<s> the 24 salestraps and howto avoid them
the 24 salestraps and howto avoid them
Recognizing the Pitfalls ThatMislead Even the Best Performers
Dick Canada
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Library of Congress Cataloging-in-Publication Data
Canada, Dick, 1945–
The  24  sales  traps  and  how  to  avoid  them  :  recognizing  the  pitfalls  that 
mislead even the best performers / Dick Canada.
p. cm.Includes index.ISBN 0-8144-7141-2 (pbk.)—0-8144-0735-8 (hc.)
1. Selling. I. Title: Twenty four sales traps and how to avoid them. II. Title.
HF5438.25 .C28 2002658.85--dc21
2001046414
© 2002 Dick Canada.All rights reserved.Printed in the United States of America.
This  publication  may  not  be  reproduced,  stored  in  a  retrieval  system,  ortransmitted  in  whole  or  in  part,  in  any  form  or  by  any  means,  electronic,mechanical, photocopying, recording, or otherwise, without the prior writ-ten  permission  of  AMACOM,  a  division  of  American  ManagementAssociation, 1601 Broadway, New York, NY  10019.
Printing number
10 9 8 7 6 5 4 3 2 1
In loving memory of my parents,Lawrence M. and Violet H. Canada
contents
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IXAcknowledgments. . . . . . . . . . . . . . . . . . . . . . . . . . . . XIII
INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
PRINCIPLE 1: ADOPT AN OUTSIDE FOCUS  . . . . . . . . . . . . . . 11Sales Trap 1: You Must Be Aggressive to Succeed in Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Sales Trap 2: You Can Make a Complex Sale Without an Account Champion . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Sales Trap 3: It’s Best to Offer Solutions to Problems You See . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
PRINCIPLE 2: GET THE MOST OUT OF YOUR BEST PEOPLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Sales Trap 4: Rejection Is Failure . . . . . . . . . . . . . . . . . . . 36
Sales Trap 5: Academic Studies Aren’t Helpful in Real-World Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Sales Trap 6: Either Salespeople Have It or They Don’t . . . 51
PRINCIPLE 3: TRAIN EFFECTIVELY . . . . . . . . . . . . . . . . . . . 57Sales Trap 7: It’s the Content of the Skill Training That Matters Most . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Sales Trap 8: Beginners Should Start With Comprehensive Training . . . . . . . . . . . . . . . . . . . . . . . . . 66
PRINCIPLE 4: CREATE VALUE . . . . . . . . . . . . . . . . . . . . . . 69Sales Trap 9: You Won’t Make the Sale Unless You Reach the Decision Maker . . . . . . . . . . . . . . . . . . . . 72
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Sales Trap 10: Rank Decision Criteria Relative to Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Sales Trap 11: Providing Information About Products and Services Creates Customer Value . . . . . . . . . . . . . . . 84
Sales Trap 12: You’re Selling Value Versus Price. . . . . . . . 88
Sales Trap 13: Lower Your Price to Make the Sale . . . . . . 94
Sales Trap 14: It’s Possible to Sell Anything to Anybody . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Sales Trap 15: Offer Solutions Early . . . . . . . . . . . . . . . . 106
Sales Trap 16: Let the Customer Control the Sales Call . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Sales Trap 17: The Purpose of Questions Is to Persuade Someone to Do Something . . . . . . . . . . . . . . . 115
Sales Trap 18: A Skilled Salesperson Doesn’t Need to Plan Sales Calls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
PRINCIPLE 5: FOCUS ON FEEDBACK AND LEARNING . . . . . . 125Sales Trap 19: Sales Skill Training Is Enough to Solve Selling Problems . . . . . . . . . . . . . . . . . . . . . . . . . 129
Sales Trap 20: If You Generate Sales Activity, You’ll Close More Sales . . . . . . . . . . . . . . . . . . . . . . . . . 132
Sales Trap 21: Top Performers Are the Best Teachers. . . . 137
Sales Trap 22: Sales Managers Are Good Coaches . . . . . 142
PRINCIPLE 6: USE THE INTERNET. . . . . . . . . . . . . . . . . . . 147Sales Trap 23: The Internet Has Changed Selling . . . . . 151
Sales Trap 24: The Internet Will Replace All Consultative Salespeople . . . . . . . . . . . . . . . . . . . . . . . . 156
EPILOGUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181About the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
preface
A wise person once said that you should begin a projectwith the end in mind. If that were the case, when youfinished reading this book, this is what you would havelearned: It is not what sales and marketing people don’tknow that is most likely to significantly hurt their per-formance; it is what they think they know that turns outto  be  either  a  partial  truth,  fallacy,  or  mistaken  beliefthat affects their results more.  We call these half-truthsand  falsehoods  sales  traps,  and  each  trap  springs  fromvalidated  research.  There  are  24  traps  that  could  beadversely affecting  individual,  team,  group,  and  com-pany sales performance. So much for the ending, let’s goto the beginning. 
MY FIRST SALES TRAPIt all began at the Xerox International Training Center(now known as Xerox Document University) in Lees-burg,  Virginia,  where  I  was  serving  as  a  manager  oftraining and development. Ted, a Xerox sales managerand  a  good  friend  of  mine,  stormed  up  to  the  tablewhere I was having lunch with a few of our colleaguesafter a training session. The major account team Tedwas in charge of was growing, and he was adding to hissales staff, but his new hires were not closing sales aseffectively as he had hoped, and he was unhappy with
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their lack of productivity. What’s more, he couldn’t see the bene-fit of pulling key staff out of the field to take the particular skill-training course we were offering. He expected to see bottom-lineresults in the field—and in his training expense budget—from oursales training. I knew that he was dissatisfied with his team’s per-formance. He had often complained about our skills-based train-ing, saying, “They either have what it takes or they don’t, so whyare we wasting our time training them?” This time, he was red-hot angry.
And, inadvertently, I had just added fuel to the fire. Recently, wehad announced the results of a new sales research project conductedby  Xerox.1 The  study  showed  that  without  reinforcement,  oursalespeople  lost  87  percent  of  the  sales  skills  they  learned  withinthirty days. 
“So, now you’re finally admitting that sales-skill training coursesdon’t work?” he asked, addressing me but looking around our tablewith a triumphant smile on his face. 
“Sales training doesn’t work,” I responded immediately,  “unless
sales managers are willing to reinforce it!”
I didn’t realize it at the time, but I had just identified my first salestrap. What I mean by a sales trap is an incorrect action or strategyundertaken by a salesperson or sales organization because of a mis-taken belief, fallacy, or partial truth. The sales trap Ted had put hisfinger on was “sales training doesn’t work.” This statement is a par-tial truth. In other words, taken at face value, it’s true that sales train-ing  doesn’t  work  because,  as  the  Xerox  study  showed,  attendeesforgot  87  percent  of  the  skills  they  learned  within  thirty  days.  InTed’s  case,  sales  training  didn’t  work  because  he  (like  many  salesmanagers) didn’t reinforce the skills with his reps after the trainingcourse was over. But what Ted said didn’t go far enough. The salestruth is “sales training doesn’t work without reinforcement.” Salestraps  are  extremely  important.  They  hurt  an  individual’s  perfor-mance and compensation and lower an organization’s sales revenues
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and margins. Salespeople should recognize and avoid these pitfallsand base their sales techniques on updated sales research.
SALES RESEARCHToday we’re in the fortunate position of being able to identify SalesTraps more accurately because of the revolutionary sales researchdone in the last twenty years. The scientific validation of sales prin-ciples  and  techniques  has  introduced  standards  of  measurement,control, and uniformity to the sales cycle and has introduced pro-fessionalism to the sales training process that was unheard of before. The 24 Sales Traps and How to Avoid Them relies on this publishedresearch—as  well  as  field  research  conducted  by  The  DartmouthGroup, Ltd., and the Institute for Global Sales Studies—to estab-lish  that  key  ideas  and  beliefs  about  sales  are  based  on  incorrectinformation. It also includes real-life examples and practical infor-mation from savvy and experienced sales professionals. 
WHO THIS BOOK IS FORI’ve come to see that given the choice between sales traps and salestruths, salespeople choose the sales truths. They choose the moreeffective way to sell, if for no other reason than that the correct wayenables them to work smarter—not harder—with the same or bet-ter bottom-line results. Of course, you’ll still have to work hard. Butyou’re already doing that, or you wouldn’t have picked up this book.
This book is for you if you:
∆ Are searching for easier access to the approaches and tech-
niques that improve sales effectiveness
∆ Are curious about the process of selling and want to do it
better
∆ Have ever thought that “this is the way we’ve always done
it” wasn’t a good enough answer 
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∆ Have known on a gut level that the techniques you learneddidn’t seem right, but weren’t sure of what to do instead
∆ Have ever wanted to know the valid reasons for sales prin-ciples and techniques, beyond the reasons you hear so often 
This book is designed to be useful to:
∆ Salespeople at all levels of expertise
∆ Sales managers, trainers, and coaches
∆ Consultants 
∆ People who want to get others to think differently 
∆ Managers, trainers, and coaches
∆ Students considering a career in consultative sales or
marketing
This book will help you not only to identify what you’ve beendoing wrong, but also to replace your mistakes with the right tech-nique for the right circumstance. Above all, this book will show youhow to improve your sales effectiveness.
acknowledgments
I’d  like  to  thank  the  dean  of  the  Kelley  School  ofBusiness,  Dr.  Dan  Dalton,  and  the  chairman  of  themarketing  department,  Dr.  Frank  Acito.  Both  wereencouraging  and  supportive  of  our  efforts  to  raisemoney  to  establish  the  Institute  for  Global  SalesStudies. I would also like to thank Dr. Rosann Spiro,former  chairperson  of  the  American  MarketingAssociation. Not only has she challenged me, but shehas also helped me immensely in deciding what aca-demic research might be helpful to this book. I wouldalso  like  to  recognize  Dr.  John  Summers,  Dr.  GilFrisbie, Dr. Tom Hustadt, Dr. Ron Stephenson, Dr.Rockney Walters, Dr. Ray Burke, Dr. Dan Smith, andBrenda Crohn, who have lent their moral and intel-lectual  support  to  the  endeavors  of  the  Institute  forGlobal  Sales  Studies.  Without  their  support,  theresearch that forms the basis of this book might neverhave been completed.
Without  my  colleagues  and  partners  at  TheDartmouth  Group,  Ltd.,  this  book  would  not  havebeen  as  comprehensive.  Therefore,  my  thanks  toSusan  Woods,  whose  loyalty  and  support  has  beenthe best. Also, my gratitude to R. Michael Lockman;his  input  and  suggestions  for  this  final  manuscriptwere  insightful  and  helpful.  My  appreciation  also
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extends to Mike Navel, who has the uncanny knack of being ableto  take  complex  problems  and  discussions  and  reduce  them  to  asimple and understandable format. You have a gift. I need to rec-ognize  Tricia  Wilson  for  her  constructive  input;  her  passion  forconsulting and training makes The Dartmouth Group, Ltd., a funplace to work. Lastly, my gratitude to Tracy Welch for her behav-ior analysis studies during client field observations, Flora Waltersfor  her  administrative  support  with  this  manuscript,  and  ErikaMeditz for initial editing.
I would like to document my thanks and appreciation to two col-leagues  in  the  sales  profession  who  have  inspired,  motivated,  andmentored me over the last two decades through their books, theirarticles,  their  research,  and  their  friendship:  Neil  Rackham  and Dr.  Richard  Ruff.  It’s  now  possible  to  validate  sales  techniques,thanks  to  researchers  such  as  Neil  Rackham,  Dr.  Richard  Ruff,Robert  B.  Miller  and  Stephen  E.  Heiman  (authors  of  The  NewConceptual  Selling  and  Strategic  Selling),  Dr.  Rosann  L.  Spiro, Dr.  Thomas  N.  Ingram,  Dr.  Ramon  A.  Avila,  Dr.  Ronald  E.Michaels,  Dr.  Barton  A. Weitz,  Dr.  Charles  M.  Futrell,  ProfessorTom  Leigh,  Dr.  Dan  McQuiston,  Jamie  Comstock  and  GaryHiggins, Lawrence G. Friedman and Timothy R. Furey (authors ofThe  Channel  Advantage),  and  Jerome  A.  Colletti  (author  ofCompensating New Sales Roles), to name only a few. Because of theirwork, we can now give definitive answers to a myriad of questionsabout sales principles and techniques. 
I would also like to mention some key people who over the yearshave  kept  my  passion  for  sales,  consulting,  training,  and  teachingburning: Carole Canada Driver, Jim Cotterill, Jack Fidger, BernieSanders, Larry Thomas, Don Kutch, and Karen Thor. Additionalmention goes to those sales practitioners, many of whom I workedwith at Procter & Gamble and Xerox, who have affected my think-ing  regarding  the  sales  profession:  Ted  Rubley,  Jon  King,  BridgetMomcilovich, Jim Rayl, Jack Thompson, Greg Graham, C. Bruce
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McIntyre, William G. Mays, George C. Platt, David V. LeVine, J. J.Moffat, Tom Palmer, Frank Pacetta, Thomas M. O’Neil, Sue Matchett,John  Cuny,  John  Pitz,  Mark  D.  Slaby,  Gina  Shupe,  Jay  Preston,David Renzi, Mary Riley Quinn, Jon Robisch, Paul MacKinnon,Jim  Piotter,  Pat  Elizondo,  Ross  Raifsnider,  Bill  Ziegert,  SteveIden, Jim Wallace, Jason Craven, Kristi Johnson, Jennifer Brase,Mark  Lindenberg,  Judy  Paton  Schnettgoecke,  Jeff  Henry,  andSuzy  Yancey  DuBois,  Greg  Kluesner,  Phil  Engle,  Dave  Pannell,and Rich Schwimmer.
To those worthy competitors from IBM during the 1970s, thanksfor the defeats, and a few victories, to Bob Armstrong, David Knoll,and Joe Galati.
I would like to thank those clients who have unselfishly partici-pated in our research efforts to either confirm or deny the validityof many of the traps included in this book. For those clients that Ifailed to mention, please accept my heartfelt apologies for the over-sight.  Our  sincere  appreciation  is  extended  to  Greg  Lucas,  LarryO’Connor,  Greg  Lucas,  Gerald  Rush,  Ben  Campbell,  TomBareford,  Marsha  Jay,  Jill  Hill,  Chip  Myers,  Gilmour  Lake,  MikeO’Connor,  Randy  McNutt,  Shelby  Solomon,  Channing  Mitzell,Vicki  Mech  Hester,  Ed.  D.,  Jane  Ellis,  Don  Schenkel,  Dr.  JackEngledow, and Ed Engledow. 
I  would  be  remiss  if  I  didn’t  recognize  my  friend  Dr.  Ed.Mitchell, one of the best listeners and communicators I have everknown, for his insights into people. 
A special thanks to Russell P. Valentine, M.D., whose professionalcounsel  and  friendship  I  greatly  appreciate—and  this  generation’sanswer to Marcus Welby, M.D. Thanks, Russ, for helping me to behere to write this book.
I wish I could individually thank each of the marketing studentswho over the years have taken my consultative marketing and salesmanagement classes at the Kelley School of Business at Indiana Uni-versity. Not only have they participated in my classroom research
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projects and lent support to the Institute for Global Sales Studies,they  have  also  participated  in  my  “experimental  groups”  so  that  Icould test various “half-baked” consultative models in the hopes thatthese ideas would become “fully baked.” I will be forever grateful.Please continue to stay in touch.  
I would not have finished this book without my literary agent,Martha Jewett (www.marthajewett.com). Thanks, Martha, for yourimmense help and your solid writing and editorial consultation, aswell as your excellent literary representation. You are a true pro-fessional and no-nonsense person. Smith College should be proudof you.
Nor would this book have been published without the support ofmy  editor,  Ellen  Kadin,  at  AMACOM  Books.  Thanks,  Ellen,  forrecognizing  how  this  book  was  different  from  the  other  sales  andconsulting books. And to Christina McLaughlin for her fine editingskills  and  suggestions  that  made  this  book  better.  You  were  trulyimpressive, Christina.
Next to last, my special recognition to Frank and Bets Johnsonfor your love and support over the years. I love you both. Also, tothe quintessential family patriarch and matriarch, Joe and Bev Cegala,you  have  affected  me  more  than  you’ll  ever  know.  And  to  Jenny,Vince, and David, may you live your dreams.
Last, my heartfelt love goes out to my wonderful wife, Debbie,the best of the best, for her understanding and patience as I contin-ued to sand the rough edges of this book—often past the midnighthour. And, of course, my two lovely daughters, Andria and Erin. Ilove each of you more as the days pass.
Sales Trap n: An incorrect action or strategy undertakenby a salesperson or sales organization because of a mis-taken belief, fallacy, or partial truth. 
the 24 salestraps and howto avoid them
INTRODUCTION
what youthink youknow
SALES TRAPS result from three things: falla-cies,  mistaken  beliefs,  and  partial  truths.  In  selling,it’s  easy  to  believe  the  wrong  thing  and  as  a  conse-quence  do  the  wrong  thing.  A  fallacy  is  a  false  orerroneous idea that is the result of having the wronginformation or making the wrong inference. Mistakenbeliefs that cause people to fall into sales traps includecultural stereotypes and prejudices. For example, a mis-taken belief based upon a stereotype is that top sales-people need to be aggressive. Scientific research hasproved that a salesperson does not have to be aggres-sive to succeed. 
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Sales traps can also result from having the wrong information orfrom  applying  the  right  information  in  the  wrong  situation.  Forexample, your information about the competitive marketplace maybe outdated. You may not be aware of validated, effective sales strate-gies  or  the  latest  sales  research.  The  information  at  your  disposalmay be incomplete or unavailable. You may not bring back enoughinformation about client needs. In addition, a fallacy can also occurwhen you apply the correct information in the wrong circumstances.For example, a transactional sales strategy, such as increasing salesactivity, may be mistakenly chosen in a consultative sales situation.(See  Sales  Trap  20,  “If  You  Generate  Sales  Activity,  You’ll  CloseMore Sales.”) Having the wrong information leads to poor results forreasons that you can’t see or don’t acknowledge. 
You can also fall into a sales trap if you draw the wrong conclu-sion from the information at hand. You may have correct informa-tion or information that is good enough for your sales purpose, butmake the wrong inference from it, resulting in a fallacy. For exam-ple, Sales Trap 21, “Top Performers Are the Best Teachers,” is theresult of a fallacy. In this case, the inference is that because top per-formers are the best at what they do, they will be the best at teach-ing others what they do. But, in fact, top performers aren’t sure whythey are the best. Finally, partial truths can result in sales traps. Forexample,  it  is  often  said  that  salespeople  should  ask  questions  inorder to persuade someone to do something. Well, yes, but that isonly a partial truth. Salespeople should probe to understand the cus-tomer first, and try to persuade second.
WHY AVOID SALES TRAPS?The 24 sales traps are illustrations of ways in which salespeople, salesmanagers, consultants, and sales organizations do the wrong thing andhow  this  prevents  them  from  achieving  high-performance  results.Sales traps have serious consequences. For instance, one trap saysthat sales-skill training works. This is partially true; however, sales-
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skill training doesn’t work without coaching and reinforcement. Inlife, we can usually get by without holding or acting on the correctbelief or having the best information. But what if doing the wrongthing as a result of believing the wrong thing makes a big difference?In sales, doing the wrong thing can lead to a negative outcome withserious financial consequences. It may mean not making the sale. Itmay even mean losing a large client or a favorite customer. 
And what if the sales trap is so seductive or so deeply ingrainedin a salesperson’s thinking that it becomes an unconscious pattern,a bad habit? In the worst case, you may have fallen into a sales trapand not even realized it. How do you know where you need to makeimprovements if you think what you’re doing is just fine?
How do you know where to start?
FOCUS ON THE 20 PERCENT YOU DO WRONGThe 24 sales traps show you how to stop doing the things you do thatare wrong and replace them with what’s correct. You’ve all heard ofthe 80/20 rule. It’s used almost as commonly as Catch-22. If you’re asales manager, for example, you probably can identify the 20 percentof your accounts that produce 80 percent of your sales and the 20 per-cent of your sales reps that produce 80 percent of your sales revenues. 
THE  80/20  RULE. The  80/20  rule  says  that  a  selected  small  fraction  interms of number almost always accounts for a large fraction in termsof effect. If you can identify which 20 percent produces the muchlarger effect, then you can take steps that focus on that 20 percentand  benefit  from  the  much  larger  effect  that  the  20  percent  pro-duces. It is not what sales and marketing people don’t know that is mostlikely to significantly hurt their performance; it is what they think theyknow that turns out to be either a partial truth, a fallacy, or a mistakenbelief that affects their results more.
WHICH 20 PERCENT IS WRONG? I can’t say with scientific certainty that 20percent  of  what  salespeople  do  is  wrong,  but  my  experience  in
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training  and  consulting  tells  me  that  the  80/20  rule  comes  close.Salespeople  do  the  right  thing  about  80  percent  of  the  time.  Butapproximately 20 percent of the time, they don’t. What’s more, mostsalespeople don’t even know what exactly they’re doing wrong. 
For  instance,  if  a  salesperson  believes  he  gets  too  many  objec-tions, he probably will want to study objection-handling techniques.But  one  research  finding  has  revealed  that  objections  are  oftensymptoms of a bigger problem, such as ineffective probing. In thiscase, the salesperson believes the problem is one thing (objections),when it is really another (probing). 
As  another  example,  many  salespeople  believe  that  open-endedquestions  are  more  effective  than  closed-ended  questions.  Thesesalespeople  don’t  know  that  it  isn’t  the  category  of  questions  thatmatters; the type of question within each category is more important.
SELECTION CRITERIA FOR SALES TRAPSNo one—including academics, consultants, and senior managers—is immune from sales traps. There may well be more than just 24 ofthem. The ones I’ve identified here meet the following two strin-gent criteria: 
1. The sales trap will have a large negative impact on businessresults  if  it  is  not  immediately  recognized  and  avoided.(Negative  results  include  financial  loss,  lack  of  customerloyalty  and  retention,  and  strategic  market  competitive-ness issues.)
2. There is reliable published or field research with which torefute the mistaken beliefs, fallacies, or partial truths inher-ent in the sales trap. 
If there wasn’t sound evidence to prove that a belief was a sales
trap, I didn’t include it. 
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BENEFITS OF AVOIDING THE 24 SALES TRAPS. If you avoid the 24 sales traps andexecute