook my head repeatedly, and pretended to be very surprised. Guess how much I finally paid? 150 yuan with a free car wash.
[Case]
Situ was a salesperson at a large feed company in the southwest region. His territory had many farms, 95% of which were private enterprises, and payment collection was always a thorny issue.
The owner of Haoyouduo Farm, surnamed Sun, was a new customer Situ developed in 2007. Boss Sun was a big player in the county and had some influence.
In January 2008, Situ went to Boss Sun's company to collect a debt of 100,000 yuan.
Based on past experience, Situ judged that this debt, which hadn't been overdue for long, couldn't be collected in one go; that was the industry norm. He set his goal at 50,000 yuan but warned himself not to mention the amount first.
After some small talk, Situ stated his intention to collect payment, emphasizing that the company was short on funds at year-end and hoped Boss Sun would support by paying in full. Situ knew the strategy of "opening high above the expected price."
When Boss Sun understood the purpose, he offered to pay 70,000 yuan first.
"Ah..." Situ couldn't help but exclaim. In fact, Situ hadn't expected such luck today; Boss Sun's offer surprised him.
A moment of silence.
Boss Sun looked at Situ, thought for a while, and said, "Alright, I'll pay off all the debt this time."
[Remember]
☆ Sometimes, collecting payment is simple. Especially with new customers, both sides are testing each other's limits. So you should be good at using voice strategies like 'feigning surprise.' Because tests show that 90% of people are sensitive to voice, making 'voice strategies' often effective in negotiations.
☆ Feign surprise at the other party's offer. Maybe they didn't expect to get what they asked for. If you don't show surprise, you're implying it's possible.
☆ Even if you're not negotiating face-to-face, you should show shock.
Strategy 3: Hot potato
The other party throws a problem that belongs to them onto you, making it your problem, like throwing you a hot potato.
Miss Fan, an editor at a magazine, had just returned from filming in the Middle East desert. Oh my, she didn't look like she'd been abroad; she looked like she'd come back from a coal train. Due to insufficient staff arranged by the company, she was afraid of Arabs when abroad, and had heavy work to do. She had to be the team leader, translator, and carry dozens of kilograms of props. She was tired and aggrieved, but she had to go to Paris for Fashion Week interviews in 3 days. She worried about insufficient staff and not being able to handle it, and feared that asking the leader for more staff would make her seem unable to endure hardship.
After her husband learned about the situation, he picked up her phone and sent a text to her leader: "If I still go to Paris alone, I won't be able to complete the task."
Miss Fan was anxious: "How could you do that? That's what I was afraid of."
Her husband replied: "Insufficient staffing is a problem with the leader's arrangement. You should raise it with the leader and let him be responsible for solving it."
[Case]
"We're undergoing restructuring," said Chen Jiu, a purchaser at a pharmaceutical distribution company.
"Yes, restructuring can cause some confusion, but we want to confirm whether you have received our goods. Your outstanding balance is 350,000 yuan, and it's now 40 days overdue."
"If you agree, to maintain our contract with the agreed payment terms and our long-term cooperative relationship, you must let us get your check as soon as possible. Given your current chaotic situation, shouldn't you talk to your supervisor? I'd like to meet with him face-to-face."
Liu Shuai reasoned that this was likely just an excuse, as the company was in a normal state of change and it didn't affect normal business operations; they could still pay. Liu Shuai's desire to talk to the supervisor was a double hint: it showed determination to get the payment and minimized the credibility of the excuse.
Even if it were true, it was the company's own problem, and the supplier shouldn't bear the consequences.
[Remember]
☆ Don't let others throw their problems at you. You already have enough problems; you can't take on more. Don't take the bait.
☆ When they do, analyze the problem and immediately verify its truth.
☆ Often, the other party might just be testing your reaction, so you must show a visible expression.
Strategy 4: Black face and white face
I like watching police and gangster movies. There's often a scene where police bring a suspect to the station for interrogation. The first interrogator is a fierce-looking, rude cop who curses and threatens the suspect. Then this cop is called out for an unavoidable phone call.
The second cop to interrogate is the gentlest, friendliest guy you've ever seen. He sits down and talks heart-to-heart with the suspect. He offers a cigarette and says, "Listen, kid, it's not that serious. I like you. I know you broke the law. Why don't you let me see what I can do to help you?"
You think this good guy is really on your side, which is touching, but of course it's not true. But the suspect, just scared by the black face, often confesses when coaxed by the white face.
[Case]
Xu Fei looked at Manager Zhan, then lowered his head again.
"Xu Fei is a very honest person, and the leadership has always trusted him. But this matter has a big impact on his credibility. Who told him to vouch for you back then?" Manager Zhan further pressured Manager Zhang of the customer's purchasing department.
Xu Fei made a very strange expression, though not obvious, but enough for everyone present to see.
It was a carefully designed expression, meaning "I'm in a very difficult position, very painful."
Manager Zhang had never seen Xu Fei make such a strange expression in three years of knowing him. This was the first time.
"It seems the debt really brings him trouble. I didn't intend not to pay; I just wanted to delay a bit."
"You've also been owed money; that feeling is really uncomfortable. You originally promised well, and Xu Fei guaranteed it. Look how pitiful he is now. Can you bear to make it hard for him?"
Xu Fei finally spoke: "I can't help it. The company is pressing too hard. If I had money, I'd advance it for you."
"I know you're also tight on funds now, but no matter what, you're far better off than me. Even if you just lift a finger, this matter would be resolved. Besides, your company's boss is a celebrity in this area, with such a big business; he wouldn't quibble over such a small amount."
Manager Zhang felt a bit pleased and thought, "It's true that we have strength."
"Alright, let me go talk to finance and see if there's money."
Manager Zhan knew the time was right, but he must not let him go ask the finance department; he had to block that path.
So he said: "Manager Zhang, you're too modest. Everyone knows you're a pivotal figure in your company. Such a small matter is just a word from you."
Manager Zhan was forcing Manager Zhang to admit he had the power. Once he admitted it, out of face, he would then move in a direction favorable to our company.
Manager Zhang showed a proud expression and said, "Of course, I can make the decision."
"Alright, I agree to pay."
[Remember]
☆ Even if everyone knows it, this strategy works. It's a tried-and-true method in payment collection negotiations, and its effectiveness depends largely on the cooperation of two people. The black face must be aggressive, create enough pressure, even make the situation awkward, for the subsequent actions to be effective.
☆ This is an effective way to apply pressure without creating conflict. It protects the salesperson well and at least won't have a big impact on future customer relations.
☆ The key is to grasp the degree, which requires repeated practice.
Payment collection negotiation is a process of psychological confrontation. Only by practicing internal skills can you take the initiative in the collection process. Most companies that delay payment are weighing and testing. So, as a mature collector, always remember one sentence: The customer's payment habits are cultivated by us.
Daonong recently opened a public account specifically about how traditional enterprises can do WeChat marketing well. If you're interested, you can follow it. Search for the WeChat ID above or scan the QR code below to follow.
--------------------------------------------