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Your Online Guide » Guide to Finance » How To Handle Finances

[A542]And Take The Money
by Bob Janet, Bob
A woman standing by the store's bathroom sink display asked the salesperson, "Does this sink come in rose color?" Immediately the salesperson replied, "It comes in rose, it comes in white, it comes in green, red, blue, almond, black, brown, gold." He named at least another dozen colors. He then, without taking a breath, opened a book and began to read to her how the finish was applied and why it would never mar or discolor.

This all took less than a minute and a half. The women said thank you, turned and left. As she passed me I said to her, "Why didn't you buy that sink?" She replied, "He would not shut up and sell it to me."

are you over selling? Are you listening for the customers 'Closing Statements?' A 'Closing Statement' is anything the customer says that is positive about your product, service, business or you.

I first learned to shut up and take the money when my father taught me to sell tires. In the early 70's the radial tire was introduced to the consumer market by Michelin tire company. It cost four times as much as a non-radial tire, with a starting price around $150 each.

Even though the cost was extremely high, my father sold well over half of his customers Michelin tires. I know sometimes the tires were worth more than the cars we put them on. He did it by listening for the customer's closing statements. When he told them, "This tire will last 40,000 miles, over twice as long as a non-Michelin radial tire, give you a much smoother ride, and is a much safer tire." They would say, "I like that."

My father then shut up and wrote up the sale. He taught me to listen for closing statements like, "That will work", "My wife will like that", "I like that".

Some closing statements are questions: Can you deliver it today?, What is the guarantee? , Can you put them on the car right away? Do you have financing? Do you take credit cards? (Of course you answer them as you are writing up the sale).

Make sure you listen for closing statements with your eyes. Watch the customer's facial expressions. You will know when they are pleased by something you say.

Another approach is to get the product in the customer's hands. As soon as the customers take the product I am handing them, I start writing up the sale. Possession becomes ownership. Writing up the sale transfers ownership.

Sometimes the closing statement is, "Your price is higher than the competition's." Yes, that is a closing statement. They are telling you they like your product / service. They want to buy it. You have simply not given them the right information to let them justify spending their money. You have not proved to them that buying from you is worth more than buying from the competition.
All you have to do is use the 'Higher Price Agreement Close.'

Here is how it works.
They say "Your price is higher than the competitions." You do not get defensive. They can sense your fear. You simply nod yes and say. "I understand how you feel, and yes it is a few dollars more.

That is the same way other customers felt before they realized when you purchase your (name the product / service) you also get
(Name 3 things you give the customer the competition doesn't).

Example: I was always the highest priced dealer. One of the television lines I sold was GE. Everyone and their brother sold GE televisions. It was the easiest product for the customer to compare shop.

Every time I heard, "Your price is higher than everyone else's," I immediately started writing up the sale while saying, "I understand how you feel, and yes we do charge a few dollars more. That is the same way other customers felt before they realized when you purchase your new color television from us you receive 7 days a week service, not 5. We give you a free extended warranty, and we guarantee you the top trade-in value, in writing, for your television 5 years from now, whether it is working or not.

Then I shut up and waited for the customer to say something. The first one who talks loses.

Stop thinking you have to tell the customer everything about your product / service. You don't. All you have to do is inform them enough for them to think your product / service will help them solve their problem, need or want. And when they think it they usually make a closing statement. Shut up and take the money.

When people retire or need to withdraw money from pensions or investments, they get confused on what to do. People are living longer so their money must last for a lifetime which can be hard to plan for. Also the high cost of healthcare doesn't help those who depend only on a fixed income. A mix of guaranteed income and income that has the potential to increase annually is ideal. That kind of mix will also help keep your taxable income down as you will draw from a mix of taxable income and capital gain dividends. It will also help diversify your risk at retirement.

Here are five options for an easy withdrawal plan. Choose one or more depending on your personal situation:

1. Don't take more than a 4% withdrawal of all assets. Studies have shown that if you withdraw more than that, you will spend down principal. Spending down principal may be okay if you are 70 years old or older, but not when you are 55.

2. Keep two years of retirement income needed in cash. This is especially good when we have a bond market that is volatile like we have today. Have all income (including dividends, cash, pension, etc.) go into a money market or savings account to replenish the income that you take out. Keep two year's worth of income in the money market account or savings account.

3. Keep one year of laddered (3 month, 6 month, 1 year) Certificate of Deposits that you use to take income from (when they come due) and replenish those Certificate of Deposits with income from other sources. This is labor intensive since you must continually look for new Certificate of Deposits as they come due but it assures you the highest interest on your cash holdings while you are also taking withdrawals.

4. Take a combination of withdrawals that produce taxable income, tax-free income, and capital gain income to keep your tax rate down while you withdraw. Remember, you get to spend only that amount that you withdraw after tax so don't take everything out that is taxed at ordinary income rates. Split it up if you can with Roth withdrawals (potential tax-free income), muni -bond dividend income (tax-free income), or sell a portion of investments each year (potential tax-favored capital gain income).

5. Some people invest in an immediate annuity for their income needs. This becomes the fixed income portion of their portfolio and they don't have to worry about cash, Certificates of Deposits or bond income. They get an income for life, but the downside is that few have an inflation rider and many have high internal fees.

Withdrawal plans don't need to be confusing. With these five options you can choose a plan that will give you the income you need while maintaining growth and keeping your taxes down. Pick a program that you feel comfortable with so when you need money, you will know how to withdraw with minimal downside.

Article Source : Pg. 6

About Author
Both Bob Janet & Fern Larocca are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Bob Janet has sinced written about articles on various topics from German Shepherd Dogs, Self Confidence and Finances. Bob Janet uses 40 plus years of face-to-face selling and marketing experiences, combined with his unique fun-entertaining presentation audience involved style to help sellers gain and retain their most profitable customers. See all Bob's sales growth prog. Bob Janet's top article generates over 40500 views. to your Favourites.

Fern Larocca has sinced written about articles on various topics from Finances, Adsense and Finances. 2008© Fern Alix-LaRocca CFP® All Rights Reserved Interested in more tips by Fern Alix LaRocca, a fee-only Certified Financial PlannerTM. Fern Larocca's top article generates over 40500 views. to your Favourites.
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